Wax, wicks, and brand identity: How to start a candle business

Hand-crafted candles are everywhere. They’re in gift stores, museum shops, restaurants, and your best friend’s kitchen. Whether you’re having a dinner party and need to set the mood or simply want to spruce up your office space, there’s a scent for every occasion. 

And it makes sense: Sales revenue for the candle-making business in the United States is set to reach $8 billion by the end of 2031, with a compound annual growth rate of 6.5%. Plus, creating a candle business doesn’t require much equipment or technical knowledge, has low start-up costs, and is easy to launch from home. 

Many candle business owners start making candles as a side project—like Kristen Schwiers and her husband, Chaz, of Charleston Candle Co.—but there’s more to it than wax and wicks. In fact, Kristen would advise new business owners to seek out guidance from experts. “We were really flying by the seat of our pants for a long time, and I wish we had found mentors as we started to scale,” she says. “I’d recommend seeking out advice or business coaches early and asking other entrepreneurs who have been in similar positions.”

Read on for a guide to starting a candle business, including tips from Kristen on building a sustainable candle brand. 

Define what sets your candles apart 

With so many candle options on the market, it’s important that your candles have a purpose or a story. Are you sharing scents that mean something to your family or your community? Do you specialize in a type of candle craftsmanship? Are you recycling empty wine bottles that would otherwise go to waste?

Kristen and Chaz had been selling a variety of items when their candles took off. Charleston Candle Co. now lights homes across the United States, and their business found traction when they started sharing their affection for their hometown with customers. “I named our candles after different places that we loved around Charleston and infused them with aspects of the Low Country that we loved, like magnolias and Spanish blossom,” she says. 

When thinking about how to distinguish your business from the competition, the power of a strong brand story cannot be overestimated. Define what makes your candles special, then infuse that into your brand identity. “Branding is huge,” says Kristen. “Make sure your story is cohesive and compelling.” 

Kristen often sees others in the candle business struggle with this: “It’s hard to identify with the brand when you don’t understand their message,” she explains. “Building a community by ensuring your story is easy to tell is important, and making sure your branding matches your messaging is a big deal.”

Do your research and put pen to paper  

Once you land on your core idea, it’s time to evaluate how your candle will fit into the current landscape. Market research can take many forms, including surveys, online research, focus groups, and analyzing existing data. Consider your potential customers, their preferences, and who your competitors might be. How can you fill any gaps?

Next, get to work on a business plan. This formal document is the foundation for building, managing, and growing your candle business. It’s also crucial for potential investors or lenders. In addition to that market research, your business plan should include an executive summary, your company description, core values, product description, financial plan, company structure, and marketing plan.

Your business plan should also include your name, an important but often daunting detail. When weighing what to name your candle business:

• Connect it to your “why”; this is where that brand identity comes in handy
• Make it legible and recognizable
• Do your research before committing and ensure all relevant digital real estate is available, including domain name, social handles, trademark, etc.
• Run it by friends and family for constructive feedback

A well-crafted business plan guides your initial steps but also serves as a reference point as your business grows, ensuring you stay focused when inevitable challenges pop up.

Cover all your legal bases

You’ll need to check a few legal boxes to conduct any kind of business, and though the requirements vary by state, there are four main categories: 

1. Register your business name. Once you land on a name, you’ll want to register it with your state and local governments.
2. Apply for a federal tax ID. Most of the time, this will be an Employee Identification Number (EIN), which you can apply for online and get right away. 
3. Check if you need a seller’s permit. Your state’s Department of Revenue will know if you need a seller’s permit to sell in person and/or online (this allows you to collect sales tax from customers). If your state doesn’t collect sales tax, you won’t need a permit.
4. Consider any candle-specific permits. This could include health and safety permits or fire-safety inspections, especially if you’re using a home kitchen for production.

Since candles are a fire hazard, you’ll also want to apply for insurance that offers general liability coverage (at least). Take the time to research your local fire codes and consult with a professional to make sure you’re covering your bases here.

Apply for small business funding 

Even though the candle-making business doesn’t require a lot of capital, most entrepreneurs need a little help getting started, whether that’s with a line of credit, business credit card, microloan, or a business grant. If you fall into that category and need some funding, there are quite a few options available for small businesses with a compelling business plan. 

Find suppliers that align with your values 

From wax and containers to fragrances and packing supplies, sourcing the right materials is as much about the items as the people behind the products. You’ll want to build strong partnerships that can scale with you as you grow. 

When searching for suppliers, Kristen explains that they’ve always been drawn to companies that are upfront about sustainability. They use glass, concrete, or tin vessels, which are all recyclable and reusable, and ethically source each of their ingredients. “There are so many products out there that have harmful chemicals and stronger scents,” she says. “There are ‘benefits’ to using ingredients that aren’t sustainable, so we need to re-educate customers on why our products are higher quality.” This could take shape on labels, in marketing, on the website, or all of the above. “We take care to explain why we use the products that we use—and why it’s better for customers too.”

Brand your business for the customers you want

A website with e-commerce is the digital home for your candle business. Make sure every decision you make ties back to your identity, from the colors you choose to the photos, descriptions, and more. “It all goes back to knowing what your brand and messaging is,” says Kristen. “My marketing philosophy is to dress for the part you want. If you want to exist in the luxury brand market, you’re going to have to look the part. If you’re more quirky and fun, find an aesthetic that matches that.”

Since designers can be expensive, Kristen recommends trying to find ones who are just starting out. “This gives them a chance to build their business and is more economical for you,” she says. “Find people willing to get creative with you so you can reach your goals together.”

If you plan on opening a brick-and-mortar store, consider how your marketing translates to that experience and maintain that consistency. “We were able to find a great space downtown and get a lot of foot traffic,” says Kristen. “So it’s been really nice to grow our brand that way and invite customers into our space.” They also build community by offering classes where customers can create their own custom candle scents. Hosting meetups and events is a great way to transform your space into a local hub that both drives foot traffic and cements your store’s reputation as a place to learn, engage, and belong. 

Get the word out and tap into the wholesale market

Kristen and Chaz have actually come to rely on their families to help market their candles. “When Chaz’s parents go into a store that might be a good fit to stock our candles, they simply ask them,” she says. They secured their first big wholesale buyer this way. “Family and friends spreading the word has been a really big draw for us,” she says. 

Another easy way to get in front of hundreds of thousands of independent wholesale retailers is to launch a Faire shop. With the tools available on Faire, you can make the most of your marketing efforts and increase B2B sales. “We started really small, as a side gig, and then we started getting wholesale accounts on Faire, which allowed us to keep growing,” says Kristen. 

Any entrepreneurial endeavor will be a challenge, but the candle industry tends to be more forgiving than others. By carefully considering and staying true to your brand identity, sourcing high-quality materials, and implementing effective marketing strategies, you can build a memorable brand that stands out. Start now and apply to sell on Faire.