So You Have an Idea...

You are thinking about starting a 

home based business.

Congratulations!

You are thinking in a way that many

people never will.

You are also considering one of the most

challenging things you may ever tackle.

However, this could be among your most

rewarding ventures as well.

I got started in the candle business nearly by

accident.  It was never my dream to make candles.

I'm really not that crafty.

In fact it was just a thought spoken out loud

to my next door neighbor who had retired

from work in a retirement community kitchen.

She loved to make candles just for fun.

Beverly would melt down ends of candles that 

she had burned as far as they would go.

I used to get a kick out of watching her do this.

So one day when she was talking about getting a 

part time job for something to do I just opened my 

big mouth and asked her if she would be interested in 

a candle business.  After all, I am a financially minded

person with the skills and abilities to keep her books 

and take care of the paperwork.  She could make the

candles.  We would be partners.

Well, this started a whole series of events.

First, we needed a name.
We played with this for a few days.

What stuck was The Good Neighbors Candle Co.

Not very creative if you stop to think about it.

We were neighbors and we were good neighbors
who wanted to make candles.

That was that.

But then came the paperwork.

Registering with the State of PA.

We got our tax id number right away.
As for the name,
You have to make sure that the name
you want is available.
You don't want to print up business
cards, get name recognition and then find out
that someone else already had that name registered.
Now, in our case, I verified that the name was
available but did not register it right away.
I don't recommend that you do what I did.
I would not have had a leg to stand on if someone
else had wanted this name before I got it done.

As for getting a tax identification number, I highly recommend it!

You do not want to be sitting at a craft show

worrying that agents might show up and confiscate

all of your inventory.  

It happens!

The second part of this caution is a reminder:

 keep a copy of your license 
with you 
at all

selling opportunities.

It is not enough to have

one...you must be able to show it.

This is true in our state...you'll have to check 

your state regulations to see what is required.

The paperwork is not fun.

But it is much more cost effective to have 

everything in order than it is to pay fines.

That is about all I will say now about legalities.
My main focus with this short series of posts
is to help you realize how  

important it is to 
have a plan, do something you love and 
be financially responsible.

When Beverly and I decided to make candles
that was just the tip of the iceberg.
Do you have any idea how many
candle types there are?

Also, we discovered how many thousands
of people are out there making candles.

We wanted ours to stand out in the mix.
Beverly showed me a teacup candle that she had
purchased several years before.
It was adorable.
We were convinced that we could do that.
We were also convinced that they would sell
like crazy.

Not so much.

We had a lot to learn.

For example:
Did you know that many people
are afraid of gel candles?
In some cases they have very good reason.
We found out in our research that not all
fragrance oils are gel safe.
There had been some candlemakers who did not
do research and had made unsafe candles.
They had been distributed widely causing
fires and what were referred to as explosions.

Please, if you are starting a business....
do the research!

Don't make it harder for those doing things properly.
It is hard enough to build a name for yourself
without having to deal with someone else's
sloppy work.

We also decided to explore the newest
trend in candlemaking...soy wax.
That had many upsides.
The only downside was that
we were so cutting edge that we had to
do a lot of customer education.
This is where the craft shows came
in handy.

Beverly as we set up at a Willow Valley Craft Show

Face to face with curious customers
we were given the opportunity to
explain all of the positive differences
between paraffin wax and soy wax.

By now, most people are aware of,
and love soy.
But, remember this was several
 years ago.

My next post on the subject should be

a bit more specific, however,
This gives you a little background into
how I came to own a
small business.

What do I want you to take away
from this post?

Starting out legally is very important

 and taking time to do research 

is not a waste of time.  It is potentially one of 

the most important things to being successful!

It may even make sense for you to 

seek out advice from a small business advisor 

in your area.  There are volunteer organizations 

who are more than happy to meet with you

and go over your business plan.

They can offer advice from their own 

experiences that can save you a boatload 

of time and money!

I'm thinking of making these posts a Thursday Feature

until I run out of material on the subject.

Feel free to leave your questions in the comments.

  I will answer those that I can.

Remember, I am not a lawyer and so 

will not address specific legal questions.

Thanks, Diane, for suggesting this.

It is challenging and fun to look back

at our successes and failures.

We've had both!

Anyone in business does.

Diane has just begun her own business making

head coverings.  

It is called Lovely Coverings and can be found at Etsy.

She has found so many creative

ways to construct her coverings.  

The feedback is very positive already.

Awesome!

Now this is truly a "niche" business.

One that just might be very successful.

Go for it, Diane!!!!

Becky K.