How to Start a Candle Business in 2025: The Ultimate Cost Breakdown by a Million-Dollar Brand

Starting a candle business is an exciting journey, but one of the most common questions I get asked is, “How much does it really cost to start a candle business?” Not just some vague number you find online or in social media groups, but a real-world, detailed breakdown from someone who’s been in the trenches and built a million-dollar candle brand. In this comprehensive guide, I’ll take you through every phase of launching your candle company—from testing your first candles to setting up your business legally, building inventory, and finally launching your brand. Whether you want to start lean or go all-in, this article will help you plan smarter, spend wisely, and avoid costly mistakes.

My name is Sebastian Garza, co-founder of Gardset Beacon Candle Company and founder of Candle Business Pro. Over the years, I’ve helped hundreds of makers successfully navigate the candle business startup process. Today, I’m sharing the exact costs and strategies that worked for us and can work for you in 2025.

Understanding the True Cost to Start a Candle Business

When we help new candle makers plan their budgets inside Candle Business Pro, the majority of people start strong around the $1,500 mark. This amount includes everything from testing supplies, branding, initial inventory, to business entity setup. You can absolutely start leaner or invest more, but $1,500 is a solid foundation for a serious candle business.

For context, when we started, we went lean and our initial startup cost was just under $1,200—from testing to having a stocked product ready to sell. I’m breaking down these numbers in three key phases so you can decide where to splurge and where to save based on your business goals.

Phase 1: The Testing Phase – The Most Critical Investment

The testing phase is hands down the most important step in your candle business journey. Candle making is deceptively simple to start but tricky to master. Many people start with a $100 candle making kit, get excited, and then realize their candles don’t turn out as expected. If you’ve ever tried it, you know it can be a disaster at first—but that’s okay! The key is to keep going.

Before you start selling, you must perfect your product. You can’t just sell candles made from your beginner kit; they won’t meet quality standards or customer expectations. Testing is where you learn the science of candle making—wax types, wick sizes, fragrance loads, and vessel choices. It’s also where you confirm if you actually love candle making, because if you don’t, it’s better to find a business you’re passionate about.

Key Costs in the Testing Phase

• Wax: Start with just one wax. I recommend choosing a wax that’s widely available from multiple suppliers to avoid supply chain issues later. For us, we chose soy wax—specifically Golden Brands 464—because it’s popular, affordable (around $30 for 10 lbs), and consistent across suppliers.
• Wicks: Buy a sampler pack with 4-5 different sizes, each containing 12 wicks, for about $10 total. Testing wick sizes is essential to safety and burn quality. Use wick guides as a starting point but always test multiple sizes.
• Wick Stickers: These are adhesive discs that secure the wick to the bottom of the jar. You can get 100 wick stickers for about $5. Avoid using hot glue or Gorilla Glue; wick stickers are reliable if applied correctly—press firmly and pour wax at the right temperature to avoid loosening.
• Fragrance Oils: Fragrance oils add scent to your candles and are often where people overspend. For testing, avoid expensive oils ($50-$80 per pound). Instead, buy oils priced at $25 or less per pound. Quality differences at this stage are minimal and you’ll be using a lot of oil during testing. We still use some of our original $25 oils for best-selling candles today.
• Vessels: Start small with a 9 oz glass jar that holds a 7 oz candle. Smaller candles reduce supply costs while you test. These jars cost around $1.10-$1.20 each. Buy a couple dozen to get started.
• Tools: Essential tools include a pouring pitcher ($10) and a probe thermometer ($8-$10). Avoid infrared thermometers—they only measure surface temperatures. Instead, use a digital meat thermometer with a probe for accurate readings.
• Labels: If you use clear glass jars, you’ll need labels. Budget around $25 for initial labels from suppliers like OnlineLabels.com or Avery. Use paper templates taped to your vessels to test label size before ordering.

Additional tools like spatulas, wick centering clips (chip clips work great), and stirring spoons can be improvised from household items to keep costs low. Avoid expensive wick centering tools early on; they’re often impractical for scaling.

Total Estimated Cost for Testing Phase: $175 to $250

Phase 2: Website, Legal Setup, and Business Essentials

Once you’ve nailed your candle recipe, wax, wick, and fragrance, it’s time to get your business legally set up and create your selling platform. This phase is crucial because you’re preparing to sell your candles to the public.

Choosing Your Selling Platform

The two main options are Shopify and Etsy:

• Shopify: Costs about $39/month. Shopify is the gold standard for e-commerce and offers everything integrated—payment processing, inventory management, and customization. You can often get a trial or discounted first month through affiliate links. Shopify is ideal if you want to build a scalable brand.
• Etsy: Great for beginners to get started quickly and tap into an existing marketplace. Etsy charges a $0.20 listing fee per 6 months and takes a transaction fee on sales. Etsy fees can add up but are generally less expensive than wholesale or consignment fees. Many brands start on Etsy while building their own Shopify site.

We recommend starting with both platforms if possible: Etsy for traffic and Shopify for brand control.

Domain Name

Buying a domain name is essential to establish your brand online. Expect to pay about $15-$20 per year. Always choose a .com domain rather than alternatives like .net or .shop because customers instinctively type .com URLs.

Legal Business Setup

Registering your business entity (LLC, S-Corp, etc.) with your state costs between $25 and $100 depending on your location. You also need to apply for an EIN (Employer Identification Number) from the IRS, which is free.

Additionally, you must get a reseller license or sales tax permit to legally collect and remit sales tax. This varies by state but is usually free or low cost.

Business Insurance

While not legally required, business insurance is highly recommended to protect your assets and limit liability when selling candles. Expect to pay around $40-$50 per month. Insurance covers manufacturing and selling risks, giving you peace of mind.

Total Estimated Cost for Website & Legal Setup: Around $200

Phase 3: Building Your Inventory & Preparing to Launch

With your testing complete and business legally established, it’s time to build inventory for your launch. Many new candle makers ask, “How many candles do I need to start with?”

Our advice: start with six scents max. You don’t need ten or more—you want to keep it manageable and focused. Choose a mix of scents that cover a range of preferences, such as:

• Two citrus scents
• A spa-like scent
• A masculine scent
• A popular floral (avoid obscure ones like lilac; lavender is a better choice)
• A familiar, crowd-pleaser scent (e.g., eucalyptus, verbena, mint blend)

For each scent, make six candles to start. That’s 36 candles total. Making six at a time fits perfectly with common pouring pitcher sizes and batch methods.

Inventory Supplies and Cost Breakdown

• Wax, Wicks, Fragrance Oils, Vessels, Labels, Warning Stickers, Lids: Your cost of goods (COG) for 36 candles will be between $150 and $200. However, because you need to buy supplies in bulk (e.g., 45 lb boxes of wax), your upfront supply costs will be higher—expect to spend between $350 and $500 to stock these materials.
• Packaging and Shipping: Start small and don’t overbuy. Use 6x6x6 boxes for single candles (~$1-$2 each). For multiple candles, 8x8x6 or 10x10x6 boxes work well. Buy bubble wrap rolls from stores like Staples during sales (buy 2 get 1 free) to save money.

As you sell, focus on restocking your best sellers and avoid buying extra scent varieties until you know what sells. Starting with too many scents can tie up your money in slow-moving inventory.

Additional Tools and Software Worth Investing In

Design and Branding Tools

Canva Pro is an excellent, affordable tool for designing labels, social media graphics, and marketing materials. The annual plan costs around $100 or $10/month. We use Canva daily for label templates, flyers, and branding elements.

Inventory and Cost Tracking Software

We use Inventora to calculate cost of goods and manage inventory. It has a free tier and paid tiers depending on your product count. Alternatively, you can start with a simple spreadsheet to track expenses and ingredients.

Bookkeeping

QuickBooks is the industry standard but can be expensive and complicated if you’re not an accountant. Expect to pay $45-$50/month for basic plans. Alternatives like Wave offer free or lower-cost options. If you’re just starting, a well-organized spreadsheet combined with a business bank account and credit card may suffice.

Photography

Quality product photos are critical for a professional brand. Use your smartphone camera and learn product photography techniques via YouTube tutorials tailored to your phone model. A lightbox can help create clean, consistent images.

If you want professional photos but don’t want to spend thousands, consider bartering your products with photographers. Many Facebook groups and local photographers offer trade deals where you provide candles in exchange for photos.

Logo and Graphic Design

For logos, websites like 99 Designs or Upwork offer affordable freelance designers. Expect to spend around $99 for logo design contests or hire freelancers directly. Avoid very cheap services with poor quality. You can design your own labels using Canva once you have a professional logo.

Putting It All Together: Real Startup Costs Breakdown

1. Testing Phase: $175 to $250 for wax, wicks, fragrance, vessels, tools, and labels.
2. Website & Legal Setup: Around $200 for Shopify/Etsy, domain name, business registration, and insurance.
3. Inventory & Launch: $350 to $500 for initial bulk supplies and packaging.
4. Additional Expenses: Logo design ($100), Canva Pro ($10/month), bookkeeping software (optional).

Total estimated startup cost: Approximately $1,000 to $1,500

This matches our real experience launching Gardset Beacon Candle Company, where we invested just over $1,200 before making our first dollar in sales. Starting lean and focused is completely possible.

Final Tips for Starting Your Candle Business

• Focus on Evergreen Scents: Avoid chasing seasonal trends at the start. Build a foundation of classic, popular candles that sell year-round.
• Test Thoroughly: Don’t rush to market with untested products. Perfect your recipes and candle safety first.
• Keep Your Inventory Small: Start with 4-6 scents and 6 candles each. Scale up once you know what sells.
• Use Affordable Supplies Wisely: Buy bulk wax and oils to lower your cost per candle, but don’t overbuy unproven scents.
• Separate Business & Personal Finances: Open a business bank account and credit card to track expenses and maximize tax deductions.
• Invest in Branding & Photography: Good branding and clean photos build customer trust and justify your prices.
• Consider Both Etsy & Shopify: Etsy brings traffic while Shopify builds your brand. Use both if you can.
• Get Business Insurance: Protect yourself and your assets as soon as you start selling.

Frequently Asked Questions (FAQ)

How much money do I need to start a candle business?

You should budget around $1,000 to $1,500 to cover testing supplies, business setup, website, and initial inventory. You can start leaner but this range gives you a solid foundation.

What wax should I start with?

Choose one wax that is widely available. Soy wax, such as Golden Brands 464, is a popular, affordable choice that many customers prefer.

How many scents should I launch with?

Start with no more than six scents. This keeps your inventory manageable and helps you focus on best sellers.

Do I need business insurance to sell candles?

While not legally required, insurance is highly recommended to protect your business from liability.

Should I sell on Etsy or Shopify?

Both platforms have pros and cons. Etsy is great for beginner traffic, while Shopify gives you full control and scalability. Many brands use both.

Can I start candle making as a hobby and turn it into a business later?

Yes! Many candle makers start as hobbyists. Just be sure to test thoroughly and set up your business legally before selling to the public.

How do I price my candles?

Pricing should cover your cost of goods, labor, overhead, and desired profit margin. Aim for at least 5x your cost of goods for sustainable pricing. Consider episode 4 of our podcast for detailed pricing strategies.

Conclusion

Starting a candle business in 2025 is an achievable dream with the right planning and budgeting. By focusing on the essential phases of testing, legal setup, and inventory building, you can launch a professional, high-quality candle brand without overspending or getting overwhelmed.

Remember, the key to success is patience, focus, and passion. Don’t chase every shiny new scent or tool. Instead, build a solid foundation with quality products, smart branding, and a clear business plan. As you grow, reinvest in your best sellers and scale thoughtfully.

If you’re ready to dive deeper, consider joining communities like Candle Business Pro where you’ll find detailed courses, live workshops, and a supportive network of candle entrepreneurs.

Good luck on your candle business journey! I can’t wait to see you succeed.