How To Start Your Own Candy Business Using These Tips

How To Start Your Own Candy Business

1. Research the Candy Production Industry

a.) An Inside Look at A Candy Making Business
b.) Expand Your Knowledge of the Candy Production Industry
c.) Choosing a Location for Your Candy Making Business
d.) What Type of Candy Making Business Will You Start?

2. Choose a Name for Your Candy Making Business

3. Legalizing Your Business

a.) Decide on a Legal Structure
b.) Get a Tax Id
c.) Local Permits and Regulations

4. Create Your Corporate ID
5. Candy Making Business Equipment
6. Estimating Your Start-up Cost
7. Writing a Candy Making Business Plan
8. Banking Setup
9. Get the Funding for Your Candy Making Business
10. Software Setup
11. Get Your Candy Making Business Insured
12. Candy Making Business Office Setup
13. Choosing Suppliers for Your Candy Making Business
14. Create an External Support Team
15. Hiring Employees

Followed by:

What To Consider Before Starting Your Candy Making Business
Candy Making Business Considerations
Candy Making Business Resources

This article will give you a lot of information about a business that makes candy. We’ll start with the steps you need to start and set up your company.

Next, we’ll look at considerations to help you decide whether a candy making business is right for you, and finally, we will look at some resources to help you start and run your business.

Let’s get started.

Steps tp Start Candy Business

Follow the steps below to start a candy making business

1. Research the Industry

When you establish your business, the research you do now will pay off, and you will benefit from it once your business is up and running because the more research you do now, the better your decisions will be.

If you want to get some good inside information, you’ll have to speak with qualified people already in the business. Let’s look at some methods to get information into the candy production industry.

a.) An Inside Look at A Candy Making Business

Look for candy businesses for sale and contact the owners. Tell them you are planning to start your own candy making business, but before you do, you’re looking into buying a business that’s already up and running.

Next, you’ll make a list of all the questions you have about starting and running a candy making operation.

When you meet with the owner, start off by talking about them and their experience with the business because this will start a conversation and get them to open up to you a little bit better. You can ask questions like the following:

What made you want to start a candy making business?
What do you like most about it?
What are the most pressing problems related to a candy making business?
If you had to start all over again, what would you do differently?
Do you have any regrets about owning and running this business?
What makes your business unique?
Etc.

As you can see, the above questions are more about the business owner than the business. So, even though you can pick up many tips from their answers, you have begun a conversation that will help you with the rest of your questions related to the business opportunity.

Now you can ask questions like the following:

How much money did your candy business earn last year?
How much of your revenue was profit?
What are your highest expenses?
Where were your biggest losses?
How much debt is owing on the business?
Etc.
Don’t forget to ask the questions on your list.

Now it’s time to ask questions related to information.

What advice would you give me if I were to start a new candy making business?
What are the things I should avoid in this type of business?
What is the best type of equipment I should purchase?
What are the things your customers want most but you could not provide?
What advice do you have about advertising for this type of business?
What advice can you give me about running this business?
Etc.

When looking at businesses for sale, you may find one that makes sense to purchase instead of starting your own. It may be the first one you see or the last one, or none of them. In any case, don’t make a final decision unless you go through this whole section.

The next step is to look for franchise opportunities related to the candy making business.

You’re going to do the same thing as above, only this time you’ll be contacting company representatives. During their presentation, they may already answer your questions. They speak to so many people regarding the opportunity that most questions have already been asked, and they have answers.

Now you have information from qualified people about the candy making business. You looked into businesses for sale and franchise opportunities. Let’s go to the next step.

Contact Established Candy Business Owners:

In this step, you will contact people who own candy making businesses that are not in your area, and the farther, the better because you don’t want to speak with anyone you will be in competition with.

Tell the business owner that you are thinking of starting your own candy making business and that you were wondering if they had the time to give you some advice.

Also, tell them you will not be competing with them, and your location is distant from theirs. You’ll also want to mention that you would be interested in staying in touch so that you can both share experiences and brainstorm new ideas.

Many will turn you down because they’ll see you as a threat, or they’re too busy, or they may even think that no one helped them, and why should they help you? In any case, it’s worth a try. This can turn into a great alliance for those who are open to the idea, where you can build a long-term relationship to brainstorm ideas and talk about the industry.

Interviews From Business Owners

The final step is to look for published interviews with candy making business owners.
There are thousands of interviews published online from people around the world. Search for those interviews related to the candy making process.

Look into every interview you find and take the time to read the lesson or view the available interviews. When someone is interviewed, what they have to say is important. This person may have spent their whole life in the candy making industry, and now they’re sharing some of their experiences with interested people.

So again, I have to stress how important this information is for someone willing to share their life experience, and all you have to do is take that information and use it.

Many of these people also have contact information within the interview. So for those interviews that stand out, you may want to contact these people just like in the previous step to ask for advice. Search Results Related to Interviews From Candy Making Business Owners.

For more on this method, see An Inside Look Into The Business You’re Considering.

b.) Expand Your Knowledge of the Industry

The more you know about the candy making industry, the better your decisions will be whether you’re managing your business or starting it.

If you spend a few hours or a few weeks going overall about the industry, you’ll be very knowledgeable and eliminate a lot of the guesswork.

You can gain information through blogs, newsletters, industry publications, videos, and more. The information is out there. All you have to do is go through it and use it.

Click Here for the Latest Publications Related to a Candy Making Business.

c.) Choosing a Location

The location you choose for your business will affect how successful you’ll be. Unless you’re in manufacturing, then you’ll want to be as closest possible to your customers. If you’re selling locally, make sure there’s a demand for the type of candy you offer, or there is no use opening a business in that location. On the other hand, if you’re opening in an area where the market is saturated, it will be difficult to compete.

Your ideal situation is to locate in an area where demand exists, but the market isn’t saturated.

If you’re planning on manufacturing candy, you want your distribution center to be as close to your customers as possible. However, you must distribute your products in the least amount of time. Remember that you can still reduce the time for deliveries with today’s services because of advanced technologies and logistics.

So, for example, if you’re distributing your product nationally, your location can be almost anywhere, but you want to be the closest possible to your strongest customers.

You’ll also want to look into zoning restrictions for the type of business you’re operating. For example, if you’re considering a retail setup, you shouldn’t find any problems with zoning.

On the other hand, if you’re considering a manufacturing type of setup, you’ll definitely want to check into the zoning for the area you’re considering. In addition, if you’re planning on a home-based business and selling your candy locally, then you’ll want to check with the health department for restrictions related to making candy out of your home.

For more, see Choosing the Best Location for Your Business.

d.) What Type of Candy Making Business Will You Start?

There are a few types of candy making businesses to consider. What type do you have in mind?

Are you considering a manufacturing plant where you’ll be distributing your candy nationally and possibly internationally?
Will you be considering a retail outlet where you make and sell the candy from your store?
Are you considering a home-based business where you’re creating candy and selling it either full-time or part-time?

All of the above are possibilities, but it’s important to decide what type of business you’re planning to start because it will make a difference when estimating your start-up cost and planning.

2. Choose a Business Name

The name you choose for your candy making business is very important. It’s a name that you’ll have for as long as you own the business. So you want to name that’s appropriate, catchy, and memorable.

Many sites online offer lists of names related to a candy making business. In addition, you’ll find business name generators where you type in your keyword, and the program will start to generate name ideas for you. The above two resources are an excellent way to get your creativity flowing and develop a name that you like.

I suggest you come up with a list of 10 to 15 names. Once your list is complete, put it away for a few days. You’ll see it from a different perspective when you come back to it.

Choose the top five from your list and sleep on it for another night.

Check if your top names are available when you return to your list. You’ll also want to make sure that a matching domain name is also available.

Once you have found a name available for registration, see how it looks in print. Then, say it in different sentences to see how easy it is to pronounce and how it sounds.

You may even want to get feedback from friends and family before settling on the name. But keep in mind, don’t wait too long once you find a name available for registration because anyone can register it and beat you to it.

For Candy Making Business Name Ideas, See Google’s Latest Search Results.

3. Legalizing Your Business

An essential step to starting any business is making sure it’s legal and set up according to the laws and regulations in your area. Below are three areas sections to consider.

a.) Decide on a Legal Structure

There are a few legal structures to consider. First, many new businesses will start as a sole proprietorship because it’s the easiest and least expensive. However, it is also the least protective of your personal assets. If your business fails or is served with a lawsuit, your personal assets are at risk.

It’s also worth noting that a sole proprietorship must be owned by one person. In other words, you can’t have a partner because you are personally in the business in the eyes of the law are one entity.

It’s worth mentioning that many business owners start as a sole proprietorship. However, once their business begins to see success, it can be converted into something with more liability protection, such as an LLC or a corporation.

If you’re planning on a manufacturing type of setup, I would suggest registering immediately as an LLC or a corporation because you need limited liability protection, and it’s easier to get funding when you’re set up as one of these types of businesses.

When it comes to setting up a business structure, I prefer that you consult with a professional such as a lawyer and accountant or companies out there that specialize in structuring businesses. When you talk to them about what you’re planning, they can give you the information you need to set up your company correctly. They can also do the work for you.

For More, See How To Register Your Business Using These Resources.

b.) Get a Tax Id

Depending on your business structure, the size of your business, and whether or not you have employees during the start-up phase will determine whether or not you will need a tax ID at this Stage.

Again if a professional is setting up your business for you, they will know whether or not you need a tax ID and can set that up for you.

For more see Here’s How To Get A Business Tax Id

c.) Local Permits and Regulations

In addition to state and provincial registrations, you will need to speak with your local municipality or City Hall to inquire about the local regulations and permits you need to follow.

Visit the Licensing and Permits Page for More Information.

4. Create Your Corporate ID

You will want to invest in a corporate ID for your candy making business. A corporate ID consist of the following:

Business cards
Logo
Signage
Letterheads
Envelopes
Checks
Brochures
etc.

Corporate IDs can be expensive, but it’s worth the investment because it’s the impression you’ll leave on your customers. You can start off with your logo and business cards, and once your business is established and earning revenue, you can complete the rest of the components.

You must use a professional design because, again, it’s the impression you’ll leave on your customers.

For More See:

How To Design A Business Logo – Make it Good It Might Last Years.

How to Design Business Cards That People Will Pay Attention To

Business Signs – Have a Look at These Ideas.

A Complete Introduction to Corporate Identity Packages

5. Equipment

The equipment you’ll need to make your candy is something you’ll need to research, especially if you’ll be manufacturing your products. When it comes to manufacturing purchasing the right equipment will streamline production while using insufficient or the wrong equipment will turn your manufacturing into a nightmare.

Depending on the size of your establishment will determine if you’ll need financing for the equipment or not. For example, you may want to inquire about leasing equipment or financing through the manufacture. But, again, it’s something to think about while doing your research.

Click Here for the Most Recent Google Search Results Related to Candy Production Equipment.

6. Estimating Your Start-up Cost

The size of your business, the setup, and whether or not you have the money to start will determine if you need to finance the full amount or part of it.

To estimate your start-up costs, you need to have a clear plan of how you’ll set up your business.

Naturally, a manufacturing plant will cost you a lot more money than making candy out of your home and selling your candy to friends, relatives, and people in the area.

Once your plan is clear, you can start to estimate what you’ll need and inquire about pricing. Many of the things on your list will not be a parent when you start off, but once you start researching and getting pricing, other issues will appear, and you can add them to your estimate.

For more see Estimating Start-up Costs: Are You Missing Anything?

7. Writing a Business Plan

Any business other than a home-based or part-time side business will need a business plan. A business plan is a document that will keep you on track and help you to see the big picture when setting up your business.

If you’re planning on getting investors or a loan for your business, you need a business plan for your bank or investors to review. A bank will not process your loan application without one.

To create a business plan, you have a few options. First, you can use a template. You can use software that will guide you through the process step-by-step and offer suggestions. Or you can hire a professional to write one for you.

Whatever option you choose, keep in mind you are the one that must provide the information. Therefore you have to consider the steps you will take for each section.

For more, see How To Write A Business Plan.

8. Banking Setup

You’ll need to choose a bank for your business. If you’re dealing with a lot of cash, you want a nearby bank so you can make daily deposits. It makes no sense to choose a bank that’s an hour away that would limit your ability to make frequent deposits.

When choosing a bank, it’s not so much about the bank as it is your banker. A good relationship with your banker can help you start your business. When your business is up and running, your banker can offer advice, help you plan your finances, and may be able to get you out of a financial jam if needed. So it’s worth your time to build a strong relationship with your banker.

For more, see our page on How To Choose A Business Bank.

Acquiring a Merchant Account

Depending on your business setup, you may require a merchant account that allows your customers to pay you using credit or debit cards. You can’t process payments without a merchant account unless you use PayPal.

A good relationship with your banker will help you apply and get approved for a merchant account.

It’s to your advantage to take the time to build a relationship with the right bank and the right banker.

See How To Open A Merchant Account for more information.

9. Get the Funding for Your Business

At this point of the start-up phase, you have come a long way, and now it’s time to make copies of your business plan and start looking for funding.

Before you start, let’s consider how lenders view new businesses. New businesses are perceived as high risk because many fail in the first few years of operation. Therefore a lender would rather loan money to an established business with a good track record. That doesn’t mean you can’t get a loan for a start-up. It’s just better to be prepared for all outcomes.

If your loan is denied, don’t get disappointed. Instead, find out the reasons and do what you can to address them. Then either reapply or move on to the next lender.

If all else fails, you can look into getting investors or applying for a loan from an SBA lender where a government program will offer security to the lender if you default on the loan.

Also, take a look at our post on, Getting a Small Business Loan.

10. Software Setup

Take some time to see what software programs are available on the market related to your business. For example, software programs can do wonders to help you manage and keep track of your business activities.

On the other hand, you’ll often need a combination of programs to achieve the results you’re looking for. For example, you may need a program for manufacturing while using another program for accounting purposes.

When it comes to software, see if a demo is available, and be sure to look at reviews before you make a purchase.

Check Out Google’s Latest Search Results for Software Packages Related to a Candy Making Business.

11. Get Your Business Insured

You will want to get the right insurance for your candy making business before starting any physical activity. Ensure you have coverage even during the setup phase in case of any incidents.

You want to speak with an experienced broker to ensure you have the right insurance for your operation, especially if you’ll be manufacturing.

For more, see our page about business insurance.

12. Office Setup

Whether your office is a kitchen table, a spare room in your home, or a large office, set it up to your preference.

An organized, fully equipped office will help you become more productive and waste less time.

The more successful your business becomes, the more time you’ll need to spend in your office dealing with administrative tasks, and that’s why you wanted to be set up according to your preference, with furniture that’s comfortable and an office desk that works for you.

For more see, Here Are Considerations for the Setup of Your Office.

13. Choosing Suppliers

Your suppliers have a level of control over your business. For example, consider a certain ingredient you use to make candy, and it’s only available from one supplier. If that supplier cuts you off, then it affects your business. So you can see how suppliers have a level of control over your business.

It’s to your advantage to build a strong relationship with your suppliers so that they will provide you with the products you need when you need them.

Make sure that you pay your suppliers on time and don’t take advantage of them. You want your supplier to profit from your transactions, so they keep the working relationship strong. For example, if you depend on a shortage of products, they may make sure they can give you your portion during the shortage.

For more see, How To Choose a Supplier You Can Depend On

14. Create an External Support Team

An external support team is a group of people who are not on your payroll but are paid hourly or on a retainer contract.

The members of your team include the following:

Lawyer
Accountant
Graphic designer
Business strategist
Web designer
IT specialist
Marketing specialist
HR specialist
Business consultant
Etc.

Depending on the size of your business, you may or may not need an external support team, but even though you may be starting a home-based business, you still need a lawyer and an accountant.

Whether or not you require an external support team, treat these people with respect and consider them part of your operation. Their services can be priceless and help you take your business to the next level.

For more see, Building a Team of Professional Advisors for Your Business

15. Hiring Employees

Depending on the size of your business will determine whether or not you’ll run it on your own or hire employees.

Naturally, you want to make sure that you’re hiring the right person for each position when it comes to hiring. Errors in hiring can cost you dearly. On the other hand, it’s much easier to hire than fire, and firing someone is never a pleasant experience.

To determine the cost of hiring, consider the yearly cost rather than the hourly wage. It puts your expenses into perspective and makes you think twice before hiring anyone just to fill the position and how many people you’re going to hire.

If you consider a group of just a few employees will cost you in the six-figure range, it puts things into perspective.

For more on hiring, see How and When to Hire a New Employee.

What To Consider Before Starting

We have gone through all the steps necessary to start your candy making business. In the next section, we will look at a few points you want to consider before moving forward.

Is Running a Candy Making Business Right for You?

People dream of starting a business for many reasons. The main reasons include the following:

To get away from a job.
To be in control and be the boss.
To benefit from the lifestyle of being a business owner.
For financial gains.
Those passionate about a business.
All the above are legitimate reasons for starting a business.

For me, the one that stands out the most is being passionate about your business. When you’re passionate about the business you’re starting, you’ll have the drive you’ll need when things aren’t going your way. So, when problems show up for business owners, and they don’t really care about the business they’re running, they start to think of an exit strategy rather than a solution.

You’ll do much better if you’re passionate about a candy making business and have the driving force you need to succeed.

For more, see Reasons To Start a Business

Do You Have the Skills?

Have you considered if you have the skills needed to manage a candy business? Also, do you know how to make candy? Of course, you’ll need these skills. The good news is that if you don’t have the skills, you can learn them and improve.

For example, you can take a small business course to learn how to manage your business and do the same for making candy.

Another option is to hire people with the skills you like. If you take this route, you want to make sure you understand and learn from them because if they leave you, you’ll be in trouble.

Also, when hiring someone for a skill that you don’t understand, it’s beneficial to learn from them because you want to be in control.

For more see, Do You Have These Essential Skills Needed To Run a Business?

Is It Better To Start a From Scratch or Buy A Business?

Earlier in this article, we talked about speaking with business owners about purchasing a business. Now I will go over a few of the pros and cons of purchasing a business compared to starting one from scratch.

Pros:

You bypass the start-up phase, which includes the planning and guesswork that goes into a start-up

The business is already set up and running.

You earn revenue the day you take over compared to the time it takes to open your doors to the public and start to attract customers.

You purchase goodwill, including the customer base, the reputation the business has built, and any assets the business owns.

Cons:

Because of Goodwill, purchasing an established business is usually more expensive than starting your own.

You inherit the problems that come along with it. Problems may include a bad reputation, pending lawsuits, many customer complaints, extensive debt, etc.
If the business is set up in a way where you want to make changes, it might be better to start your business from scratch because drastic changes may negatively affect the existing customer base.

Click Here To View a Candy Making Business Listed for Sale From Google’s Search Results.

Should You Consider a Franchise?

A franchise has its pros and cons. Let’s go over a few of them next:

Pros:

A franchise is like a business in a box. Everything is set up, including the look and feel of your business, how it’s operated, and the marketing.

You’re working with a proven system. There is no guesswork. You just need to focus on operating procedures already in place.

The branding of the business is already in place. So when people come to your business, they are familiar with the operation. Think of it as a McDonald’s or Burger King any location you walk into, you expect the same experience.

Cons:

There are ongoing franchise fees for as long as you own the business.

The way your franchise operates is everything standardized across all locations. Therefore you cannot make any changes. However, changes are decided by corporate and processed across the whole network.

You have little control over the products and services you offer and how you operate the business.

To Browse the Marketplace for Candy Production Franchise Opportunities, See the Latest Google Search Results. Also, see, What You Need To Know About Owning a Franchise.

Resources

In this section of the post, you’ll find various resources that can help you during the startup phase as well as when your business is fully operational. You may want to bookmark this page to return to use the resources anytime.

Trends and Statistics

Industry trends in statistics or something to look into because you can gain an overview of the industry and see whether it’s increasing or decreasing in size and popularity.

Another benefit of looking at trends and statistics is that you may come up with something missing. If you incorporate that into your business, it may be a competitive edge.

On the other hand, you may also come across something you’re missing, which you can incorporate into your business.

Click Here for the Latest Google Search Results Related to Trends in the Candy Production Industry.

Industry Terminology

Whatever industry you’re in, you must know the terminology. When you fully understand it, you communicate better with customers and suppliers. It takes months and sometimes even years to learn the vocabulary through experience. However, you can take a shortcut and learn the jargon now.

Search Results Related to Terminology in the Candy Production Industry.

Supplies

The supplies you use to make your candy is a key factor in the quality of your product. Using low-quality supplies is something I would suggest you avoid.

Naturally, pricing is a factor, but you want to balance delivering quality products to your customers at an affordable price range while being profitable for your business. You’ll need to look into and study the supplies you use because you want to make sure your products are safe and tasty.

See the Latest Google Search Results for Candy Making Business Supplies.

Associations

There are benefits to joining an association. Many will provide events where you can network with others in the industry.

Many associations provide information and educational material you can benefit from. The benefits outweigh the fees, and when you find the right association, it’s worth joining.

You may also want to join your local Chamber of Commerce to network with local business owners, get to know their businesses, and promote your business to them.

Click Here To View Associations Related to the Candy Production Industry. You May Also Want To Check Out Our Page for Tips and Insights About Joining a Trade Association.

Top Candy Making Businesses

When you look at other businesses similar to yours, you can understand the types of products and services offered. You can also get an overview of the pricing in the marketplace.

Another way of looking at it is, that other businesses may be providing something you are missing. Or you might stumble across something the other businesses are missing that you can provide, giving you a competitive advantage.

Search Google for the Top Candy Making Business in Your Area.

Marketing Tips

A business can’t survive without customers. It’s difficult to gain any customers without marketing your business. Therefore, it’s to your advantage to keep up-to-date with the latest marketing tips, especially those targeted towards marketing candy. Keep in mind that there’s always new material being published, so you often want to use the link below.

Have a Look at the Latest Articles for Marketing a Candy Making Business.

Candy Production Tips

Whether you’ve been making candy for a long time or you’re just starting out, it’s an advantage to see what tips and insights are out there. Not only will you learn what to do, but you’ll also pick up many tips on what not to do. In addition, there’s new material being published constantly, and you want to check in every now and then to see what’s new.

Have a Look at the search results for tips related to Candy Production.

Books

Books are a great resource for learning. However, what I like most about building my library of non-fictional books is that the information is on my shelf whenever I need it.

Another point worth mentioning about nonfiction books is you don’t have to read the book from cover to cover to get the information you need; instead, scan the table of contents and go directly to the chapter for the information you want.

View the Most Recent Google Search Results for Candy Making Business Books.

Training

Training is something you may want to look into, whether to run your business or for candy production.

Whenever it comes to courses, I suggest you look at reviews to see what others experienced. Also, look into the course material to see if it’s the right fit for you. You may contact the trainer or the author and tell them what you’re looking for to see if their course provides that information.

Google’s Search Results Related to a Candy Making Business.

News

The news is a great way to keep up to date with any industry. So naturally, it wouldn’t make sense to watch the evening news every day waiting for a story about candy production. Instead, you would use a site like Google News and type in a keyword to get the latest and archive new stories.

See Google’s News Search Results Related to the Candy Production Industry.

Videos

YouTube is another excellent resource for learning. Many authors offer quality videos that you can learn from. Whether it’s for managing your business or making candy, you’re sure to find something of interest. Take some time to check out the latest videos related to a candy making business.

See the Most Recent Videos Related to a Candy Making Business.