What is a candle and wax melt business?
Candle and wax melt businesses are usually specialist businesses that focus on a specific type of wax based product. There are different types of candle and wax melt products, which makes them different from each other.
Although different candle makers will use the same base product of wax, many candle and wax melt businesses will differ completely from each other, with some focusing on more decorative pieces and others focusing on functional products.
We’ll dive into the specifics of setting up a candle and wax melt business, but our ultimate guide to starting a craft business may give you a broader overview if you’re interested in other crafts!
Is a candle and wax business profitable?
Yes, if you know what you’re doing, selling candles and wax melts can be an extremely lucrative business. Some candle and wax specialists are able to make their living solely off selling their products.
Making basic level candles and wax melts can start as a very low skill hobby, and many sellers have developed their skills to create unique and desirable products that differ from typical highstreet store products.
What type of candle and wax melt products sell the most?
Some of the most popular types of candle and wax melt products include:
- Designer fragrance wax melts
- Seasonal scented wax melts
- Multiple wick candles
- Hidden message candles
- Hidden jewellery candles
- Crackling wood fire candles
- Novelty and/or decorative candles
What equipment do you need for a candle and wax melt business?
Of course the main pieces of equipment you will need for a candle and wax melt business are wax, a wax melter, silicone moulds, candle jars and wicks.
Other pieces of equipment you may need include:
- A heat gun
- Metal mixing spatulas
- Measuring cups
- Wax scraper
Once you’ve nailed the basic equipment list you can then move on to getting decorative items, scented oils and dyes.
What are the legal requirements for a candle and wax melt business?
If you plan on starting a candle and wax melt business, you should ensure that you are fully insured before you start. The main reason you need insurance is so you are not held financially liable if a customer has an issue with your product.
Since fire hazard safety is of huge importance, having the appropriate insurance will ensure you are supported should an accident happen.
At CraftCover, we can provide your candle and wax melt business with specific candle and wax melt making and decorating insurance, which is perfect for small startups and larger, more established businesses.
There are other legalities that you need to consider when making home goods, and our blog on selling crafts legally could help you in more detail.
What’s included in candle and wax melt insurance?
Our candle and wax melt making policy includes the two main types of insurance that your business will need:
Public liability insurance covers your business against compensation costs should any damage or injury happen to a member of the public due to your business activities. The cost of a legal claim could be extremely damaging to your business if you’re not covered.
Product liability insurance covers the products that you produce, supply and sell. If a customer has an issue that is a direct result of your product and a claim is pursued, you could be held liable for any legal costs. With the correct insurance in place, you won’t need to worry about these expensive costs.
How to start a candle and wax melt business?
There are a few steps you should consider before you start up your candle and wax melt business. Whether you plan on selling in person or online, the following tips should help you get started.
Find a niche
The candle and wax melt industry is a very heavily saturated market, so it’s important to make your products stand out from the crowd. However, be sure to create products that people are actively searching for.
Once you’ve established which route you want to go down, you can then start looking at your customer base and determining what type of products they’d buy.
Before starting on any production, you should look at what your competitors are or aren’t doing. You can do this by looking over their product listings, social media and customer reviews.
You should also research how much their estimated production and shipping costs are.
Develop a business plan
At this point you should be considering where you will be selling your products, and estimate how much it will cost you to make your products.
This plan will help you to determine your expected yearly profit, and will give you some backing if you are planning on applying for a startup loan.
Create a brand
Next, you should consider building your brand. You may have already established your business name, but consider other things such as your colour palette, your mission statement and packaging.
Before you start putting your brand name on everything, make sure it isn’t already in use.
Again, before you even consider selling your products you should insure your business.
At CraftCover, we can provide fully comprehensive insurance policies that also include craft fair insurance if you plan on attending any craft events.
Create a product line
Once you’ve completed all the above steps, you can next move onto creating your first product line.
Don’t create too many initial pieces, you should ideally be aiming for a few staple products to initially draw your customers in. You can use online platforms like Instagram, TikTok and Folksy to boost your business and your initial products.