Who doesn’t like their home to smell nice and warm? With a candle, this feels to be achieved along with an aesthetic look. The candle business in India is rising rapidly. Since these candles are not expensive and also make good gift items, many people tend to purchase them without a second thought.
If you are passionate about wax, vics, and perfecting the ideal scents, candle business is the best choice for you. Follow these below steps, and you will be ab;e to set up a candle business in no time.
Before starting with the six golden steps to start your candle business, let us learn about the available funding options you can choose.
Financing Options for Candle Making Business
- MSME loan: The MSME loans are offered by the government for micro and small scale businesses to help with the financing. You can avail yourself of several benefits if you go through the MSME registration and get the MSME loan sanctioned. New businesses too can apply for this loan if they have finished six months of operating your startup. All you have to do is to fill the online application and submit the relevant documents. You will be notified within 24 hours about the approval or rejection of your loan.
- CGTMSE: The Credit Guarantee Fund Trust for Micro and Small Enterprises(CGTMSE) is a scheme that allows small-scale business owners to lend money. This trust fund charges you with a 1% p.a of the total amount sanctioned. You have to submit your business plan along with the project report to the banks offering this scheme to avoid the funds. You can request a term loan or working capital facilities as the loan.
Now that you are aware of your options for financing, go there the steps to start a candle-making business.
Perfect your craft
If a candle is good, it will smell amazing and make you feel cozy. Your customers want to buy candles that make them feel those feelings. However, if your candle products are bad, then it will be a disaster.
Instead of destressing a person, it can instead cause more stress. A candle could smell too smokey, floral, or sweet, and sometimes if the scent is weak, a candle will not smell at all.
Before starting your business, you need to go back to the basics and perfect in making an ideal candle that people want to burn. You should be able to prepare unique scents that will only be available in your business while taking good care of the candle’s burn time and scent concentration.
Create a business plan
Candle making is a very creative process and fun too. It might be boring for you to stop experimenting with scents and shapes to write a business plan. But having a business plan will help you throughout the life of your business.
Since devising a plan is a bit analytical, you might want to take the help of your partners or friends to make it right.
A good business plan should consist of several sections that will help you keep your business on the right track as well as help you show your business potential to various investors.
It is advised to have a business plan before you start a business. However, it is never too late to devise one if you have skipped this step before.
Choose a business name
Choosing an ideal name for your business will make your business plan come along smoother. Try to pick a business name that is catchy and quirky. Your business name should be unforgettable by your customers while also describing your business motive.
Make sure to double-check if the name you have chosen is available or already taken by some other competitors. The state secretary website can be visited to check the availability of names for your business.
You can even browse google to find if a particular trademark is taken or available. If the name you choose for your business is fortunately available, be quick in registering the name and reserving your business’s social media accounts.
Choose a business entity
Another advantage of writing a business plan is that you will remember to choose a business entity for your business. This is a vital part of starting your business, and you should not take it lightly.
Some of the common forms of business entities are general partnership, limited liability company, sole proprietorship, and corporation. Consult a business attorney or a tax expert if you are not able to decide on which entity to choose.
The type of entity you will choose directly affects the risk levels, raxes, and other important aspects. Hence pay extra attention to this step.
Define your products and services
In this step, understand what you are producing and selling. Figuring out the following questions will help you with the step:
- Are you just going to sell candles, or do you want to add essential oils and reed diffusers to your business?
- How will the customers be able to purchase your products?
- Which scent types will your candles have?
- How much will you charge for individual candles and packs?
- How much will the supply and production cost?
Get licenses, permits, and insurances
In this step, you need to ensure that your business is licensed and insured by the local and federal governments. If your business needs to have GST registration, make sure that you get it done as soon as possible.
The requirement for licensing will vary depending upon the location you choose for your business and the business structure. Sometimes, you might have to take multiple licenses for a single business.
Finally, decide on a location with less competition to start your business and start managing all your candle supplies. You can choose to get an MSME loan or take aid from the CGTMSE scheme based on your requirements.
The benefits for businesses with MSME registration are immense! Register your business under this scheme if you are eligible. If you have any queries about MSME registrations or GST registration, contact us today.
Frequently Asked Questions
A candle making business can be extremely profitable. Not only is there a low cost barrier to entry, but the candle making industry is expected to reach nearly $5 billion by 2026. There’s no shortage of customers buying candles they love.
How to start a candle business in 7 steps:
1: Perfect your craft
2: Create a business plan
3: Get the proper licenses, permits, and insurance
4: Decide where to sell your goods
5: Find small business funding
6: Find and manage candle supplies
7: Start marketing your candles
Candle making is best to earn 20-25 thousand a month. The demand for candles in India is also high due to the religious faith. As per the Indian Vedas, human life is last to deviate the good and bad.
Add fragrance oil at 185Fº and stir gently and thoroughly with the melted wax. This is the optimal temperature for the wax and fragrance to bind in order to provide the best scent throw. Let your candles cure before test burning them.