by Teresa Austringer

Created on: March 24, 2009   Last Updated: March 25, 2009

How much do you know about candy? To start your own candy store you need to immerse yourself in everything there is to know about sweets. Knowledge is the key to any business, and the candy retail business is no different in that respect.

The next consideration is location. You'll want to be in an area with a lot of foot traffic to catch that impulse buy. That's why you often see little fudge shops or confectioners in malls and downtown areas.

In the U.S., in these hard times, you'll want to avoid strip malls and larger malls that have lost their big anchor stores. Dead malls and areas with dark stores are places that have lost their customers.

You should have an assortment of candies, unless you're going for the very exclusive and expensive chocolate shop. Your customers could be small children spending pocket money to adults that want nonpareils and chocolate almond bark. Candy is most of all fun-make sure that you carry some fun, colorful and attractive items.

Managing inventory is very important. One needs to keep records of what is selling and what's staying on the shelves so you can reorder in the correct amounts.

Chocolates have to be kept at cool, constant temperatures and low humidity to prevent blooming (where the fat rises to the top, giving a dusty appearance) , melting, and becoming too dry. This makes a cooler or refrigerated shelving units a must. Sugar candies can do well at room temperature, but can also be affected by humidity.

Because your inventory won't be huge, and most sales will be carried away, the shop doesn't have to be overly large.

Candy sales have a seasonal aspect. They drop off in the summer and can be huge during certain holidays, such as Valentine's Day, Easter, Christmas and Mother's Day. You have to be prepared for the upswing in sales during the holidays.

If you carry specialty items during the holidays, such as chocolate roses for Valentine's Day, you'll make more sales. You can offer specialty baskets, boxes and bouquets. A little effort with a hairdryer and shrink wrap can give your customer the option of picking out candy for their loved ones and having it look wonderful.

Secretary's Day and Christmas can bring bulk sales as people buy many boxes for everyone in their office.

Because of the drop off in sales during the summer, you might think about adding drinks, ice cream, balloons, flowers, or some other summer merchandise to increase sales during those months.

It's always good to offer some dietetic selections for those who can't handle sugar in their diets. These are not diet candies, but are sugar free for diabetics and others that are on restricted diets.

You should also be aware of those candies that are produced with or around peanuts, and post warnings accordingly, for those with severe peanut allergies.

Financing should be found that is adequate to carry you through the first year or two. Most new businesses fail because of inadequate financing.

It's also helpful to be aware of the laws. In some places in the United States, you can't sell imported chocolates that contain liqueur because of the laws involving underage drinking.

If you wish to make your own candy, you have to be aware of the laws in your area regarding food production and commercial kitchens. One way to get around a restriction regarding commercial kitchens is to have that family recipe mass produced, packaged and put back on your shelves, which requires some investment on your part.

There are many resources online and in the library for information on how to start your own small business. But don't forget that you also must research everything you can about your product!

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