How much does it cost to make candles? Here is the average startup cost for most candle manufacturing businesses.
Setting up a candle production business involves a lot of preparation.
Such preparation includes getting or setting aside the funding necessary to take off. Now, while it’s a well-known fact that sufficient funding can keep a business afloat, a question of how much is enough arises.
Candle Business Startup Costs
Here, we’ll be discussing the candle business.
How much will it take to start your own candle business? Is there a fixed amount for such undertaking? There’s no single or straightforward answer to this question.
To understand the startup costs involved, you’ll need to have every cost detail worked out.
This requires taking a look at different variables and is essential when writing a candle business plan.
How Are You Going to Finance Your Candle Business?
As part of understanding the startup costs required, you’ll need to figure out your financing options.
There are several when it comes to such. They include business grants, SBA microloans, equipment financing, business credit cards, or business lines of credit.
Which is most suitable for you? You’ll need to have worked out the expenses necessary before deciding what financing options you’ll explore.
So, how does one work out the expenses when you have no idea about what’s required? If you fall under this category, we’ve got you covered.
Start by Making a List of Equipment and Supplies
To know how much it will cost to start a candle business, you’ll need to have a comprehensive list of all equipment and supplies required.
Now, while most equipment will serve different candle types, you may require customized equipment for others. The candle container or mold is an example of such.
Some of the most basic equipment and supplies include wicks, coloring agents, wax (soy, paraffin, beeswax or gel, etc), and packaging supplies.
Others include candle containers, shipping supplies, pouring pot, a digital scale, and thermometers.
The thermometers you’ll need are varied.
Depending on what you want, you may choose to have a combination of a digital thermometer, candy thermometer, and dial thermometers. It’s all up to you.
You may also need a double boiler, a mason jar, pencil or pen, super glue, and essential oils.
The running cost for a candle business is one of the primary considerations you’ll have to make. This consists of the day-to-day expenses associated with running or operating your business.
In other words, the running cost is basically the amount of money set aside for buying and replenishing supplies.
The running cost also covers rent and wages. Without adequate running costs, your candle business will run aground. So, how much is enough?
Cost of Starting A Candle Business
When it comes to the cost of starting a candle business, you’ll need roughly about $1,000 to start one from home.
Here, it’s clear that the startup capital required for takeoff isn’t that significant for a small business being launched from your home.
It’s evident that by running your business from home, you won’t have to pay for renting a business space or outlet.
This cuts down significantly on your startup costs.
However, the dynamics are quite different when you want to launch your operations on a larger scale.
A Candle Business is Characterized by Low-Cost Entry
One of the cheapest businesses to set up is a candle business. It generally doesn’t need the fortune to set up.
While certain candle types may require pricier materials or supplies to make, it’s largely considered a low-cost business opportunity.
Most of your effort should be invested in marketing.
This is a crucial aspect of doing business that helps sell or advertise your candle business. Marketing takes up a significant part of your running costs and needs to be sustained and done professionally.
You may need to expend between $500 and $5,000 in marketing for a small-scale candle business. Marketing expenses tend to be higher at the onset. This is because you’ll need a more aggressive approach to penetrate your market.
Speaking of marketing, you need to use a catchy candle company name, as well as other online and offline advert options.
Online marketing strategies include advertising your candle business on social media platforms such as Instagram, Snapchat, and Pinterest in addition to email marketing.
What more? You can also organize contests and giveaways where participants get your candle products as prizes. This is a creative way to build a following and also establish a reputable brand.
For offline marketing, you’ll need to be on the ground in getting direct feedback from customers using your product. This is necessary for purposes of improvement.
A face-to-face meeting with customers will be a great idea.
Also, you want to establish wholesale opportunities by seeking and establishing partnerships with other businesses or wholesale buyers.
This is more about networking where all parties involved must have a clear benefit to serve as an incentive for their cooperation.
You’ll Need to Scale Up Eventually
Any serious business enterprise will have to show clear signs of growth.
Eventually, your candle business should build capacity to meet or serve more clients or cover a wider market. Such expansion will require injecting more capital into the business.
This may be obtained from a variety of sources including grants, loans, or crowdfunding among others. There’s never a definite amount to raise for such an endeavor.
Capital required could range from $20,000 to $200,000. It all depends on your existing scale of operation.
Of course, to be able to attract such funding, you’ll need to have the right structures in place. Your business plan plays a huge role in determining whether or not your candle business is considered viable.
A viable candle business opportunity will never lack funding opportunities.
However, you’ll need to put in the work necessary to make your business attractive.
Do you have an idea of how to run a candle business? Are there ways you can leverage the experience and expertise of others in setting up a successful candle business?
Candle Niche Matters
It’s common knowledge that there are lots of candle niches to consider. One of the strongest selling factors for candles is the scent or fragrance type.
You want to set your candle business apart from your competitors by creating unique fragrance blends. Investing in sophisticated scents is likely to cost you more.
This is a general idea of how much it will cost you to set up your own candle business.
We’ve discussed these costs relative to other factors that come into play.