The candle making business, become so popular from the last few decades. It can also be considered a lucrative business. Nowadays, people feel good at enjoying the relaxing effect of burning scented candles. Its demand is increasing day by day. Peoples are using, candles for religious and illumination purposes but in recent times, hotel, restaurants, hospitals have started using it on regular basis. People are considering it as a perfect gift for their near and dear ones.
In terms of business, it is one of those handfuls of enterprise which require very less capital investment and gives a good return on investments. The consumers demand, for scented and decorative Candle Making create a business opportunity for the innovative start-up entrepreneurs.
As a report, the demand for wax globally reached an estimate of 10,000 million lbs, valued at over$ 2.1 billion in 2010, out of which demand for candles is above 50 percent; with an indication that waxes consumption is expected to grow at an average annual growth rate of 1 percent from 2010 to 2019.
In Asia Pacific region,” Indian market is lugging along brilliantly in this race of candles”.
From a research, it has been analyzed that, approximately the following investment would be required in Commencing Candle making business.
Benefits of this business
The following benefits can be enjoyed while initiating this business:
How to decide Profit Margin in this business
As, this business doesn’t, involve a lot of raw material and employees. While deciding the prices for the candle consider all expenses incurred on raw material, labor cost for making them and can also include advertisement cost if occurring.
If selling at a wholesale price, then just double the cost whereas, in case if you are selling on Shops you can take as high as you even 2.5 or 3.5 of your cost.
Things to be considered before commencing this business
Following points need to be decided before investing in this business:
Decide your product line: For starting this business, the first step is to decide the type of candles that you are going to make and sell. It would be better, to start with a limited product line. Taking this decision has to study the market demand, what kind of people, how is their lifestyle, how much they are ready to spend. While considering all the factors try to make a product that is unique.
Create a Business Plan: Applicant must frame a solid business plan and that goes hand in hand with lots of research. Full research will be required where to get bulk supplies including molds, dyes, candle base, wicks, etc. Require full information about the target market, three-year expense budget, project projection.
Set up of Workspace: Applicant has to finalize its workspace on the basis of its product requirement. In regard to this business, need a heat source that doesn’t rely on an open flame, room to set up an assembly process, adequate storage space for supplies, etc. Climate controlled environment for storing finished candles and last but not least a designated area for packaging.
Legally update– The most important things for the applicant are to update him from the point of law. Must have full knowledge regarding the laws prevailing in the city in respect of his business. Research which permits and the license is required before initiating this business
Selection of Supply Vendors: The applicant has to make a sound decision in selecting the supplier from where he is going to take his raw material. The decision should be taken while considering the points i.e. whether the supplier is able to provide within a required time frame as per the required quality.
Budget and Finance: The budget for the start-up candle business goes up and down. The investor has to take a wise decision either to invest from his saving, to take a loan, or to seek out the small investors who are ready for making the investment.
Target Market: Applicant has to do full research in which market he is going to sell his product. This decision depends upon the study of the market, demands of the consumer. The applicant has to take the decision either to sell the product in local markets, malls or to the wholesaler.
Discover your pitch: Applicant has to decide a line that covers the core of his business and able to bring value to customers.
Marketing and Promotion: Decision has to be taken on how to promote their product. Plan a market strategy for making a place in the market. Social media can also play a vital role in making it a success.
Raw Material for Candle Business: Decision has to be taken from where to buy raw material. On the basis of the decided product, what raw materials are required?
The process of making Candle
License and permits required for Candle making business
GST Registration: Under GST, it is mandatory for every business carrying out a taxable supply of goods or services and whose turnover exceeds the threshold limit to get register and obtain GST number.
PF Registration: If there are more than 20 employees in the company or manufacturing unit, then it is obligatory upon the unit management to obtain EPF registration.
ESI Registration: For all Businesses, it is mandatory in India to obtain Employee’s State Insurance (ESI) registration if they employ 10 or more employees.
Pollution Certificate: Every establishment before commencing its activity has to obtain No Objection Certificate from the State Pollution Control Board.
SSI Registration: it is wholly at the discretion of applicant either to get it registered itself as SSI unit or not. It is purely optional
Trademark Registration: In order to maintain the uniqueness of its product, it is mandatory for the applicant to get a trademark for its product. It will save him from the worry of copying the product or harming its market by competitors.
Insurance: It is mandatory to get its business insured in order to mitigate the risks and liabilities.
Business License: It is mandatory to obtain a permit from the concern local department for operating in the city.