Start A Home Fragrance Business

Why start a home fragrance business?

Selling wax melts and candles have long been a wonderful way to generate extra income from home. But, it doesn't have to stop there, it is entirely possible to scale your business and grow it into something quite substantial, something you could even sell in the future.

The global home fragrance market was valued at approximately $7.8 billion in 2023 and is expected to reach $16 billion by 2032, growing at a compound annual growth rate of around 5.5% from 2024 to 2032​ (Global Market Insights Inc.)​.

So, if you've been thinking about starting a candle or wax melt business, then now is the time.

My top 5 lessons on running a home fragrance business

1. Never stop marketing. No matter how well things seem to be going or how many orders you're receiving, always keep pushing and never take your foot off the gas. Building momentum in your marketing takes a lot of time and effort, and the last thing you want is to lose that momentum. This is a lesson we learned back in 2020. If we had continued to push forward and figured out how to manage our growth sooner, we would have expanded even faster.
   
   
2. Don't worry about copycats. It can be incredibly frustrating to see a competitor copy a product you've invested so much time, effort, and money into developing. However, this is part of the business landscape, and it's important to move past it. I used to find it really bothersome, but I soon realized that imitation is a form of flattery and a signal to keep innovating. You'll reach a point where your products are so unique that they can't be easily replicated by competitors. At Cosy Aromas, we created custom molds for our wax melts, designed to our specifications and stamped with our logo. We also developed custom packaging that is unique to us. Even though a competitor did copy our box idea, we took it in stride and continued to push forward. By staying creative and ahead of the curve, you'll always maintain an edge.
   
   
3. Don't be too informal with employees. It's essential to create a friendly atmosphere and foster a positive culture for your employees. However, it's equally important to ensure that every aspect of their employment is formalized. This includes contracts, holiday requests, sick leave, and notice periods. Remember, employees may not be as loyal as you think—they will ultimately look out for their own best interests, which is perfectly natural. Therefore, make sure you have formal processes in place and stay up to date with employment law.
   
   
4. Don't have all your eggs in one basket. It's important to diversify your revenue streams as quickly as possible within your business. If you have a website for online sales, consider adding a subscription box, opening an Etsy store, or securing wholesale clients. Relying on just one revenue stream can be risky; if something unexpected happens, it could cause financial stress. By spreading your income across multiple channels, you can make running your business much less stressful.
   
   
5. Always innovate. One of my favorite entrepreneurs, James Sinclair, always says, "If you don't innovate, you'll evaporate," and I completely agree. The companies that last and continue to grow are those that innovate their products and constantly create new and exciting offerings for their customers. If you make wax melts, think about how you can innovate them to better reflect your brand, make them more unique, or target a specific market. By continually innovating, you'll keep your customers coming back for more.

More on starting a home fragrance business

If you are seriously considering starting a candle and wax melt business, you must make sure you define a Unique Selling Proposition (USP). This will give you an advantage over your competition and help you define exactly what your products will be and who you will target.

This is the thing most people get wrong.

Typically, they will make wax melts and candles in the same shapes and fragrances as everyone else and then wonder why they can't sell anything.

Instead, carve yourself out a niche, and you'll be on to a winner.

A couple of examples of a USP in home fragrance:

1. Book-themed candles targeting book lovers.
2. Fragrances from around the world and target people who love travelling.
3. Pet-friendly wax melts for people who have animals.

Spend time finding your niche and have a more enjoyable business experience.

All articles related to starting a business

• How To Start A Candle Business In 4 Steps
• How To Start A Wax Melt Business
• Is Candle Making Profitable?
• How To Create A Business Budget
• What Is Your USP?
• I'd Do This If We Started Again From Zero
• Why Start A Candle Business From Home?
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