Candle making is an old tradition, and the best part is that it is prevalent in every country. There is a lot of room for creativity and exportation of your products.
There are several advantages in starting a candle making business if it executed the right way.
Here are some basics that will help you set up a successful candle making business.
Understand The Industry
Similar to other industries, you will encounter professionals in this field also.
The first step is to gain insights from these experts before investing any more time, money or effort in this field. Besides, customers will be likely to buy your products if they know that you are an expert.
Ensure that you are up to date with the latest trends and news in the industry because it will help you avoid any loopholes. Additionally, study the laws related to the candle making business.
Know Your Candles
You will find several manufacturers for your raw materials, but only a handful of them will supply high-quality materials at a reasonable price.
However, you have to decide which kind of candles you will manufacture before purchasing anything. As a precautionary measure, begin with fewer candles and then increase the number gradually.
There are some candles you should be familiar with before manufacturing anything.
1. Regular wax candle – It is the standard type of candle seen in any household and sold at a nominal rate.
2. Scented candles – As the name suggests, these candles give off various aromas and are more expensive than regular wax candles.
3. Decorative candles – These candles are often custom-made, so they have unique designs and high prices.
4. Church candles – These candles have the highest-selling ratio and are used to pray.
Determine Your Market
The next step is to identify the right customers and satisfy them.
You will have to research the target market to know them. Make sure that your product will be appealing to them and stand out from the competitors.
During your market research, you might come across wholesalers who could help you sell your product in the market.
Make sure to stay in touch with the local retail owners and distributors, discuss with them and set a profit margin that benefits both of you.
If you plan on keeping the business on a small scale, then you can eliminate such mediators. It will bring you more profit and an additional benefit of customer feedback.
Get All The Permits and Licences
For a small scale, online candle making business, you only need to be a registered user on the website. You do not need any other permits or licenses other than that, but there are different requirements for a factory setup.
For an annual sales turnover of more than 20 lakhs, you require a GSTIN. A registration as LLP/ Private Limited Company or OPC is also needed, with a factory license and a fire safety license.
Finance Your Business
Candle making business does not require a lot of initial investment, so a loan may not be crucial. If you are opting for a loan, banks will provide you with a loan under the MSME act.
If you plan to do this business from home, you can get a government business loan at a 4% to 5% interest rate.
You should go for credit loans if you cannot take a bank loan, but they have a high-interest rate. Another way to finance your business is by using your savings, but a combination of sources is the most effective.
Marketing and expanding your business
Always try to find new ways to increase the output of your business and form new connections. Establish your business account on various online platforms to develop a following and conversions.
Do giveaways, participate in contests and keep your competitors in check to optimize your opportunities.
The internet is also a great place to receive customer feedback. As a final note, remember that handling inflammable substances is dangerous. Candle making is easy but a risky job.
A small mistake can cause a fire, incurring a loss of raw materials and property.
If you are working in a factory setting, then getting your business insured is a must. Ensure that you have taken this precautionary measure before it is too late.