How to start a candle making business in Uganda. You have found the perfect business idea which is making candles, and now you are ready to take the next step.
Well, there is more to starting a candle making business than just thinking about it.
We have put together this simple guide to starting your candle making business. These steps will help you on starting your candle making business in Uganda.
1) Make a plan
You need a clear business plan on how you will start your candle making business in Uganda.
A business plan will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- Startup costs
- Who your target market will be
Costs involved in starting a candle making business in Uganda
As a startup, I advise you to start this business at your home and use some of your own utensils to produce candles.
However, you can still buy a Candle Starter’s kit at many online stores including Uglow.
The Candle kit contains:
- Paraffin, gel, soy, beeswax or other wax
- Wicks
- Jars, tins or other containers (but keep in mind that you won’t need containers if you’re solely marketing pillar candles)
- Essential oils for fragrance
- Colouring agents
- Packaging supplies
- Shipping costs of raw products in and finished products out
Other costs will go into promoting your business, carrying out market research registering your business, renting a room to display your candles and paying insurance if you are going to put your business into insurance.
Who is the target market?
As you are starting your candle making business in Uganda, you need to have a clear picture of who your customers are or will be. Anyone who wants candles is your end customer.
Some individuals have pragmatic needs—such as illumination in the event of a power blackout—while others are looking for a sensory experience.
Other great customers include churches that use candles for the decoration of prayer offerings or retailers that want to add a dramatic effect to their showrooms.
Shop owners may also be your customers. They can buy from you in bulk and resell. These will include store owners in your local area or beyond.
You might meet such customers at arts and crafts trade shows.
If you want to meet more customers face to face, you should consider renting a booth in arts and crafts shows, trade shows, flea markets, festivals and fairs and related environments.
2) Make a research
Before investing time and money into this business, you need to first carry out research on this business. Factors you will look out for include among others the following;
- Your targeted market
- Profitability
- Challenges
- Competition
Your targeted Market
What is your market? Is there a market for your candles or there is no market? If it is there, where is it located? How much are your customers willing to pay you for your products?
Profitability
Is your business profitable? Are you likely to make money out of making candles?
Challenges
What challenges are involved in starting a candle making business in Uganda? What challenges affect candle makers?
Competition
Is there competition in the area where you are to start your business? If there is competition what will you do about it? What do they have that makes them stand apart?
By looking at these issues, you can start your business with a strong background and be well-equipped to make it in your new business.
3) Raise Capital
After researching your business and making a plan, you need capital to get it off the ground. Capital that is required to start a small candle making business ranges from 1M UGX to 4M UGX.
Like I already said, I encourage you to start this business at home first before either opening a store or an outlet.
You can raise capital from;
- Savings
- Friends and family
- Bank loan
- Government grant
- Investors
For more on raising capital to start your candle making business see this
4) Purchase the tools and equipment
Candle-making involves the use of tools and equipment. These include the following;
- Wax
- Paraffin
- Wicks
- Jars, tins or other containers (these are moulding equipment)
- Essential oils for fragrance
- Colouring agents
- Packaging supplies
Depending on your stage of candle making and your capital and also where you will be making candles from, you may not require all the above-mentioned tools and equipment.
If you are currently in Uganda, you can purchase all these tools online at Uglow and they will deliver this equipment to you.
Furthermore, constantly be on the lookout for raw material suppliers at the lowest possible cost for maximum profit margins on your sales.
Also, consider associated products or types of candles to expand your target audience.
5) Start production
After purchasing tools, you need to start producing candles. Start with a few candles at the start. 30 to 50 candles can be okay for the start.
If you have no idea about making candles but are interested in learning candle-making, see this article
6) Legalzie your business
You need to legalize your business in order to be allowed to operate in Uganda. You do this by registering your business and also getting a license.
The licence that this business needs most is the trading licence and you can get it from your local town council.
After operating for at least a month, you need to go and check out your town council offices and get a trading licence.
7) Make your business more profitable
Once you become adept at the basics of candle making, consider branching out in the types of products you offer.
For instance, you can increase cost and profit potential by learning how to mould or carve candles to any shape.
Or start marketing fancy oil lamps using liquid candles. Also, look at such associated sensory products as scented soaps and incense.
In some cases, you can learn how to make these additions to your growing product line, or find out where to buy them for resale.
If you have a studio with the necessary space, consider offering candle making classes.
In this endeavour, you might approach your local community centre or community college to see if they’d be interested in adding your class to their curriculum
8) Promote Your Business
Last but not least how to start a candle making business in Uganda is promoting your business.
You need to promote your business in order to attract more customers. You should fully utilise the power of social media.
Use social media platforms like Facebook, Whatsapp, and Twitter to promote your business to your customers.
Next is adding adverts on radios, TVs and in newspapers.
There is a big world of people on the internet.
By starting a website for your business, you will make your business international with people all over the world being able to buy from you.
Learn how to start a website for your candle making business.
Your Turn…
That is all that is required to start a candle making business in Uganda. One thing to note, starting any business is not an easy feat.
It involves pain, patience and persistence to make it while working for yourself.
What have you learnt most?