The best approach to raise the ambiance in your home is with light and good aroma. Candles for the home’s interior let you offer both. They adorn your home with texture and color, and also produce unobtrusive lighting. Note that any mood or setting can be accommodated by their smells.
The candle industry is currently booming, and this is because candles are one of those goods that never go out of style, make thoughtful and good gifts for anyone, and add a distinctive touch to any type of home décor.
This explains the reason the global scented candles market size was estimated at USD 533.5 million in 2020 and is expected to increase to USD 543.6 million in the subsequent year. According to studies, an increase in the number of hotels, restaurants, spa centers, and religious institutions is responsible for the candle market’s expansion.
Steps on How to Start a Candle Business in Canada
Table of Contents
Conduct Market Research
The first step is to create market-based research that is consistent with your overarching goals and objectives. In this regard, you should look for information that will help you maximize your business, and also provide you with accurate data, regarding what your potential market will be looking for from a candle business; the designs and styles people will be willing to pay a premium for. Get information that would help you operate the business with less stress.
a. Who is the Target Market for Candle Business?
Make your target demographics as inclusive as possible, if you are considering starting a candle business. Religious institutions, lodges, business executives, socialites, students, immigrants, entrepreneurs, businesspeople, celebrities, military women, athletes, and (every adult) female and male within your business location should all be included.
b. Is Candle a Profitable Business in Canada?
Yes. The candle is a profitable business in Canada and even across the globe. According to market analysis, this industry is expected to expand at a compound annual growth rate. Have in mind that you can produce candles at home, it has a minimal initial cost, and it doesn’t need a lot of equipment or technical skills. Online candle promotion is so easy, resulting in few marketing expenses and high-profit margins.
c. Are There Existing Niches in the Industry?
There are no existing niches when it comes to the candle business, some candle manufacturers may decide to specialize in producing any of the candles listed below;
- Beeswax Candle
- Paraffin Wax Candle
- Soy Wax Candle
- Palm Wax Candle
- Liquid Wax Candle
- Bayberry Wax Candle
d. Who are the Major Competitors?
- Premier Candle Corporation
- The Kelowna Candle Factory
- Vences Handicrafts Unlimited
- Stardust Candle Corporation
- Country Affair Candle Co.
- Serendipity SOY Candle Factory and Marketplace
- Country Home Candle
- Soy Harvest Candles
- Yummi Candles ® Mississauga
- Village Craft & Candle – Candle Making Supply Store
- Hope Candle Ltd
- Rama Candles_ Candle Material Supply Inc.
- Milk Jar Candle Company
- East Coast Candles
- Voyageur Soap & Candle Co Ltd
- DMC Visions Inc
- Market Candle Company
- C & C Candle Company Inc
- Elora Candle Company
- Canvas Candle Company
- Port Moody Refillery
- Friday Faves Local Canadian Candle
e. Are There County or Province Regulations or Zoning Laws for Candle Businesses in Canada?
Yes, there are county regulations and zoning laws for candle businesses in Canada, especially if you choose to open a production factory, and players in this industry are expected to work with the existing regulations governing such business in the county or province where their business is domiciled.
f. Is There a Franchise for Candle Business in Canada?
No, there are no franchise opportunities for the candle business in Canada.
g. What Do You Need to Start a Candle business?
- A feasibility report
- Business and marketing plans
- Business licenses and permits
- A good catering facility
- Goods and services tax/harmonized sales tax
- Startup and working capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a candle business are;
Creative Candle Business Name ideas
- Laura Williams® Candle Production Company, Inc.
- Tine and Tyler® Candle Production Company, Inc.
- Zara and Zoe® Candle Production Company, Inc.
- Windsor Berries™ Candle Brands, Inc.
- Sweet Smell® Candle Production Company, Inc.
- Al Baroness® Candle Production Company, Inc.
- Lady Annie® Candle Production Company, Ltd
- Macron Martins® Candle Production Company, Ltd
- Pure Bliss® Candle Production Company, Inc.
- Purple Atmosphere® Candle Production Company, Inc.
- Elena Rosa® Candle Brand, Inc.
- Stacy McRib ™ Candle Brand, Ltd.
- Bridget Decoster™ Candle Production Company, Inc.
- Love Ends™ Candle Production Company, Ltd
- Yvonne Signature® Candle Production Company, Inc.
- Cynthia Borrow® Candle Production Company, Inc.
- Heaven’s Scent© Candle Production Company, Inc.
- Georgina Paulson™ Candle Production Company, Ltd
- Jill Noel™ Candle Production Company, Inc.
- Precious Collections® Candle Production Company, Inc.
Register Your Business
a. What Type of Business Structure is Best for the Candle Business in Canada?
There are different options when it comes to a candle business in Canada, but the corporation is the one most people in the industry considered best. This is because a corporation has limited liability—the owners are not liable for the debts or liabilities of the business.
Obtaining funding from investors or financial organizations is easy. Note that it is necessary to be incorporated, in order to transact business with governments or other companies, and business income can also be distributed in the form of dividends or salaries, allowing you to minimize your tax liability.
b. Steps to Form a Corporation in Canada
- Whether it is a federal or provincial/territorial incorporation, you should register your business.
- Contact the Canada Revenue Agency to open a corporate income tax account and obtain a federal business number (CRA).
- In other Canadian jurisdictions where you want to conduct business, register as an extra-provincial or extra-territorial corporation.
c. What Type of License is Needed to Open a Candle Business in Canada?
- General Business License
- Seller’s Permit
- Fire and Safety Permit (Fire certificates)
- Federal Export Licenses
- Provincial and Zonal Permits
- Signage Permit
- Provincial Occupational Licenses
- Operational State Facility Inspections (Building Permits)
d. What Type of Certification is Needed to Open a Candle Business in Canada?
You don’t need any certifications to open a candle business in Canada.
e. What Documents are Needed to Open a Candle Business in Canada?
These are some legal documents that are required if you want to run a candle business in Canada;
- Goods and Services Tax/Harmonized Sales Tax
- Council Permit
- Business and Liability Insurance
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
f. Do You Need a Trademark, Copyright, or Patent?
There may not be a need to file for trademark protection or intellectual property protection. The nature of the business makes it possible for you to run the company, with no need to take legal action against anyone who uses your intellectual property without your permission.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Candle Business?
The initial investment needed to launch a candle company can range from (CAD) $10,000 to more than (CAD) $100,000.
b. What are the Costs Involved in Starting a Candle Business?
- Business registration fees – (CAD) $750
- Legal expenses for obtaining licenses and permits – $3,300
- Marketing, branding, and promotions – $2,000
- Business consultant fee – $2,500
- Insurance – $2,400
- Rent/Lease – $35,000
- Operational cost (salaries of employees, payments of bills et al) – (CAD) $20,000
- Start-up inventory – $10,000
- Equipment – $35,000
- Website: $600.
c. What Factors Determine The Costs Of Opening A Candle Business in Canada?
- The size of the candle business
- The choice of location
- The required licenses and permits
- The type of candle business (production, wholesale or retail business)
- The cost of branding, promotion, and marketing of the candle business
- The cost of furnishing and equipping the candle business – facility
- The cost of the insurance policy covers
- The cost of registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost of the purchase and customizing of uniforms, shoes, and caps for your employees.
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
Building a new facility is not required for a candle business, but if you have the necessary funding, it will benefit you. A facility that fits into your business aims and vision will be provided by building or reconstructing a facility for your candle business.
e. What are the Ongoing Expenses of a Candle Business?
- Rent and lease
- Supplies and inventory
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Maintenance of machines
- Salaries of employees
f. What is the Average Salary of your Staff?
- Chief Executive Office (President) – (CAD) $55,000
- Plant Manager – $38,000
- Merchandise Manager – $35,630
- Candle Designers – $35,000
- Accountant (Cashier) – $30,500
- Marketing and Sales Executives – $28,000
- Production Line Workers (Operators) – $28,100
- Customer Service Executive – $26,000
- Security Guard – $24,000. Per year.
g. How Do You Get Funding to Start a Candle Business in Canada?
- Personal savings
- Investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Pure Bliss™ Candle Production Company, Inc. is a registered candle business that will be located in an industrial area in Charlottetown, Prince Edward Island. We were successful in negotiating a long-term lease for a building in a prime location with the option of a long-term extension under agreeable terms and conditions.
In order to promote the simple transfer of raw materials, packaging materials, and final products, we deliberately chose a facility that has government clearance for the type of business we want to run and is easily accessible. We produce many types of candles in the company, with the aim of providing people and businesses who purchase our candles the chance to be a part of the success story, while also giving our consumers value for their money.
- Beeswax Candle
- Paraffin Wax Candle
- Soy Wax Candle
- Palm Wax Candle
- Liquid Wax Candle
- Bayberry Wax Candle
c. Mission Statement
Our mission is to establish a lucrative business endeavor; a candle company whose brand will be well-known throughout important cities in Canada, and across the globe.
Our vision is to be among the top 10 candle production brands in the world at large.
d. Goals and Objectives
The goals and objectives of a candle business are to design and produce candles for different purposes and demography.
e. Organizational Structure
- Chief Executive Office (President)
- Production Manager
- Merchandise Manager
- Candle Designers
- Accountant (Cashier)
- Marketing and Sales Executives
- Production Line Workers (Operators)
- Customer Services Executives
- Security Guard
a. SWOT Analysis
- Ideal location for a candle business
- Experienced and competent employees and management
- Access to finance from business partners
- Excellent customer testimonials
- Unique design and scents.
- Financial constraints
- A new business that will be competing with well-established candle business brands
- Inability to retain experienced and qualified employees longer than desired.
- Increase people who want to use candles for different purposes
- Online market, services, technologies, and opening of new markets
- Increase in population within the target market areas.
- The arrival of a new candle business within our market space
- Unfavorable government policy and regulations
- Steady wage expenses and increasing prices of gas will reduce industry profitability
- Economic uncertainty
- Liability problems.
b. How Does Candle Business Make Money?
Candle production companies make money by selling different types of candles.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales and Advertising Strategies
- Place adverts on both print (newspapers, lifestyle, and magazines) and electronic media platforms
- Sponsor relevant community-based events/programs
- Leverage the internet and social media platforms like; Pinterest, Instagram, Facebook, Twitter, YouTube, Google + et al to promote your products
- Set billboards in strategic locations all around the city
- Distribute your fliers and handbills in target areas
- List your candle business in local directories/yellow pages
- Advertise your candle business on your official website, and employ strategies that will pull traffic to the site
- Position your Flexi banners at strategic positions where your business is located
- Ensure that all the staff members wear your branded shirts and that your vehicles are well branded with your company logo et al.
a. How Much Should You Charge for your Products?
The price of a candle depends on the type, size, and brand of the product.
b. How Much Profit Do Candle Business Owners Make a Year in Canada?
The report shows that the national average earnings for candle business owners are approximately (CAD) $55,000 per year.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the candle business
- The location candle business is covering
- The management style of the business
- The approach of the candle business
- The advertising and marketing strategies adopted by the candle business
- The number of years the candle factory is in the business.
d. What is the Profit Margin of a Candle (Product) Business?
The candle industry’s profit margin is not usually fixed, it ranges from 20 percent to 70 percent. The income you will make would depend on the monthly sales, and the costs you have to pay running the firm.
e. What is the Sales Forecast?
- First Fiscal Year: (CAD) $240,000
- Second Fiscal Year: $350,000
- Third Fiscal Year: $480,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for a Candle Business?
- The demography of the location
- The demand for candles in the location
- The purchasing power of businesses and the residents of the location
- Accessibility of the location
- The number of candle production companies and candle wholesalers in the location
- The local laws and regulations in the community/state
- Traffic, parking, and security et al.
b. What City and Province are Best to Open a Candle Business in Canada?
- Kelowna, British Columbia
- Collingwood, Ontario
- Mount Royal, Quebec
- Charlottetown, Prince Edward Island
- Saskatoon, Saskatchewan
- Nova Scotia, Halifax Manitoba, Winnipeg
- Mississauga, Ontario
- Vancouver, British Columbia
- Surrey, British Columbia
- Hamilton, Ontario.
c. What Equipment is Needed to Operate a Candle Business?
- Candle wax container
- Heat-resistant glass jars
- Double boiler pot
- Silicone spatula
- Essential oils container
- Candle wicks
- Wick centering device or chopsticks
- Wick trimmer.
When hiring employees for a candle business, you should hire a competent chief executive officer (president), plant manager, merchandise manager, accountant (cashier), marketing and sales executives, plant workers, candle designers, and security guards.
Launch the Business Proper
No candle shop opens for business without first organizing a party, to formally introduce the enterprise. If you have a small budget, you may want to host a soft opening party. If not, you may want to host a grand opening celebration for everyone in the area your candle shop will be located. With proper launching, you will formally let residents of the city know that it is open for business.
a. What Makes a Candle Business Successful?
- Choose a good location and showroom facility to launch the business
- Make sure your candles are unique and the finishing is topnotch
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote the business
- Leverage all available online and offline platforms to promote your candle business.
b. What Happens During a Typical Day at a Candle Business?
- The production factory is open for the day’s work
- The facility is cleaned and arranged
- Factory swing into action (production of candles)
- Deliveries of orders are made
- Stocks are taken, and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Candle Business?
- Good candle design skills
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining and bidding skill
- Work experience in a candle business field
- Experience in managing people
- Experience in business administration.