Starting to wonder...

[becky0404]

....if beginning a candle business is the right thing to do:confused: . With all the recent talk around here of people closing their businesses (some even very successful it seems) I just can't help but wonder if I should even begin.

I've been making candles for a long time, around two years. It's pretty much been a hobby, and I always thought that "someday" I would start selling. I've come to the point now where I think I'd like to start selling. I have people ask me for candles a lot and I've had a couple stores ask me if I could put candles in their store. These stores are owned by friends and aquaintances though. I just don't know what to do now.

One side of me would love to be creative and make my own candles and candle line, but also the other side of me is drawn to the aspect of just being a "rep/distributor" or a "consultant" for an already established candle company (who's business model is similar to a home party plan type of business...not partylite though:lipsrseal ).With my own business, I will be taking a lot of time physically making candles, which I do enjoy but I'm not sure if I will enjoy it once I HAVE to make them, kwim? I like the idea of being able to create the line, my own way. On the other hand, if I decide to become a distributor of sorts for an already established company, I don't have to worry about making the candles and can focus on the marketing of it (craft shows, etc.). Ooohh, it's such a tough decision.

I see all of you work so hard, get to where you have dreamed of getting, and then for one reason or another decide that it's not profitable enough. While I LOVE making candles, and I love candles in general, I also want to start a business and make money! I just don't know which way is better.

Any thoughts?

[Stella1952]

Becky, my first reaction is that if you have any doubts about going into business - keep candlemaking as a hobby. Making candles as a business is only half the story - the other half is the business aspect of inventory, marketing, pricing, selling, bookkeeping, advertising, hiring, firing, etc. It's a LOT of work that has nothing to do with candles! If you are not into all of that, do what you enjoy to the limits of your finances. Above all else - have FUN! Whether candlemaking is a hobby or a business, you MUST derive enjoyment from it to make it worthwhile.

[OverSoyed]

9 out of 10 businesses will fail there first year. It's a shocking statistic, but a real one.

If you are having doubts, do like Stella said and keep it a hobby. If you can perfect your product and sell to friends and family on a small scale, and pull in some extra cash... there's nothing wrong with that.

[cindym]

Insurance is key, if you are going to sell candles. It is getting tough. The economy is not great and the prices of supplies and shipping are being driven by oil prices. If you can pic up supplies etc... you can save a lot of money. I personally am no longer going to be selling candles to retail stores after this year. Also I have lost the love for candle making that I once had. Hoping that bringing it back to a hobby will make it more enjoyable for me. Good luck in whatever you decide.

[heirloomoriginals]

I am seriously considering what I want to do. I have been making candles for over 5 years, but trying to sell for 2 years. I live in a small town, so that doesn't help.

Gonna give a try at home parties this summer and fall and maybe try to get a wholesale account or two. I am also downsizing my lotions and washes from 8 to 4 ounce. I think I may go with straight 4 oz for everything except sanitizer and then go with 2 oz for that.

Everything keeps going up in price and it is getting tough.

Steph

[Abbiepql]

It's a hard decision and I hear it all the time for small business owners in organizations I belong to. What I think it boils down to is what you wish to do. Be a tech or a sales person. Unfortunatley there are few that can wear both hats well. I personally am NOT a sales person. I can maintain my sales contacts as I am personable but I can't sell my way out of a paper bag. I like making candles and the creative part. So... I pay in commissions and sales bonuses for others to sell for me, and it works. Another thing I have noticed is my target market and who I sell to has changed. I have found other avenues for my products besides those normal and oversaturated ones. I taped into the wedding industry and specialty private labeling areas a while back and they are coming around, keeping me busy in the "off season". Times like these you have to keep it close and get it right the first time, cuz you might not get another chance.

[SliverOfWax]

You don't say if your intent is to make candles your only source of income. Even remotely considering such a thing takes longer than 2 years of chandling. You're still very much a newbie.

In the interim, you can have both. Many, many people sell the results of hobbies. Not too many of those people give up their day jobs, though.

If you enjoy making them, make them and sell on a limited basis. Craft shows, to friends, a couple of wholesale accounts. IMO, you need to do at least a few years of that anyway. You have to grow gradually instead of plunging in head first and giving up everything else. If that's your intent, you'd better have a fine sugar-daddy.

I have no income other than what I generate, be it working a real job or selling candles and B&B. No sugar-daddy or rich relatives here. I wouldn't have it any other way. No way would I consider chucking my job for only selling what I make. That would take all the fun out of it.

I tell my customers it's a hobby that got out of control. And that's the way I intend to keep it.

If you expect your candles to pay the mortgage, all the bills, keep you in the style of living to which you're accustomed, you're in for a very rude awakening and a lot of sleepless nights.

[SliverOfWax]

....

On the other hand, if I decide to become a distributor of sorts for an already established company, I don't have to worry about making the candles and can focus on the marketing of it (craft shows, etc.). Ooohh, it's such a tough decision.

And by the way, any craft show worth the powder it would take to blow it to hell would NEVER, EVER let you sell something made by an established "other company". The whole purpose of the word "craft" is for you to sell what YOU make. Good craft shows don't allow the resale of commercial products. It seems like you might need to sit down and rethink the whole thing.

[roxi4112000]

I have to agree with oversoyed, theres nothing wrong with just selling to a few friends and family and making a little cash. I have been making candles for 4 years and selling for 2 and I started out with family and friends now I sell mostly in the falls at craft shows and to a few places around here, but I dont make enough to be and entire income, I would start small see how you like and if you do maybe book a small craft show and get a feel for it. Alot of people would love to start selling and make a ton of money doing it, but in reality its really hard work and can take years just to see a profit. Good Luck!

[coconut]

I have a lot of business experience, and I have learned it is always best to learn on someone else's dime. That said, if you become a distributor for someone else's product, you can learn the marketing and bookkeeping part of the business without tying up a lot of your own money for inventory and testing (assuming their startup fee is not too high). Since you can't decide, try selling someone else's candles for a while and see how it goes. Make your own for fun. Eventually you will figure out which works best for you. JMO. Coconut

[Jane42]

We have been selling for about two years. We loved candles and had always wanted to make them ourselves....and we hoped that maybe by the time we retired, we would have established a business that would add a little extra money to our retirement. We didn't want a "business" now...just wanted to sell to friends, do some home shows and craft shows.

After researching on these boards, we found that the general consesus was that we should have insurance in place before we sold any of our candles. That costs around $600 a year.

Some of the craft shows require we show a vendors liscense, so we registered and have a DBA - have a tax id and charge sales tax and pay quarterly.

My business partner spends hours keeping track of inventory, filing our sales tax info, etc.

We had been so overwhelmed the first couple of years this was the first year we wrote anything on our personal taxes re the business. This is the only problem my husband has had with this business....that we weren't writing off our expenses (losses - which, with all the testing that you do, adds up - along with the gas, use of the truck to go to shows, etc.)

The craft shows can be great...or they can stink. We have hauled hundereds of pounds of candles, tables, displays, etc. to a show just to turn around and haul them all back. It is back breaking work and not something we look forward to....lol

We just wanted to make candles.....and somehow we ended up totally overwhelmed by all the other aspects of owning a business.

At our last business meeting we looked at each other and said "Why didn't we just make jewelry???" LOL That is our joke that we use when we have just gotten back from a show and gotten everything back into the shop and we are trying to catch our breath....lol

Yes, we are rethinking the whole idea right now because of the increase in wax and gas. Rather than stocking candles in our 25-30 differents fragrances, we are going to concentrate on the Fall/Holiday scents, since that is when we do the bulk of our selling. Hopefully, the cases of wax we have now will get us through the season. We won't be looking for any extra people to host stop n shops this year. There were too many times we drove 50 miles and only had five people show up. We have two craft shows booked, and we have two or three stop n shops that we have done well with in the past, so those will be the only ones we will do.

We were hoping to make a little money, but now we are just happy if we can cover expenses and buy new product.

On the other hand, if you have experience in business, it may not be such a daunting experience. You would be able to concentrate more on the what you love the most...making candles!

I honestly cannot say whether we will continue or not. We love making candles, we love testing new scents and trying new things. That is the whole reason we got into the business. We just aren't sure we can afford it anymore....

[LynnS]

I haven't made money. I am fortunate to have 3 suppliers within 25 miles but still gas is getting high. :rolleyes2 I order on-line for some scents but most I get local.When I do get them on-line I don't do like I used to and get just a few bottles of scent. I buy larger bottles and most of the time get between 10-15 different scents and shipping isn't real bad. I won't be quitting because I have 1 faithful customer and do shows and meet many nice people. The many compliments on my candles makes me feel good.

I will stick it out but as you said there are many who are re-thinking the business owner responsiblities. The one thing I am doing this year is cutting out ALL of the real small shows.Just not worth 1 day and 1 was 2 days. Long hours and no money.People like the big outdoor shows in the fall and the small shows they skip. Most are late in the year and people are bummed out.

LynnS