How to Creating a Candle Business

Once you have perfected the art of candle making, you may decide that it is time to go into business for yourself.  This article provides some practical tips for starting a business, as well as marketing strategies, and points of sale.

Tips and Tricks

Some important factors to consider before going onto business are planning, price points, and supplies.  Writing a business plan can be as easy as going online and using a template already provided, and may make the difference between being a successful hobbyist and being a profitable entrepreneur.  For help in this area reference our Business Planning article.  Another important consideration when going into business for yourself is proper pricing.  The temptation is often to price products low to ensure they are purchased, but this results in working too hard for little to no profit.  Don’t forget to consider not just the cost of supplies when pricing your candles, but also the time you have invested in creating them, and the cost of marketing your products and operating venues where you sell your products.  Finally, the costliest part of going into the craft creation business is generally the supplies.  Try to find wholesale options wherever possible and if that isn’t an option then try buying in bulk for lower prices.  One final factor to keep in mind- business owners must pay taxes.  If you decide to start selling at fairs and markets, make sure you either build in the cost of taxes or hold aside enough from your profits to cover your quarterly/annual taxes.

Marketing

Now that you have your business plan in place and you have located reasonably priced suppliers, it’s time to get the word out!  With the advent of computers marketing has become easier and cheaper than ever before.  One of the first things you may want to do is to create a story for yourself.  While the inspiration for your creations or business may seem silly to you, everyone loves a good story.  Write a quick paragraph about how you got started, and why you decided to turn your craft or hobby into a business.  Remember, sales is as much about the seller as it is about the product!  For free advertising, snap a couple (hundred) photos of your products and, armed with your story, create a social page for yourself.  Start a Facebook page for your company.  Add yourself to trip advisor sites by writing a review of your store, if you have one.  Create a LinkedIn page for your business, as well as a twitter account to provide free, immediate information and offers to your customers.  Don’t be afraid to give away some of your product to people in the community.  Give your candle creations to your child’s teacher as an end of the year gift, or donate your soap experiments to a local women’s shelter.  Include a business card with links to your Facebook and LinkedIn accounts so the recipients will know where to go for more.

Venues

You have found the ideal suppliers, prepared for taxes, and created your marketing campaign.  The only thing left is to sell your product.  There are a wide variety of venues available to sell your crafts, the most popular of which are discussed below.

Craft and Street Fairs are some of the most lucrative locations for hobbyists to sell their products.  For an in-depth review of the possibilities, see our Craft Fair Candles article.

Home Parties are well suited for the working hobbyist who wants to sell their product on weekends and weeknights.  These can be organized through online e-vite sites and can be open-ended to include friends of friends.  The cost is limited to party snacks and fruit punch, and the opportunities are wide open.  Consider printing price sheets with pictures so attendees can pass them along to others, and don’t forget contact information with website links!

School/Work If possible, place your products with some order forms or information sheets in the teacher work room or employee lounge of your organization.  If that’s not an option, consider sending a mass email to your contact list, with a few well placed photos, product information, and website links.  If nothing else, keep your products on your desk or in your workplace for others to admire.

Businesses often display artwork or handicrafts in their lobbies or on the walls.  Coffee shops and local restaurants often display consigned work.  Once you find a business that has a concentration in your niche, approach the owner and suggest placing your products in their establishment.

Flea Markets are an ideal place for the weekend vendor to sell their product.  Booths can be rented on a daily basis, often at the last minute.  This will serve as a good test market as well, as these markets tend to attract a host of shoppers with varying interests.

Internet Stores Starting your own website may be imminently rewarding, but if you aren’t prepared to put the time and money into the process of doing so, consider placing your products on already established sites like E-bay and Amazon.

Gift Shops Whether on the beach or in a hospital, these shops will often sell products from smaller vendors on a consignment basis.  While you won’t get paid up front, you also don’t have to do the work of actually selling the product, and the taxes are often covered by the shop, depending on your agreement.

Kiosks in the mall are known for offering everything from lotions and hair products to calendars and board games.  The holidays are a perfect time to consider renting out a kiosk, as the malls are full and people are looking for unique products for their loved ones.