How to Start a Home Based Candle Making
Business

If you love homemade candles, you may find yourself wondering how to start a home based candle making business. Entrepreneurship isn't easy, but it can offer many rewards to the ambitious crafter.

Do you want to turn your love of candle making into extra income?

General Considerations for How to Start a Home Based Candle Making Business

Before deciding to turn your candle making hobby into a business, there are a few factors you must consider.

Business Structure

In most cases, a home based candle making business is simply a sole proprietorship with no employees. This is not the only option available, however. If you wish to investigate other types of business structures, LoveToKnow Candles suggests visiting the following links:

• Home Based Business: Is it for Me?
• Choosing the Right Corporate Structure for Your Home Based Business
• 4 Things to Consider about Your Home Based Business Structure

Taxes

As the owner of a home based candle making business, you'll be responsible for reporting your income and expenses to the IRS. This is important because you must pay a self employment tax on the net profit of your business. If you have no previous experience with basic bookkeeping, you may wish to speak with a qualified accountant to see what records will be necessary and determine how starting your business will affect your family's tax liability.

An accountant can also offer advice on how to make sure your endeavor is not classified as a hobby by the IRS. To be considered a business, an activity needs to make a profit for three of five tax years and meet certain other eligibility criteria. You can find out more about this topic by visiting the IRS Web site.

Insurance

Business insurance is a necessity for any serious candle maker interested in running a profitable business. However, finding a company willing to cover your candle making supplies and equipment can be a challenge. To start your search, Candle Cauldron has a list of links to companies that other candle making business owners have used for their insurance needs.

Selling Candles at Craft Shows

In many cases, the best way to begin a home based candle making business is to simply start marketing your products at craft shows in your area. These shows are typically well attended by people who have a strong interest in buying handcrafted goods. Take along several different sizes, colors, and scents of candles, plus business cards and fliers to give to people who may be interested in buying more of your candles at a later date.

Selling Candles at Specialty Gift Shops

Specialty gift shops can be a wonderful market for selling handmade candles. If you have a shop like this in your community, ask the owner if you can display some of your candles. You'll need to offer him or her a percentage of your profit, but this can be a great way to get your business off the ground without the hassle of opening your own store.

Selling Candles Online

Craft shows and specialty gift shops provide a great market for someone interested in learning how to start a home based candle making business, but it can be difficult to generate a steady income in this manner. Therefore, it should come as no surprise that an increasing number of candle makers are turning to Internet sales to help boost their profits.

Simplicity is the key to successful Web site design. Once your Web site is up and running, you'll need to make regular updates to your inventory. To avoid the embarrassment of having a customer order a candle in a size or scent that's no longer available, limit your online product listing to just your most popular items and have a page where customers can contact you if they wish to place a custom order.

If you don't have the time or technical skill to set up your own personal business Web site, you may wish to investigate selling your candles online through Etsy or eBay. The listing fees may be well worth the extra convenience.

Additional Resources

For more tips on earning money from your candle making skills, visit LoveToKnow Business.

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