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written by | October 11, 2021

How to Set Up a Profitable Hand-Made Candle Business?

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Home-made candles have a charm of their own. Creative individuals make these in various forms, colours and even provide customised variants to buyers. Today you can find candles created per your zodiac sign! You have several categories of these. Some of these come in different coloured layers, while others are frosted scented, while some are even embellished with stardust. Unlike traditional candles, the handmade candle industry has ample scope to set up shop on a small or large scale. Some Indian actors specialise in the handmade candle making business, where a large volume of their finished products is exported. Candles are used almost everywhere. You can find them lit in religious places and on festive occasions. The sizes and shapes of handmade candles leave you asking for more. From square-shaped and vertical shapes to round and triangle-shaped ones, the makers of candles leave no stone unturned to cater to the needs of their diverse clients. Some of the categories made of essential oils are also used for meditation. Creative and innovatively designed handmade candles make for a great gift item. Several individuals have set up a candle making business at home. There are numerous candle business ideas, and individuals with a creative mind can turn this into a very profitable career.

Did you know?

Candles made of beeswax are one of the healthiest varieties as they give an extremely natural fragrance after being lit. They release negative ions into the surroundings and cleanse the ambience.

Key Considerations in Setting up a Candle Making Business at Home

Analyse Competition by Conducting Research

At the onset, you need to understand the market scenario, the varying demands of the people, the scope of business in that region and the probability of growth and expansion. It would involve:

  • Understanding the outlets to whom you will provide your handmade candles
  • A detailed list of all the existing competition
  • The categories of handmade candles are in demand.

Also Read: 50 Low Investment And Profitable Handicraft Business Ideas

Finances and Investments

You have to chart out a business plan per the finances you have on hand. 

You will have to make practical budgeting for the following:

  • The type of wax or varieties of wax you intend to use. The different varieties include soy, beeswax, gel-based wax, palm, granulated and paraffin wax
  • The various moulds you intend to use and the total number of moulds you require
  • The usage of the candles – will they be used as interior décor, as gift items, aromatherapy sessions or in lighting

It will give you an idea of the total investment you have to make. Most candle businesses operated from home require a minimum investment of at least ₹1.5 lakhs, and it could extend up to ₹1.10 lakhs depending upon your business plan.

Permissions and Licences

You would require the following licences:

  • Trade licence
  •  GST registration
  •  Ministry of Micro, Small & Medium Enterprises (MSME) registration
  •  A No Objection Certificate (NOC) by the Board of State Pollution Control
  •  You will also have to get your business registered under the brand name which you decide upon.
  •  Legal advice and assistance – your family lawyer and chartered accountant could furnish you with assistance in all necessary matters.
  • Ensure purchasing business insurance
  • Make sure that you hold the requisite number of permissions to help you promote and sell your candles.

Focused Selling Outlets

Individual entrepreneurs in this industry who are keen to promote and expand their scope of business need to have clarity on the points of sale, namely the various outlets. 

Some of the most prominent outlets include:

  1. Interior decor outlets – These outlets are known to promote such items that enhance interiors' overall look.
  2. Retail outlets dealing in beauty products – Several individuals are habituated to indulge in aromatic candle fragrances while bathing. Such commercial spaces would be helpful to spread the word faster.
  3. Commercial outlets which deal in objects of art and collector’s items – These retail stores sell high-end lighting items like chandeliers and centralised lamps, which require candles to enhance the aesthetics.
  4. Stores that sell aromatherapy products have their in-house centres, which offer various therapy massages and other services for which they require candles.
  5.  Religious places – Candles are part and parcel of most religious centres. Many individuals make offerings of candles in bulk, even if the candles are of premium quality. These places can be ideal for promoting your candle selling business in a big way as people prefer to buy from such outlets for personal reasons.
  6.  Online influencers – These individuals can help in aggressive marketing and brand promotion of your homemade candles.
  7. Households and retail outlets – Most households like stocking various types of candles. Some use them on special occasions like candle-light dinners, get-togethers, birthday celebrations, anniversary celebrations, while others like to enhance the aesthetic appearance of their interiors.
  8.  Tapping of rural regions – This segment of society is in constant need of the humble candle as they face many issues in the supply of electricity. You could employ someone to deliver these areas with a consistent supply of your homemade candles.

Premises

The minimum requirement for candle making business at home is about 500 sq ft. If you plan to establish your business on a larger scale, you would require premises of at least 1000 sq ft.

Understanding of Requisite Raw Materials

The different types of raw materials include – containers like jars, tins, bottles or other antique moulds, colouring agents, different types of wax, essential oils, appropriate packaging materials, different sizes of labels and coloured strings or decorative embellishments.

  •  Equipment – This includes the different types of machines:
  •  Grinder or mixer
  •  Moulding
  • Thread-cutting
  •  Semi and Fully automated machines for making the candles
  • Machine to create the candles manually
  • Distinct machine to heat the wax

Also Read: Get your Home Made Business started

Staff

Even if it is operational from the premises of a household, every business requires a minimum number of helpers. For candle selling business from home, you will require:

  • A minimum of two personnel should have the know-how to a certain extent.
  • One person for deliveries and purchase activities.
  • You will have to train them in the proper usage of the equipment, as well as to manage the processes like heating the wax etc.

Conclusion

The details of this article give you an insight into how candle businesses require a well-thought strategy to establish their commercial business.The right amount of research and understanding of the market scenario helps entrepreneurs chart out an annual and bi-annual business plan. 

Follow Khatabook for the latest updates, news blogs and articles related to micro, small and medium businesses(MSMEs), business tips, income tax, GST, salary and accounting.

FAQs

Q: Can a person start exports of candles?

Ans:

If you already have a well-established business, you can start exporting your candles. You will have to complete all the formalities related to the export policy of India.

Q: Is candle making at home and candle selling profitable?

Ans:

Yes.It is one of the most profitable ventures. A person can easily make a profit margin of 25 to 50% from the very start of the business.

Q: How does one start a candle making business at home?

Ans:

The process is very simple. A well-thought-out business plan, understanding of the market and your clientele, and obtaining the required authorisations will help you set up your business in a seamless manner. Proper marketing of the unique selling proposition of your candles to the right outlets and clients will help develop and expand your business very fast.

Q: Is candle making business at home a worthwhile opportunity?

Ans:

Absolutely. It is a wonderful business opportunity for candle makers as the investments are nominal, and there is nothing technical involved in the business.

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.