How To Start A Candle Business From Home In 10 Steps
Summary
TLDRIn this video, Erica from Memory Box Candle Co. celebrates four years in business and announces the upcoming release of her candle business eBook. She shares a detailed 10-step guide for starting a candle business, covering key areas such as making or outsourcing candles, building a brand, setting prices, securing a business name, handling legalities, and marketing strategies. Erica emphasizes the importance of product photography, shipping logistics, and setting clear goals. Her insights and encouragement offer practical advice for aspiring candle entrepreneurs, helping them take actionable steps towards success.
Takeaways
- đ Memory Box Candle Co. is celebrating four years in business since launching on March 30, 2020.
- đ The owner is finalizing an eBook on how to start a candle business from home, compiling knowledge from four years of experience.
- đŻïž Step 1 to starting a candle business: Decide whether to make candles yourself or hire a manufacturer, considering space, labor, and your enjoyment of the process.
- đ„ Step 2: Define your brand story and target market. This helps tailor your product to a specific customer base and build a stronger connection with them.
- đ Step 3: Secure your brand name by registering a domain, Instagram handle, and Gmail account. Ensure the name is available for legal use.
- đ Step 4: Legal setupâregister as a sole proprietor or LLC, get a DBA, manage bookkeeping through software like QuickBooks, and keep track of inventory for tax purposes.
- đ° Step 5: Price your candles for profit. A recommended method is to multiply your cost of goods by four and add 10-20% to account for labor and potential discounts.
- đ Step 6: Decide on your sales platformâEtsy, Shopify, or local markets. Each offers different opportunities depending on your goals.
- đŠ Step 7: Learn how to ship your candles efficiently before listing them for sale. Ensure you charge accurate shipping fees and understand the process.
- đž Step 8: Invest in quality product photography to attract customers. Good lighting and professional images are crucial for making online sales.
Q & A
What milestone is Memory Box Candle Co celebrating?
-Memory Box Candle Co is celebrating four years in business, having launched on March 30th, 2020.
What upcoming product is the speaker working on?
-The speaker is finishing up an eBook on how to start a candle business from home, which will include her knowledge from the past four years in the candle business.
What is the first major decision to make when starting a candle business?
-The first major decision is whether you will make the candles yourself or hire a manufacturer to make them for you.
Why is understanding your brand story and target market crucial for a candle business?
-Understanding your brand story and target market helps you communicate effectively with your audience and tailor your products to a specific customer base, ensuring your brand is recognizable and appeals to the right people.
What steps should you take to secure your brand name?
-You should secure your domain name, Instagram handle, and Gmail account to ensure they are available. Additionally, itâs recommended to purchase your domain name even if you're not ready to launch a website yet.
What legal steps should you take when starting a candle business?
-You need to set up your business legally, which may include getting a DBA (Doing Business As) or forming an LLC. You should also keep track of your taxes and inventory, using software like QuickBooks for bookkeeping and Inventur for inventory management.
How should you determine your candle pricing?
-To determine pricing, multiply the cost of goods sold by four and add 10-20% to cover labor and allow for sales or discounts, ensuring a gross profit margin of about 75% or higher.
What are the different options for selling candles?
-You can sell candles online through platforms like Etsy or Shopify, at local markets, or a combination of both. It's important to have an online presence even if you focus on local sales.
Why is it important to know how to ship candles before listing them for sale?
-Understanding how to ship candles ensures that you charge the right shipping fees, keep shipping costs low, and know how to safely package and deliver your candles to avoid losing money or damaging products.
What is the importance of product photography for selling candles?
-Good product photography is crucial for attracting customers, especially online. Clear, well-lit images that capture the beauty of your product can make the difference between making a sale and not.
What marketing strategies are recommended for a candle business?
-Marketing can include sharing behind-the-scenes content, creating videos, telling your brand story, and engaging customers through social media and word-of-mouth. Consistently creating content helps keep your business in front of potential customers.
Why is setting goals important for a candle business?
-Setting goals helps you define the direction of your business, whether it's a part-time endeavor for extra income or something you want to grow into a full-time or multi-million-dollar company. Clear goals guide your actions and investment.
Outlines
đ Celebrating Business Milestones and Announcing a New Ebook
In the opening of the video, Erica celebrates four successful years of running Memory Box Candle Co., marking March 30th, 2020 as the company's launch date. She expresses excitement over this milestone and shares news about her upcoming 'How to Start a Candle Business from Home' ebook. Though the ebook is not available yet, she has a waitlist for early access and plans to update the video link for purchase if it's ready at a later date.
đŻïž How to Start a Candle Business: Decide to Make or Outsource
Erica introduces the topic of starting a candle business and outlines step one: deciding whether to make candles yourself or hire a manufacturer. She explains the physical demands, space requirements, and labor involved in making candles. Erica emphasizes the importance of enjoying the process if you choose to manufacture the candles yourself. For those who are more interested in the business side, outsourcing production may be a better option.
đ Defining Your Brand Story and Target Market
Erica stresses the importance of figuring out your brand story and target market before starting production. She shares her personal experience of focusing on product creation first and later finding her customer base, which she advises against. Erica explains that while candles may not solve a problem like other products, they can still cater to niche markets. She also highlights the significance of storytelling in handmade businesses, helping owners connect with customers on a personal level.
đ Securing Your Brand Name and Online Presence
Erica discusses the importance of securing your brand name across various platforms, including your domain, Gmail, and Instagram handle. She suggests checking for name availability early on and purchasing a domain through services like GoDaddy. Even if a website isnât ready yet, owning the domain is crucial for future use and protects your brand identity online.
âïž Legal Setup and Tracking Finances
Erica explains the legal requirements of starting a business, including whether to operate as a sole proprietor or form an LLC. She recommends getting a DBA (Doing Business As) to sell under your chosen business name legally. She also advises setting up QuickBooks for bookkeeping and Inventur for inventory management. These tools are vital for tracking income, expenses, and overall inventory value, ensuring accurate tax reporting at year-end.
đČ Pricing Your Candles for Profit
Pricing is a key element, and Erica suggests a simple formula: multiply your cost of goods by four, then add 10-20%. This method accounts for labor and provides room for sales and discounts. She emphasizes the importance of pricing for profitability, aiming for a 75% gross profit margin or higher. For those struggling with cost calculations, tools like Inventur can automate this process.
đïž Deciding Where to Sell Your Candles
Erica explores different sales channels for your candle business, from online marketplaces like Etsy and Shopify to local markets. She discusses the pros and cons of each, explaining that local markets provide a unique space to stand out in a crowded online marketplace. Regardless of where you start, Erica encourages having an online presenceâat least on Instagram or a basic websiteâfor repeat customers and wider exposure.
đŠ Preparing for Shipping Before Selling
Shipping can be a daunting task, especially when dealing with fragile products like candles. Erica advises taking time to learn about packaging and shipping methods before listing products for sale. She offers resources like a shipping playlist and course to help new business owners avoid mistakes and unnecessary costs. Knowing how to price and handle shipping efficiently is key to ensuring customer satisfaction and profitability.
đž Importance of Product Photography
Erica highlights the critical role of product photography in online sales. Good lighting and high-quality images are essential to capturing the beauty of your candles and convincing customers to make a purchase. If you're not skilled in photography, she recommends hiring a local product photographer, even on a budget. Investing in professional-looking photos can make the difference between getting a sale or being overlooked.
đą Marketing Your Candle Business
Marketing may seem intimidating, but Erica encourages business owners to get creative. She explains that everything you do to talk about your business is a form of marketing. From behind-the-scenes content to sharing your brand story or product insights, engaging customers is crucial. Word of mouth and online content both play important roles in keeping your brand visible and attracting new customers.
đŻ Setting Goals for Your Business
After launching, itâs important to set clear goals for your business. Erica advises evaluating whether your goal is to earn extra money, replace a full-time job, or build a larger company. Each goal requires different levels of time, energy, and investment. She encourages entrepreneurs to take action on their ideas and not let obstacles deter them, reminding viewers that most business owners face similar challenges.
đ©âđ§ Reflecting on Four Years in Business and Personal Growth
Erica wraps up the video by reflecting on her four years of running Memory Box Candle Co. She acknowledges the challenges and growth experienced during this journey, including becoming a mother. She expresses gratitude for the progress made and excitement for the future. Erica invites viewers to ask questions and subscribe to her channel for more business advice.
Mindmap
Keywords
đĄBrand Story
đĄTarget Market
đĄCost of Goods Sold (COGS)
đĄLegal Setup
đĄQuickBooks
đĄProduct Photography
đĄShipping Candles
đĄDBA (Doing Business As)
đĄEtsy
đĄMarketing
Highlights
Celebrating four years in business at Memory Box Candle Co.
Announcement of an upcoming ebook on how to start a candle business from home.
Step 1: Decide whether to make the candles yourself or hire a manufacturer.
Importance of determining your brand story and identifying your target market before creating the product.
Step 2: Secure your brand name across multiple platforms (domain, Instagram, Gmail).
Step 3: Legal setup â Ensure you have the necessary permits, insurance, and track financials using tools like QuickBooks and Inventur.
Step 4: Pricing strategy â Multiply your cost of goods by four and add 10â20% for labor and profit margin.
Recommendation to maintain at least a 75% gross profit margin.
Step 5: Decide on sales channels, such as Etsy, Shopify, or local markets.
Step 6: Know how to ship candles and familiarize yourself with the process before listing for sale.
Step 7: Invest in high-quality product photography for successful online sales.
Step 8: Market your business consistently using content that shares behind-the-scenes, personal stories, and brand-related messaging.
Step 9: Set business goals and determine whether your venture is part-time or full-scale.
Encouragement to take action and overcome the challenges of business, emphasizing persistence and passion.
Final message: Overcome obstacles and grow confidence by taking small steps towards business success.
Transcripts
before I start this video I just wanted
to make two announcements so the first
one is that we are celebrating four
years in business here at memory box
candle Co so March 30th of 2020 we
launched for business and I can't
believe that it's been four years so we
are celebrating that it's really
exciting and then I also just want to
let you know that I am at the tail end
of finishing up my candle business ebook
so it is a how to start a candle
business from home ebook and it's going
to include basically all of my knowledge
that I've compiled over the past four
years in business it's not available yet
but I do have a wait list so I will have
that down in the pinned comment below
and if you're seeing this at a later
date then it may be available and if so
I will change the link to uh have it be
the actual link available for purchase
so I just want to make those couple
announcements before we got into today's
video hello and welcome back to my
channel if you're new here my name is
Erica with memory box candle Co and I
make videos all about the Journey of
starting a candle business and today I'm
going to be talk about how to start a
candle business in 10 steps so let's go
ahead and get right into it step number
one determine if you are going to make
the candles or if you're going to hire a
manufacturer to make the candles for you
this is a big decision because making
the candles yourself requires a lot more
storage space working space a lot lot
more physical labor there's a lot more
involved that comes into the actual
process of making the candles not to
mention you must enjoy the process of
making candles if you're going to start
a candle business and you want to be
your own manufacturer you do have to
enjoy to some extent actually making the
candles yourself you do have to go
through the testing process testing
materials there's a lot that goes into
it it is a very rewarding process
especially when you get a final result
that you are pretty happy with but if
you are somebody who is wanting to start
a candle business but you care more
about the business side of things and
know that you would enjoy more of the
marketing and branding and that side of
things over actually making your candles
then you may want to hire somebody to
make the candles for you step number two
is figure out what your brand story is
and who your target market is going to
be this is something that I really wish
that I would have done in the beginning
when I was getting started with my
candle business I more or less made the
product and then tried to find the
customer base but really in a
traditional setting when you are trying
to validate the market with your product
idea you want to solve a problem so
you're trying to find your customer base
before you actually make your product
but since candles don't necessarily
solve a problem we're still able to kind
of tailor our product to a specific
niche market a specific kind of customer
and you really want to look into what
kind of customer would be wanting to
purchase your candle and this kind of
goes hand inand with your brand story
now your brand story is essentially just
how you communicate with your customer
on the overall messaging uh what matters
to you the most in your business and
just how you communicate yourself with
your customer so it's a form of
Storytelling in your business and it's
something that handmade business owners
has have a leg up over any other Big Box
store out there because we're really
able to connect one-on-one with our
customer and as I talked about in my
interview with Diana from Tara if you
want to check that out I will have it
linked above but we talked a lot about
branding and marketing in that video and
how important your brand story is so
Brand Story and target market can kind
of go hand in hand because you're really
trying to develop a brand that's going
to be recognizable and something that
you are going to know that you are
communicating to the Right audience and
you don't know that if you don't know
who you're selling to so make sure that
you really sit down and figure out what
matters to you in your business why
you're creating your candle business
what's the overall message theme you
know Niche whatever it is that you are
creating around this candle business and
make sure you know who you're actually
going to be selling your candles too
step number three secure your brand name
this is going to be in the form of
getting your domain Instagram handle
Gmail account you want to make sure that
you were securing all of these and also
making sure that your brand name is not
taken and one of the ways that I do
recommend to check this is by getting
your Gmail domain and Instagram handle
that doesn't necessarily mean that it's
not already taken or registered but it's
a pretty good indication of it
specifically because of the fact that
most people that are registering for
businesses they will utilize and take
these names so they're available it may
be a higher probability that they are an
available business name and something
like a domain you're going to want to
get right away once you realize that yes
this is the brand name that I want to go
with you should go on to something like
godaddy.com and purchase a domain name
you don't actually have to have a
website yet in order to purchase a
domain name you can have it available
for you for when you have your own
website and you're able to just easily
get it transferred over and be able to
use it at a later date step number four
is your legal setup so you want to make
sure that you are legally sound as you
are getting started with this business
so whether or not you're going to want
to get started as just a soulle
proprietor you're going to want to get a
DBA so that you're legally allowed to
sell your candles under a different name
than your birth name you may also want
to look into Gideon LLC a little bit
later on if that's something that you're
going to want to do and actually form
that business entity
and then you also want to make sure that
you are keeping track of things for
taxes so the two softwares that I
utilize for that is QuickBooks so
QuickBooks is for bookkeeping this is
going to keep track of your income
coming in and then also your business
expenses this is going to be very
necessary as you are growing in your
business especially since taxes can be
just you know kind of something that is
very intimidating for a lot of people
and then when you throw in the business
side of it it just kind of makes things
a little bit more complicated I've been
using QuickBook since the beginning and
I really like it it's helped me stay
very organized with my bookkeeping and
then also inventur for inventory
management so this is not only just so
you can actually visually see what you
have and what you're getting low on but
you also need to make sure that you're
keeping a tally of your overall
inventory value how much leftover
inventory is left over at the end of the
year because you also need that for tax
purpose purposes as well every inventory
based business has to keep a tally on
their total inventory value to hand over
to their tax professional at the end of
the year so this part right here you
don't have to feel like you need to do
everything all at once but as you are
getting started with it if you are not
wanting to form something like an LLC or
a separate business entity then you do
need to look into getting a DBA which is
a doing business as so you're able to
sell legally under whatever Candle
company name that you have chosen for
your business and then I also recommend
to get a sellers permit and business
insurance so those three things you
definitely want to do as you are getting
started step number three determine your
prices now pricing is something that is
very unique and individual to every
business but what I recommend that you
do when you are trying to figure out how
much to charge for your candles is take
your cost of goods price so cost of
goods sold is how much it actually cost
you to make one of your candles and then
multiply that number by four and add on
anywhere from 10 to 20% I'm not somebody
who's going to sit there and try to
calculate exactly how much labor is and
all that kind of stuff exactly adding on
every single fee that the web H hosting
platform is going to to take I just keep
it very simple do cost of goods times 4
and then add on 10 to 20% and that to me
accounts for my labor and also gives me
a little bit of wiggle room when it
comes to actually running sales and
discounts and all that kind of stuff on
my products and pricing is something
that is super important because you want
to make sure that you are pricing for
profit so you want to make sure that
you're getting a pretty good gross
profit margin of about $75 % gross
profit margin or higher to make sure
that this business is actually going to
be worth it for you and you're going to
be able to grow at a good rate and get a
good rate of return coming in with your
business and if you have no idea how to
calculate your own cost of goods because
there is a bit of math involved with
that inventor actually does that
automatically for you so I recommend
inventor for multiple different reasons
but specifically that definitely is a
very big bonus step number six decide
where you want to sell your candles so
you can sell your candles on a
Marketplace like Etsy you can go on your
own website uh through a web hosting
platform like Shopify which is what we
do actually we did move back to Etsy as
well so we sell on both of them but you
can just choose one or the other when
you're getting started and then there's
also the option of not doing anything
online and you can sell just at local
markets so you really have to determine
what is going to work for you what makes
the most sense for you in your business
and of course every business is going to
be different on what is going to be the
best path for you so if you know that
you have weekends free and you would
love to just go and spend a couple
weekends a month out at local markets
meeting people I think word of mouth and
doing it that way is a great way to get
started and it kind of allows you to
have a little bit of space in what can
seem like a sea of competition ition
when you're online so I do think that
getting started locally is a really
really good idea but also I do recommend
that even if you do get started locally
to have a website of some kind or at
least an Instagram because you want to
make sure that these local clients and
customers are able to find you
repurchase from you so make sure you
have business cards with your email
Instagram and preferably a website even
if it is just an Etsy shop because Etsy
is easier to get started with than
Shopify um it's much easier to get your
shop up and running than it is an actual
website design but just make sure you
have something even if you're just
choosing the local option you want to
make sure that you have a way for these
customers to contact you and want to
order from you again step number seven
know how you're going to ship out your
candles before you list them for sale so
this is something that I know is a very
intimidating part of the business if
you've never shipped out something
before or you've never shipped out
something breakable it can be very
intimidating so just take the time to
learn and figure out exactly how you are
going to ship out your candles I have an
entire playlist when it comes to
shipping candles I also have an entire
course if you want a more indepth kind
of take your hand and walk you through
step by step um to make sure that you
are not wasting money and you know
exactly how to charge for shipping boxes
shipping labels all that kind of stuff
um but this is something that's really
important with when you are getting
started because you don't want to make
the mistake of either having no idea how
to ship your product so you're listing
things for sale you get a sale and then
you're scrambling thinking I don't even
know how to ship this I don't know if I
charge the right amount and then you
could be losing money in the long run
because you're not able to choose the
best shipping option charge the customer
accurately and then know yourself how to
actually get the cheapest best shipping
and keep keep the candle intact as it
gets to the customer so make sure that
you know how you're going to be shipping
your products before you actually list
them for sale step number eight product
photography this may be the most crucial
part of actually getting your first sale
online you have to really capture the
beauty of your product and you can't do
that with poor lighting um and just kind
of snapping a photo real fast on your
phone and putting it up on your website
I promise you you have to really invest
the time to either learn product
photography yourself or invest the money
to hire somebody for you it is worth a
few hundred I really highly recommend
that if you are somebody who either
doesn't have a you know nice camera or
you have no idea even where to start
with product photography go onto your
local Facebook group and post some
pictures of your products that you take
with your phone and say hey I'm looking
for a local product photographer um to
help you know take some pictures for me
and have a budget in mind so let's say
your budget is $200 and let them know
hey my budget's $200 what am I able to
get um I have even had somebody offer to
do it for free because they wanted to
build up their portfolio I still gave
them money I still tipped them for it
but it was a really good tradeoff and um
they were able to practice on product
photography have some you know photos
for their portfolio
and then I was able to get some
beautiful pictures so it can kind of be
a win-win in your community but do not
have this be something that's an
afterthought this has to be a very very
important part to you because it truly
is a matter of getting a sale and not
getting a sale step number nine is
Market your business now I know
Marketing in and of itself just like
shipping candles can seem very
intimidating when you've never done it
before and especially with marketing
because marketing and kind of the
corporate world has kind of meshed
together so you think that marketing has
to be something really structured and
really rigid but really it's kind of
this creative freedom everything that
you do when you're talking about your
business is a form of marketing so make
sure you're creating content behind the
scenes creating videos talking about
your products maybe you're opening up
the lid of your candles and smelling it
and describing what you're smelling
maybe you're talking about your brand
story the story
so that they don't forget about you
because the main thing is you don't want
people to forget about you you want to
tell as many people I mean word of mouth
has always been such a huge huge part of
every business and word travels fast and
this person tells this person who tells
this person and before you know it you
have three four five 10 new customers
that you technically didn't have to
acquire those customers it was just word
of mouth so there's so many different
ways to go about Marketing Online yes
you can run ads but you can also Al just
focus on you know just sharing as much
content as possible whether or not you
want to be the face of the brand or not
um that is completely up to you but
marketing can be as simple as just
posting about you know you picked up an
order from your local Candle supply
store or you're pouring a candle or you
know you're sharing the reasoning on why
you're making candles people want to
learn and know more about the maker and
know more about the person behind the
brand and even if you're not the one
making the candles you can still add in
content of you know the story behind the
scent names the reason why you chose the
kind of jars that you're using or even
just opening up your candle smelling it
and being able to describe how it smells
how it makes you feel all these things
that you can utilize to connect with
your audience marketing is a huge part
and something that I think can be an
afterthought for a lot of people
starting businesses and that was an
afterthought for me so that's why I'm
letting you know because you know all
these things are something that you
should be thinking about as you are
getting started with your business
because again like I said earlier it
really can be a make or break between
you just kind of sitting around waiting
for sales to happen versus you being
diligent taking action and doing the
things that are actually going to create
those sales and step number 10 is set
goals so you've launched your business
you're kind of gaining momentum with
with it you're creating Instagram
content maybe you're working on a
Shopify website while you have an Etsy
shop or you've done a few local markets
and you're really kind of getting the
hang of this whole business thing you
really need to kind of look at the big
picture of everything and think to
yourself okay where do I actually want
to take this is this just a part-time
thing I'm wanting to make some extra
money am I wanting to replace my
full-time job am I wanting to create
this into like a multi-million dollar
company all of these different things
will require different action and
different time energy and money into it
so once you've kind of gotten into it
and you may have already thought about
this from the beginning you know
thinking to yourself I just really want
it to be just some extra money I'm going
to have some fun with it and do some
markets and that's totally fine that's a
lot of fun and you may change your mind
and think to yourself okay well if I've
done markets then maybe I could do a
trade show and really get into wholesale
there's different Avenues within the
candle industry and being a candle
business owner and there's so much
opportunity out there that you can
really you know as Diana had said from
the interview if you really are
determined enough then you can make
space in this industry it's just a
matter of knowing your business knowing
your brand and knowing your goals and
really taking action if I could give you
any advice in this video it's take
action on your ideas take action on all
of these thoughts that are in your head
take action on these goals because
you're never going to actually see any
of this come to life if you don't take
action on it and there's going to be
obstacles and things that are
frustrating and unknown that are in your
way that seem like you don't want to go
over it it's not a hurdle that you
actually want to climb over because it
just seems too big and too complicated
and I don't understand any of it but I
promise that 99.9% of business owners
have been where you are I definitely
have felt that way that there have been
times and things that have been kind of
in my path that seemed like well I don't
even know if I want to do this because
it's hard and there's math involved and
I don't know anything about licensing
and the taxes and it can seem very
overwhelming so just take one thing at a
time and really start chipping away at
making this dream come true because if
you're passionate about it enough then
you will be able to overcome any of
these things that seem really
frustrating and daunting and I promise
the other side is filled with nothing
but confidence and I know that you can
do it so um I really hope that this
video helped you out I'm so excited to
be celebrating four years in business
today it has just been the craziest
roller coaster but I think that becoming
a mom and 7 months of that have been a
little crazier I'm not going to lie but
definitely the past four years in
business have been
just I can't believe how much has
changed and grown since four years ago
so I really hope you enjoyed today's
video if you have any questions feel
free to leave them down in the comment
section below also don't forget to
subscribe to the channel if you haven't
already and I will see you in my next
[Music]
video
[Music]
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