Candle Making Business Plan Template
Candle making business plan.
You’ve come to the right place to create your Candle Making business plan.
We have helped over 1,000 entrepreneurs and business owners create business plans and many have used them to start or grow their Candle Making businesses.
Below is a template to help you create each section of your Candle Making business plan.
The Countryroad Candle Company is a startup candle manufacturing company located in Augusta, Georgia. The company is founded by Emily Reynolds, a creative and driven individual who wants to turn her favorite pastime into a thriving business. Emily has a background of seven years in marketing housewares to the retail sector and she has a keen eye for design, which brings her to the startup phase of her candle making company.
Countryroad Candle Company will provide a wide array of candles in scented, decorative and pure iterations of the concept Emily Reynolds is bringing to the company. Each candle will have unique properties, including a small candle within each large candle, which doubles the light and beauty of the decoratives on the candles. This unique feature has not been shared or adopted by anyone else, hence Emily has the drive to get this unique candle making product line into the market.
The following are the services that Countryroad Candle Company will provide:
- Small to large uniquely-designed candles, in sizes of 3 to 8 inches in diameter and in height up to 17-inches.
- A selection of carefully curated candle holders, glass bases, and other complementary items to highlight the candles.
- Candle accessories, including candle snuffers, long decorative matches, and scented bottled oils to add to the fragrance of the candles.
- 12-pack cartons for sale at retail; 6-pack boxes for sale to smaller shop or outlets.
- Single candle pricing for sale online, in addition to 12-pack cartons
- Special discounts for disabled or elderly individuals who will use candles for healing properties
Countryroad Candle Company will target all consumers in the greater Atlanta area. They will target retail stores and store chains. They will target gift shops, flower shops and other related independent stores in the region of Atlanta. They will target event venues, party planners and event coordinators.
Countryroad Candle Company will be owned and operated by Emily Reynolds. She has recruited Sarah Thompson, the former production manager of her last employer, a large candle making company called Glow & Co.
Emily Reynolds is a graduate of the University of Georgia, where she graduated with a Bachelor’s degree in Marketing. She previously was employed by Glow & Co., but decided to branch out and create unique candles that would offer new designs and new fragrances to the boutique candle offerings of the area. Emily’s stellar marketing efforts and courtesy with clients led her former employer to win the 2022 title of “Best Customer Service in Atlanta.”
Sarah Thompson has been creating and overseeing the manufacture of candles for over thirty years. She specializes in long-burn candles and produces the combination of ingredients that lead to fragrant, high-end candles with a beauty that cannot be surpassed. The new company offers her an opportunity to create distinctive “candle within a candle” design and manufacturing experience and she’s excited to begin the tasks ahead. She has the expertise and extensive background in candle-making to produce superior candles with the practicality of high burn time combined with stellar beauty.
Countryroad Candle Company will be able to achieve success by offering the following competitive advantages:
- Friendly, knowledgeable, and highly-qualified team at Countryroad Candle Company
- Extensive product line of unique candles, with properties that are highly-desirable.
- Curated candle accessory assortment prepared and vetted for retail sales
- Packaging in quantities that will support all retail customers, small to large
- Industry knowledge and contacts that are extensive and international
- Countryroad Candle Company will offer the best package pricing for the highest-quality candles offered. Discounts will also apply to disabled and elderly customers who use the candles for healing properties.
Countryroad Candle Company is seeking $200,000 in debt financing to launch its Countryroad Candle Company. The funding will be dedicated toward securing the office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the various marketing strategies to be employed. The breakout of the funding is below:
- Office space build-out: $20,000
- Office equipment, supplies, and materials: $10,000
- Three months of overhead expenses (payroll, rent, utilities): $150,000
- Marketing costs: $10,000
- Working capital: $10,000
The following graph outlines the financial projections for Countryroad Candle Company.
Who is countryroad candle company.
Countryroad Candle Company is a newly established candle design and manufacturing company in Atlanta, Georgia. Countryroad Candle Company will offer unique candles, designed with beauty and carrying delightful fragrances, to the retail markets of the Atlanta region. The candles will be a proprietary offering by Countryroad Candle Company and the production of the candles is a patented process. Countryroad Candle Company will provide a mix of carton and box packaging assortments so that customers can purchase in bulk or in smaller configurations to suit their retail outlets. Their full-service approach includes a comprehensive price structure and delivery options to suit every buyer.
Countryroad Candle Company will be able to bring a new aspect of candle-making to the candle customers within the housewares and giftware industry sector, providing a superior product line and one that contains both practicality and beauty combined. The team of professionals are highly-qualified and the production manager is a seasoned veteran at candle-making and all aspects of packaging and shipping products. Countryroad Candle Company offers everything that other candle manufacturers cannot: a unique product line, beautiful decor on each candle, fragrances that complement each candle and packed cartons in a variety of sizes for all levels of retail.
Countryroad Candle Company History
Since incorporation, Countryroad Candle Company has achieved the following milestones:
- Registered Countryroad Candle Company, LLC to transact business in the state of Georgia.
- Has a contract in place at one of the Atlanta area buildings to set up its candle-making production line and office space within 10,000 square feet.
- Reached out to numerous former buyers and associates to announce the establishment of the new business and discuss advance orders.
- Began recruiting a staff of six and office personnel to work at Countryroad Candle Company.
Countryroad Candle Company Services
The following will be the services Countryroad Candle Company will provide:
- The candle manufacturing industry is expected to grow over the next five years to over $190 million.
- The growth will be driven by an increased number of consumers using candles for self-healing and stress-relieving properties.
- The growth of the demographic strata of Gen Z, Millennials, and other younger-aged groups who will use candles extensively in homes, offices and areas of relaxation.
- The growth of fragrances with known healing properties and their use in candles.
- The increased number of wedding and party planners looking for unique lighting.
- Costs will be reduced by lower-priced candles imported into the U.S.
- Costs will also be reduced by sales online, reducing the need for transport of goods.
- The industry sector of candle manufacturing is on the rise and outsourcing of materials, marketing strategies, procurement, etc. will lower the costs overall, as well.
Demographic profile of target market.
Countryroad Candle Company will target residents within the Atlanta, Georgia region. This includes outlying communities and targets in the general Georgia area. They will target consumers in age from 12 years to 99 years. They will target those individuals who use candles as part of self-healing exercises or as naturopathic wellness support. They will target event planners and party coordinators. They will extensively target retail buyers and retail chain buyers to purchase quantities of candles at reasonable prices.
Countryroad Candle Company will primarily target the following customer profiles:
- Small to large retail buyers for gift stores, flower shops, large chains
- Event planners and wedding coordinators
- Disabled and elderly who use candles for wellness
- Spas and med spas; natural health clinics
Direct and indirect competitors.
Countryroad Candle Company will face competition from other companies with similar business profiles. A description of each competitor company is below.
Karlan’s Gift Supply
Karlan’s Gift Supply is a large wholesale company that supplies retail stores with products made in local or regional manufacturing companies. This is an indirect competitor to Countryroad Candle Company, as Karlan’s Gift Supply does not carry candles or candle accessories. However, the wholesale company does carry a variety of related gift products and is well-known for advantageous pricing.
Bridget Karlan started Karlan’s Gift Supply twenty years ago and has grown the company into a 2M wholesale business. She is frugal in purchasing her wares and she is rigid in demanding prices to cover her targeted profit margins of 55% and up. She has very wisely created a powerhouse wholesale supply company.
Glow & Co.
Glow & Co. is the former employer of Emily Reynolds and Sarah Thompson. As a direct competitor, Glow & Co. sells candle assortments and individual candles into the retail gift and specialty markets throughout the southern region of the U.S.
Glow & Co. is a ten-year-old company founded by Nick Parsons, the son of a candlemaker father who engaged his family of fifteen in the business with him. The father passed the company on to his son ten years ago and, during the ensuing time, the son changed the name of the company and expanded it exponentially by selling candles of all kinds in several configurations and pack sizes. All current offerings are imported from Asia and carry low price points as a result. There are no unique designs or fragrances in the current product line.
Hanson’s Tabletop Company
Hanson’s Tabletop Company is a high-end design company that sells multiple gift and houseware products into retail. The company does not manufacture candles, but acquires candles and all other products via importing. The company holds a design office in the large Atlanta Gift Market in downtown Atlanta and sells curated product lines to national chains in addition to local retailers who want to place small orders.
Hanson’s Tabletop Company sells a variety of candles and candle accessories. The company owners, Teri and Craig Walters, are enthusiastic about the trend-forward designs in candle manufacturing and rarely purchase standard candles in case packs. They purpose one-of-a-kind candles and hope their suppliers can fill any voids when designs become popular.
Countryroad Candle Company will be able to offer the following advantages over their competition:
Brand & value proposition.
Countryroad Candle Company will offer the unique value proposition to its clientele:
- Highly-qualified team of skilled employees who are able to provide a unique product line that is both decorative and fragrant to be sold into the retail market.
- The team of employees will also offer a variety of packaging sizes and pricing that adjusts with quantity sizes.
- Discounts for disabled and elderly customers who use candles for self-healthing or wellness.
- Reasonable pricing for retail clients that enables everyone in any sized retail business to purchase on a regular basis with profitable outcomes.
The promotions strategy for Countryroad Candle Company is as follows:
Word of Mouth/Referrals
Countryroad Candle Company has built up an extensive list of client contacts over the years by providing exceptional service and expertise to their former clients. With the announcement of the new company launching soon, these clients were approached and have agreed to purchase retail candle supplies from Countryroad Candle Company. The wide range of packaging plus the unique properties of the candles has encouraged buyers to make initial orders early.
Professional Associations and Networking
There are several professional associations which Emily Reynolds and Sarah Thompson have already joined. Their networking efforts will intensify with this new company and they will offer special packages for first-time buyers.
Direct mail efforts will be employed in the two weeks prior to the launch. Every buyer will receive a promotional package announcing the launch of Countryroad Candle Company and will be offered special discounts for purchases made in the first month of the company.
Countryroad Candle Company will utilize their website as an informational outlet and as a place for smaller retail establishments to order. The website will be well organized, informative, and list all their products and services that Countryroad Candle Company provides. The website will also list their contact information and list their available candles in stock or on hand. Their website presence will contain SEO marketing tactics; anytime someone types in the Google or Bing search engine “candle company selling to retail” or “candle company near me”, Countryroad Candle Company will be listed at the top of the search results.
The pricing of Countryroad Candle Company will be moderate and on par with competitors so customers feel they receive excellent value when purchasing their services.
The following will be the operations plan for Countryroad Candle Company. Operation Functions:
- Emily Reynolds will be the Owner and President of the company. She will oversee all staff and manage new client relations. She has spent the last year recruiting the following staff:
- Sarah Thompson will be the Production Manager of the company. She will curate, plan and oversee operations of the candle-making process at the company and will work with Emily Reynolds to effectively add decorative and fragrance elements to each candle design.
- Tad Newsom will be the Production Facilities and Maintenance Manager, overseeing the maintenance and any needed repairs of the facility.
- Shelia Abramson will be the Shipping Manager. As such, she will oversee the packing and shipping process as cartons and packages are prepared for shipment to retail.
Countryroad Candle Company will have the following milestones completed in the next six months.
- 5/1/202X – Finalize contract to lease manufacturing and office space
- 5/15/202X – Finalize personnel and staff employment contracts for the Countryroad Candle Company
- 6/1/202X – Finalize buyer orders for Countryroad Candle Company
- 6/15/202X – Begin networking at industry events
- 6/22/202X – Begin moving into Countryroad Candle Company facility and office
- 7/1/202X – Countryroad Candle Company opens its doors for business
Key revenue & costs.
The revenue drivers for Countryroad Candle Company are the wholesale prices they will charge to the buyers for their products and services.
The cost drivers will be the overhead costs required in order to staff Countryroad Candle Company. The expenses will be the payroll cost, rent, utilities, office supplies, and marketing materials.
Funding Requirements and Use of Funds
Countryroad Candle Company is seeking $200,000 in debt financing to launch its candle-making business. The funding will be dedicated toward securing the manufacturing facility and office space and purchasing office equipment and supplies. Funding will also be dedicated toward three months of overhead costs to include payroll of the staff, rent, and marketing costs for the marketing strategies and association memberships. The breakout of the funding is below:
The following outlines the key assumptions required in order to achieve the revenue and cost numbers in the financials and in order to pay off the startup business loan.
- Number of Purchase Orders Per Month: 56
- Average Sales Revenue per Month: $53,000
- Office Lease per Year: $100,000
Income statement, balance sheet, cash flow statement, candle making business plan faqs, what is a candle making business plan.
A candle making business plan is a plan to start and/or grow your candle making business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.
You can easily complete your Candle Making business plan using our Candle Making Business Plan Template here .
What are the Main Types of Candle Making Businesses?
There are a number of different kinds of candle making businesses , some examples include: Scented Candles, Specialty Wax Candles, and Novelty Candles.
How Do You Get Funding for Your Candle Making Business Plan?
Candle Making businesses are often funded through small business loans. Personal savings, credit card financing and angel investors are also popular forms of funding.
What are the Steps To Start a Candle Making Business?
Starting a candle making business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.
1. Develop A Candle Making Business Plan - The first step in starting a business is to create a detailed candle making business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.
2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your candle making business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your candle making business is in compliance with local laws.
3. Register Your Candle Making Business - Once you have chosen a legal structure, the next step is to register your candle making business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws.
4. Identify Financing Options - It’s likely that you’ll need some capital to start your candle making business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms.
5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations.
6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events.
7. Acquire Necessary Candle Making Equipment & Supplies - In order to start your candle making business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation.
8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your candle making business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising.
Learn more about how to start a successful candle making business:
- How to Start a Candle Making Business
Candle Business Plan Template & Guidebook
Are you thinking about starting your own candle business? This comprehensive candle business plan template and guidebook offers the necessary steps to help you turn your dreams into reality. Learn how to gather the resources, map out your strategy, and set yourself up for long-term success through this business plan guidebook. Whether you're a beginner or an established entrepreneur in the candle industry, this blueprint will help you create a successful and sustainable business venture.
Get worry-free services and support to launch your business starting at $0 plus state fees.
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How to Write a Candle Business Plan in 7 Steps:
1. describe the purpose of your candle business..
The first step to writing your business plan is to describe the purpose of your candle business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.
It also helps to include a vision statement so that readers can understand what type of company you want to build.
Here is an example of a purpose mission statement for a candle business:
Our purpose is to create beautiful, handcrafted candles that bring joy, light and comfort into people’s homes. We strive to deliver the highest quality products to our customers and provide a unique, personalized experience. Our mission is to ignite a passion for artisanal candles through innovation and sustainability that brings value to our customers, supports our local communities, and provides meaningful employment opportunities for our employees.
2. Products & Services Offered by Your Candle Business.
The next step is to outline your products and services for your candle business.
When you think about the products and services that you offer, it's helpful to ask yourself the following questions:
- What is my business?
- What are the products and/or services that I offer?
- Why am I offering these particular products and/or services?
- How do I differentiate myself from competitors with similar offerings?
- How will I market my products and services?
You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.
3. Build a Creative Marketing Stratgey.
If you don't have a marketing plan for your candle business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals.
A good marketing plan for your candle business includes the following elements:
- Who is your target market?
- What do these customers have in common?
- How many of them are there?
- How can you best reach them with your message or product?
- Who are your current customers?
- Where did they come from (i.e., referrals)?
- How can their experience with your candle business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?
Product or service description
- How does it work, what features does it have, and what are its benefits?
- Can anyone use this product or service regardless of age or gender?
- Can anyone visually see themselves using this product or service?
- How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?
- Which companies are competing with yours today (and why)?
- Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
- What specific advantages does each competitor offer over yours currently?
- Which marketing channel do you intend to leverage to attract new customers?
- What is your estimated marketing budget needed?
- What is the projected cost to acquire a new customer?
- How many of your customers do you instead will return?
Form an LLC in your state!
4. Write Your Operational Plan.
Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations.
In it, you should list:
- The equipment and facilities needed
- Who will be involved in the business (employees, contractors)
- Financial requirements for each step
- Milestones & KPIs
- Location of your business
- Zoning & permits required for the business
What equipment, supplies, or permits are needed to run a candle business?
To run a Candle business, you will need the following equipment, supplies, and/or permits:
- Fragrance oil
- Heat resisting pot
- Stirrers or spoons
- Labels, tags, or stickers for packaging
- Business permit/license from your local government (if required)
5. Management & Organization of Your Candle Business.
The second part of your candle business plan is to develop a management and organization section.
This section will cover all of the following:
- How many employees you need in order to run your candle business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
- The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
- How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!
6. Candle Business Startup Expenses & Captial Needed.
This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.
Typically, expenses for your business can be broken into a few basic categories:
Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a candle business varies based on many different variables, but below are a few different types of startup costs for a candle business.
Running & Operating Costs
Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.
Marketing & Sales Expenses
You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your candle business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.
7. Financial Plan & Projections
A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your candle business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses.
Here are some steps you can follow to devise a financial plan for your candle business plan:
- Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
- Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
- Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
- Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
- Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
- Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.
Frequently Asked Questions About Candle Business Plans:
Why do you need a business plan for a candle business.
A business plan is an essential tool for any business, and a candle business is no exception. It can provide guidance and direction as to how the business should be run and structured, what goals should be set, how resources should be allocated, and what strategies can be employed to achieve success. It can also help entrepreneurs understand their target market, identify potential competitors, and determine their pricing strategy. Finally, it can act as a roadmap for obtaining financing to get started and grow the business.
Who should you ask for help with your candle business plan?
A qualified business consultant or business mentor is the best person to ask for help with a candle business plan. They will be able to provide expert advice on how to develop a successful plan and can help you identify any potential challenges or opportunities. Additionally, an accountant or financial advisor may also be able to provide valuable insight into the financial side of starting a business.
Can you write a candle business plan yourself?
Writing a business plan for a candle business can be a relatively straightforward process. You will need to research the market and include facts, figures and projections that demonstrate you understand the industry. Additionally, you will need to detail your proposed product offerings and pricing, marketing strategy, operational plan and financial projections. You should also consider outlining any potential risks or challenges that your business may face in order to demonstrate that you have thought through your business plan in its entirety. It is possible to write a business plan yourself, but it may be beneficial to seek the help of an experienced consultant or consultant agency to ensure accuracy and quality of your work.
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I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.
Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.
From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.
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Starting your own candle making business
Are you thinking about starting a candle making business? The idea can seem daunting, but it’s a worthwhile endeavor. We began as a small family business, but we’ve grown since our formative years. We’ve learned valuable lessons along the way, but let's start with the most important: The most successful businesses begin because someone is passionate about something, and they want to share what they love with others.
In this guide, we'll help you decide if a candle making business is right for you, and we'll go over the steps to get started.
Candle making business: a blueprint for success
If you’ve been thinking about starting a candle making business, use this guide as a blueprint for the first steps. If you’re still on the fence about whether a candle business is right for you, consider some of the reasons candle business owners love entrepreneurial life:
- Have the freedom to do work you actually enjoy: Spending the majority of your time doing work that you don’t really care about is exhausting. Doing work you enjoy is energizing, rewarding, and more meaningful than feeling like you’re stuck in a job you don’t love.
- Build and invest in something you own: Similar to buying a home instead of renting, investing in something you own helps to ensure that you get to reap the benefits of the work you’re spending time on every day. Working for someone else can feel a little like paying towards someone else's mortgage.
- Determine your own schedule and day-to-day activities: If you want to book an appointment or need a day off, the only person you have to consult is yourself. Being your own boss means having ownership of your time. If you’re tired of your work schedule dictating how you spend your time, then owning your own business is likely something you’d enjoy.
- Showcase your creativity and passions: Candle makers are creatives, but sometimes it’s hard to find an outlet for creative expression. Starting a candle making business means that you’ll have an opportunity to show off and monetize your creativity in the form of candles, wax melts, marketing, and creating content.
Handmade crafts, like candles, are some of the fastest-growing small businesses in the country. According to the National Candle Association, candle sales in the U.S. are estimated at over $3 billion per year. Here are a few more reasons why candles are a fantastic business opportunity:
- A thriving, high-demand market: Did you know 7 out of 10 U.S. households use candles? People love quality handmade products and supporting locally owned businesses. Uniquely branded candles are some of the most popular home decor items on the market, and are always popular gifts.
- Start your business from your home: You don’t need a lot of equipment or space to hit the ground running, just basic supplies, tools, and a workspace. Most candle business owners start out in their kitchen!
- High return on investment: What might cost you $5 can be sold for $20 or more. You can market your candles through gift stores, craft malls, and farmers markets, online through outlets like Etsy, or on your own website.
- Ample free resources available: When you launch a candle business, you’ve joined a community of fellow crafters and entrepreneurs where you can share resources and knowledge. We hope we’re a go-to resource for candle makers starting out, but if we don’t fit your needs there are plenty of other free resources available!
Candle business feature story: Bright Black
Tiffany and Dariel, the founders of Bright Black, create candles with a purpose.
Candle business inspiration story: Frères Branchiaux Candle Company
Brothers Collin, Austin, and Ryan Gill are the dedicated young entrepreneurs behind Frères Branchiaux Candle Company.
Planning for success in 8 steps
No matter the size of your enterprise, creating a business plan is essential. It helps you think about the future, establish the foundation of your brand, and build a framework for success. In this section, we’ll highlight 8 steps to build a practical and functional plan.
Keep it short and simple, and don’t stress about getting all the details together perfectly. Getting started can be the hardest part, but you can always come back to it later. Your objectives and business structure are likely to change and adapt over time, especially in the early months.
Take some time to familiarize yourself with these 8 steps, then check out our two downloadable candle business planning worksheets.
- Candle business checklist
- Candle business plan template
1. Develop your "pitch"
Think of this as your elevator pitch. Developing a strong, concise pitch helps to hone your mission and connect with customers. To get started, define your “who” and “what” in one to two short sentences. The “who” describes the core focus of your business, and the “what” describes the value you bring to customers. An example: “Good Boy Candle Co. makes unique scented candles with unusual, memorable names targeted to dog lovers.”
2. Define your target market
Deciding where your business fits in the broader candle marketplace is an important step. Consider developing your candle line around one of these three target markets:
- Mass-market: Typically affordable candles are found in many retail stores. These candles often use economical containers and packaging and feature traditional scents like pine and vanilla. Price range: $8 to $15
- Mid-market: Candles with broad appeal are commonly found in outlets like Target, Macy’s, or even locally owned boutiques and gift shops. You can expect candles that have higher quality packaging, unique scent combinations (such as Green Tea and Lemongrass or Sea Salt and Orchid), and place a higher value on brand story and image. Price range: $16 to $34
- High-end or “prestige”: Good examples are luxury stores that command a premium price like Nordstrom, Saks Fifth Avenue, or upscale boutiques. Candles in the high-end market are typically prestige-level products that place a premium on the packaging, fragrance, and the story behind the brand. Price range: $35+
Your target market is the group of consumers who are most likely to buy your products. They are the customers you envision browsing your social media, website, or walking into a store and purchasing your product. Start by thinking about their age, location, interests, and the price they’d likely pay for a candle. Knowing your target market allows you to cater your branding, messaging, and pricing to that specific group, instead of trying to please every possible customer.
It’s important to start with a target in mind, but be willing to pivot and adapt over time. Successful businesses constantly adjust to better fit their market.
3. Find your niche
Now that you know where your candles fit in the marketplace, so it’s time to identify your brand’s individual “niche”—what makes your candles unique and separates them from the competition. Here are a few common ways we’ve seen candle makers find the perfect niche:
- Unique scent combinations
- Special packaging
- Clever, humorous, or charming names for your candles
- Charitable support for a good cause
In the end, your goal should be to sell candles so distinctive and unique that customers can’t get them anywhere else.
4. Create a clever brand name and identity
Brand identity includes the visual elements of your brand, like your logo, color scheme, design style, and business name. This will act as your first impression and distinguish you from other brands.
To establish your brand identity, you’ll need a business name. When brainstorming names, focus on what makes your brand unique, what you’re passionate about, and the experience your candles will offer the end user. Do they inspire creativity? Remind them of their favorite vacation spot? Maybe they support a cause or organization. After mulling this over, ask trusted friends or family members for their opinion of your brand name. Talking it over can help jumpstart or solidify your ideas! Remember to focus on being personal and authentic.
Once you’ve landed on something catchy and memorable, double-check that a website domain is available and run a trademark search. You’re not required to register the trademark right away, but you’ll want to have the option available as your business grows.
After you’ve decided on a name, focus on choosing a color scheme and designing a logo. Canva is a great, free online graphic design tool to get started with. Once you’re happy with your logo, then you can start thinking about your candle labels .
5. Set a basic startup budget
We suggest creating a budget for your first two months in business. Estimate the cost of supplies, equipment, and overhead; and don’t forget to pay yourself for your time and effort as a business owner!
Here’s a downloadable template to help out:
- Candle business budget template
Our “How to Price Your Candles” article is a great resource to help with budgeting, so start there if you’re feeling overwhelmed!
6. Develop an initial product line and prices
Start out with a small and manageable product line. Think about which candles are the most popular with your friends and family, and if they fit your target market. Then, determine how much each item costs to produce (in supplies and time), and what a reasonable price might be. Don’t be afraid to price your candles based on your time and effort. We’ve seen many candle entrepreneurs price their candles anywhere from $8 up to $40 (or more), depending on their target market.
Check out Cassi's live for help with creating a unified product line.
7. Decide where to sell
Everyone’s ideal market is unique. Consider where your target market is likely to shop. Here are four markets to consider initially:
- Local craft shows, gift shops, and farmer's markets
- Online marketplaces like Etsy
- Your own website (we recommend Shopify as a great resource)
- Wholesale with established retailers
It can be nerve-wracking, but letting your personal network know that you’re now selling candles can be really helpful early on. Your family, friends, and co-workers can provide invaluable feedback on your product line and can be some of your best brand ambassadors.
8. Incorporate, get insurance, and explore permits and licensure
This process varies based on your location and individual business needs, but some general first steps include the following:
- Apply for a resale permit to become tax exempt
- Contact an attorney, accountant, and insurance professional for guidance on incorporating and liability insurance.
- Explore state and local permit and licensure requirements for small businesses. There are many options for business structures, including sole proprietorships, general partnerships, limited liability companies (LLCs), S Corporations, and C Corporations.
Here’s a helpful IRS checklist for starting your own business and an article from Etsy on business structures popular with crafters.
None of these materials are offered, nor should be construed, as legal advice.
It’s true that candle making businesses are relatively simple to start, but we wouldn’t encourage anyone to start a business based only on the desire to make a profit. Be wary of companies promoting kits to get rich quick or turn the first candles you make into extra spending money. It sounds great, but unfortunately, it’s not very practical. Selling candles that you haven’t thoroughly tested is a recipe for disappointment.
Whether you use this as a blueprint for getting started or a tool to help you decide if starting a business is right for you, we’ll be here to help through every step of the process. From testing your candles to starting your business to scaling for growth, we’re candle makers who love to help other candle makers.
Here’s a quick recap:
- Candle making is one of the best small businesses you can start. It has low startup costs, doesn’t require much equipment, and can be done right from home.
- Before you launch a business, hone your craft and get comfortable with the candle making process.
- Always plan ahead. Create a simple business plan that covers your products, market segment, and startup budget.
- You don’t need to get everything right initially. Experiment and see what works best for you. It’s part of the process of being an entrepreneur. Start small and grow from there.
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We love helping entrepreneurs launch and grow their businesses. Got a question or want to share some feedback? We're here to help. Reach out to our Support Team , or connect with us on Facebook , Instagram , or Twitter .
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How to Start a Candle Business: A Step-by-Step Guide
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We all like our homes to smell nice and to feel cozy. What better way to make this happen than by lighting some candles. Not only are they an affordable indulgence, but they also make great gifts and literally brighten any room.
If you’re considering starting a business and are passionate about wicks, soy blends, and mastering the perfect scent, then starting a candle business may be the perfect fit for you. Keep reading to learn how to start a candle business.
How to start a candle business in 7 steps
Starting a candle business is a lot of work, but can also be very rewarding. Before you let your excitement take the lead, pause and consider following some of these steps first. To give your candle business the best shot at success, you’ll need to get all of your financial, legal, and marketing ducks in a row.
Step 1: Perfect your craft
When a candle is good, it can help you destress, add a decorative flair, or set the mood. But when a candle is bad, it can be a disaster. A candle can smell too sweet. Too floral. Too smoky. Or, the scent can be so weak it winds up smelling like nothing at all. Essentially, it’s easy to step too far in one direction and make a candle that no one wants to burn. Before you go through the process of starting a candle business, you’ll want to brush up on the basics of how to make a good candle and develop a few signature scents. You’ll need to master how to ensure a good burn time, how to make a scent that permeates a room, and how to create a scent that people will love.
You’ll also want to define what will make your candle line stand out. Will each candle be inspired by a different exotic location? Will you use really unique glassware to house your candles? Will you have witty names that make your candles perfect for gifting? A good scent and an affordable price point will get you far in the candle game, but you’ll also need to make sure there is a way for your brand to stand out in a very saturated market.
Step 2: Create a business plan
Making candles is a creative process. Not to mention fun. Which is why it may be hard to tear yourself away from your experimenting to write a business plan. But writing a business plan is a creative endeavor too. And a little bit analytical. So put both sides of your brain to work, because the process of creating a business plan will prove invaluable to you throughout the life of your business.
A good business plan will contain several sections that can help keep your business on the right path as well as show your value to any potential investors or lenders. Ideally, you’ll do this step before starting a business, but it’s never too late to whip one up. Having a business plan will make the process of growing your business so much easier and can help you introduce the important details of your candle business to others. If you’re nervous about creating a business plan from scratch, consider using a business plan template or business plan software that can help you through the process.
Choose a business name
If you haven’t already chosen your business name, doing so while you’re in the process of pulling together your business plan is a good idea. Try to come up with a catchy business name that will stay in customers’ minds while also describing what kind of business you run. Of course, you’ll want to double check that your chosen name is actually available before moving forward with it. Confirm your desired name’s availability with your secretary of state’s website to see if your chosen business name is currently in use. Doing a simple Google and trademark search can also be helpful. If your desired name is free and clear, make sure you reserve your domain name and social media handles before someone else grabs them.
Choose a business entity
Another benefit of writing a business plan is that it will encourage you to choose a legal structure for your business. Choosing the right business entity is very important and a decision that should not be taken lightly. A few common forms of business entities are sole proprietorship, general partnership, limited liability company (LLC), and corporation.
If you’re struggling to decide what type of business structure you should choose, consulting a business attorney or tax expert can help. The extra expense may save you a lot of stress down the line, as the type of business structure you choose will affect your taxes, risk level, and other important factors. After you’ve chosen your business entity, you will register your candle business with the necessary federal and state agencies.
Define your products and services
Are you planning on selling candles? How about essential oils or reed diffusers? Will you take custom candle orders? You’ll need to define exactly what types of products or services your business will offer. Ask yourself the following questions in order to better understand what your products and services will be.
What type of scent-based products will you sell?
What will you charge for them?
Where will you purchase your candle supplies?
How much will these supplies cost?
How much will production cost?
Now that you have a business plan, you can use it moving forward to help guide your candle business.
Step 3: Get the proper licenses, permits, and insurance
This may not be the most fun step in the road to starting a candle business, but it is an important one. When you start a business, you’ll have to ensure you’re obtaining the proper licenses, permits, and insurance required by your local and federal government. These requirements will vary based on your location, business type, and chosen business structure. Chances are, you’ll require multiple business licenses at the state, federal, and local level. If you need help getting started, the SBA is a great resource, as is your local chamber of commerce.
Does your business require employees to help it run? Then you’ll need to obtain your employer identification number (EIN), which is required for tax purposes. Even if you don’t plan on hiring soon, there are some pretty valuable benefits of getting an EIN you should think about.
Something else worth looking into is business insurance , especially if you’ve hired employees. In that case, you may need to carry workers compensation, unemployment, or disability insurance. General liability and commercial property insurance may also be necessary. You should check with a business lawyer to make sure you have the right coverage for your business—especially when you consider the fact that as an owner of a candle business, you’ll be working with flammable materials. Do your due diligence and research your local fire codes and speak with your insurance representative about your fire coverage needs.
Step 4: Decide where to sell your goods
Where are you planning to sell your candles? How about online, in a boutique, or at your local farmers market? You can always open your own storefront, but maybe you want to start small at first and sell your candles to local boutique owners. Consider all the options available to you and don’t be afraid to start small while you build brand loyalty and get customer feedback.
If you want to sell online, but aren’t ready to launch your own ecommerce website, you can always sell your candles on a digital marketplace like Amazon or Etsy . There are countless helpful ecommerce platforms you can choose from, so take your time investigating which is the best fit for your business.
Step 5: Find small business funding
It’s a cliché, but sometimes it takes money to make money, and starting a candle business is no exception. In order to pay for supplies, marketing, production, insurance, legal council, and more, you’ll may need some sort of business funding. Start by considering the following funding options.
Business lines of credit : A more flexible form of credit than a standard business loan, a business line of credit provides you with a set amount of money that you can choose to draw from only when you need it.
Business credit cards: Newer business owners may be better off with a business credit card , as they require less credit history than a loan. Generally, you can find a 0% intro APR credit card, which is like having an interest-free loan if you pay off your balance before the introductory offer is over and a variable APR sets in.
Equipment financing: If your business requires expensive equipment, then equipment financing may be your best option. Generally for this type of financing, a lender loans money specifically to purchase equipment. They then use this equipment as collateral for the loan.
Startup funding: A brand-new business owner should consider startup financing options such as SBA microloans or a business grant . Crowdfunding has also become a popular option for easy startup funding.
Once you obtain your funding or begin to rack up expenses or earn income, you should take steps to keep your business and personal finances separate from each other. Then, consider finding an accounting software program to manage your business’s financials.
Step 6: Find and manage candle supplies
At first, you may be able to just pop over to your local craft supply store to get some wax and scents for your candles. But once your business begins to grow, you’ll save a lot of money by buying supplies in bulk from a wholesale supplier. You’ll want to start sourcing affordable supplies straight away so you can test for quality and find the right supplier for you. Some candle making supplies you might need are:
Wax such as paraffin, gel, soy, beeswax, or another type
Containers for candles
Fragrances such as essential oils
Shipping and packaging supplies
Before you place any large orders, you should plan out how much inventory you will need and how you will manage it. Not only will doing so make finding suppliers easier, but you can begin to form a reliable inventory system. You may want to consider using an inventory management app to organize the comings and goings of your candle making supplies.
Step 7: Start marketing your candles
Once you’ve chosen your business name and started to develop your brand, you can market your business. Word of mouth is ideal, but you can’t rely on it. This is why having a well thought out marketing plan will come in handy. You’ll want to start by thinking of what your candle’s selling points are. Do they last longer than others? Smell stronger? Are they made from more sustainable ingredients? Identify what your main selling point is and how you can best present that message to potential customers.
Social media is a free, fun, and easy place to start. You might want to identify which channels would be best for your business and begin to build a presence on them. Email marketing is also an affordable option worth considering. The best part about social media and email marketing is that your customers choose to sign up for your advertisements. You have a captive audience, so take advantage of that fact.
The bottom line
If you really want to take your candle business to the next level, the steps above can help you pair your passion for candles with a solid plan for execution. The end reward could be a candle business that offers profit and creative joy for years to come.
On a similar note...
How To Write A Winning Candle Business Plan + Template
Creating a business plan is essential for any business but can be especially helpful for candle businesses who want to improve their strategy and/or raise funding.
A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you are going to accomplish it. In order to create an effective business plan, you must first understand the components that are essential to its success.
This article provides an overview of the key elements that every candle business owner should include in their business plan.
Download the Ultimate Business Plan Template
What is a candle business plan.
A candle business plan is a formal written document that describes your company’s business strategy and its feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.
Why Write a Candle Business Plan?
A candle business plan is required for banks and investors. The document is a clear and concise guide of your business idea and the steps you will take to make it profitable.
Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.
Writing an Effective Candle Business Plan
There are several key components of a successful candle business plan.
The executive summary of a candle business plan is a one to two page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.
- Start with a one-line description of your candle company
- Provide a short summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast among others.
This section should include a brief history of your company. Include a short description of how your company started, and provide a timeline of milestones your company has achieved.
If you are just starting your candle business, you may not have a long company history. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your candle firm, mention this.
You will also include information about your chosen candle business model and how, if applicable, it is different from other companies in your industry.
The industry or market analysis is an important component of a candle business plan. Conduct thorough market research to determine industry trends and document the size of your market.
Questions to answer include:
- What part of the candle industry are you targeting?
- How big is the market?
- What trends are happening in the industry right now (and if applicable, how do these trends support the success of your company)?
You should also include sources for the information you provide, such as published research reports and expert opinions.
This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.
For example, a candle business’ customers may include:
- Homeowners who want to improve the scent of their homes
- Business owners who want to use candles as a marketing tool to make their businesses more inviting
- People who want to buy candles as gifts for friends and family members
- Wedding planners looking for unique wedding favors
You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.
Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or candle services with the right marketing.
The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.
For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.
This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.
- Product/Service : Detail your product/service offerings here. Document their features and benefits.
- Price : Document your pricing strategy here. In addition to stating the prices for your products/services, mention how your pricing compares to your competition.
- Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
- Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, launch a direct mail campaign. Or you may promote your candle business via word-of-mouth, trade shows and events, or public relations.
This part of your candle business plan should include the following information:
- How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
- What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?
The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.
Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a candle business include reaching $X in sales. Examples include signing up X number of new customers or adding X new products to your line.
List your team members including their names and titles, as well as their expertise and experience relevant to your specific candle industry. Include brief biography sketches for each team member.
Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.
Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix).
This includes the following three financial statements:
Your income statement should include:
- Revenue : how much revenue you generate.
- Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
- Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.
Sample Income Statement for a Startup Candle Business
Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:
- Assets : All of the things you own (including cash).
- Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
- Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.
Sample Balance Sheet for a Startup Candle Business
Cash flow statement.
Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:
- Cash Flow From Operations
- Cash Flow From Investments
- Cash Flow From Financing
Below is a sample of a projected cash flow statement for a startup candle business.
Sample Cash Flow Statement for a Startup Candle Business
You will also want to include an appendix section which will include:
- Your complete financial projections
- A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
- Any other documentation which supports what you included in the body of your business plan.
Create a Winning Candle Business Plan
Writing a good business plan gives you the advantage of being fully prepared to launch or grow your candle company. It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.
Include a detailed financial plan and supporting documentation in your appendix. Doing so will give you the best chance for success when seeking funding from investors or lenders. Finally, make sure your management team is solid and has the experience and expertise to execute your vision.
Finish Your Candle Business Plan in 1 Day!
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Candle Making Business Plan Template
Whether you want to start your own candle business or expand an existing one, you need a business plan. the following candle business plan template lets you know which elements you need to include in a successful candle making business plan., fill the form to download business plan templates.
To ensure your candle business success in this highly competitive market, you need a properly structured candle business plan. With over 12 years of experience, we have helped over 5,000 entrepreneurs create business plans to start and grow their candle making businesses. Using the following candle business plan template, you can put together an effective business plan.
Things to Know Before Writing a Candle Making Business Plan
Candle-making is heavily influenced by consumer spending power. Scented and unscented candles are produced in this industry. The candle has almost entirely lost its function as a source of light, but it has re-emerged as a popular home decor item.
As a result, they are highly discretionary purchases that compete with other home decor products and air fresheners. In the coming year, the industry is expected to enjoy continued growth in disposable income, consumer expenditures, and trade conditions.
According to IBISWorld, revenue growth over the five years to 2025 is expected to be 2.9% annually, reaching $1.9 billion.
Among the major products and services in this industry are
- Votive candles
- Pillar candles
- Decorative candles in jars or containers
- Tumbler candles
- Other types of candles
Key Success Factors for the Candle Making Business
Despite the challenges of the Candle Making industry, we have identified 4 factors that can help you boost profitability, efficiency, and ultimately success.
- The ability to modify product offerings based on market conditions: Candle industry operators need to consistently offer new waxes, wicks, fragrances, and colorants to meet the changing preferences of consumers.
- Economies of scale: Economies of scale permit companies to minimize marginal costs, thereby making them more profitable.
- Creating premium goods: Customers in this industry are often willing to purchase premium products if they perceive them as being quality.
- Knowledge of the market: Gaining market share is very difficult in this highly competitive industry without marketing and brand awareness. These factors, however, are less influential in niche and ultra-niche markets.
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What is a Candle Business Plan?
A candle making business plan is a road-map for starting and growing your candle making business. Your business plan outlines your business concept, identifies your target customers, presents your marketing strategy, and details your financial projections.
Any bank or investor you approach will require a candle making business plan, so putting one together will be critical to securing funding.
In short, writing a business plan can help you succeed if you’re thinking of starting a candle making business or pitching to investors or venture capitalists.
Why You Need a Candle Making Business Plan
Candle making business plans can be used to gain interest from potential investors or to secure loans from banks. They are also helpful to you as the owner. A candle business plan allows you to thoroughly analyze every aspect of your potential business.
A solid, detailed plan gives you a clear path to follow, forces you to examine the viability of a candle business idea, and may help you better understand your company’s finances and competition.
Candle making business owners who have a business plan grow 36% faster than those who don’t, and 75% of fast-growing businesses have one.
A candle business plan is a living document that should be updated annually as your company grows and changes.
Free: Business Plan Examples
Do you need help creating a business plan? Check out these six free, proven business plan examples from different industries to help you write your own.
Funding Sources for Candle Making Business
No matter how large or how small your candle making business is, you should think about your financing options. Starting a candle business is no exception to the rule that it takes money to make money. You may require business funding to pay for supplies, marketing, production, insurance, legal counsel, and other expenses.
Consider the following funding options first:
Business lines of credit
A business line of credit is a more flexible form of credit than a traditional business loan because it gives you a set amount of money that you can draw from only when you need it.
Business credit cards
For newer business owners, a business credit card may be a better option than a loan because they require less credit history. In general, you can find a credit card with a 0% intro APR, which works out to an interest-free loan if you pay off your balance before the introductory period ends and the variable APR kicks in.
Finance for equipment
Equipment financing may be your best option if your business requires expensive equipment. A lender typically lends money specifically for the purchase of equipment in this type of financing. The equipment is then used as collateral for the loan.
A new business owner should consider SBA microloans or a business grant as options for startup financing. Crowdfunding has also become a popular method of obtaining quick startup capital.
When you get your funding, start accruing expenses, or start earning money, you should take steps to keep your business and personal finances separate. Then look for an accounting software program to help you manage your company’s finances.
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How to Write a Candle Making Business Plan
To write a candle business plan, you don’t need to be an expert. Our step-by-step guide will show you how to write a candle making business plan, or you can just download our proven sample business plan pdf to get a better idea.
Candle Business Plan PDF and Word
Download our candle making business plan in PDF and Word here.
The executive summary is the most important part of the document since it outlines the whole business plan. Despite the fact that it appears first in the plan, write the executive summary last so you may condense key concepts from the other nine parts.
It’s a part that catches the investor’s eye and provides key information about your company’s overview and upcoming short- and long-term goals.
Tell them what kind of candle making business you have and what stage you’re in; for example, are you a startup, do you have a candle making business that you want to expand, or do you have a lot of candle making businesses?
Finally, an executive summary should provide investors with a preview of what they may expect from the rest of your document.
- Provide a high-level overview of the candle making industry
- The name, location, and mission of your candle making company
- A description of your candle making business, including management, advisors, and a brief history
- Discuss the type of candle making business you are operating, Give an overview of your target customers, and how your company differs from competitors in the industry
- Create a marketing plan that describes your company’s marketing strategies, sales, and partnership plans.
- And give an overview of your financial plan
Check out these executive summary examples to help you write a perfect one for your candle making business plan.
Free: Executive Summary Examples
An executive summary is the most important part of your business plan, and it need not be challenging to write. This is why we have put together some awesome free Executive Summary examples for you.
The company analysis follows the executive summary as the second section of a candle business plan. Your company overview will be short and clear, similar to the executive summary.
Even if they just have a few minutes, your reader has to understand what your company does and who your customers are.
The following sections will be included in your business plan’s Company Analysis:
- Company summary: Your company analysis will describe the type of candle making business you are running and its future goals. The type of candle making business you might be focused on (Scented candles, Decorative Candles, Pillar candles, Dinner candles, Votive candles, Tea lights and Specialty Wax Candles, etc)
- Company history: When and why did you start your candle making business?
- What milestones have you achieved so far? Your milestones could include served 100th customer, new fleet purchase, etc.
- Legal structure and ownership: Do you have S-Corp status? Is it an LLC ? A sole proprietorship ? Describe your legal structure.
- Mission statement: An overview of your candle making company’s guiding principles. Learn how to write a perfect mission statement .
The candle making business plan’s research section will most likely be the most time-consuming. Here, you will elaborate on how you will fit into the existing candle making market. Since your research findings should serve as a sound confirmation of the conclusions you have outlined thus far, they will demonstrate your understanding of the industry and market.
Industry analysis can be presented as a 8-step process when written as part of a company’s business plan.
- Give a quick overview of the candle making industry. Define the candle making business in terms of size (in dollars), historical background, service region, and products.
- Examine previous trends and growth patterns in the candle making industry.
- Identify the market’s major competitors.
- Age, gender, and general lifestyle of the targeted market
- Determine the factors that have an impact on the candle making industry. These might include government regulatory rules and other businesses’ competitive activities.
- Using research data, the industry forecast expected growth over the next five to ten years. Predictions should be made for both the long and short term.
- Describe how your candle making business intends to position itself in the industry. Concentrate on how your candle business can benefit from opportunities highlighted in the industry.
The customer analysis section is an important part of any candle business plan since it evaluates the consumer segments that your company serves. It identifies target customers, determines what those customers want, and then explains how the your candle products will meet those requirements.
Customers can be categorized into the following segments:
- Spa beauty salons
- Religious houses
Departmental Stores, Wholesalers, Churches, Spa Beauty Salons, Home Furnishing Stores, Religious groups, hotels and restaurants, families, couples, party planners, homeowners, etc.
Customer analysis may be divided into two parts: Psycho-social profiles and D emographic profiles
With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.
The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.
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It is necessary to do a competitor analysis. Because you may use their data to define your goals, marketing plans, tactics, new product lines, pricing, and more. Use competitor analysis to:
- Identify the strength and weakness of your candle making business competitors.
- Search for opportunities to distinguish your candle making business from competitors.
The first step is to determine who your direct and indirect competitors are.
The direct competitor consists of other candle making businesses that offer essentially the same candle products to the same people as you do.
Your indirect competitors are other options that customers have to purchase from you that aren’t direct competitors.
Among indirect competitors are big-box stores, craft stores, home decor stores, and general stores etc. You should also mention the competitors.
Once you’ve identified the competitors, concentrate on the direct, head-to-head competitors, since they are the most threatening to your candle making business— but keep an eye on the indirect competitors as well, just in case.
Provide an overview of each direct competitor’s business and detail their strengths and weaknesses.
You will be able to position yourself competitively in the market if you perform proper competitors research. Perform a SWOT Analysis to learn your competitors’ strengths, weaknesses, and competitive advantages in the following areas:
- Prices – Are they offer cheaper candle products or more costly than you and other competitors, what value do buyers get for that price?
- Quality – Are they offer premium candle products, the perceived worth in the eyes of the customers
- Customer service – How they respond to their consumers, whether they treat them poorly or well, and the degrees of satisfaction customers show
- Reputation — The sum of everything mentioned above: their credibility, how loved the brand is, and the loyalty of their customers
The final section of your competitive analysis should include a list of your areas of competitive advantage. for example: Are you going to offer premium candle products? Will you have unique or specialty products? Will you offer better pricing or will you offer greater customer support?
Consider how you will outperform your competitors and include them in this portion of your candle making business plan.
Free: SWOT Analysis Examples
Take advantage of our free SWOT analysis examples. Make your business future-proof by identifying your strengths, weaknesses, opportunities, and threats using this free SWOT Analysis Template.
Creating a marketing plan for a candle making business involves identifying the target demographic and finding candle products that suit their preferences.
As part of your marketing plan for a candle making business, you should include:
Pricing and Product Strategy
Your candle making business must offer stylish and unique candle products that are different from those of your competitors. Research what your competitors offer and how they price their candle products. Unique candle products identifies your candle making business as the place to go for unique candle products and differentiates it from others.
Placing and Promotions
This refers to the location of your candle-making business. Explain how the location will impact your success. Is your candle business located in a busy retail district, shopping mall, shopping center, etc? Discuss how your location may be perfect for your customers.
Promoting your candle making business is the final part of your marketing plan. In this step, you document how you will drive customers to purchase your candles. A few marketing methods you could consider are:
- Introduce candle-making business to religious houses, spas, and other businesses
- Advertise your candle-making business in relevant magazines, local newspapers, radio, and television stations.
- Make sure your business is listed in local and online directories
- Utilize your website and social media platforms to promote our products and services
- Direct marketing
- Encourage loyal customers to help us by making referrals
- Distributing business cards and handbills
- Creating a billboard and placing it in a strategic location.
Are they more durable than others? Smell better? Are they made with more environmentally friendly materials? Determine your main selling point and the best way to communicate it to potential customers.
Pro Tips: Learn how to write a marketing plan in business plan to create a winning candle making business plan.
While the previous sections described your goals, your operational plan in a business plan discusses how you will achieve them.
An operations plan is helpful for investors, but it’s also helpful for you and employees because it pushes you to think about tactics and deadlines.
Your operations plan should be divided into two individual parts, as seen below.
All of the tasks involved in running your candle business, such as tracking inventory, marketing your business, researching new scent combinations or designing new novelty options, pouring candles for inventory, and preparing for upcoming orders, are included in daily short-term processes .
Long-term goals are milestones you hope to reach. they might be growing your business, such as introducing new items or retail outlets, meeting particular sales milestones, and meeting other essential business-oriented goals like recruiting more staff, opening additional locations, and so on.
The management team section in a business plan ‘ outlines your management team, staff, resources, and how your business ownership is structured.
This part may be easily organized by dividing it into the following points:
Internal Management Team
External Management Resources
This section outlines your candle making business’s legal structure. If your company is a sole proprietorship , it may simply be one phrase. It might be longer if your company is a partnership or a corporation . You should make it a point to clarify who owns what part of the business.
This section should not only outline who is on your management team but also how each person’s skill set and experiences will contribute to the growth of your candle making business. Ideally, you and/or your team members have direct expertise in the candle making business. If this is the case, highlight your experience and skills.
Think of these external management resources as your internal management team’s backup. Consider forming an advisory board if your team is lacking expertise and experience with candle making business.
An advisory board would consist of 3 to 7 people who would serve as mentors to your candle making company. They would assist in answering queries and providing strategic direction.
If necessary, search for advisory board members with expertise running candle making business.
Describe all of your company’s external professional advisers, such as accountants, bankers, attorneys, IT experts, business consultants, and/or business coaches.
The final topic to consider in the management area of your candle making business plan is your human resource needs.
As part of your financial plan, you should present a 5-year financial statement broken down monthly or quarterly for the first year, and then annually. Financial statements include your income statement, balance sheet, and cash flow statement.
A profit and loss statement is more commonly called an income statement. It shows your revenue and subtracts your expenses to determine whether you were profitable or not.
As you develop your income statement, you need to develop assumptions. For example, will you serve 20 clients per day or 50? Will sales increase by 3% or 15% per year? As you can imagine, your assumptions have a significant impact on your financial forecast. Do your best to verify your assumptions by conducting research.
Free: Income Statement Template
Create a financial statement for your business by downloading our free income statement templates.
While balance sheets include much information, to simplify them to the key items you need to know about, balance sheets show your assets and liabilities.
The balance sheet shows your candle making business’s net value at a specific point in time. It categorizes all of your company’s financial data into three categories:
- Assets: Tangible goods with the monetary worth that the company owns.
- Liabilities: Debt owing to a company’s creditor.
- Equity: The net difference when the total liabilities are subtracted from the total assets.
The equation that expresses the relationship between these financial data elements is Assets = Liabilities + Equity.
Create a pro forma balance sheet for your candle making business plan that highlights the information in the income statement and cash flow projections. A balance sheet is normally prepared once a year by a company.
Balance sheets indicate your assets and liabilities, and while they contain a lot of information, they are simplified to highlight the most important things you need to know.
For example, spending $500,000 to build out your candle making business will not result in instant revenues. Rather, it is an asset that should help you earn money for many years to come.
Similarly, if a bank sends you a check for $200,000, you do not have to pay it back right now. Rather, that is a liability that you will repay over time.
Cash Flow Statement:
Your cash flow statement will help you determine how much money you need to start or grow your candle making business. In developing your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a candle making business:
- Fees for registering a candle making business
- Acquisition of POS machines and candle-making equipment
- Expenses for marketing promotion for at least six months
- Operating expenses for the first six months (employee salaries, bills)
- Taxes and licenses costs
- Business insurance
- Payroll or salaries paid to staff
- Facility rent and security deposits
- Construction / remodeling
- Start-up inventory cost (wax, wicks, fragrances, packaging materials)
Read Later: How to create a financial plan in a business plan .
Free: Balance Sheet Template
Create a financial statement for your business by downloading our free balance sheet templates.
List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.
Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.
Pro Tip: Find out what to include in a business plan appendix when writing a candle making business plan.
Summary of the Candle Making Business Plan
A candle business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the candle making business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your candle making business.
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Candle Business Plan Template
Make your own candle business plan by modifying candle business plan template on venngage..
- Size : 816 x 1056px
- Plan : business
A Candle Business Plan Template is a guide that can help you start and run your own candle business. It can provide you with information on things like goal setting, marketing, and financial planning. Candle Business Plan Templates can also provide a list of things to consider when starting a business. Candle Business Plan Templates can help you save a lot of time and energy because they provide a structure for organizing your Candle Business Plan. Candle Business Planning is the process of taking the future into account and examining all aspects that might influence it. Candle Business Plans are a key part of any business, large or small. A Candle Business Plan Template should always be a starting point. Create a Candle business plan infographic using Venngage’s Candle business plan infographic template. To edit this Candle business plan infographic, you don't need to be a designer, have design expertise, or use any design tools. To begin, click the create button to generate this Candle business plan infographic design. You may modify everything you see in the editor, from font
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- 10 min read
How to start a candle business in 2024: an 8-step guide
This post was last updated on October 5, 2023.
You’ve probably heard the rumors.
The candle industry is thriving. Last year alone, the global candle industry hit $6.8 billion—and it's currently on track to reach $9.9 billion in annual revenue by 2028, according to a report by Vantage Market Research .
Whether you’re looking to take a personal hobby to the next level or dive head-first into a new business venture, you’ve come to the right place. This step-by-step guide for how to start a candle business will outline everything you need to know.
Why should you start a candle business?
There are a number of reasons why a candle business makes for a good eCommerce business idea . To name a few:
Low startup costs - Candle-making doesn’t require a lot of tools or equipment to start. You could essentially run to your local craft store with little startup capital and get started today (though later you might want to upgrade to premium materials). This isn’t generally the case when it comes to how much it costs to start a business .
Easy to learn - There are tons of free online resources, recipes, and tutorials to help you understand the craft of candle-making (including this handy resource hub by the National Candle Association ). You can experiment with fragrances, containers, waxes, and wicks at your leisure and customize your candles however you’d like.
Better-than-average profit margins - What may cost you just a few dollars to make can typically be sold at a 25% to 50% markup , making operating expenses relatively affordable.
How to start a candle business in 8 steps
Master the craft of candle-making
Define your brand
Estimate your startup costs
Write a business plan
Make your business official
Create your startup inventory
Create your online store
Develop your marketing strategy
01. Master the craft of candle-making
The first logical step is to get familiar with the process of creating a candle. One of our favorite types comes from the Armatage Candle Company, which encourages new business owners to heed the "84 Candle Rule"—that is, create 84 candles and give most of them away.
The 84 Candle Rule gives you ample time to get familiar with the candle-making process, test various formulas, and collect feedback from friends and family.
Moreover, as you create more and more candles, you’ll learn to:
Graduate from a candle-making kit. To scale production, you’ll eventually need to invest in more professional equipment, like a 4-lb pour pot or a Presto Pot, that can support a higher volume than a kit.
Master the craft. Rather than splitting your time between learning how to create candles and run a business , you can focus on perfecting (and confirming your interest) in candle-making first.
Test various aspects of your candles. With each batch you make, you can test aspects such as smell, safety, burn time, and more until you develop a formula that you like.
Find suppliers. As you increase production, you’ll need to learn how and where to purchase supplies, whether locally or online—and can afford the time to shop around.
Make a variety of candles. Making 84 candles gives you plenty of room to explore various wax types, dyes, fragrances, and candle types (e.g., pillar candles, container candles, wax melts, etc.) that you can offer as part of your catalog.
02. Define your brand
Before presenting your candles to the market, you must figure out the who, what, and why behind your brand. Ask yourself:
Why are you starting a business ? - What is the story behind your brand, and the overall vision that keeps you motivated?
What is your target market - Are you looking to sell higher-end candles to be sold at luxury boutiques and stores? Or, are you looking to appeal to the masses and create candles that feature more economical packaging and containers?
Who is your ideal customer? - Perhaps you’re looking to sell high-end candles for working men and women aged 20 to 35 who want to spruce up their home offices. Or, perhaps your niche consists of avid campers aged 35 through 60 looking for a better-smelling, bug-repelling candle.
What makes your candles different? - Are your candles non-toxic? Are your scents extra delicious? Do you support a cause? It's important to establish your unique selling proposition (USP) in order to differentiate yourself from competitors.
Once you’ve answered these questions, you can enjoy an easier time figuring out how to bring your vision to life. Between deciding the types of candles you want to offer and how to brand your online store , a clear brand identity can help you to get things off the ground faster.
At this point, make sure to tackle these basic steps:
Decide on a business name - A strong, memorable name is invaluable. Take the time to think of a candle business name that represents your products or brand mission, while ensuring that it’s able to grow with your brand. If you need some inspiration, try the Wix Business Name Generator for free.
Create a logo - Design a logo that you can proudly sport on your product packaging, website, and marketing materials. The Wix Logo Maker can get your creative juices flowing, or find a professional designer on the Wix Marketplace .
Design your labels - Work with your designer to create labels for your candles that are reflective of your brand’s personality. Remember to observe candle label requirements and include essential information like your candle scent, product weight, and your company information.
03. Estimate your startup costs
When it comes to learning how to start a business , there are typically two types of startup costs that you’ll have to be aware of:
Production/manufacturing costs - These include the cost of manufacturing and packaging your products. Factor in equipment like your containers, waxes, wicks, fragrance oils, thermometers, and more.
Business/operating costs - These include any software subscriptions, shipping costs, small business insurance, and other bills you’ll have to pay to keep your business operations running smoothly.
Take the time to list out what items you’ll need to create your first 100 or so candles. At this stage, you’ll also want to get familiar with costs you should expect, both now and in the future.
For instance, you’ll need to budget money for any marketing or advertising that you plan to do around your products. You’ll also need to factor in taxes, plus recurring fees for any website software you want to use or partners (like 3PLs) that you want to team up with to scale and simplify operations.
04. Write a business plan
A business plan helps you plan out all aspects of your business and set yourself up for sustainable growth.
When developing your plan, it’s important to take your time and walk through the various opportunities and challenges confronting your business. Pinpoint your competitors, your differentiators, your distribution channels, and the resources at your disposal (among other things).
Most business plans will include the following sections:
Company name, description, and domain
Ecommerce market analysis
Products you’re selling and why
Marketing and advertising plan
Learn more about creating a strong eCommerce business plan .
05. Make your business official
It's time to turn your business into a legal business entity and take care of other business-essential steps. Don't worry. This part is a lot less scary than it sounds.
Register with your state
It is important to take where you live into account. Learning how to start a business in Massachusetts is very different from learning how to start a business in California , for example. Register your business name through your state and local governments. The easiest way to find where to register is by googling "register a business in [insert your state]."
The search results will contain several links for companies offering to register your business for you (for a fee). However, you can avoid the service fee by registering directly through your state's website. You’ll typically have to pay a small filing fee, which varies by state.
Get a federal tax ID
File for a Federal Tax ID (or EIN) number , which is required to open a business bank account, obtain a business loan, hire employees, and more. Fortunately, the application process is free and only takes a few minutes.
Apply for business licenses and permits
Once you have your EIN, you can complete the last step in making your business legal: apply for a business license . A business license includes your seller's permit and allows you to collect state sales tax on your transactions.
Perform another internet search to find the appropriate website for your state (i.e., google "register for a business license in [insert your state]"). Complete the application steps outlined by your state. Note that some states only require a general business license while others have additional local or county-based requirements.
Apply for insurance
Unfortunately, the reality is that candles are a fire hazard, and accidents can happen. Therefore, applying for insurance is one of the most critical steps in creating your business. Insurance not only protects your business, but it protects you and your family as well.
At a minimum, you'll want an insurance policy that provides general liability coverage. General liability is the most straightforward and covers third-party property damage or injury claims.
There are a lot of online resources about small business insurance. Do some research, consult a professional, and find a small business insurance company that provides the coverage you need and fits your budget.
Get a business bank account
For taxes and bookkeeping, it’s a good idea to keep your business income and expenses separate from your personal finances.
Each bank or credit union has different fees, transaction limits, and balance minimums for business accounts. So take some time to shop around for a local or online bank that will work for you.
Note: to open a business account, most financial institutions require a copy of your business formation documents (obtained when you registered your business), licenses/permits, and either your EIN or your social security number.
06. Create your startup inventory
Build your first products to list for sale. Start with a fragrance lineup that best fits your business and your purpose, and then every couple of months, launch a new fragrance and get feedback from your buyers.
This can help to keep your customers engaged and excited about new fragrances or product lines.
A good place to start is by launching a handful of fragrances, spanning a range of different categories, such as:
For example, Renee Candle Co. offers several distinct scents within these categories: Unwind, Noir, Tropix, Spiced, Lush and Cozy.
07. Create your online store
Here comes the fun part. Build a business website where you can collect orders for your candles.
Learn more: How to make a website
At this stage, it’s crucial to pick a reliable eCommerce platform. A platform like Wix’s eCommerce website builder offers a wide range of features and capabilities, including built-in catalog management, inventory management, and marketing tools that will be useful in the future.
All Wix websites are also built with SEO, reliability, security, and performance in mind. Meaning, you don’t have to worry about your site crashing when there’s a surge in traffic. And you can rest assured that your site is mobile-friendly and backed by the best security measures.
Read More: Proof that Wix is good for eCommerce
Thanks to these capabilities, you can focus most of your attention on designing the best, user-friendly site experience.
First, pick a layout design that best suits your brand. Most website builders provide several pre-made templates to help get you started. For example, Wix eCommerce includes more than 500 professionally designed online store templates , which can be further customized.
Build out your pages and pay special attention to the following best practices:
Use high-quality product photos - Offer a range of studio and lifestyle shots, and photos that show your candles at various angles. Heed these product photography tips in order to take pictures that are both compelling and informative.
Include detailed product descriptions - For each candle, clearly state the available size(s), fragrance, approximate burn times, and appropriate warnings or usage tips. The more detail you can include, the better for mitigating returns due to “item not as described.”
Make sure your products are easy to find - Ensure that your site is easy to navigate. As a general rule of thumb, all of your products should be accessible within three clicks. Leverage breadcrumbs, menus, and features like “related products” to encourage product discovery on your site.
Offer multiple payment options - When connecting a payment provider to your store, keep in mind that some customers may want to pay with a credit card while others may prefer PayPal or buy-now-pay-later services like Affirm. Reduce friction at checkout by offering a variety of payment options. Wix Payments can make this possible on any Wix store—or you can choose from 50+ other payment options.
08. Develop your marketing strategy
You've done a lot of work up to this point. Now it's time to create an eCommerce marketing strategy and figure out how to spread the word about your store. As a Wix merchant, you can automatically access tools for business email marketing, social media marketing, blogging, and more.
Social media is a great place to start promoting your product, though you’ll want to avoid taking the spray-and-pray approach. Engage with social channels one or two at a time (there’s no need to create accounts everywhere just for the heck of it). Experiment with various types of posts—like videos and livestreams—and observe how people respond.
Pro tip : When talking about your product online, avoid subjective buzzwords like “amazing” or “best.” Instead, focus on your purpose and your story, and aim to demonstrate how your products are superior.
Other marketing tactics worth trying:
Create a newsletter to regularly engage with customers and recommend products
Start a blog as part of a larger SEO strategy, and to attract organic traffic to your site
Run ad campaigns that retarget your site visitors and/or help you get in front of new audiences
Incentivize customers to refer a friend to your website by offering special rewards
Collect user-generated content and social proof to display on your site
Run contests and giveaways to generate interest in your products
Participate in craft shows or other local events where you can demonstrate your products in person
Time to launch
So, you've laid the groundwork for your business, stocked up on supplies (plus equipment), built an amazing eCommerce website, and created your initial inventory. Now it’s time to put it all together and launch your candle business.
Remember to never stop being curious, even after you’ve opened the (virtual) doors of your business. Analyze your business regularly. Talk to your customers. Optimize and pivot as necessary.
Ready to start your new candle-making business? Create your online store with Wix eCommerce today.
Looking to start a candle business in a specific state
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How to start a candle business FAQ
What are some of the challenges of starting a candle business.
There are a few challenges that you may face when starting a candle business. These include:
Competition: The candle industry is very competitive, so you'll need to find a way to make your candles stand out from the competition.
Costs: Starting a candle business can be expensive, especially if you plan on making your own candles. You'll need to factor in the cost of supplies, packaging, marketing, and shipping.
Time: It takes time to build a successful candle business. Don't expect to become an overnight success.
What are some tips for starting a successful candle business?
Here are a few tips for starting a successful candle business:
Do your research. Before you start making candles, it's important to do your research and learn as much as you can about the candle industry. This includes learning about the different types of candles, the different waxes and oils that can be used, and the different candle making techniques.
Develop a unique selling proposition. What makes your candles different from the candles that are already on the market? What can you offer that your competitors can't?
Focus on quality. The quality of your candles is essential to your success. Make sure that your candles are well-made and smell amazing.
Market your candles effectively. Once you have made your candles, you need to get the word out. There are many different ways to market your candles, so experiment until you find a method that works best for you.
Be patient and persistent. It takes time to build a successful candle business. Don't get discouraged if you don't see results immediately. Just keep making great candles and marketing them effectively, and you will eventually succeed.
Editor, Wix eCommerce
Allison is the editor for the Wix eCommerce blog, with several years of experience reporting on eCommerce news, strategies, and founder stories.
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Candle Making Business Plan
Growing demand, low startup costs, high margins, and a diverse market make candle-making a great business choice, especially for those who enjoy DIY projects and artistic expression. However, starting a business with proper planning can ensure your business is safe.
Are you looking to start writing a business plan for your candle making business? Creating a business plan is essential to starting, growing, and securing funding for your business. So we have prepared a candle making business plan template to help you start writing yours.
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How to Write a Candle Making Business Plan?
Writing a candle making business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:
1. Executive Summary
An executive summary is the first section of the business plan intended to provide an overview of the whole business plan. Generally, it is written after the entire business plan is ready. Here are some components to add to your summary:
Start with a brief introduction:
Market opportunity:, describe your product:, management team:, financial highlights:, call to action:.
Ensure you keep your executive summary concise and clear, use simple language, and avoid jargon.
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2. Business Overview
Depending on your business details, you’ll need different elements in your business overview. Still, there are some foundational elements like business name, legal structure, location, history, and mission statement that every business overview should include:
About the business:
Provide all the basic information about your business in this section like:
- The name and type of your candle business: mention whether you are a homemade candle manufacturer, factory-produced manufacturer, organic candle-making business, or any other candle manufacturing business.
- Company structure of your candle business, whether it is a sole proprietorship, partnership firm, or something else.
- Location of your business and why you selected that place.
Business history:, future goals:.
This section should provide an in-depth understanding of your candle making business. Also, the business overview section should be engaging and precise.
3. Market Analysis
Market analysis provides a clear understanding of the market in which your candle making business will run along with the target market, competitors, and growth opportunities. Your market analysis should contain the following essential components:
Market size and growth potential:, competitive analysis:, market trends:, regulatory environment:.
Some additional tips for writing the market analysis section of your business plan:
- Use various sources to gather data, including industry reports, market research studies, and surveys.
- Be specific and provide detailed information wherever possible.
- Include charts and graphs to help illustrate your key points.
- Keep your target audience in mind while writing the business plan.
4. Products And Services
The product and services section of a candle manufacturing business plan should describe the specific products that will be offered to customers. To write this section should include the following:
List the products:
- Create a list of the type of candles your candle business will offer, including scented, decorative, taper, pillar, soy, etc.
- Shipping and delivery: Explain how your business will handle the shipping of your products and if you will charge any additional fee for these services.
Emphasize product quality:
Overall, a business plan’s product and services section should be detailed, informative, and customer-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.
5. Sales And Marketing Strategies
Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:
Develop your unique selling proposition (USP):
Determine your pricing strategy:, marketing strategies:, sales strategies:, customer retention:.
Overall, your business plan’s sales and marketing strategies section should outline your plans to attract and retain customers and generate revenue. Be specific, realistic, and data-driven in your approach, and be prepared to adjust your strategies based on feedback and results.
6. Operations Plan
When writing the operations plan section, it’s important to consider the various aspects of your business processes and procedures involved in operating a business. Here are the components to include in an operations plan:
Operational process:, equipment and raw materials:.
By including these key elements in your operations plan section, you can create a comprehensive plan that outlines how you will run your candle making business.
7. Management Team
The management team section provides an overview of the individuals responsible for running the candle making business. This section should provide a detailed description of the experience and qualifications of each manager, as well as their responsibilities and roles.
Organizational structure:, compensation plan:, board of advisors:.
Describe your company’s key personnel and highlight why your business has the fittest team.
8. Financial Plan
When writing the financial plan section of a business plan , it’s important to provide a comprehensive overview of your financial projections for the first few years of your business.
Profit & loss statement:
Cash flow statement:, balance sheet:, break-even point:, financing needs:.
Remember to be realistic with your financial projections and provide supporting evidence for your estimates.
When writing the appendix section, you should include any additional information that supports the main content of your plan. This may include financial statements, market research data, legal documents, and other relevant information.
- Include a table of contents for the appendix section to make it easy for readers to find specific information.
- Include financial statements such as income statements, balance sheets, and cash flow statements. These should be up-to-date and show your financial projections for at least the first three years of your business.
- Provide market research data, such as statistics on the size of the candle making industry, consumer demographics, and trends in the industry.
- Include any legal documents such as permits, licenses, and contracts.
- Provide any additional documentation related to your business plans, such as marketing materials, product brochures, and operational procedures.
- Use clear headings and labels for each section of the appendix so that readers can easily find the information they need.
Remember, the appendix section of your candle making business should only include relevant and essential information supporting your plan’s main content.
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This candle making business plan sample will provide an idea for writing a successful candle making plan, including all the essential components of your business.
After this, if you still need clarification about writing an investment-ready candle making business plan to impress your audience, download our candle making business plan pdf.
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Frequently asked questions, why do you need a candle making business plan.
A business plan is an essential tool for anyone looking to start or run a successful candle making company. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your candle making business.
Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your candle making business.
How to get funding for your candle making business?
There are several ways to get funding for your candle-making business, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:
- Bank loan – You may apply for a loan in government or private banks.
- Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
- Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your candle making business, usually online.
- Angel investors – Getting funds from angel investors is one of the most sought options for startups.
- Venture capital – Venture capitalists will invest in your business in exchange for a percentage of shares, so this funding option is also viable.
Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.
Where to find business plan writers for your candle making business?
There are many business plan writers available, but no one knows your business and idea better than you, so we recommend you write your candle manufacturing business plan and outline your vision as you have in your mind.
What is the easiest way to write your candle making business plan?
A lot of research is necessary for writing a business plan, but you can write your plan most efficiently with the help of any candle making business plan example and edit it as per your need. You can also quickly finish your plan in just a few hours or less with the help of our business plan software.
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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more
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How to Start a Candle Making Business
On This Page:
Steps to Starting a Candle Business
How big is the candle manufacturing industry, what are the key segments of the candle manufacturing industry, what external factors affect the candle manufacturing industry, who are the key competitors in the candle manufacturing industry, what are the key customer segments in the candle manufacturing market, what are the typical startup costs for a new candle making business, is a candle making business profitable, what are the keys to launching a new candle making business, how to start a candle making business faqs, helpful videos, additional resources, other helpful business plan articles & templates.
When you think about starting a new business, the focus is usually on making money. However, there are many other benefits to running your own business, from keeping up with the latest trends and innovating yourself to being your own boss. One lucrative yet overlooked industry is candle-making.
In this article, we will share with you how to make your candle business a success.
Importantly, a critical step in starting a candle making business is to complete your business plan. To help you out, you should download Growthink’s Ultimate Business Plan Template here .
Download our Ultimate Business Plan Template here
1) Determine your niche.
There are many ways to go about creating your own candle business. The first thing you need to do is decide what your specific niche will be. Do you want to focus on making candles for an event? Or how about customizing candles for the home? Do you want to sell candles for a particular type of holiday such as Christmas or Valentine’s Day? You can even create multiple niches and focus on giving customers what they want.
2) Name and register your business.
You will need an official business name and you will have to register your business with your state and the federal government. You can pick a name that is related to candles and/or has something to do with your intended market (e.g., Glitter and Sprinkles if you’re selling at craft fairs, Secret Garden for weddings).
3) Determine your business structure.
You have a few options when it comes to setting up your candle business.
You could sell as a sole proprietor, meaning you are responsible for all debts and actions of the company.
A partnership is where two or more people decide to pool resources together with each party being responsible for their actions.
Other common business structures include a limited liability company (LLC) and a corporation. When you choose your business structure, make sure to review any paperwork.
The best option for you depends on your personal preference and the size/type of business you want to start.
4) Create your candle making business plan .
Create a business plan that includes your budget, materials list (including costs), and marketing strategy. You will need to decide what kind of candles you want to make, how much you will charge for them, and how many hours you are willing to spend per week making the initial product line.
To help you get started, you can download our candle making business plan sample pdf .
5) Determine how you’re going to finance your candle-making business.
Figure out what kind of capital is necessary and how you are going to get it. Your best bet may be a line of credit from the bank, business credit cards, or getting a small business loan.
6) Open a business bank account.
This is the official account you will use for your business. It helps to separate your personal and business expenses, but it can be confusing at first since money may still come from different sources. For this reason, you must be organized when it comes to keeping track of income and expenses.
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7) set up bookkeeping software for your candle business..
You are going to need some method of bookkeeping that allows you to keep track of your income, expenses, and taxes. You can use a simple Excel spreadsheet if necessary but purchasing accounting software will make the process much easier. When you set it up, don’t forget to set up separate accounts for all of your different kinds of expenses, income, and taxes.
8) Purchase insurance.
As with any kind of business, it is advised that you get insurance before getting started. This way, if something happens to your equipment, you are not left footing the bill. Also, talk to your insurance agent about covering liabilities that may arise from customers who are hurt while visiting your candle-making lab or store.
9) Find the right equipment.
This will be largely dependent on what type of candle-making business you want to start. A few suggestions are: melting pots, stirring spoons, measuring cups and spoons, molds (silicone or wooden), and thermometers.
You can find most of these items at a local craft store or online candle-making suppliers.
10) Source your supplies.
You will need to find out where to buy wax (soy wax is best), wicks, dye, and fragrance. There are pre-made kits you can buy with everything you need to make candles. Otherwise, you can buy the supplies separately if you are more familiar with the specific supplies that you want to use in your candles.
11) Set up a “candle lab.”
To make wax candles, you will need to devote some space for melting wax, mixing colors, pouring into molds, and cooling. Once you have all your materials and licensing, it is time to start making candles! Here are some tips:
- always work in a well-ventilated area
- work with one color of wax at a time
- melt the wax to between 130-140 degrees Fahrenheit
- let the dye dissolve completely in the hot wax before stirring (otherwise, your colors will be muddled)
- use good quality fragrances
- wear clothes that cover your skin, closed-toed shoes, and a hair net if you have long hair
If you are just starting, you can use your kitchen or basement. If the work becomes too consuming, then an entire room may be necessary.
12) Test your product and chemistry knowledge.
Before you begin to produce large quantities of candles, make a small batch and test them for scent throw (how well it smells), hot and cold scent throw (making candles is all about chemistry), cooling effect (if you used dye, your candles may heat up and melt the dye which will look bad), wax melt pool (how big it is), how long it burns, etc.
13) Create a marketing plan.
Research your target market and determine how to reach them. You can start by hosting small events in your home with friends and family for feedback, then slowly expand from there. Gain more exposure by signing up for a booth at local trade shows and craft fairs where you can sell your candles.
If you want to sell and ship your candles across the country, you can also begin building your own website with the help of a friend or family member who has some web development experience or choose an easy drag and drop e-commerce platform to help you get started.
14) Enjoy the sweet smell of success of your own candle business.
Once you have mastered the art of making candles, you can begin selling candles locally and online using marketplaces like Etsy or build your own website to attract more potential customers.
With hard work and dedication, your business should soon be booming.
The candle manufacturing industry has shown quite an increase in popularity over the last couple of years. The market size now exceeds $2 billion and is projected to grow to $6.6 billion in the next 5 years.
Candle manufacturing is a very fragmented business with a majority of it being small and medium-sized companies. There are only a few large manufacturers who hold a significant market share.
The largest segment in the industry is container candles, accounting for 58.7% of the market. The second biggest segment is votive candles, accounting for 21.7% of the market. Other segments include pillars, tapers, novelty candles, and others.
The following external factors also play a role in the candle manufacturing industry:
Disposable Income – Key influencer of the industry. As disposable income increases, so does consumer spending on candles.
Consumer Preferences – Shifts in consumer preferences have a large impact on this industry as it is heavily driven by aesthetics. With new fashions and trends emerging regularly, an additional challenge for candle manufacturers is to keep up with consumers’ tastes and preferences.
Production & Materials Cost – Key influencer of the industry. Changes in resin and wax prices will affect the cost of producing candles.
Environmental Regulations – The environmental impact of burning candles is becoming a major issue for this industry, with consumers increasingly concerned about pollution and its long-term effects. Rising awareness could lead to regulation in this area and introduce an obstacle to candle manufacturing companies’ growth prospects.
The candle manufacturing industry is fairly fragmented with several small to mid-size companies competing for a share of the market. The following are some of the key competitors in this industry:
- Private Label – Candles are frequently sold under the brand names of retailers or distributors.
- SC Johnson and Sons – Manufacturer of Glade candle products along with a wide range of other products.
- The Yankee Candle Co. Inc. – The company manufactures and retails candles, holders, related accessories and room sprays through its candle wholesale division.
- MVP Group International Inc. – The company designs and manufactures various private label and branded candles, candle accessories, home fragrance products, and decorative accessory gift products.
- Newell Brands – The candle making company produces the Duraflame brand of candles.
The key customer segments in this market include:
- Home furnishing stores – These are retailers who sell candles, candle holders and other home furnishing products.
- Mass merchandisers – Retailers who operate large retail outlets where they sell a general line of products and whose main target market is the price-conscious consumer.
- Small specialty retail stores – These are retailers who sell a limited line of products and whose stores may be arranged similarly to those of home furnishing retail outlets.
- Wholesalers – These are intermediaries who purchase products from the manufacturer to resell them to retailers.
- Exports – Export sales make up a significant percentage of annual candle sales and is expected to grow in the future.
- Direct sales – Candle sales are made directly to the consumer by manufacturers and producers.
- Online sales – Candle sales are made through their own ecommerce site and other online marketplaces.
The typical startup costs for a new candle business can range anywhere from $10,000 to $80,000. New candle businesses will require the following initial investments:
- Raw Materials – Raw materials needed to produce candles may include wax, glass containers, scents, wicks, and other related products.
- Production Equipment – Production equipment may include molds, melting pots, and filling machines.
- Marketing Expenses – Marketing expenses may include costs related to promotional items, industry publications, and related products used for marketing purposes.
- Advertising – Costs of advertising for a new candle business will depend on the type of media used but are expected to be upwards of $1,000 per month.
- Office Supplies – Office supplies needed by a new candle company might include stationery, business cards, labels, and other related products.
- Legal Fees – Costs of legal fees may be incurred to file all necessary legal documents.
- Business Licenses and Permits – Costs of licenses and permits will depend on the location of the new company but are expected to be under $1,000.
- Packaging and Shipping – Packaging and shipping costs will vary depending on the type of products sold but are expected to be upwards of $1,000 per month.
As your business grows, you may find there are some additional costs of obtaining a larger space:
- Renting a Commercial Space – The rent for a commercial space will depend on the location of the business and could cost between $1,000 to $3,000 per month.
- Employee Costs – The employee costs for a new candle-making business will depend on the type of workers hired but are expected to be upwards of $1,000 per month.
- Utility Costs – Utility costs for a new candle-making business may include electricity, gas, and water.
- Business Insurance Costs – Insurance for a new candle company may include general liability insurance, commercial property insurance, and vehicle insurance.
Like most businesses, one of the keys to running an effective candle making company is generating positive cash flow on a regular basis. A successful candle business should be profitable enough to support your family and also allow you to invest back into it so that you can grow the business over time.
If you’re looking to start a candle business, there are a few key things you need to know. Here are the most important:
1. Make a business plan.
This will help you map out your goals and strategies for your business. A candle-making business plan should cover a variety of areas, including candle manufacturing, market analysis, key competitors, marketing plan, financial plan, and more.
2. Find customers.
Before you start making candles, find out how much demand there is for the products or services that you will offer. If you can’t find enough customers, then your business won’t succeed.
3. Get funding from the bank or investors.
In most cases, you will need to secure a loan from a bank or obtain significant financial backing from an investor to successfully start a candle business. In some instances, you might also receive low-interest loans or grants from the federal government if your candle business is located in an economically disadvantaged area and/or offers products that benefit society as a whole.
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4. Market your candle-making business.
Make sure people learn about your new candle-making company. Create your website, market on social media platforms like Facebook & Twitter, sell through online retail stores such as Amazon & eBay, and do whatever it takes to get the word out there that you’ve started a new candle-making company.
5. Never stop improving.
In the beginning stages of running a candle-making company, you should never stop learning about how companies make money or new marketing strategies that can help grow your customer base. One of the most common mistakes made by small businesses is not staying up-to-date with industry trends and new developments within their field.
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How much does it cost to start a candle-making business?
Several costs will be associated with starting a new candle-making business, including production equipment, raw materials, and employee wages. However, many of these expenses can be offset by working with suppliers and manufacturers that offer discounts on the resources needed to produce candles or other related products for sale.
What are the market opportunities of the candle-making industry?
While there is some risk due to the industry's sensitivity to consumer tastes and preferences, this market presents several opportunities for new entrants or companies that can provide unique products at reasonable prices:
Increasing Awareness About Scented Candles - The candle manufacturing industry has been receiving a lot of attention from the media lately, giving many people the opportunity to know more about how scented candles can affect their lives. Candles have been shown to lift consumer moods and reduce stress levels, which could represent future growth opportunities for this industry.
Expansion in the Casual Segment - While candles have been traditionally associated with holidays and events, more companies are beginning to recognize candles' usefulness in everyday life. This presents room for growth, especially when it comes to casual candles, which seem to be mostly overlooked by consumers at present.
International Potential - Market opportunities exist in countries that have a high demand for candles and where candle manufacturing companies can benefit from affluent consumers with high disposable income.
How Can You Market Your Own Candle Business?
Using social media marketing websites is a great way to market your candle business. Facebook, Twitter, Pinterest, and Instagram are just a few social media sites that you can use to tell people about your products. Post pictures of the candles you have made, and offer coupons or giveaways for future candle customers.
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Candle Making Business Plan Template Sample Pages
Thank you for viewing our candle making business plan template sample pages. This candle making business plan was written specifically for the candle industry and contains a full table of contents, example text, red instructional text, and references. Use this business plan template as a basis/foundation to create your own business plan upon.
Please scroll down below to view sample pages of the exact candle making business plan template you will be receiving.
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- Candle Business Plan Template(Microsoft Word) – $47.00
- +Add Excel Worksheet (Recommended) – $35.00
- +Add Funding Package Pitch Deck PowerPoint + 4 funding eBooks – $55.00
- +Add Raising Capital Documents Bundle. 115 documents – $85.00
Add these other Do-It-Yourself items as needed: (Financial worksheet in Excel is highly recommended)
Candle Making Financial Worksheet in Microsoft Excel an add-on option . (highly recommended) to calculate your finances. Investors love numbers and this excel worksheet will allow you to enter financial data specific to your business to produce proforma financial statements for use in your business plan. These Excel worksheets (Set-up, Start-up, Sales, Headcount, Inventory, Operating Expenses, Capital Budget, Equity & Debt, and Amortization Schedule) contain instructions, questions for you to answer, and boxes (cells) for data entry. Cells in which you are to answer questions or enter data are yellow. Purple cells contain formulas that will be calculated automatically.
Candle Making Funding Package an add-on option . (A must have if actively seeking investment) Includes a Microsoft PowerPoint slideshow template “Pitch Deck” to show lenders and investors your concept at a glance. It includes 12 slide candle making images with instructional text for you to insert your specific business information into.
This funding package also includes the Funding eBook bundle to educate you on your funding options and how to best present your business concept. These 4 eBooks guide you through individual interventions, second-party arrangements, corporate funding options, government interventions, managing business cash-flow, quick start funding overview, exit strategy, common mistakes to avoid when pitching your concept and much more.
Candle Making Business Startup and Raising Capital Documents Bundle an add-on option . 115 documents. (Investors want to know you are prepared. Show them you are with these professional business documents.) This 3 pack of business documents covering business assessment, startup and raising capital topics includes documents such as: Business Plan Guidelines, Strategic Planning Checklist, Trend Analysis Checklist, Executive Summary Template, Market Study Outline, Business Analysis Worksheet, Board of Directors Documents, Confidentiality Agreements, General Administration, Basic Financial Checklist and much more 115 documents in total.
Click here to view more details of this candle making business plan template.
Thank you once again for viewing our candle making Business Plan Template Sample Pages. This template should best be used as a basis to create your own professional business plan with.
Unlike other on or offline business plan “software” that just inserts your information into a generic template this candle making business plan template was written specifically from the ground up for the candle industry.
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Back to All Business Ideas
How to Start a Candle Making Business
Written by: Carolyn Young
Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.
Edited by: David Lepeska
David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.
Published on October 29, 2021 Updated on November 9, 2023
$1,040 - $1,680
$60,000 - $180,000 p.a.
Time to build
0 - 3 months
$30,000 - $72,000 p.a.
If you have a passion for candles, their design, scent, and feel, then starting a candle-making business could be in the cards for you. Candles can add a bit of romance or give a room a more natural glow — and they make for great gifts at an affordable price. Homemade candles, in particular, feel like they’ve been crafted from the warmth of the heart.
But of course, starting your candle business will take preparation and work. With this step-by-step guide, we provide all the information you need to develop and launch your business while avoiding common missteps.
Looking to register your business? A limited liability company (LLC) is the best legal structure for new businesses because it is fast and simple.
Form your business immediately using ZenBusiness LLC formation service or hire one of the Best LLC Services .
Step 1: Decide if the Business Is Right for You
Pros and cons.
Every business has its pros and cons, and it’s a good idea to weigh these factors to decide if starting a candle business is a good fit.
- Flexible – Set your own schedule and work when you want.
- Rewarding work – Chasing your passion, expressing your creativity in candles.
- Simple business model – Make and sell candles — not complicated.
- Minimal startup costs – Few materials needed; sell online.
- Good money & scalability – With low costs, profits can be strong; grow as you wish.
- Heavy competition – Due to the low barriers to entry, there are many custom candle makers out there that you will have to compete against.
- May need a supplier – In order to effectively grow your business, you may need to pair with a supplier, which will decrease your autonomy.
- Repetitive work with no safety net – You’ll receive no salary for your candle-making; earnings will rely on you churning out candles.
- Difficult to build customer trust and loyalty – With no face-to-face interactions, your candle website may have a hard time building a loyal customer base.
Candle industry trends
Increased demand for home decor products has helped expand and broaden the candle-making market in recent years. Today’s custom-made marketplace offers innovative scents, multiple colors, organic ingredients, and a wide variety of shapes and sizes. One inventive maker even sells a candle shaped like a hand, with wicks on the end of each finger! The price? A cool $65.(( https://www.uncommongoods.com/product/light-my-fingers-candle ))
These days, pumpkin candles do well in the fall, peppermint in winter, and citrus in the summer. The candle industry has grown alongside the spa and yoga studio market .
Industry size and growth
- Industry size and past growth – Candle manufacturing in the US, valued at $1.7 billion, is starting to recover from the pandemic slump.(( https://www.ibisworld.com/industry-statistics/market-size/candle-manufacturing-united-states/ ))
- Growth forecast – As of 2021, business intelligence advisory Verified Market Research expects the global candle industry to grow 8% annually through 2028.(( https://www.verifiedmarketresearch.com/product/candle-market/ ))
- Number of businesses – There are 456 candle manufacturing businesses in the US.(( https://www.ibisworld.com/industry-statistics/number-of-businesses/candle-manufacturing-united-states/ ))
- Number of people employed – The industry employs almost 5,000 people.(( https://www.ibisworld.com/industry-statistics/employment/candle-manufacturing-united-states/ ))
Trends and challenges
Trends in the candle industry include:
- Increasing consumer preference for personalized candles
- Great interest in wooden wicks
- Rapid growth of ecommerce
Challenges in the candle industry include:
- Labor shortage
- Environmental concerns
What kind of people work in a candle business?
- Gender – 65% of candle makers in the US are female, while 35% are male.(( https://www.zippia.com/candle-maker-jobs/demographics/#gender-statistics ))
- Average level of education – 44% of candle makers have a high school diploma.(( https://www.zippia.com/candle-maker-jobs/demographics/#degree-level-types ))
- Average age – The average age of a candle maker is 44 years old.(( https://www.zippia.com/candle-maker-jobs/demographics/#age-statistics ))
How much does it cost to start a candle business?
The startup costs for a candle business depend almost entirely on your starting inventory, which is the largest cost. In general, to get you started in a modest capacity, startup costs will range from about $1,000 to nearly $1,700.
You will need several different items to launch your candle business, including special equipment you’ll need to purchase. Websites like Candle Science , Candles and Supplies , and CandleWic offer a comprehensive selection of candle-making equipment. Here is a list to get you started:
- Aluminum melting pitcher
- Aluminum pouring pot
- Glass thermometer
- Wick bars and holders
- Molds, wax, wicks
- Fragrance materials
- Measuring cup(s)
How much can you earn from a candle business?
Candles can be made for a relatively low cost and sold at a high margin, from 30% all the way to 75% in net margin. The total potential earnings for a candle business depend on your level of production. For example, if you’re selling candles at $10 each and they cost you $5 to make, then you make $5 for each sale and your gross profit margin is 50%.
In your first year or two, you could work from home and sell 500 candles a month, bringing in $60,000 in annual revenue. This would mean $30,000 in profit, assuming that 50% margin. As your brand gains recognition, sales could climb to 1,500 candles a month. At this stage, you’d rent a storefront and hire staff, reducing your profit margin to around 40%. With annual revenue of $180,000, you’d make a tidy profit of $72,000.
Candleers, a candle-making advisory, estimates that the average candle maker earns $50,000 per year , with the bottom 10% making less than $25,000 and the top 10% checking in at more than $100,000. Simply put, annual earnings will depend on how many candles you are selling and at what price point you are selling them.
Ultimately, your candle business’ earnings will be heavily dependent on the cost of inventory and the cost of making the candles. Your per candle price should be determined by your costs and how much you hope to earn from each sale. Candle-making has relatively low fixed costs, so this ratio will be among the most important aspects of your business.
To find the right price, research the prices of your closest competition.
What barriers to entry are there?
- Knowledge of candle-making – Basic barrier for any candle maker. While not the most difficult process in the world, learning candle-making requires time and focus.
- Access to top suppliers – The most successful candle makers typically secure relationships with top suppliers such as Amazon, Etsy, Shopify, and others.
- Designs must be up-to-date – Candle makers need to keep up with the latest customer desires for new scents, shapes, and styles.
- More than a full-time job – A candle maker’s earnings depend on the amount of time and energy they are willing to devote to the work.
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Step 2: hone your idea.
Now that you know what’s involved in starting a candle business, it’s a good idea to hone your concept in preparation to enter a competitive market.
Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.
Why? Identify an opportunity
The first thing an aspiring candle business owner should do is assess their skills and knowledge about candles in relation to the larger market. You can find good opportunities with some simple research into the most popular candles and their makers. Try to answer questions like: What are the most popular candle websites and what are their bestselling products? Which price points are most appealing? At which cost could you produce the same candles, and what materials would you need to do so?
Your business brand will be determined as a result of your research and the market opportunity you choose to target with your candle creations. You might go in for wildly shaped or exotically scented niche-market candles, or go for a mass market product. The choice is entirely up to you!
What? Determine your products or services
Make a list of all of the candles you might like to make. Some of the popular candle types, each appealing to different segments of buyers, include but are not limited to:
- Scented and aromatherapy candles
- Twisted and other sculpted candles
- Decorative and other artistic candles
- Vegan candles
- Soy candles
- Odor-eliminating candles
- Bug repellant candles
- Long-lasting candles
Each candle could require different ingredients and a different process of creation. You should consider which type of candles you’d like to define your brand. This will determine your material needs, production schedule, and marketing.
How much should you charge for your candles?
Most homemade candles you’ll find online are priced in the $15 to $30 range. Specialty candles that provide a special scent or artistic design will of course be more expensive than straightforward candles of traditional shape and size.
You should price your candles based on your costs and your profit expectations informed by market norms. It’s best to do a good deal of market research before settling on your price points.
Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.
Who? Identify your target market
Different candle types will be popular for different market segments, and at different times of the year. As noted above, citrus and fruit-scented candles will be popular in the warmer months, while mint-scented candles will do better in winter.
Women tend to be bigger candle buyers than men, and homeowners buy more than renters.
Spas and yoga centers, restaurants, retailers, and other small businesses that rely on candles to create a certain ambiance will also be in your target market.
Depending on the type of candle you produce, some will meet the desires of a specific customer – such as eco-friendly, vegan candles, or highly decorative candles. And keep in mind, the more original and exotic your niche, the more you may be able to charge!
Where? Choose your business premises
In the early stages, you may want to run your business from home to keep costs low. But as your business grows, you’ll likely need to hire workers for various roles and may need to rent out a storefront. You can find commercial space to rent in your area on sites such as Cra igslist , Crexi , and Instant Offices .
When choosing a commercial space, you may want to follow these rules of thumb:
- Central location accessible via public transport
- Ventilated and spacious, with good natural light
- Flexible lease that can be extended as your business grows
- Ready-to-use space with no major renovations or repairs needed
Step 3: Brainstorm a Candle Business Name
Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.
Here are some ideas for brainstorming your business name:
- Short, unique, and catchy names tend to stand out
- Names that are easy to say and spell tend to do better
- The name should be relevant to your product or service offerings
- Ask around — family, friends, colleagues, social media — for suggestions
- Including keywords in the name, such as “candle” or “wax”, boosts SEO
- Choose a name that allows for expansion: “Bright Flame Candles” rather than “Aromatherapy Candles”
- Avoid location-based names that might hinder future expansion
Discover over 410 unique candle business name ideas here . If you want your business name to include specific keywords, you can also use our candle business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.
Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.
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Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.
Step 4: Create a Candle Making Business Plan
Every business needs a plan, a rough outline that helps guide a startup through the launch process while maintaining focus on key goals. A business plan is also crucial for helping potential partners and investors understand your company and vision:
- Executive Summary: A brief overview of the candle making business, highlighting its mission, goals, and key points for potential investors or partners.
- Business Overview: A detailed description of the candle making business, including its history, mission, vision, and legal structure.
- Product and Services: Clear delineation of the types of candles offered, their unique features, and any additional services, like customization or fragrance options.
- Market Analysis: Examination of the candle market, identifying target demographics, trends, and potential growth areas for the business.
- Competitive Analysis: Assessment of other candle makers in the market, highlighting strengths, weaknesses, opportunities, and threats to the business.
- Sales and Marketing: Strategies for promoting and selling candles, encompassing pricing, distribution channels, and promotional activities.
- Management Team: Introduction of key individuals involved in the candle making business, emphasizing their relevant skills and experience.
- Operations Plan: Detailed explanation of the day-to-day operations, including the production process, sourcing materials, and quality control measures.
- Financial Plan: Overview of the financial aspects of the business, encompassing startup costs, revenue projections, and budgeting for ongoing operations.
- Appendix: Supplementary materials such as detailed financial statements, market research data, or any other supporting documents.
If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.
Step 5: Register Your Business
Registering your business is an absolutely crucial step — a prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.
Plus, registration is exciting because it makes the entire process official. Once it’s done, you have your own business!
Choose where to register your company
Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to candle making.
If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state.
Choose your business structure
Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your candle business will shape your taxes, personal liability, and business registration requirements, so choose wisely.
Here are the main options:
- Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
- General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
- Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
- C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
- S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC , which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization , and answer any questions you might have.
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Step 6: Register for Taxes
The final step before you’re able to pay taxes is getting an Employer Identification Number , or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.
Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate on a calendar year (January–December), or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.
The IRS website also offers a tax-payers checklist , and taxes can be filed online.
It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.
Step 7: Fund your Business
Securing financing is your next step and there are plenty of ways to raise capital:
- Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
- SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan .
- Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
- Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
- Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
- Personal: Self-fund your business via your savings or the sale of property or other assets.
Bank and SBA loans are probably the best options, other than friends and family, for funding a candle business. You might also try crowdfunding if you have an innovative concept.
Step 8: Apply for Candle Making Business Licenses and Permits
Starting a candle business requires obtaining a number of licenses and permits from local, state, and federal governments.
Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration ( OSHA ), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.
You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.
You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package . They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.
This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.
If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.
Step 9: Open a Business Bank Account
Before you start making money, you’ll need a place to keep it, and that requires opening a bank account .
Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your candle business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.
Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.
Step 10: Get Business Insurance
Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.
Here are some types of insurance to consider:
- General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
- Business Property: Provides coverage for your equipment and supplies.
- Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
- Worker’s compensation: Provides compensation to employees injured on the job.
- Property: Covers your physical space, whether it is a cart, storefront, or office.
- Commercial auto: Protection for your company-owned vehicle.
- Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
- Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
Step 11: Prepare to Launch
As opening day nears, prepare for launch by reviewing and improving some key elements of your business.
Essential software and tools
Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.
You may want to use industry-specific software, such as Craftybase to track material and product stock, log expenses, and update pricing. You can also use NetSuite Commerce to manage your online and in-store transactions.
- Popular web-based accounting programs for smaller businesses include Quickbooks , Freshbooks , and Xero .
- If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial.
Develop your website
Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.
You can create your own website using website builders . This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.
They are unlikely to find your website, however, unless you follow Search Engine Optimization ( SEO ) practices. These are steps that help pages rank higher in the results of top search engines like Google.
For your candle making business, a marketing strategy should illuminate the unique qualities of your products, from their aesthetic appeal to their aromatic scents. It’s about creating a brand glow that attracts customers seeking ambiance, quality, and a personal touch. Here’s a strategy designed to spark interest and kindle the growth of your candle business.
Digital Presence and Online Marketing
- Social Media: Utilize Instagram, Pinterest, and Etsy to showcase your candles’ unique designs and share stories about the inspiration behind each scent and collection.
- E-commerce SEO: Ensure your online store appears in search results for those looking for handcrafted or specialty candles.
- Engaging Online Experience: Design an interactive website that allows customers to view candle collections, read about the candle making process, and purchase easily.
- Branding and Packaging: Ensure your candles and packaging stand out with a distinctive and elegant design that reflects the quality of your products.
- Introductory Offers: Entice new customers with special offers, such as discounts on their first purchase or bundle deals.
- Email Newsletters: Keep your customers engaged with updates on new scents, behind-the-scenes looks at the candle making process, and exclusive offers.
Content Marketing and Engagement
- Candle Care Blog: Share posts on how to care for candles, the benefits of different waxes and scents, and the art behind candle making.
- Customer Spotlights: Feature customer reviews and photos of your candles in their homes, building a community around your brand.
Experiential and In-Person Engagements
- Candle Making Workshops: Host workshops where customers can create their own candles, offering a memorable brand experience.
- Pop-Up Shops: Set up pop-up shops at markets, fairs, and events to reach new customers and allow them to experience your candles firsthand.
Collaborations and Community
- Local Business Partnerships: Partner with local businesses such as spas, boutiques, and cafes to carry your candles and offer co-branded lines.
- Community Classes and Events: Offer to lead candle making sessions at community centers or local events, showcasing your expertise and products.
Customer Relationship and Loyalty Programs
- Loyalty Rewards Program: Implement a program that offers discounts or freebies to repeat customers.
- Referral Discounts: Encourage customers to refer friends with a discount on their next purchase for every new customer they bring in.
Promotions and Advertising
- Seasonal Advertising Campaigns: Strategically advertise your candles during peak seasons such as holidays or special occasions like weddings.
- Influencer Collaborations: Partner with lifestyle influencers to feature your candles, tapping into their audience and credibility.
Focus on USPs
Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your candle business meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire.
Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your candle business could be:
- Regional or seasonal scents
- Twisted and unusual designs
- Aromatherapy candles
- Eco-friendly and vegan candles
- Visually satisfying online store with a customizable selection
- Lifestyle and decor recommendations with every candle order
- Branded Pinterest posts detailing candle ideas
- Reusable candles
You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a candle business, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been making candles for years and can offer invaluable insight and industry connections.
The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in candles. You’ll probably generate new customers or find companies with which you could establish a partnership. Online businesses might also consider affiliate marketing as a way to build relationships with potential partners and boost business.
Step 12: Build Your Team
You may not need any employees if you are starting out small from a home-based office. But as your business grows, you will likely need workers to fill various job roles. The potential employees for a candle business include:
- Candle Maker
- Label Maker
- Packer and Shipper
- Marketing Strategist
- IT Specialist for your website
At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.
Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed , Glassdoor , or ZipRecruiter . Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.
Step 13: Run a Candle Business – Start Making Money!
Scented candles are widely thought to melt stress, induce or improve sleep, provide therapeutic care, and more. That’s why candle making is a nearly $2 billion market in the US and remains one of the top business ideas globally. Now that you have all the information you need to start a candle business, it’s time to take the first step in your entrepreneurial journey.
If you do proper research to better understand what your target market needs and craft a brilliant marketing strategy, you can light your way to success and start making a great profit!
- Candle Business FAQs
Generally, a candle should be used within 12-15 months of buying it. For best results, while not in use they should be stored in a cool, dry place. Once in use, a typical homemade candle should burn strong for about as many hours as inches of length. For example, a 4-inch candle will burn for about 4 hours. Different materials and wicks will result in different candle burn durations.
Since candles can be fragile, it is best to package them in durable boxes and fill the interior with tissue paper or bubble wrap to cushion them during transit. For certain candles and climates, you may want to include frozen gel packets within the box to prevent any melting. See this guide from Paper Mart for some more tips and tricks on candle shipping.
Yes, scented and unscented candles – using the appropriate materials – are safe for use. Both synthesized and natural scents have been widely tested and deemed safe. Wicks and wax sold by candle makers and suppliers are also safe, as they must be approved by the relevant regulatory agencies. For more info on candle safety, consult this comprehensive FAQ from the National Candle Association.
No, insurance is not required to sell candles in the US. However, many candle makers buy liability insurance to help shield against any potential legal action. Ultimately, candles deal with fire, so there always liability concerns for sellers. The Armatage Candle Company provides a useful guide on candle maker insurance.
Candle making can be a profitable business, but success depends on various factors such as market demand, product quality, pricing, marketing, and effective business management. If you sell online, you’ll have to spend some money on digital marketing to get traffic to your site.
Starting and running a candle business can have its challenges, including sourcing quality materials, developing unique scents and designs, managing inventory and production, marketing and competition, and maintaining consistent quality.
Some popular candle categories include scented candles, soy candles, natural or organic candles, decorative or artisanal candles, and seasonal or themed candles.
Yes, essential oils can be used in candle making. They are commonly used to add fragrance to candles and provide a natural scent experience. However, it’s important to use essential oils that are suitable for candle making and follow proper guidelines for their safe and effective use. The recommended usage rate for essential oils in candles is typically around 5-10% of the total wax weight.
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- Decide if the Business Is Right for You
- Hone Your Idea
- Brainstorm a Candle Business Name
- Create a Candle Making Business Plan
- Register Your Business
- Register for Taxes
- Fund your Business
- Apply for Candle Making Business Licenses and Permits
- Open a Business Bank Account
- Get Business Insurance
- Prepare to Launch
- Build Your Team
- Run a Candle Business - Start Making Money!
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Candle Making Business Plan [Sample Template]
By: Author Tony Martins Ajaero
Home » Business ideas » Art & Craft Industry » Candle Making
Are you about starting a candle making business ? If YES, here is a complete sample candle making business plan template & feasibility report you can use for FREE .
Candles are a great business to start as people buy candles for varying reasons and for this reason, you can go into it as an entrepreneur and make loads of money. There are two ways candles can be made, which are container candles and mold candles.
Deciding on what kind of candles you intend to go into is a decision you would have to make alone. Other decisions that you would need to make before starting your candle business is deciding what kind of wax you want to work with.
While there are several types of waxes available, each comes with pros and cons; so it’s best you know which wax would be best for your business in the long run. You can also find out from competitors that are far from you, what waxes are best for starting your business.
A Sample Candle Making Business Plan Template
1. industry overview.
Candle sales in the united states have improved especially as there is an increasing variety of colored and scented candles, with 7 out of 10 households in the United States making use of candles. More and more people are demanding for candles as an addition to their homes for various reasons both abroad and domestically. This is a $2 billion industry that has over 400 registered candle making businesses that employs 6,065 people.
While the sale of candles started in the 1990s, demand surged in the year 2000 and has been growing by at least 10% each year.
The economic downturn however decreased demand from consumers with sales gradually picking up especially with the help of the social media which has ensured that more people become aware of why they would need a candle in their homes.
The candle making business is a multi-billion dollar industry excluding sales of candle accessories with positive projections of 2.7% between 2010 and 2015 showing that the industry will grow some more. Consumers who go after scented candles do so because they want their homes to smell good.
This is another niche for any innovative and focused entrepreneur as against those who make unscented candles. One of the reasons why the candle business has boomed to this extent is the fact that inputs used for production such as wicks, fragrances, colorants and wax (soy wax, paraffin wax, gel wax, beeswax and other natural based wax ) are not only cheap but easy to source.
This means any entrepreneur who is focused and intent on starting the candle business will make great margins especially during periods where there are high demands. The equipment and finances needed to start the candle making business is not only cheap but can be easily gotten by any focused entrepreneur.
Regardless of this fact, new entrants into this industry might find it difficult to compete fairly with established operators due to the fact that there is rising concentration in the industry. Also, those already in the business will have leverage over new entrants especially in areas such as economies of scale as well as the target market.
According to research, candles are in variety of shapes and sizes, like outdoor candles, tapers, container candles, votives, pillars, floating candles, utility candles, liturgical candles as well as birthday candles where over 90% are purchased by women.
The most popular candles in the United States are container candles, votives, and pillar candles. Most of the candles are usually sold in mostly three outlets such as specialty shops, home décor stores and in mass merchandisers such as grocery stores and drug store chains.
Most candle makers in the United States usually offer between 1,000 and 2,000 varieties of candles, with more than 10,000 different candle scents available to consumers. Every year more than a billion pounds of wax are used in making candles in America each year. The most commonly used wax is Paraffin.
76% of candles are usually given during the holidays as gifts, 74% as house warming gifts, 66% for a dinner party gift, 61% as an appreciation gift, and 58% as birthday gifts for adults. Some consumers even go as far as using candles to decorate the exterior of their homes, while those that use candles in the interior use it in their living rooms, kitchen and also the bedroom.
2. Executive Summary
Bright Light® LLC Candle Making Business is a well known candle manufacturer in Tulsa City, Oklahoma, in the Southern part of USA that caters to local and international clients. Our candles are not just like any candles in the market as we produce each candle with our clients in mind.
We make several kinds of candles both unscented and scented and our candles come in various shapes and sizes, and are constantly experimenting with new scents to intrigue the senses of our clients, who are always on the lookout for something new.
Our candle making business is known far and near and we have created a legacy that has made us uniquely stand out from our competitors. We also offer quality franchise to new entrepreneurs who want to enter the candle making business but don’t know anything about running the business from ground up.
Our franchise terms are fair to both franchisor and franchisee. We also offer consultancy services for those whose business needs an expert boost, as we boast of partnering with the finest professionals in the business.
Due to our steady growth, our candles are not just found in Tulsa City alone but are spread all over the United States of America; as we have partnered with famous mass merchandisers as well as top gift shops where our candles are sold to our teeming customers.
We also carry out sales of our unique candles on our websites as well as several other online marketplaces. Our website is user-friendly and not complicated to navigate at all especially for customers who want to buy from us.
Asides selling candles, we also sell related candle making materials, as well such as candle fragrances, candle wax and eBooks for those who want to try making these candles at home. Due to having some of the finest chemists, we are constantly developing scents that are sometimes rare and most times not even found in the marketplace.
We know that this fact gives us a competitive advantage over most of our competitors not only in Oklahoma but around the United States as a whole. One strong area of investment is in our staff, which we constantly train and re-train and ensure that they are in sync with our vision, mission statement as well as the corporate culture on which we are founded on.
We also have one of the best welfare packages for our staff, as we know that treating the internal customers (employees) right will lead to not only higher productivity, but also a healthy bottom line for the company as well. Due to our various researches, we know that the market for candles is not only booming but also that it hasn’t even attained its peak yet, which means that there is room for more growth in the industry.
We are however not limited locally, as some of our clientele are overseas. This has shown that the candle making business is not only here to stay but is booming as a result of the favorable economy, and the fact that candles aren’t considered expensive by consumers.
We have enough experience in the business to know that ensuring that our customers stay satisfied, responding quickly to their enquiries and complaints as well as having an excellent customer service overall, have led to the increased retention rate of most of our customers.
We know how important repeated customers are to a business, and so we try to make their experience with us as satisfactory as possible.
Bright Light® LLC Candles is owned and managed by Theresa Baker, a seasoned crafter with a B.Sc. in Chemistry and a Masters Degree in Business Management from a prestigious business school. Theresa has over 10 years in the industry and started the candle making business immediately after she finished her first degree.
3. Our Products and Services
At Bright Light® LLC Candles we deal in unscented and scented candles, which come in all shapes and sizes. We know that there are 10,000 different candle scents and we are proud to say we hold a significant number of the total scents produced in the United States. We are constantly looking to improve our scent line.
We are a legal business that is established to make profit; however, we also believe in having multiple sources of income as a company and in line with this, we not only sell candles but also supply candle making fragrances that are concocted by our finest professionals in the field. We also offer training and consultancy services as well. Some of the products and services we offer are;
- Different kinds of candles such as outdoor candles, tapers, container candles, votives, pillars, floating candles, utility candles, liturgical candles and birthday candles
- Sale of fragrances
- Consultancy services
- Sale of eBooks
4. Our Mission and Vision Statement
- Our vision is to be the leading brand in the United States of America, and be amongst the top five brands globally.
- Our mission is to build a candle making business that will not only meet the needs of our customers but intrigue potential customers as well.
- We do not only want to sell our franchise here in the United States alone, but also globally as well.
Our Business Structure
We know how important having the right business structure is, and so we are constantly working on how best the business can evolve and grow at a steady pace without imploding. One thing we aim at is to ensure that we hire right always by getting the right fit for each role and position.
This therefore means that we are serious on not compromising in getting and working with the best because we know how important the right employees are to the vision and goals of the business. We also know how important their welfare is and are constantly seeking for reasonable ways to ensure that our employees work not only in a conducive atmosphere but are happy enough to seek the growth of the company as well.
Due to the wide range of products and services we offer, we have various employees on hand to handle the different products and services at Bright Light® LLC Candles so that the business can run smoothly and efficiently. Below is the business structure for Bright Light® LLC Candles;
- Chief Executive Officer
Product Development Manager
Fragrance and Coloring Manager
Human Resources and Admin Manager
Sales and Marketing Team
Customer Service Executives
E-commerce and web content Manager
5. Job Roles and Responsibilities
Chief Executive Officer – CEO (Owner)
- Ensures that the organization’s strategic direction is communicated to the management staff and invariably the employees
- Responsible for the availability of financial resources especially the capital by meeting with investors
- Has experience in dealing with budgets and must ensure that resources are properly allocated in accordance to the policies of the company
- Ensures that the company’s corporate structure is built in such a way that it affects and influences the management staff as well as other middle and lower end employees
- Responsible for the performance of everyone and invariably the success of the company and takes an active role to ensure that the required performance is needed
- Acts as the buffer between the company and external stakeholders, and ensure that both parties are on the same page as regards the performance of the company
- Uses the CEO position to cultivate relationship with important clients thereby ensuring that new businesses are not only brought in but that the profitability of the company is increased
- Performs supervisory roles over other heads of departments and also works hand in hand with them to ensure that the operations in the company runs smoothly
- The manager ensures that the company’s policies are followed at all times. He works hand in hand with the CEO and can make certain decisions on behalf of the CEO
- The Manager is responsible for ensuring that feedbacks are gotten from the staff and relayed to the CEO
- Helps to translates the vision and mission statement of the company to the staff so that everyone are aware of what is needed to be done
- Helps resolves conflicts, as well as motivate employees
- Responsible for ensuring that reviews are carried out on the company’s budget as well as production goals, and make adjustments where necessary
- Responsible for creating and introducing new varieties of candles into the market
- Ensure that they communicate with customers so as to find out their requirements, which will then act as a guide into the creation of new products
- Analyzes market trends and also responsible for developing product proposals that will enable the company make profit
- Responsible for reviewing product line so as to ensure that a focused brand concept direction is achieved
- Works closely with fragrance and coloring manager to identify marketable varieties
- Works with all the necessary departments to ensure that all target costs are met
- Carries out constant research on the right scents and colors for the candles
- Works closely with product development manager to ensure that only the right colors and scents are used in manufacturing candles
- Communicates with customers to get their feedback on scents
- Responsible for ensuring that the company gets the right staff and in the right number so as to be able to meet the objectives of the company
- Works closely with the manager and CEO to ensure that strategies regarding human resources are in line with the goals of the company
- Responsible for drafting recruitment policies, as well as staff career development policies that is in line with the company’s overall policy
- Ensures that new staffs are oriented properly, while older staffs are adequately trained and appraised regularly for promotion or fringe benefits
- Responsible for creating strategies that will address the need of target segments
- Responsible for drafting an effective marketing plan, which would cover promotion and the right pricing
- Works with manager to ensure that the sales and marketing strategies meet with the overall strategies of the company
- Ensures that the company’s image is projected positively in the course of meeting target market requirements
- Interacts with customers and pass feedbacks back to the appropriate department
- Responsible for bookkeeping and accounting transactions
- Ensures that the company’s accounts are reconciled at the end of every month
- Responsible for paying invoices and payrolls
- Interacts with customers and answers their enquires whilst also handling complaints from clients in a satisfactory manner
- Projects the image of the company positively to customers at all times
- Works closely with the manager to ensure that their tasks are in line with company’s policies
- Has in-depth knowledge about company’s products and services
- Ensures that web content is created and accurate
- Responsible for the creation of content marketing materials
- Responsible for cleaning and maintaining the facilities in the company
- Ensures that manager is aware of any serious deficiencies that might require repairs in the company
- Ensures that there are adequate cleaning stock
- Responsible for protecting staff, customers and properties
- Monitors surveillance equipment
6. SWOT Analysis
Our several years of experience in the field together with input from a reputable business consultant has led to our ability to be able to develop an effective SWOT analysis that will help us in running the business better. The SWOT analysis helped greatly in ensuring that we looked at the business critically as it relates to market and the industry at large.
The SWOT analysis is a profiling of our strengths, weaknesses, available opportunities and threats that is likely to either help or affect us negatively during the course of running our business in Tulsa City, Oklahoma and in the United States of America as a whole. Revealed below is the critical SWOT analysis that was conducted for Bright Light® LLC Candles;
Our greatest strength lies in the fact that we offer all shapes and sizes, as well as several flavors of candles to our vast customers. We are also not resting on our oars as we keep developing fragrances that are rare finds which would endear us to our customers, especially those who are bored of regular fragrances.
Another huge strength of ours is in the vast experience of the Chief Executive Officer, who has more than ten years experience in this industry. Also, the fact that our franchises are of high quality, coupled with our descriptive eBooks and consultancy services, also adds largely to our strengths.
Our weakness for now lies in the fact that we would have to operate regionally at first, thereby majorly limiting our business for the first few months of operations to a certain section of the United States of America.
There are various opportunities that abound in the candle making industry and the fact that we are continually working on bringing forth new fragrances with some of our productions offers limitless opportunities for us as a company.
Knowing how every business faces threats every now and then, we are prepared for the threats that will occur during the course of running this business, and while some threats might not be so difficult to handle, like the arrival of a competitor, other threats lie a bad economy, which might affect consumers’ spending power might be difficult to handle.
7. MARKET ANALYSIS
- Market Trends
The candle market is one where there will always be demands, albeit these demands will depend on the availability of disposable per capita income of the consumers which in turns depends on the health of the economy. Most consumers demand for scented candles has caused companies to constantly research on fragrances that will keep customers intrigued.
Another trend is in looking at all the available avenues by which the candles can reach the customers in a way that is convenient for both the customer and the company. Candle sales these days are not limited to specialty stores and discount stores but can also be sold at fairs and outdoor events.
Finally, technology has a huge role to play into how products are becoming visible to consumers. The internet especially has created an avenue for businesses to not only reach out to their loyal clients but also to potential clients as well.
8. Our Target Market
Almost everybody – from young teens to adults – love candles and have purchased it at one time or the other. However, according to studies, a large percentage of those that purchase these candles are women. This is why most of our strategies revolve around the female folks, especially in Tulsa and in all locations we are looking to get our products to.
Due to the above statistic from a reliable source in addition to our market research, we have been able to draft the right strategies for our target market. We would be engaging in a retail and wholesale distribution to the following groups of people and organizations;
- Single Women
- Spa beauty salons
- Religious houses
- Business people
- Single males
Our Competitive Advantage
Any business that is focused on making profit and intends to be amongst the leading brands in the United States of America will do well to draft strategies that will give it a competitive advantage over other same businesses in the industry.
One of the first competitive advantages we intend to have over other businesses is in offering excellent customer services that will remain unrivalled; this can be achieved by employing the required professionals to handle this aspect. We know that an excellent customer service is one of the most effective ways of retaining our clients.
We also have the finest professionals as regards mixing of different scents to produce unique flavors that will intrigue the sense of our customers.
We also intend to ensure that our employees work in a conducive environment where they can grow themselves and increase productivity for the company as well. We intend to create the best welfare packages for our employees and also share part of our profit with our management staff.
Finally, we would ensure that our official website is responsive and user-friendly to clients who would prefer to purchase our products online.
9. SALES AND MARKETING STRATEGY
- Sources of Income
At Bright Light® LLC Candles, we know how important it is to ensure that our business makes profit not only from sale of candles but also from other sources as well so as to keep our bottom line very robust and healthy. Bright Light® LLC Candles will generate income by having these sources of income;
10. Sales Forecast
Due to a thorough research, we have been able to come up with an almost accurate sales forecast for our candles. Our strategies have ensured that we are in the position to become a leading brand in Tulsa City and the immediate environs. We are not only expecting to make massive profits in our first three months of business but also intend to expand within a year of operation.
Our chances in this industry are based on pure facts and a critical examination of our strengths and what we intend to offer this market. Our sales projections are based on information that were gathered during the course of carrying out a through feasibility study.
We also took into considerations start-ups in Oklahoma especially those in Tulsa City.Below are the sales projection for Bright Light® LLC Candles, which is based on our location, the market and the industry at large.
- First Fiscal Year-: $200,000
- Second Fiscal Year-: $650,000
- Third Fiscal Year-: $1,300,000
N.B: The above projection is based on the fact that all factors, such as a positive growth in the economy and lack of serious competitors – remain unchanged. This means that projections might become higher or lower due to changes at any time.
- Marketing Strategy and Sales Strategy
Marketing is one very important aspect of any business as it serves a dual purpose in generating income for the business as well as creating publicity for the business.
It is very vital that marketing strategies are drafted and fine tuned so that they can bring in the desired results. In view of this, we conducted a thorough research that will ensure that we have the best strategies in place to generate income for the business.
People get attracted to visuals and so this means that we would strive to put more effort in our visuals to ensure that we achieve attract customers to our brand. Candles are used for different purposes but mostly to calm people, and so we would ensure that our video adverts and images used are ones that will project serenity to potential customers.
Because we know how important the business of marketing is, we have hired a business consultant that will help put our strategies in a better perspective, whilst also including important strategies that are deemed suitable for our kind of business. Our business consultant is an expert in this industry and his expertise would be to the benefit of the company.
Our marketing and sales team will be carefully chosen as they will not only reflect the image of the company but must also understand what the goals of the company are and how it would best fit into their marketing and sales strategies. Some of the strategies that will be adopted at Bright Light® LLC Candles include;
- Visit religious houses, spas, and other businesses to introduce our candle making business
- Advertise our candle making business in relevant magazines, local newspapers, radio stations and television.
- Ensure that our business is listed in local directories as well as online directories
- Use our website as well as our social media platforms to vigorously promote our products and services
- Engage in direct marketing
- Encourage our loyal customers to help in referral marketing
- Pass out handbills and business cards
- Create an attractive billboard and place in strategic locations.
11. Publicity and Advertising Strategy
Engaging in publicity is very important as it helps increases awareness for the product and in extension the company itself. There are various means by which a company can choose to publicize its products and services. At Bright Light® LLC Candles, we intend to use both conventional and unconventional means of creating awareness for our products and services.
However, we know how important it is for our brand to be accepted in Tulsa City – Oklahoma, which would then help boost our profile when expanding to other locations. Some of the platforms which we intend to leverage on to achieve the publicity of our products and services at Bright Light® LLC Candles include;
- Participate in trade fairs and craft shows so that more people can become aware of the company
- Make use of the official website to keep the audience engaged as regards the various products and services available
- Placing adverts in beauty and lifestyle magazines, local newspapers, radio stations and television
- Pass out handbills and paste fliers in conspicuous places
- Make use of social media platforms such as Pinterest, Instagram, Twitter, Facebook, and YouTube to promote the image of our candle making business
- Network with other candle makers in and outside Oklahoma
12. Our Pricing Strategy
The pricing for candles are very affordable for everyone. However, the pricing usually varies depending on factors such as varieties, shapes and packaging. However, whilst these factors might affect pricing to an extent, it will not result in steep pricing for the candles.
In choosing the right pricing for our candles, we would ensure that we rate our proposed pricing against what our competitors are offering, and then adjust accordingly. Also, while we would ensure that our prices are fair, we would not offer prices that are below our operational cost.
- Payment Options
At Bright Light® LLC Candles, we have a payment policy that caters to our numerous clients locally and internationally. Whatever payment option that is chosen by our client isn’t one that will stress them out as our payment options were carefully chosen for its convenience and security. Below are the payment options that will be available for our different clients;
- Cash payment
- Payment via Point of Sale (POS) Machine
- Payment via PayPal (for online and international clients)
- Payoneer (for online and international clients)
- Payment via check
As earlier stated, our payment options were chosen because of the ease of convenience for our various clients.
13. Startup Expenditure (Budget)
Any serious entrepreneur knows that in starting a business, part of the capital if not all must be available to buy standard equipment that will ensure the business runs smoothly. The candle business is no different; however, the equipment needed to start this business is something that can be easily gotten.
Asides, equipment there are other areas where part of the capital is expected to be spent on. Some of the key areas that require finances from start-up capital;
- Business incorporation fee in the United States of America – $500
- Expenses for legal requirements such as licenses and permits – $700
- Acquisition of candle making equipment as well as POS machines – $35,000
- Start-up inventory cost (wax, wicks, fragrances, packaging materials) – $10,000
- Marketing promotion expenses for at least six months including the grand opening of Bright Light® LLC Candles – $3,800
- Insurance coverage – $1,500
- Cost of hiring business consultant – $1,500
- Running operation cost for the first six months (employee salaries, bill payments) – $200,000
- Storage facilities – $2,000
- Other start-up expenses (phone and utility, stationery) – $1,000
- Cost of launching an official website – $500
- Launching party – $5,000
- Miscellaneous – $3,000
From the above estimate, we would need at least $265,000 in order to set up our candle making business successfully in Tulsa City, Oklahoma.
Generating Funding / Startup Capital for Candle Making Business
Bright Light® LLC Candles is a business that is owned and run by Theresa Baker, and her immediate family. There has been no external partner and there are no plans to having any in the nearest future. This is why we have restricted sourcing for part of our equity from just few sources.
Some of the areas where we intend to generate part of our equity from include;
- Sale of personal stock and properties to generate capital
- Applying for loans from banks
- Approaching wealthy friends and family members for soft loans
N.B: We have generated $100,000 from sale of personal stock. We also have gotten $70,000 from our family members and friends. We have applied for a $100,000 loan from the bank, and we are in the final stages for approval and so have met all the conditions stipulated by the bank.
14. Sustainability and Expansion Strategy
We know that the future of sustaining our business lies in our loyal customers, the structure of our business, the competence of our employees, as well as our various and diverse business structures. These factors therefore affect our strategies drafted to ensure that we remain in business.
One of the dreams of our business is to ensure that we build a business that is able to pay itself in the long run and not depend on external sources to continually fund its operations except in areas where the business needs to expand. We now that this can be possible if we remain focused on our vision as well as company policies.
Since we do not want to close shop anytime soon at Bright Light® LLC Candles, we will try to ensure that profit is shared among top performing management staff, with incentives for staff that put in a great performance as well over the course of a certain time period.
We now that to sustain and invariably grow and expand our business, we must make the right decisions especially in terms of the right recruitment, as well as have a management staff that is attuned to our company vision and policies.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Conducting feasibility studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party/launching party planning: In Progress
- Establishing business relationship with vendors – wholesale suppliers / merchants: In Progress
- Purchase of candle supplies: Completed
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Candle Making Business Plan Template [Updated 2023]
Candle Making Home Business Plan Template
If you want to start a Candle Making business or expand your current Candle business, you need a business plan.
The following Candle Making business plan template gives you the key elements to include in a winning candle making company business plan.
You can download our business plan template (including a full, customizable financial model) to your computer here.
Sample Candle Business Plan Template
Below are links to each of the key sections of a business plan for candle making businesses:
I. Executive Summary – The Executive Summary provides a brief overview of your candle company.
II. Company Overview – The company analysis includes a detailed overview of your business including your legal structure and product & service offering.
III. Industry Analysis – This section will include market research that provide insights into market trends and the candle making industry.
IV. Customer Analysis – The customer analysis provides an overview of your target market.
V. Competitive Analysis – The competitive analysis will identify your main competitors and highlight your competitive advantage.
VI. Marketing Plan – This section includes your sales and marketing strategies, promotional strategies and advertising tactics.
VII. Operations Plan – The Operations Plan will include information on your business systems and processes.
VIII. Management Team – The management team section includes your team’s backgrounds, qualifications, and responsibilities.
IX. Financial Plan – The financial plan includes financial projections, a cash flow statement, profit and loss statement and balance sheet.
You can download our candle business plan template (including a full, customizable financial model) to your computer here.
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Candle Making Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan
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Candle Making Business Plan Template
Do you want to start candle making business?
Are you planning to start candle business ? What many people do not know is candles still remain popular even today despite the fact they were primarily introduced for illumination purposes. Candles have been there for centuries and used in different civilizations and cultures. Even with the introduction of electricity, the role of candles has been redefined and they still continue to be an important item in any home or business. In the U.S. 7 out of 10 households use candles meaning the market is still excellent. Uniquely branded candles are the most popular home décor items which are on very high demand. Fortunately, candle making is not a capital intensive business and with a good business plan, you can be successful.
2.1 the business.
The candle-making businesses will be registered under the name Wax Glow Candle and will be situated in Houston, Texas. The business will be owned by Susan Cook who is an experienced chandler. This business plan outlines how to start a candle business step by step to help anyone interested in venturing into candle making.
2.2 Management Team
Prior to starting candle business , Susan Cook worked as a professional Chandler and boasts of 20 years’ experience in the candle-making industry. She is extensively knowledgeable having worked for large and reputable organizations in the course of her career.
2.3 Customer Focus
Susan has worked in the candle and scent industry for long and therefore, has an in-depth understanding of customer patterns and segments. Given her long career in the business, she is aware of the changing customer trends and which market segments are in need of unique candle brands. She’s also aware that customers are primarily looking for uniquely branded homemade candles.
2.4 Business Target
Susan Cook knows where she needs to concentrate her efforts in order to maximize the revenue for her candle making businesses . Her intention is to proactively reach out to all segments in need of unique candle products. Her target is to be the best and most reputable candle making business in Houston as she knows she has knowledge her competitors might not be having.
3.1 company owners.
Susan Cook is an experienced chandler with extensive skills and experience in candle making. Before thinking of starting a candle company , she worked for big brands across the United States such as Proctor & Gamble as well as SC Johnson & Sons among others. She took a major role in making key decisions for the various departments she worked for quickly rising to top managerial level because of her commitment and professional skills. After working for twenty years, she decided it was time to venture into entrepreneurship.
3.2 Aim of Starting the Business
Even though candles have been there for centuries, they are still relevant to date meaning there is still rising demand from both households as well as businesses. Having been in the business with a clear understanding of how candles continue immensely influence the modern society, Susan Cook began to plan how to start a candle company that would effectively address the needs of today’s society.
3.3 How the Business will be Started
Wax Glow Candle will begin operations after a comprehensive market research has been completed by the relevant experts. In order to be successful, Susan knows her knowledge and experience will be a great asset that will be instrumental in making strategic decisions that will spur business growth. She has also worked closely with a team of financial experts to formulate a detailed financial analysis for the business.
Services for Customers
Wax Glow Candle plans to offer a wide variety of products and service in order to increase its competitiveness and get a larger market share. Susan knows the secret to start a candle business and have it succeed is to embrace creativity and offer clients a unique range of products. Given her experience and studying market trends, Wax Glow Candle is in a perfect position to capitalize on its strengths to achieve its business goals and increase revenue. The following products will be offered by Wax Glow Candle.
- Signature Scented candles with various fragrances such as strawberry, vanilla, cinnamon and mulberry among others
- Candle holders which come in a beautiful and vast array of types and designs
- Luminaries that are available in different sizes and colors
- Various types of Melting oils
Marketing Analysis of Candle Making Business
Despite candles being around for numerous centuries, they still play a vital role in today’s society. Aside from illumination, the era of scented candles and fragrances has ushered in a new perspective and the market it constantly looking for unique and creatively made candles for use in homes, businesses and special occasions. In this business plan for candle making , Wax Glow Candle has done an extensive market analysis and identified untapped opportunities to harness in order to grow business revenue.
5.1 Market Segment
For Wax Glow Candle to realize its dreams, the candle making businesses has identified the appropriate customer markets to advertise its products and services. Any candle making business plan sample should clearly outline who potential customers are and how the business intends to establish connections.
excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!
Houston is a large city with over a million households which is a key market for Wax Glow Candle. The first customers for candles are households and residential establishments who use them for various purposes. Even though candles in the home are rarely used for illumination, many homes still buy candles for various purposes such as decoration. Scented candles have become a leading product for households and Wax Glow Candle has an opportunity to put in place creative marketing strategies to reach a wide population segment. When starting your own candle business , the domestic market is a key segment that cannot be ignored considering most of the products from Wax Glow Candle are tailored for domestic use.
5.1.2 Gift Shops
Nowadays, many people consider unique candles as an awesome gift item which can be presented on various occasions. In most gift shops, you will find various types of unique candles and associated accessories which are sold primarily as gift items. Houston has a large number of gift shops and it’s important for Wax Glow Candle to find ways of forming partnerships with local gift shops with an aim of stocking their products in gift shops. Because they have direct access customers, gift shops can be of great benefit and help the candle making businesses to reach its revenue targets.
5.1.3 Hotels and Restaurants
The hospitality industry is a key use of candles which are placed in various sections of hotels and restaurants. Exclusive restaurants and hotels love using candles on their dining tables and bathrooms to create a relaxing and elegant environment. Hospitality based businesses are always in need of good quality and unique candles to be utilized for various purposes.
5.1.4 Beauty and Massage Parlors
Candles are a common feature in massage and beauty parlors who invest heavily in various kinds of candles in their establishments. Houston and its surrounding has many massage parlors which are great customer prospects for Wax Glow Candle. With the right strategies put in place, candle making businesses profitable ventures include approaching business that require different types of candle related products.
5.2 Business Target
Wax Glow Candle plans to establish itself in Houston which is a major American city with plenty of opportunities that can be explored. Wax Glow Candle hopes to realize an annual sales growth of between 25%-30% in the first three years of operation.
5.3 Product Pricing
How to start a candle making business requires an extensive market research in order to find out pricing structures of competitors. This is done with an aim of coming up with a creative pricing strategy that will attract customers.
Wax Glow Candle intends to come up with an effective marketing strategy to enable the candle making business reach out to all its intended customer targets. If you want to start a candle making businesses , there must be a good plan in place that will help you reach out to as many prospective clients as possible.
6.1 Competitive Analysis
Wax Glow Candle has carried out an extensive market research in order to identify the most effective marketing strategies that will see the business expand its market share, compete effectively and realize its revenue targets.
6.2 Sales Strategy
For Wax Glow Candle to effectively reach out to the market, this business plan for candle making to implement the strategies below to advertise its range of products.
- Send introductory letters to businesses and stakeholders to create awareness about the candle making businesses
- Organize an opening party and invite guests from target markets to advertise the business. During the opening, offer visitors free samples of products to allow them have a feel of the quality
- Attend exhibitions and trade shows which are awesome platforms for advertising the candle making businesses
- Market the business on social media platforms such as Facebook, Twitter and Instagram. Advertise the business online using Google Ads.
- Advertise Wax Glow Candle on local directory listings
- Create a simple search engine optimized website to boost the online presence of the candle making businesses for purposes of gaining higher online rankings
- Advertise Wax Glow Candle on local broadcast and print channels such as newspapers, TV and radio
6.3 Sales Forecast
How to start a candle business should entail a comprehensive sales forecast that will spell out the roadmap for Wax Glow Candle.
If you’re planning on starting a candle making businesses , the first thing to think about is to find a team of qualified staff who will assist in running the business. Susan Cook intends to hire a competent team of staff to work in various departments. A personnel plan has been formulated to come up with the best strategy for business of hiring qualified and experienced staff.
7.1 Personnel Plan
To help the candle making business realize business success, the following team of staff will be employed to work in Wax Glow Candle. Susan Cook who is the owner of the candle making businesses will be the Chief Executive Officer in charge of the entire business. She will be assisted by the following team of staff.
- 1 Assistant Manager
- 2 Sales and Marketing Executives
- 1 Customer Service Executive
- 2 Chandlers
- 1 Accountant
Successful applicants will undergo comprehensive training a few weeks before the business officially opens its doors to the public.
Wax Glow Candle has come up with a detailed financial plan which is critical for starting a candle business . To ensure candle making business profit is a reality, it is critical to analyze and document various financial parameters before opening a business. Susan Cook intends to raise money for her business using her personal savings. Additionally, she plans to bring on board 2 investors and a bank loan for business plan to finance the budget deficit. candle making businesses profit margin will be determined depending on how the business will excel.
Below is a comprehensive financial analysis for Wax Glow Candle.
8.1 Important Assumptions
The financial forecast for Wax Glow Candle is based on the assumptions below.
8.2 Brake-even Analysis
Wax Glow Candle brake-even analysis is shown in the graph below.
8.3 Projected Profit and Loss
8.3.1 monthly profit, 8.3.2 yearly profit, 8.3.3 monthly gross margin, 8.3.4 yearly gross margin, 8.4 projected cash flow.
Below is a summary of Wax Glow Candle Pro forma cash flow, subtotal cash received, subtotal cash spent, subtotal cash from operations and subtotal cash spent on operations.
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Sample Candle Making Business Plan Template
Do you need help starting a candle company? If YES, here is a sample candle-making business plan template.
Candle-making is big business. This is because people buy candle products for a variety of reasons. If you have considered becoming a participant in this industry, this candle-making business plan sample will be of immense benefit.
By using this sample, you get the best guidance possible on how to write a working plan for your candle business.
It strips away the non-essentials and goes straight to the point.
CANDLE PRODUCTION BUSINESS PLAN SAMPLE
Starting up any business would require an idea, if you have carefully decided on venturing into the candle-making business, you should understand to an extent what starting up a candle business entails.
Here is a sample business plan for starting a candle manufacturing business.
Research on the Business
Starting up a candle-making business requires a basic understanding of candles and candle-making. Firstly, you should decide what type of candles you will be making and the wax to be used.
When deciding the type of candle business to start , it is advisable to start with the basics. Taper candles, as well as container candles, are the easiest forms of candles, but you can also decide to work with other mold and pillar candles.
Wax is gotten from different sources and comes in different forms. The wax gotten from bees has a natural honey aroma and might not require artificial fragrance.
The composition of beeswax varies depending on the climatic condition, the geographic location, and the sort of flowers the bees associate with. Beeswax has been said to be the most expensive of wax types.
Paraffin wax is another product of refined crude oil. Paraffin wax is the most popularly used candle wax. When burnt, it produces flames which may cause reactions that include vomiting and nausea. Paraffin wax differs in price according to the extent of refining.
Animal fats, vegetable oil, synthetic hydrocarbons, and mineral oil are also sources of wax. Stearin, soy wax, and gels fall under this category.
Draw a Candle Making Business Plan
A business plan entails the opportunities, weaknesses, strengths, and goals of any business. Business plans should be kept short and easy to understand. You must understand the nature of your intending candle-making business to produce a proper plan.
Candles are in high demand in residential places as they’re used as decorations in homes, churches, and walkways. It should not be difficult picking out a suitable workplace.
Your plan should answer questions such as;
- Who are the consumers of your products?
- Source of your finance?
- What are the drawbacks of starting up your business? etc.
These and more are questions that your plan must answer.
Financing Your Candle Making Business
Do you have enough funds required to start up your candle-making business ? If not, you must seek financial support.
If you want to run a large-scale candle-making business and you don’t have the financial backup, securing a loan from a commercial bank, angel investors, friends or family members should be something you should consider.
If securing a bank loan doesn’t work out, you should consider the Small Business Administration (SBA). This organization grants loans to business operators who have been unable to secure a commercial bank loan.
Decide a Business Structure for Your Business
A very important part of starting up a business is deciding on a suitable business structure. Listed below are the four basic business structures you can decide on for your candle-making business.
- Sole Proprietorship and Partnership
Now, if you’ve decided to maintain full ownership and control of the business, Sole proprietorship should be a suitable option as you are personally responsible for the ups and downs of the company.
- Corporations and Limited Liability Company (LLC)
You may want to separate your personal drawbacks from the business inconveniences, it is advisable to work as a corporation as corporations separate business-related liabilities from personal liabilities.
Limited Liability Company (LLC) unlike the sole proprietorship doesn’t hold you responsible for the company’s debt and liabilities.
In structuring up a candle-making business as a corporation or a Limited Liability Company, some legal documents would be required.
Legalize your Business
Employ a lawyer who would assist and advise you on how to acquire the needed certificates, licenses, and permits in the case of a corporation and register your business name.
An article of incorporation is very important, it is a document that contains your candle business name, goals and purpose, structure, stock details, and other business information.
Obtain an Employer Identification Number (EIN) from the IRS and purchase an insurance policy as it is very important before launching.
Advertising Your Candle Making Business
This is very important if you want to break through in the candle-making business. you have to let people know that your business exists. Make your brand unique, pick a suitable logo to attract customers.
Create awareness of your product through online marketing, market your products in local stores and sell at local fairs. You can also place discounts on products when launching to attract customers.
CANDLE PRODUCTION BUSINESS PLAN EXAMPLE
Your candle business plan will be a vital requirement for getting access to loans, as well as registrations.
Another reason you need a good candle production business plan is to be able to implement growth-friendly strategies for your business.
Without further waste of time, let’s get into the details;
- Executive Summary
Candle Lights LLC is a candle-making business located in Albuquerque and producing top-quality products for the growing market. Our business is new and seeks to expand to cover the state of New Mexico and beyond.
As a business with a deep understanding of the market, we seek to satisfy our client’s needs for quality and affordability.
This will be achieved through the production of products that meet international standards. In the coming years, we seek to expand our business to cover new markets both nationally and internationally.
This expansion will be implemented through the purchase of more equipment, machinery, and an experienced workforce.
- Products and Services
People use candles for a host of reasons.
We are equal to the task as we produce assorted varieties of fragranced candles. These include widely available and popular fragrances as well as new ones which are constantly formulated by our R&D department.
A few include floating candles, birthday candles, utility candles, liturgical candles, tapers, votives, and outdoor candles.
In addition to these, we will also provide services such as training, formulation, and sale of candle fragrances as well as consultancy services.
- Vision Statement
At Candle Lights LLC, we seek to be among the foremost candle-making businesses. Our vision is to eventually become a major national player in candle manufacture. This will eventually pave the way for the international export of our products. We have our sights set on breaking into the major top 10 candle-making businesses in America within half a decade.
- Mission Statement
Our mission as a new candle-making business is to build a brand synonymous with quality. This will be achieved by ensuring our products pass a stringent quality control test. This is aimed at endearing us to our target market. While focusing on quality, we will ensure our products are well within the reach of everyone.
- SWOT Analysis
We recognize that to achieve our objective, identifying our strengths and weaknesses is necessary.
Given this, we have conducted a SWOT analysis to examine our strengths, weaknesses, opportunities, and threats faced by our business. The results have been revealing and disclose the following;
There are lots of candle products in the market. These come in different fragrances, sizes, and colors. We are not only going to produce similar products but will go a step further in experimenting with new and unique products.
This will focus on new fragrances as well as health-impactful products.
To achieve these objectives, we have a team of dedicated workforce who help in running the different departments. Some of these include the quality control department, the research, and development department as well as the marketing department.
These are vital to the growth of our business and present us with an advantage.
Currently, there are major and well-known candle brands with immense control over different aspects of the business. These include distribution channels as well as marketing.
Also, these are international brands that are easily recognizable. We understand that achieving our objective is an uphill task yet very possible. Thankfully are workforce is sufficiently experienced to handle these challenges.
- Candle Business Opportunities
Our innovative drive is where opportunities about for our business. To stay relevant, we have identified that we will need to develop newer and better products to compete with the major players.
Our research and development department comprises some of the best minds in the industry. These experts have brought their several years of experience to bear on the job.
Threats abound in the form of competitors and competition for market share. These are situations we have identified and prepared for.
However, there are bigger threats such as economic meltdown which erodes the circulation of disposable income. The good thing is that the latter does not happen all the time.
- Market Trends
Scents govern the candle market. Sales are mostly driven by a variety of scents or fragrances. There have been a lot of investments in the development of new scents.
Also, methods of distribution have improved over the years. The internet has played a major part in this as orders are easily placed online from major distributors.
- Target Market
Candles are used by a vast majority of individuals.
These products are used on occasions, for lighting, to obtain a certain feeling, etc. Our target market is varied and includes households, churches, singles, and married, as well as other religious organizations.
- Sales Projection
There are a lot of factors that influence sales. Using current market realities, we have surveyed to obtain our projected sales within a 3-year period. The results have been positive and reveal the following;
- First Financial Year $450,000.00
- Second Financial Year $850,000.00
- Third Financial Year $1,400,000.00
- Competitive Advantage
We have put in a tremendous amount of effort to ensure that we establish a clear advantage over our competitors.
This comes by way of the experience of our workforce as well as our welfare package and friendly work environment.
These contribute to increase productivity and help us achieve our goals faster.
- Sales and Marketing Strategy
We have put in place a world-class marketing department consisting of highly qualified professionals. These have achieved tremendously and contributed to the growth of many businesses.
This department will embark on a series of marketing campaigns that will include the use of social media platforms, roadshows, an incentivized referral program, and paid adverts in dailies and electronic media.
This candle-making business plan sample enables you to put together a compelling and effective plan. You do not need to be confused or spend a fortune-seeking the help of experts.
The general procedure can be followed while providing the necessary information about your intending startup.
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How to Start a Candle Business 12-Month Marketing Plan
Candle Business Marketing Plan
So you are looking for a how to start a candle business marketing plan! Why not, when the demand for candles has doubled over the last five years.
From scented candles to soy candles to twisted pillar candles, they are so many options, uses and target markets.
But there is a lot of competition, so you need a high action marketing plan so that you can set yourself apart, and drive traffic and sales.
Below are some ideas from my 12-Month Marketing Plan for a Candle Business . This easy to follow plan gives you ideas to do each month for social media, publicity, advertising, content marketing, email marketing and so much more! It will take your candle business to the next level!
Candle Business Marketing Ideas
- At the start of January, email out a winter theme story pitch idea to lifestyle blogs*, such as “ Cozy Candles to Warm up Your House “. Related Content: How to Get Publicity for Your Business with an Attention Getting Headline.
- Post a reel / video every Friday to social media with a different mantle or table decoration, including one of your candles that then lights up. See this as inspiration . #FridayVibes.
- Post something fun to social media, like a chart showing which one of your candles is ideal for which Zodiac sign, and ask followers if they agree.
- Explore adding your products to the monthly subscription box, Decocrated (even if just adding a sample candle or coupon to the box).
- Ask a few local restaurants if you could be their official candle supplier, as a way for them to show support for other local businesses.
- Change up your email opt-in incentive to include a free printable, such as “ How to Make Every Room in Your House Smell Good”.
- Post your “scent of the month” to social media.
- Consider offering a Whole Home Scent Kit, as a new home or housewarming gift. Also great as a realtor closing gift.
The great thing about my marketing strategy plan is that you can jump in any time. Just because it says 12-Month, doesn’t mean it is for any particular year. There are just certain things you need to do in January, versus things you would do in June, so that is why I set it up by month.
I hope you enjoyed this post on How to Start a Candle Business Marketing Plan. You can order and download the pdf from my Etsy shop. I guarantee you’ll love it!
*The plan also includes a link to a secret page on my blog with hundreds of media contacts.
Also read: Free Business Card Templates
A 20+ year marketing professional, small business consultant, ebook author & blogger, my advice has been featured in the NY Times, Success Magazine, American Express, Big Commerce, Business2Community to name a few – so this is professional advice you can trust!
I have consulted for thousands of small businesses since 2012. It really does help to talk to someone who is objective to get a new, but professional, perspective. I have also written publicity pitches for clients that resulted in them being featured in Real Simple Magazine, Apartment Therapy, House Beautiful, Vanity Fair, Houzz, Martha Stewart, Glamour Magazine, LONNY, DesignMilk, Emmaline Bride, – just to name a few. Learn more about my marketing services here .
© 2022 Gail Oliver. All rights reserved. How to Start a Candle Business Marketing Plan
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I'm Gail Oliver and since 2012 I have advised thousands of small businesses and I can help yours too! Feel free to email me at [email protected] with a question!
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Candle Making Business Plan
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Resources On Candle Making
- Financial Model
- Value Proposition
- One-Page Business Plan
- SWOT Analysis
- Business Model
Products & services, market analysis, marketing plan.
- Management Plan
- Financial Plan
Aglow Candles Inc. aims to solve the problem of the lack of availability of high-quality, all-natural handmade candles with customizable scents and packaging options for conscious consumers. The market has seen an increase in demand for natural and unique products, and Aglow Candles Inc. seeks to fill this need by providing premium quality candles that are handcrafted using natural ingredients, such as soy wax and essential oils, with a focus on creating a unique and personalized customer experience. With a growing market of environmentally conscious consumers seeking natural and customizable products, Aglow Candles Inc. is well-positioned to solve this problem and establish itself as a leader in the natural candle industry.
Aglow Candles Inc. offers a solution to the growing demand for natural and customizable products in the candle industry. The company provides handmade, all-natural candles made with high-quality ingredients such as soy wax, essential oils, and natural fragrances. Additionally, customers have the option to create customized scents and packaging, providing a unique and personalized experience. Through these offerings, Aglow Candles Inc. aims to solve the problem of limited options for natural and personalized candles while providing a sustainable and eco-friendly product to its customers.
The target market for Aglow Candles Inc. is the conscious consumer market seeking natural and customizable products. These consumers are environmentally aware and prioritize using natural and eco-friendly products in their daily lives. They are interested in products that not only serve a functional purpose but also provide a unique and personalized experience. Our handmade candles made from high-quality natural ingredients, with customizable scents and packaging options, cater precisely to this market segment. By targeting the conscious consumer market, we aim to establish a loyal customer base and generate consistent revenue growth over the next five years.
The candle market offers a wide range of alternatives and substitutes, making it a competitive industry. The substitutes mainly include artificial, mass-produced candles that lack the quality and eco-friendliness of handmade, all-natural candles. The market has several established players who provide natural candles with customizable scents and packaging options. However, Aglow Candles Inc. aims to differentiate itself by providing a unique and personalized customer experience, offering a wider range of scents and high-quality natural ingredients. Through its direct-to-consumer e-commerce platform, the company will be able to reach a broader audience and establish itself as a leading player in the natural candle market.
Key highlights of the financial plan are as follows:
- The business will require an initial investment of $250,000, through private funding or venture capital.
- The company expects to break even within the first year of operations.
- The projected revenue for the first year is $350,000, with a projected revenue growth of 30% in the second year.
- The main revenue stream will come from the sales of the handmade, natural candles with customizable scents and packaging options.
- The cost structure includes expenses associated with ingredients, labor, website development, packaging, shipping, and marketing.
- The key partnerships will be with suppliers for high-quality natural ingredients and shipping companies for timely delivery.
- The financial plan will be regularly reviewed and updated to ensure that the business remains profitable and sustainable.
For the launch of Aglow Candles Inc., we require an initial investment of $250,000. The capital will be utilized for product development, obtaining raw materials, labor costs, creating a user-friendly e-commerce platform, and covering initial marketing and packaging expenses. The following is a brief outline of the funding requirements:
- $100,000 for raw materials and equipment
- $50,000 for labor costs for skilled candle makers and customer service representatives
- $50,000 for website development and maintenance
- $20,000 for packaging and shipping costs
- $30,000 for initial marketing expenses to promote the brand and create market awareness
The proposed funding will help us make our business successful and establish ourselves as a leading player in the natural candle industry. With a sound business model and a high-quality product, we anticipate a consistent revenue growth over the next five years, enabling us to penetrate the market and achieve our business goals.
Milestones and Traction
As Aglow Candles Inc. embarks on its journey in the natural candle market, we aim to achieve certain milestones to establish ourselves as a leading player in the industry. Here is a roadmap of our current status and the specific milestones we plan to hit:
With these milestones, Aglow Candles Inc. is confident of achieving consistent revenue growth, establishing a loyal customer base, and becoming a market leader in the natural candle industry.
Problem Worth Solving
The problem worth solving for the Aglow Candle Inc. business is the lack of availability of natural and customizable candles for the conscious consumer market. With the increasing awareness towards personal health and environmental concerns, there is a growing demand for natural and eco-friendly alternatives. The dominance of artificial scents and harsh chemicals in the candle industry has led to concerns regarding the potential health risks associated with their use.
Additionally, many consumers often struggle to find candles that offer a unique and personalized experience, tailored to their preferences. With Aglow Candles Inc.'s handmade, all-natural candles, customers can enjoy customizable options that cater to their individual taste and preferences. The business aims to provide a convenient and enjoyable customer experience, addressing the problem of limited availability of premium quality, natural candles for the conscious consumer market.
At Aglow Candles Inc., we offer a solution to the growing demand for natural and customizable candles with our line of premium quality, handmade candles. Our candles are made using high-quality natural ingredients such as soy wax, essential oils, and natural fragrances, offering a unique experience of eco-friendly and customizable scents to our customers.
The problem that our customer base faces is the lack of availability of affordable and high-quality natural candles with customizable options. Our solution provides the conscious consumer market with a range of natural and customizable candles that align with their values and preferences, delivering a unique and personalized customer experience.
We aim to solve this problem by creating a product that meets our customers' needs while keeping our value proposition at the center of our business model. Our candles cater to the conscious consumer market, which seeks products that align with their values while offering a unique and personalized experience.
Validation of Problem and Solution
According to a survey conducted by Statista, 38% of consumers in the US prefer eco-friendly products, and this percentage is expected to increase in the coming years. The survey also revealed that customers are willing to pay a premium price for products that are natural and environmentally conscious. With Aglow Candles Inc., we are catering to this conscious consumer market, providing handmade, all-natural candles that are customizable to the customer's preferences.
Furthermore, we have conducted market research, and the results highlight a significant demand for natural candles with unique scents and packaging options. Our handmade candles contain high-quality natural ingredients and essential oils that appeal to customers seeking an eco-friendly lifestyle. We have already seen a positive response to our products during the testing phase, and customers have appreciated the effort we put into customizing their candles. This feedback indicates that our product and solution have huge potential in the natural candle market.
Aglow Candles Inc. offers a line of premium quality, handmade candles that are made using high-quality natural ingredients such as soy wax, essential oils, and natural fragrances. Our candles are designed for conscious consumers seeking natural and customizable products with a unique customer experience.
Our candles are customizable in terms of both scent and packaging options to provide a truly personalized experience for our customers. We use only high-quality natural ingredients that are environmentally friendly, providing an eco-friendly alternative to traditional candles that often contain harmful chemicals and synthetic fragrances.
Our handmade candles are not only aesthetically appealing but also offer a range of benefits to our customers. Our natural ingredients make our candles perfect for individuals with allergies or sensitivities to synthetic fragrances. Customers can select the scent profile that they prefer and have their candles made to order, ensuring that they are receiving exactly what they want. With Aglow Candles, customers can enjoy the ambiance of natural candle light without sacrificing the quality or experience they desire.
Roadmap: Products & Services
As a Candle Making business, our primary focus is on providing high-quality, eco-friendly handmade candles that are customizable to our customer's preferences. Below is a summary of our roadmap for both establishing and growing the business:
We are committed to executing on all the planned steps, while also ensuring that our candles remain of high quality and our services are satisfactory.
Our market analysis has identified potential customer segments based on their specific characteristics. The following HTML table outlines the different segments we have identified, along with a description of each segment, an estimate of the size of the segment, and the market potential for each segment.
Target Market Segment Strategy
Our ideal customer would be a conscious consumer who is seeking all-natural products without harmful chemicals. They value customization and are looking for unique scents and packaging options to enhance their homes. This customer segment is willing to spend more on high-quality products that align with their values of sustainability and eco-friendliness. We will target this market by highlighting our commitment to using only natural ingredients and offering a personalized experience through our customizable options. We will also leverage social media platforms and influencers to reach this audience and build brand awareness.
Our ideal customer is someone who values natural and customizable products. They are conscious consumers who care about the environment and their health. They may also have a strong preference for supporting small businesses that prioritize sustainability and ethical practices. This customer archetype will be the main advocate for our business, sharing their positive experience with friends and family, and promoting our brand through word of mouth and social media. We want to establish a loyal customer base that trusts and values our commitment to high-quality, all-natural candles and personalized customer service.
Based on the customer segments identified, there is a growing demand for natural and customizable products, which provides a significant opportunity for the handmade candle business to expand its reach and market share. With the direct-to-consumer e-commerce platform, the brand can target conscious consumers across different regions and demographics. The business strategy of prioritizing high-quality natural ingredients and personalization aligns with the future trends in the market, and the potential for growth is significant. The brand can also explore collaborations with sustainable lifestyle brands and eco-conscious influencers to further penetrate the market.
A potential list of competitors in the handmade and all-natural candle market includes:
Our business differentiates from the competition by offering customizable scent and packaging options for a unique customer experience that value-conscious consumers will enjoy.
Marketing and Sales Plan
Our marketing and advertising strategy will focus on leveraging social media platforms like Instagram and Facebook to reach our target market of conscious consumers seeking natural and customizable products. We will also collaborate with influencers and bloggers in the wellness and lifestyle space to feature our candles and increase brand awareness. Additionally, we will offer promotions and discounts to our loyal customers and encourage word-of-mouth referrals. Our goal is to build a strong brand image and create a loyal customer base. Our estimated marketing and advertising costs for the first year are approximately $15,000.
Location and Facilities
Aglow Candles Inc. utilizes technology in various aspects of its business operations, including the e-commerce platform and candle-making equipment. The company's website is designed to provide customers with a seamless purchasing experience, featuring an easy-to-use interface and secure payment gateways. Additionally, the candle-making equipment is state-of-the-art, allowing for precise measurements and consistent quality control. The company also plans to explore the use of innovative technologies such as aroma diffusion and scent customization software in the future to provide an even more personalized customer experience. Aglow Candles Inc. embraces technology as a tool to enhance its business operations and to better serve its customers.
Equipment and Tools
Starting a handmade candle business requires a few essential tools and equipment to get started. The following table outlines the equipment and their associated costs:
It's important to invest in high-quality equipment and tools to ensure the finished product is of excellent quality. The cost associated with purchasing these tools is a one-time expense and can be easily recovered through product sales.
Management and Organization
Our candle making business has a flat organizational structure with a team of skilled candle makers, customer service representatives, and marketing professionals working together. Here is an overview of the roles and responsibilities of specific employees:
The flow of information between levels of the organization is open and transparent. The employees are encouraged to communicate and collaborate with each other, and the manager plays a supervisory role to ensure that the business functions smoothly.
As the founder of this direct-to-consumer e-commerce business, I will initially take on the high-level management roles. However, as the business grows, I anticipate bringing on additional team members to fill key management positions. A table of potential candidates will be developed based on their experience, skills, and ability to align with the company's mission and values. The focus will be on recruiting individuals with expertise in marketing, operations, and e-commerce management, who can bring diverse ideas and perspectives to the team and support the growth of the business.
Management Team Gaps
Currently, the management team does not have candidates ready to fill the role of a marketing specialist. This individual would be responsible for developing and executing marketing strategies to increase brand awareness, attract new customers, and retain existing ones. The ideal candidate would have experience in digital marketing, social media management, and branding. The management team is actively seeking qualified candidates to fill this position.
Running an efficient candle making business requires a skilled and dedicated team. Here is a list of potential positions that we expect to require:
Company History and Ownership
Aglow Candles Inc. is a newly established business that has been founded with a clear vision of catering to the growing market of conscious consumers who seek natural and customizable products. The company's founder is an experienced business consultant who has worked with several startups in the past. Having noticed the emerging trend towards natural and eco-friendly products, the founder saw an opportunity to create a unique business model that focuses on handmade, all-natural candles with customizable scents and packaging options.
The founder and CEO of Aglow Candles Inc. will be responsible for overseeing the company's operations and management. With a wealth of experience in the business industry, the CEO brings a wealth of knowledge in building and growing successful businesses. The CEO's vision for the company is to establish itself as a leading player in the natural candle market in the US by offering unique and customizable products and providing exceptional customer service.
As part of our management and organization plan, we have laid out a detailed roadmap with specific goals and objectives that will help us steer our business. The following table outlines our milestones:
As a direct-to-consumer e-commerce business, some key metrics that we will be tracking to gauge the overall performance and health of our business include:
- Sales revenue
- Conversion rate (number of website visitors who make a purchase)
- Customer acquisition cost (how much it costs to acquire each new customer)
- Customer lifetime value (how much revenue each customer brings in over the course of their interactions with our business)
- Average order value (the average amount customers spend per order)
- Inventory turnover (how quickly our inventory is sold and replenished)
- Website traffic (number of visitors to our site)
- Social media engagement
By regularly monitoring and analyzing these KPIs, we will be able to make data-driven decisions to optimize our business operations and drive growth.
Financial Plan and Metrics
The following table presents the projected sales for the three years (2023, 2024, and 2025) for Aglow Candles Inc. The first column shows the sales forecast broken down by product categories, and the rest of the columns represent the years:
The projected sales forecast shows that Aglow Candles Inc. is expected to achieve significant revenue growth, with a projected revenue of $914,000 in 2025. This growth is driven by the company's unique product offering and its ability to cater to the needs of the conscious consumer market.
Projected Profit and Loss
Aglow Candles Inc. expects to generate revenue of $350,000 in the first year of operations, with a projected revenue growth of 30% in the second year. Here is a breakdown of the projected profit and loss statement for the next three years:
The projected profit and loss statement shows that Aglow Candles Inc. will be profitable from the first year of operations, and will experience consistent revenue growth over the next three years. The gross margin percentage will remain stable at 77.1%, while expenses will increase with revenue growth, leading to higher profits and profit percentages in the coming years.
Projected Cash Flow
Below is the projected cash flow statement for Aglow Candles Inc. for three years:
The company expects to break even within the first year of operations with a projected revenue growth of 30% in the second year. The projected cash flow indicates that Aglow Candles Inc. will have a positive net cash flow each year, which will increase cumulatively over time. The company will use the cash flow to reinvest in the business, expand into new markets, and improve its e-commerce platform, ensuring sustainable growth over the next three years.
Projected Balance Sheet
Below is the projected balance sheet for the Candle Making business for the next three years (2023-2025).
The projected balance sheet shows the expected financial position of the Candle Making business for the next three years. The assets column includes the expected value of all assets owned by the business. The liabilities column includes any debts or obligations owed by the business. The equity column shows the total value of the business after liabilities have been subtracted from assets. The projected balance sheet will be updated annually as the business grows and evolves.
As a direct-to-consumer e-commerce business, our team will consist of candle makers, a website developer, marketing specialist, and customer service representative. Initially, we plan to hire two experienced candle makers to handcraft our candles and ensure consistent quality. The website developer will be responsible for designing and managing the e-commerce platform. The marketing specialist will be responsible for creating and executing marketing strategies to increase our customer base. Lastly, our customer service representative will provide personalized and responsive service to ensure customer satisfaction.
Our team members will be compensated competitively to attract and retain top talent. Compensation will be based on experience, skillset, and performance. To ensure that each team member contributes to the operations of the business, they will be involved in cross-functional projects that increase collaboration and efficiency. We understand that our team members are crucial to the success of our business and will provide opportunities for growth and development to keep them engaged and motivated.
Use of Funds
The initial investment of $250,000 will be utilized to cover the following expenses:
As a direct-to-consumer e-commerce business, our long-term goal is to build a strong brand and continue to grow our customer base. However, in the event that we decide to eventually exit from the business, we would consider various options such as acquisition, selling, or passing along to a family member or employee who shares our passion for all-natural, handmade candles.
We would evaluate each option carefully to ensure the best possible outcome for our business and customers. Our focus will always be on providing high-quality products and exceptional customer service, while maintaining a profitable and sustainable business model.
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