Step-by-Step Guide to Starting

Step-by-Step Guide to Starting a Scented Candle Business in Kenya

Estimated Starting Capital: Ksh 15,000

This guide provides actionable steps which includes; ✓Budgeting ✓Legal processes ✓Sourcing ✓Marketing strategies ✓ Financial planning

To help Sydney start and grow a successful scented candle business.

Step 1: Research the Market

Before diving in, Sydney needs to understand the scented candle market in Kenya.

Identify the Target Market:Define potential customer segments, such as eco-conscious buyers, luxury candle enthusiasts, or gift shoppers.

Competitor Analysis:Conduct a SWOT (Strengths, Weaknesses, Opportunities, Threats) analysis of existing brands to understand pricing, packaging, scent preferences, and customer feedback.

Find a Niche: To stand out, Sydney could explore eco-friendly packaging, candles made from natural ingredients like soy wax, or unique scents inspired by Kenyan herbs and flora, such as lemongrass or eucalyptus.

Tip: Use surveys or social media polls to validate niche ideas and understand consumer preferences.

Step 2: Legal and Licensing Requirements

To operate legally, Sydney must handle the necessary paperwork:

Choose a Business Structure: Decide whether to operate as a sole proprietorship (simpler for a small business) or a limited company (offers liability protection).

Obtain a Business Licence: Apply for a licence through the local county government or eCitizen.

Health and Safety Compliance: For scented candles, ensure all materials meet Kenyan safety standards, particularly for fragrances and additives.

Estimated Costs: Business registration: Ksh 1,000. Business licence: Ksh 5,000 (varies by county).

Tip: Visit the Kenya Bureau of Standards (KEBS) website to understand the safety requirements for products containing fragrances.

Step 3: Source Materials

Sydney will need high-quality materials to make scented candles. Consider the following:

Wax: Paraffin wax (cheap but non-eco-friendly) or soy wax (more eco-friendly).

5kg paraffin wax: Ksh 1,000; 5kg soy wax: Ksh 2,500.

Wicks: Cotton or wooden wicks. 100pcs: Ksh 494.

Essential Oils: For scent. 12 bottles: Ksh 617.

Dyes: Optional for adding colour to candles. 6 blocks: Ksh 870.

Containers: Heat-resistant candle jars. 6 jars: Ksh 499.

Tools: A wax pot (Ksh 1,937), thermometer, and wick glue (Ksh 1,660).

Total Estimated Material Costs: Ksh 7,500.

Supplier Options:

Local: DESBRO in Nairobi for bulk supplies.

Online: Jumia or Jiji for affordable material sourcing.

Or visit this Facebook page. https://www.facebook.com/si...

Tip: For eco-conscious buyers, consider sourcing natural essential oils and eco-friendly dyes to appeal to the niche market.

Step 4: Learn the Candle-Making Process

Mastering candle-making is key to ensuring quality products. Here’s a simplified process:

Melt the Wax:Use a wax pot and thermometer to heat the wax to the correct temperature.
Add Scents & Dyes:Stir in essential oils and dyes once the wax reaches the right temperature.
Prepare the Containers: Insert wicks into your candle jars.

4.Pour the Wax:Slowly pour the wax into the containers.

5.Let It Set:Allow the candles to cool and solidify for a few hours before trimming the wick.

For a detailed guide: Watch this YouTube tutorial https://youtu.be/ZQk9l2ttcI...

Step 5: Financial Planning

Sydney needs a financial plan to manage startup costs and track profitability.

Starting Capital: Ksh 15,000 for materials, tools, and setup.

Ongoing Costs:Include rent, utilities, packaging, and marketing.

Profit Example: Cost per candle:Ksh 100.

Selling price:Ksh 150.
Profit margin:50%.

Projected sales:Sell 1,000 candles at Ksh 150 each for a revenue of Ksh 150,000, with a profit of around Ksh 45,000 after material costs.

Tip: Set a portion of your profit aside for reinvestment (e.g., upgrading packaging, buying in bulk for discounts).

Step 6: Proper Storage

Candles need to be stored under ideal conditions to maintain their quality.

Temperature: Keep candles below 25°C to prevent melting or warping.

Humidity:Store them in airtight containers to avoid moisture damage.

Shelving:Use well-ventilated shelves to keep the candles safe from accidental damage.

Step 7: Packaging and Branding

Great packaging can set your product apart. Here’s how Sydney can make a lasting impression:

Design Labels:Reflect the brand’s identity (e.g., minimalist, eco-friendly).

Choose Packaging: Eco-friendly materials, such as recycled paper or biodegradable boxes, can appeal to green-conscious consumers.

Creative Naming: Name candles based on their scents (e.g., “Savannah Breeze” or “Dawn of Mara”).

Tip:Consider affordable online tools like Canva for designing labels and branding materials.

Step 8: Pricing

Sydney should carefully calculate product pricing to cover costs and ensure a healthy profit.

-Example Pricing Strategy:

Cost of materials (25kg wax): Ksh 4,500.

Selling price per candle: Ksh 150.

Profit: After producing 1,000 candles, the projected profit is around Ksh 45,000 after deducting material costs.

Tip: Keep your profit margin between 40%-50% to stay competitive while maintaining profitability.

Step 9: Distribution Channels

Sydney can distribute scented candles through both online and offline channels:

Online: Instagram, Facebook, Jumia, or Shopify.

Offline:Local markets, pop-up shops, or retail partnerships.

Tip: Develop a strong presence on social media by sharing behind-the-scenes content and customer testimonials to build credibility and trust.

Step 10: Marketing

A solid marketing strategy will help Sydney attract customers.

Social Media Marketing:Share engaging content, including product-making videos, customer testimonials, and special promotions.

Influencer Collaborations:Partner with local influencers to boost brand visibility.

Promotions: Offer discounts to encourage first-time buyers and build brand loyalty.

Step 11: Customer Service

Good customer service can make or break a small business:

Respond Quickly: Address customer inquiries and complaints promptly.
Collect Feedback: Use customer reviews and feedback to continually improve your products.
Clear Policies: Establish transparent return and exchange policies.

Step 12: Payment Methods

To cater to a variety of customers, Sydney should offer multiple payment options:

M-Pesa Till Number for mobile payments.

Paybill for bank transfers or recurring payments.

Tip: For online sales, consider integrating payment solutions like Pesapal or Flutterwave to accept card payments.

Step 13: Launch the Business

When Sydney is ready, they should plan a grand launch to build excitement:

Launch Event:Host an online event via Instagram Live or a physical launch at a local market.

Discounts: Offer special launch discounts to attract early customers.

Step 14: Grow the Business

Once the business is established, Sydney can look for growth opportunities:

Add Products:Introduce larger candles, new scents, or complementary products like diffusers or candle accessories.

Reinvest Profits:Use earnings to upgrade packaging or buy materials in bulk to lower costs.

Partnerships:Collaborate with local artisans, hotels, or event planners for custom orders or corporate clients.

This guide provides a solid foundation for Sydney to launch and grow a successful scented candle business in Kenya.

By paying close attention to financial planning, legal requirements, market research, and customer service, Sydney can create a business that stands out in a competitive market.

Recommended Resources:

Shopify's guide on candle making.

https://www.shopify.com/blo...

YouTube video tutorial on the candle-making process. https://m.youtube.com/watch...

#CandleChallenge #MESH5KCHALLENGE

0 0 0