How to Start a Candle Business

Market research is an essential step when starting any business. If you want to get your own candle business up and running, you’ll need to spend some time investigating the candle industry and working out where to position yourself.

The objective of your market research is to find out more about your potential customer base and competitors, a process which will leave you better prepared to set up your candle business. You’ll also need to decide what kind of candles you want to make – as well as working out where to sell them.

You can manage your market research in several ways. You can read about the candle industry online, as well as talk to customers and competitors – and maybe browse or even buy your competitors’ products.

When conducting market research, your two most important questions are:

1. Will there be demand for my candles?
2. Who is my target market, and how will I market my candles to them?

Once you have armed yourself with some market knowledge, you’ll need to decide on the specifics of your candle business. This means thinking about the size and style of your candles, as well as deciding on what kind of wax to use. If you want to make and sell scented candles, then consider which aromas would work for your candles. 

There is no one-size-fits-all approach to candle making, and there are many products which your candle businesses might focus on. These might include:

• scented candles
• wax melts
• decorative candles

You’re also going to need to work out what type of wax to use. There are many different options, ranging from the most commonly used paraffin wax to soy wax and beeswax. As part of your market research, you may decide to order a few different wax samples to test them out.

During the market research stage, you may also need to source a supplier for the various parts that make up a candle. This is more than just the wax and includes wicks, receptacles, labels, and packaging. Your wax supplier may be able to point you in the direction of dyes, scents, and wicks to go with your wax of choice.

Another thing to think about is what market you’ll be going after. Candles can fall into the following categories:

• Mass-market candles are the cheapest on the market, and they may have more basic scents and lower production quality as a result. These kinds of candles are generally cheaper to make and typically sell for a few pounds per unit. 
• Mid-market candles are made with higher-quality materials but still maintain a broad appeal. They may have slightly more adventurous scents than mass-market candles. One of these candles may cost around £8. 
• Luxury candles are premium products designed for a premium market. They make use of more luxurious scents and premium packaging, and these products generally tell a sophisticated brand story. Prices may rise to the £100 mark and above for the most expensive luxury candles. Other popular luxury candles are priced at around £60 to £80. 

The final thing to think about is where you’re going to sell your candles. 

Of course, many brick-and-mortar shops stock candles, including many independent stores. But candle businesses are also well suited to an ecommerce business model. You may decide to sell your candles on your own ecommerce website, or you may use an existing platform like Amazon as your online storefront. Your research should help you figure out how you can reach your target market.

You may also consider using a subscription service to reach your customers. With this business model, your customers will pay a recurring fee and in return they’ll receive a delivery of candles at set intervals. 

Creating a business plan and budget will help give you a better idea of exactly how much money you’re going to need to get your candle business up and running. 

Writing out a business plan will also help you work out if your ideas can realistically be turned into a business. A business plan will normally also be required if you apply for a start-up loan or business loan.

For a detailed guide read our article on how to write a business plan.

It may be possible to start a candle business for as little as £1,000. When starting your own candle business, the following costs will need to be considered:

• Equipment and materials. Think about everything you’ll need to make your own candles, ranging from wax and moulds to boilers, stirrers, oils, and wicks. These materials are all up-front costs and need to be factored into your candle business budget. 
• Overheads. If you’re going to run your candle business from home, this should keep your overheads down. But if you need a studio to make the candles or plan on opening your own shop to sell them in, your overheads are likely to be much higher.
• Website costs. If you plan to sell your candles online, you’ll need some sort of ecommerce store where customers can browse your wares and place their orders. While prices will be much higher if you hire a professional web designer, the cost of setting up and running your own ecommerce website could be as little as £260 per year. 
• Marketing costs. While traditional adverts may be a bit too expensive for a start up or side hustle, social media advertising may be a cheaper way to get eyes on your candle business. Facebook ads, for example, cost £0.78 per click on average in the UK. You may also consider paying influencers to promote your candles to their followers: a practice known as influencer marketing. This may cost as little as £125 per post for an influencer with fewer than 10,000 followers. Just bear in mind that many large companies have dedicated social media managers to handle this side of the business, so be wary of diving in without a solid plan. 
• Insurance. Assuming you have no employees, it is not a legal requirement to take out insurance for your candle business. However, it is generally still advisable to insure (and therefore protect) your business. Insurers offer specific protection for candlemakers, and while prices will vary depending on your circumstances, you can expect to pay between £50 and £100 per year to cover your candle business. 

For a more detailed guide, explore our five-step guide to creating a small business budget.

Before you sell your first candle, you need to think about what company structure will work best for you. Then it’ll be up to you to register your candle business. 

The easiest way to run a business by yourself is by operating as a sole trader. If you’re planning on running your candle business by yourself, then it could make sense to set up as a sole trader. All you need to do in this case is register for Self Assessment with HM Revenue & Customs (HMRC).

Your other options are to create a limited company or go into business as a general or limited liability partnership. Read our guide to registering your business to explore the pros and cons of each option.

Now is also a good time to think about licences, insurance, and the laws around running a candle business. Generally, you do not need a specific licence to sell candles in the UK. The exception is if you plan to sell your candles at a market stall – in which case you will need a market stall licence. Visit Gov.uk for more information and to apply. 

You will need to be aware of the strict laws around the safety and labelling of your candles. There are various warnings and documentation which you must put on your labels. For more information about classification, labelling, and packaging regulations (known as CLP regulation), visit the website of the Health and Safety Executive. 

The British Candlemakers Federation has also published specific guidance for anyone who wants to make and sell their own candles. Be sure to read, understand, and follow any laws or guidelines around product safety and labelling. 

Your candles will also be subject to the General Product Safety Regulations (2005). Among other things, these laws oblige you to make sure your products are safe before you place them on the market. Visit the Government website for more information. Your local Trading Standards office may also be able to help you understand the laws around candlemaking. 

As if that isn’t enough, you also need to bear in mind that your candles will be subject to the Consumer Rights Act 2015. This law obliges sellers to make sure their products are fit for purpose, accurately described to customers and of satisfactory quality. The Consumer Rights Act entitles customers to return any faulty products for a full refund up to 30 days after purchase or delivery. Between 30 days and six months, you have the option of offering to replace or repair the faulty goods before needing to offer a refund.

Although it’s not a legal requirement for a business with no employees, it’s a good idea to take out insurance for your candle business. 

Public liability insurance can protect you in your dealings with clients and members of the public. Specialised candlemaker insurance is also a good idea, given the various risks and requirements inherent to the candle industry. 

» MORE: Should I register as a sole trader or limited company?

Of course, you’re going to need some money to get your candle business going. If you’re planning to run a small-scale candle business from home – and only if you can afford it – then it may be possible to fund your business using your personal savings. However, you also have plenty of other funding options, from running a crowdfunding campaign to exploring start-up business loans. 

Our guide to funding a new business will shed some more light on your funding options.

Regardless of where it comes from, you will also need somewhere to put the funding for your candle business such as a business bank account. Remember that while sole traders can continue to use their personal bank account for business transactions (assuming the bank in question allows it), limited companies and partnerships are legally required to keep their personal and business finances separate. In this case, opening a business bank account is a must. 

Even if you are running your candle business as a sole trader, you may find it easier to keep business funds and transactions in a separate account.

Now’s the time to connect your candles with your customers and, hopefully, make your first sale. 

If you plan to set up your storefront on an existing ecommerce platform – like Amazon or Etsy – then make sure your profile showcases your candle business in the best possible light. List your products and write accurate descriptions so your customers know what to expect. 

If you have set up a dedicated website for your candle business, use photos and customer testimonials to showcase your products. Share links to this website on social media, and consider setting up dedicated social media accounts for your candle business. 

You can promote your business on social media through influencer marketing, paid advertising, or simply by posting about your products.

Selling your candles across multiple channels – including your own website, online shopping platforms, and directly on social media – will increase exposure for your business. This, in turn, may lead to more sales down the line. 

Meanwhile, if you plan on selling your candles in physical shops, invest some energy into cultivating good relationships with local stores which may end up stocking your products.