candle making business plan template

Candle Making Business Plan Template

Written by Dave Lavinsky

Candle Making Business Plan

Over the past 20+ years, we have helped over 1,000 entrepreneurs and business owners create business plans to start and grow their candle making businesses. On this page, we will first give you some background information with regards to the importance of business planning. We will then go through a candle making business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Candle Making Business Plan?

A business plan provides a snapshot of your candle making business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategy for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Candle Business

If you’re looking to start a candle making business, or grow your existing business, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your business in order to improve your chances of success. Your business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Candle Making Businesses

With regards to funding, the main sources of funding for a candle making business are personal savings, credit cards, bank loans and angel investors. With regards to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to confirm that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business.

Personal savings is the other most common form of funding for a candle making business. Venture capitalists will usually not fund a candle making business. They might consider funding a candle making business with a national presence, but never an individual location. This is because most venture capitalists are looking for millions of dollars in return when they make an investment, and an individual location could never achieve such results.  With that said, personal savings and bank loans are the most common funding paths for candle making businesses.

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How to write a business plan for your candle-making business.

If you want to start a candle making business or expand your current one, you need a business plan. Each section below is a key component of a solid candle making business plan:

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of candle making business you are operating and the status. For example, are you a startup, do you have a business that you would like to grow, or are you operating a chain of candle making businesses?

Next, provide an overview of each of the subsequent sections of your plan. For example, give a brief overview of the candle industry. Discuss the type of candle making business you are operating. Detail your direct competitors. Give an overview of your target customers. Provide a snapshot of your marketing plan. Identify the key members of your team. And offer an overview of your financial plan.  

Company Analysis

In your company analysis, you will detail the type of business you are operating.

For example, you might operate one of the following types of candle making businesses:

• Scented Candles : this type of business will focus on making scented candles. This type of business can focus on traditional scented candles, or can specialize in creating unique scent combinations.
• Specialty Wax Candles: this type of business specializes in making candles from ingredients that differ from traditional paraffin wax. Other waxes include soy wax, beeswax, coconut wax, special blends, etc.
• Novelty Candles: this type of business focuses on creating candles in novelty shapes, or around specific themes such as holidays or birthdays.

In addition to explaining the type of business you will operate, the Company Analysis section of your business plan needs to provide background on the business.

Include answers to question such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, number of positive reviews, recipes tested, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry analysis, you need to provide an overview of the candle industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the candle industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your strategy, particularly if your research identifies market trends.

The third reason for market research is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your own candle business plan:

• How big is the candle industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential market for your candle business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: men, women, families, couples, professionals, teenagers, religious groups, party planners, homeowners, etc.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of candle making business you operate. Clearly, couples would respond to different marketing promotions than religious groups, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, include a discussion of the ages, genders, locations and income levels of the customers you seek to serve. Because most candle making businesses primarily serve customers living in their surrounding geographic area, such demographic information is easy to find on government websites.

Psychographic profiles explain the wants and needs of your potential customers. The more you can understand and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other candle businesses.

Indirect competitors are other options that customers have to purchase from that aren’t direct competitors. This includes major retail stores, craft stores and decoration stores. You need to mention such competition as well.

With regards to direct competition, you want to describe the other businesses with which you compete. Most likely, your direct competitors will be retailers located very close to your location who sell candles and other local candle makers.

For each such competitor, provide an overview of their businesses and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as:

• What types of customers do they serve?
• What types of candles do they specialize in?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a wider variety of candles?
• Will you provide a rewards program or special discounts?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a candle making business plan, your marketing plan should include the following:

Product : In the product section, you should reiterate the type of candle making company that you documented in your Company Analysis. Then, detail the specific products you will be offering. For example, in addition to candle making, will you provide a rewards program or another service such as adding personal messages on the candle/ jar of candle?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your marketing plan, you are presenting the services you offer and their prices.

Place : Place refers to the location of your candle making company. Document your location and mention how the location will impact your success. For example, is your candle business located in a busy retail district, shopping plaza, mall, etc.  Discuss how your location might be the ideal location for your customers.

Promotions : The final part of your candle making marketing plan is the promotions section. Here you will document how you will drive customers to your location(s). The following are some promotional methods you might consider:

• Advertising in local papers and magazines
• Reaching out to local websites
• Social media marketing
• Local radio advertising

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your candle business, including tracking inventory, marketing your business, researching new scent combinations or designing new novelty options, pouring candles for inventory, and preparing for upcoming orders.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your 1,000th candle, or when you hope to reach $X in revenue. It could also be when you expect to expand your candle making business to a new city, or launch an ecommerce site.  

Management Team

To demonstrate your candle business’ ability to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally you and/or your team members have direct experience in managing candle making businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act like mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in small-scale manufacturing of consumer goods or successfully running small businesses.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet and cash flow statements.

Income Statement : an income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenues and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you specialize in a limited variety of scents and shapes, or will you offer a broad array of traditional candles? And will candle sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets : Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your candle business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a bank writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement : Your cash flow statement will help determine how much money you need to start or grow your business, and make sure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

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:

• Location build-out including design fees, construction, etc.
• Cost of equipment and supplies
• Payroll or salaries paid to staff
• Business insurance
• Taxes and permits
• Legal expenses

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your manufacturing facility lease or invoices of upcoming orders you are working on.  

Putting together a business plan for your candle making business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will have an expert candle business plan; download it to PDF to show banks and investors. You will really understand the candle making industry, your competition, and your customers. You will have developed a marketing plan and will really understand what it takes to launch and grow a successful candle making business.  

Candle Making Business Plan FAQs

What is the easiest way to complete my candle making business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily complete your Candle Making Business Plan.

Where Can I Download a Candle Company Business Plan PDF?

You can download our candle company business plan pdf .

What is the Goal of a Business Plan's Executive Summary?

The goal of your Executive Summary is to quickly engage the reader. Explain to them the type of candle making business you are operating and the status; for example, are you a startup, do you have a candle making business that you would like to grow, or are you operating a chain of candle making businesses?

Don’t you wish there was a faster, easier way to finish your Candle Making business plan?

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Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.  

Click here to see how Growthink’s professional business plan consulting services can create your business plan for you.  

Other Helpful Business Plan Articles & Templates

Candle Making Business Plan Template

Written by Dave Lavinsky

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.

Executive Summary

Business overview.

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.

Product Offering

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

Customer Focus

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.

Management Team

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.

Success Factors

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.

Financial Highlights

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.

Company Overview

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:

Industry Analysis

• 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.

Customer Analysis

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.

Customer Segmentation

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

Competitive Analysis

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.

Competitive Advantage

Countryroad Candle Company will be able to offer the following advantages over their competition:

Marketing Plan

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.

Promotions Strategy

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.

Print Advertising

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.

Website/SEO Marketing

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.

Operations Plan

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.

Milestones:

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

Financial Plan

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:

Key Assumptions

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

Financial Projections

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

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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.

Mission statement:

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:

Target market:

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:

Hiring 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.

Key managers:

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.

9. Appendix

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.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

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.

About the Author

Upmetrics Team

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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Last Updated on January 3, 2024 by Arif Chowdhury

Looking to start your own candle business? A well-crafted business plan is the essential foundation for success. And what better way to create a roadmap for your unique candle venture than with a downloadable candle business plan PDF ? This executive summary will guide you in starting your scented candle business.

We’ll discuss how a candle business plan PDF can provide you with the guidance and structure needed to navigate the competitive market. From outlining your target audience and marketing strategies to financial projections and operational details, every aspect of your business will be covered in the executive summary, overview, operations plan, and financing.

You may readily view and distribute your business plan to possible partners or investors by using a downloadable PDF format. This is very helpful for highlighting the experience of your management team and writing an executive summary for the target market of your business. You can stop worrying about printing extra copies or compatibility problems. Everything is at your fingertips.

Here is the link to download the Candle Business Plan PDF Template.

So, if you’re ready to take your candle business to new heights, let’s dive into the world of candle business plans and discover how they can set you up for success.

Importance of a Candle Business Plan for Starting or Expanding

Starting or expanding a candle-making company can be an exciting venture, but it’s important to have a solid plan in place to increase your chances of success. Wax is a crucial ingredient in the candle-making process, so ensure you have a reliable source for it.

Additionally, having good credit is essential for securing funding and building a strong foundation for your business. A comprehensive candle business plan is crucial for several reasons. Let’s dive into why having a well-thought-out business plan is essential for your candle business.

Secure Funding from Investors or Lenders

One of the biggest challenges can be securing funding. Having a detailed candle business plan can greatly increase your chances of obtaining financial support from investors or lenders.

A well-crafted business plan showcases your knowledge and understanding of the candle-making business industry, market trends, and potential profitability. It provides a comprehensive business overview for your company.

It helps demonstrate that you have thoroughly thought through your goals, strategies, and financial projections. This gives investors and lenders confidence in your ability to generate returns on their investment in your candle-making business. Having a solid financial plan and business plans for your company is crucial.

Set Clear Goals and Objectives

A candle business plan acts as a roadmap for your entrepreneurial journey. Having a well-crafted business plan is essential for the success of your candle-making business. It enables you to establish clear goals and objectives for the growth of your wax glow candle business and provides the necessary direction on how to achieve them.

In your business plan for a candle manufacturing company, you can set clear goals like sales numbers, market share, or the introduction of new products. This helps you remain on track with your goals and stay focused on the important things, like wax and the success of your glow candle.

With a well-crafted business plan for your candle-making business, you are more likely to make informed decisions about wax and glow candles that align with your long-term vision.

Conduct Market Research and Competitive Analysis

Market research plays an important part in developing an effective candle business plan. It enables you to understand customer preferences, identify target markets, and analyze competitors’ strengths and weaknesses.

You may develop your business plan, marketing strategies, product offers, pricing models, distribution methods, and wax by carrying out an in-depth study for your candle manufacturing company.

This knowledge allows you to position yourself uniquely in the candle-making business market and stand out from the competition with your wax glow candle business plan.

Ensure Long-Term Sustainability with Financial Projections

Financial projections are a critical component of any candle business plan as they provide insights into the financial viability and sustainability of your business.

You can discover possible obstacles or opportunities in your business plan and make well-informed decisions to reduce risks or take advantage of growth prospects for your glow candle business by projecting revenue, expenses, and cash flow for your candle-producing enterprise.

Financial projections also help you determine pricing strategies, production costs , and budgeting requirements. This level of financial planning is essential for long-term success in the candle-making business.

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Quick Note: Do you know how Candle businesses skyrocketed their success? Google Ads and LinkedIn Ads played a vital role! These platforms became game-changers, helping candle makers reach wider audiences, boost brand visibility, and increase sales. The strategic use of targeted advertising on Google and LinkedIn opened up new avenues for these businesses, proving that the right online marketing can light up your entrepreneurial journey.

Sales and Marketing Strategies for Candle-Making Business

To ensure the success of your candle-making business, it’s crucial to have effective sales and marketing strategies in place.

By exploring various sales channels , implementing smart marketing tactics, and focusing on branding and customer retention, you can attract customers and grow your business.

Let’s dive into some key strategies to consider:

Explore Various Sales Channels

It’s important to reach your target customers for your candle-making business through multiple channels in your business plan.

The wax glow candle industry is highly competitive, so it’s crucial to have a strong marketing strategy that effectively reaches your target audience. Consider the following options:

• Utilize e-commerce websites or create your o nline store to reach a wider audience for your candle-making business. A solid business plan is essential for the success of your glow candle business.
• Retail partnerships : Collaborate with local gift shops or boutiques that align with your brand aesthetic to showcase and sell your candles.
• Direct selling is a great strategy for promoting your candle-making business. Attend craft fairs, and farmers markets, or even host home parties where you can directly connect with potential customers interested in purchasing your wax glow candles. Don’t forget to have a solid business plan in place to guide your efforts.

Implement Effective Marketing Tactics

Marketing plays a vital role in making and promoting your candle products, as well as attracting customers to your business plan. Here are some effective tactics to consider:

• Social media advertising : Utilize platforms like Facebook or Instagram ads to target specific demographics interested in candles.
• Influencer collaborations : Partner with influencers who have a strong online presence in the home decor or self-care niche to promote your unique candles.
• Content creation : Create engaging content such as blog posts, videos, or tutorials that highlight the benefits of using scented candles and share them on social media platforms or your website.

These marketing tactics help raise awareness about your wax glow candle brand and products while driving traffic and potential sales for your candle-making business plan.

Focus on Branding and Product Differentiation

In a competitive candle-making industry, having a strong brand identity is essential for any business plan. Consider these aspects:

• Branding: Develop a memorable brand name, logo, color palette, and overall aesthetic for your wax glow candle business plan that resonates with your target audience.
• Packaging design : Invest in attractive and visually appealing packaging that reflects the quality and uniqueness of your candles.
• Product differentiation : Offer unique candle scents, designs, or sizes that set your products apart from competitors.

You may draw clients in and leave a lasting impression with your wax glow candles by concentrating on branding and product distinction in your candle-making company.

Implement Customer Retention Strategies

While acquiring new customers for your candle-making business is important, retaining existing ones is equally crucial for the success of your business plan. Consider implementing these strategies:

• Loyalty programs : Reward loyal customers with exclusive discounts, freebies, or early access to new candle releases.
• Personalized offers : Send personalized emails or offers based on customers’ past purchases or preferences to make them feel valued.

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Financial Analysis: Cash Flow, Profit & Loss, and Break-even Point

To run a successful candle business, it is crucial to have a solid understanding of the financial aspects. This includes monitoring cash flow, analyzing profit and loss statements, and determining the break-even point.

Let’s dive into each of these areas to see how they contribute to the overall financial health of your candle business.

Cash Flow Projections

Cash flow projections are essential tools for monitoring the inflows and outflows of funds within your candle business. These projections allow you to anticipate when cash will be coming in and when it will be going out.

You can make sure you have enough money to pay for costs like hiring staff, buying raw materials, and marketing by precisely projecting your cash flow.

Key Points:

• Cash flow projections help you plan for any potential financing needs or credit terms.
• It allows you to make informed decisions about pricing strategies based on accurate financial forecasts.
• By tracking your cash flow regularly, you can identify any areas where adjustments need to be made to improve profitability.

Profit & Loss Statements

Profit & loss statements (also known as income statements) provide a snapshot of your candle business’s revenue, expenses, and profitability over a specific period.

These statements allow you to track how much money is coming in from sales in your candle-making business and how much is being spent on various costs such as raw materials, labor, rent, utilities, and marketing.

• Profit & loss statements help you assess the overall financial performance of your candle business.
• They enable you to identify areas where expenses can be reduced or revenue can be increased.
• Regularly reviewing profit & loss statements helps in making informed decisions about pricing strategies.

Break-even Point Analysis

Break-even point analysis is an important aspect of financial planning for any business. It determines the point at which total revenue equals total costs – the point at which your candle business starts making a profit.

By calculating the break-even point, you can determine how much revenue you need to generate to cover all your costs and achieve profitability.

• Break-even point analysis helps you set realistic sales goals for your candle business.
• It allows you to assess the financial viability of different pricing strategies and make adjustments accordingly.
• By knowing your break-even point, you can make informed decisions about cost control and growth strategies.

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Quick Note: Do you know the secret to a memorable first impression in the candle business? It’s all about captivating your customers’ senses right from the start! From stunning packaging to delightful scents, creating an experience that resonates is key. Your candle’s appearance, aroma, and the story behind it all contribute to that lasting impact. By crafting an immersive and enticing experience, candle businesses leave customers longing for more, igniting a bond that goes beyond just a purchase.

Product Pricing Strategy and Sales Forecast for Candle Business

Setting the right prices for your candles is crucial to the success of your candle business.

Factors Influencing Pricing Decisions

There are a few things to think about when setting the pricing of your candles. Prioritize your analysis of manufacturing expenses. This covers labor, raw material costs, packing costs, and overhead. You can make sure that your pricing covers all expenditures and provides room for a decent profit margin by being aware of these charges.

Next, conduct a competition analysis to see how other candle businesses in your market are pricing their products. Take note of their pricing strategies and consider positioning yourself competitively within the market.

It is essential to evaluate market demand . If there is high demand for candles in your target market but limited supply, you may be able to set higher prices. On the other hand, if there is intense competition or low demand, you may need to adjust your prices accordingly.

Setting Competitive Yet Profitable Prices

Finding the right balance between competitiveness and profitability is key when pricing your business candles. While it may be tempting for a business to undercut competitors’ prices significantly to attract customers, this could lead to financial losses in the long run.

Consider both fixed costs (such as rent or equipment) and variable costs (such as raw materials or labor) when determining your prices. Aim for a price point that covers all expenses while still allowing you to make a reasonable profit.

Remember that customers often associate higher prices with better quality. If you position yourself as a premium candle brand with superior craftsmanship or unique scents, you can justify slightly higher price points.

Sales Forecasting for Future Demand

Sales forecasting involves estimating future demand for your candles based on historical data and market trends. By conducting accurate sales forecasting , you can plan your production accordingly, avoiding excess inventory or stockouts.

To forecast sales, analyze past sales data, and identify any patterns or trends. Consider external factors that may impact demand, such as seasonal variations or special occasions like holidays. By understanding these factors, you can anticipate when demand for candles is likely to be higher or lower.

Stimulating Sales and Increasing Revenue

In addition to setting the right prices and conducting sales forecasting, there are strategies you can employ to stimulate sales and increase revenue for your candle business.

Consider offering bundle deals where customers can purchase multiple candles at a discounted price. Limited editions or seasonal scents can also create a sense of urgency and exclusivity, encouraging customers to make a purchase.

Furthermore, implementing discounts or promotions during slower periods can help boost sales. For example, offering a “buy one get one free” deal or providing discounts for bulk purchases can attract more business customers and increase overall revenue.

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Market Analysis and Competitive Evaluation in the Candle Industry

To build a successful candle business, it’s crucial to understand the market and evaluate your competition. Conducting a thorough market analysis helps identify target customers, trends, and potential growth opportunities.

Evaluating competitors’ strengths, weaknesses, pricing strategies, and product offerings can provide valuable insights for positioning your candle business effectively.

1. Importance of Market Analysis

Market analysis is like taking a deep dive into the ocean of customer preferences and industry trends. It helps you understand your target market better by identifying their needs, preferences, and purchasing behavior.

By analyzing market data and trends, you can make informed decisions about product development, pricing strategies, distribution channels, and marketing campaigns.

2. Identifying Target Customers

Knowing who your target customers are is essential for tailoring your business products to meet their specific needs.

Conduct surveys or interviews with potential customers to gather insights about their preferences regarding scents, designs, packaging styles, and price points. This information will help you create candles that resonate with your target audience.

3. Exploring Growth Opportunities

Market analysis also uncovers potential growth opportunities within the candle industry. Look out for emerging trends such as eco-friendly or sustainable candles that align with consumers’ increasing focus on environmental consciousness.

By tapping into these trends early on, you can position yourself as an innovative brand in the market.

4. Evaluating Competitors

Understanding your competitors is vital for developing a competitive advantage in the candle industry. Analyze both direct competitors (those selling similar products) and indirect competitors (those catering to similar customer needs).

Evaluate their strengths and weaknesses to identify gaps in the market that you can fill with unique offerings.

5. Differentiating from Competitors

Differentiation sets your candle business apart from others in the market. Identify what makes your candles unique—whether it’s high-quality ingredients sourced locally or sustainably produced materials—and emphasize those aspects in your marketing efforts.

Stand out by offering innovative designs or scents that are not readily available elsewhere.

6. Positioning Your Business

Market research helps you identify your unique selling points and position your candle business effectively. Based on the preferences of your target customers, craft a compelling brand story that resonates with them.

Whether it’s emphasizing the relaxation and ambiance candles create or highlighting their role in self-care routines, positioning your business strategically will attract customers who align with your brand values.

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Operations Plan: Streamlining Processes in the Candle Business

To run a successful candle business, it is crucial to have efficient operations in place. This involves managing various aspects of the business, from inventory and production to suppliers and distribution channels.

Let’s explore some key strategies for streamlining processes in the candle business.

Efficient Inventory Management Techniques

One of the first steps toward ensuring a smooth supply chain for candle production is implementing effective inventory management techniques. This involves keeping track of raw materials such as wax, wicks, fragrances, and containers.

It is possible to prevent stockouts and surplus inventory by keeping an eye on demand trends and maintaining ideal stock levels.

• Minimizes the risk of running out of essential materials
• Optimizes cash flow by reducing excess inventory
• Requires regular monitoring and analysis of inventory levels
• Potential challenges with predicting demand accurately

Establishing Standard Operating Procedures (SOPs)

To maintain consistent product quality, it is important to establish standard operating procedures (SOPs) for your candle-making process. SOPs outline step-by-step instructions for each stage of production, including measurements, mixing techniques, temperature control, and quality checks.

These procedures ensure that every candle produced meets your desired standards.

• Ensures consistent product quality
• Facilitates training new employees on standardized processes
• May require initial time investment to develop comprehensive SOPs
• Regular updates may be needed as new techniques or ingredients are introduced

Optimizing Production Processes

Optimizing production processes can help minimize costs while maximizing output in your candle business. This involves analyzing each step of the manufacturing process to identify areas where efficiency can be improved.

For example, investing in automated machinery or batch-processing techniques can increase productivity and reduce labor costs.

• Increases overall productivity
• Reduces labor costs through automation or optimized workflows
• Initial investment required for machinery or process optimization
• May require retraining employees on new processes

Effective Supplier, Logistics, and Distribution Management

Managing suppliers, logistics, and distribution channels is essential for a smooth operation in the candle business. It is important to build strong relationships with reliable suppliers who can provide high-quality materials consistently.

Optimizing logistics and distribution channels ensures that your candles reach customers efficiently and on time.

• Ensures a steady supply of quality materials
• Enhances customer satisfaction through timely deliveries
• Requires ongoing monitoring and evaluation of supplier performance
• Potential challenges with logistics coordination for international shipping

You can create a plan for the operations of your candle business that will optimize productivity and streamline procedures. Standard operating procedures (SOPs), effective supplier management, production process optimization, and efficient inventory management strategies are all important factors to take into account.

You may successfully manage a candle business and satisfy customer requests by following these guidelines.

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Key Takeaways

Now that you have finished the crucial portions of your business plan, you are well-positioned to succeed in the cutthroat candle market. You are ready to take on this thrilling entrepreneurial trip because you have optimized your operations, created successful sales and marketing strategies, and conducted a thorough analysis of market trends.

Now that you have a comprehensive candle business plan in hand, it’s time to take action. Start by implementing the strategies outlined in each section and adapt them as needed along the way.

Remember, building a successful candle business requires dedication, creativity, and continuous learning. Stay connected with industry experts, join relevant communities, and keep refining your craft to stay ahead of the competition.

Frequently Asked Questions (FAQs)

How can i determine the right pricing strategy for my candles.

When determining the pricing strategy for your candles, consider factors such as production costs, market demand, and competitor pricing.

Conduct thorough research to understand what price range consumers are willing to pay for high-quality candles. Consider positioning your products based on their unique features or benefits to justify higher prices.

What are some effective marketing channels for promoting my candle business?

To effectively promote your candle business, leverage online platforms like social media (Instagram, Facebook) to showcase stunning visuals of your products and engage with potential customers.

Collaborate with influencers or bloggers who align with your brand values to reach a wider audience. Consider participating in local craft fairs or markets where you can interact directly with customers and build brand awareness within your community.

How can I differentiate my candles from competitors’ offerings?

Differentiate your candles by focusing on unique selling points such as using eco-friendly materials or offering custom scents. Consider creating limited edition collections or collaborating with local artists to create exclusive designs that set you apart from competitors.

Providing exceptional customer service and personalized packaging can also help create a memorable experience that keeps customers coming back.

What are some cost-effective ways to streamline my candle-making operations?

To streamline your candle-making operations, consider optimizing your supply chain by sourcing materials in bulk and negotiating better prices with suppliers. Invest in equipment that improves efficiency and reduces production time.

Implement lean manufacturing principles to minimize waste and maximize productivity. Consider outsourcing non-core tasks like packaging or shipping to third-party providers to free up your time for more critical business activities.

How can I stay updated with the latest trends in the candle industry?

Stay updated with the latest trends in the candle industry by following influential candle makers and industry experts on social media platforms. Join online communities or forums where professionals share insights, tips, and news about the industry.

Attend trade shows or conferences dedicated to candles and home decor to network with fellow entrepreneurs and gain valuable knowledge about emerging trends.

Is it necessary to have a physical store for selling candles?

Having a physical store is not necessary for selling candles, especially if you are just starting. Many successful candle businesses operate primarily online through their website or e-commerce platforms.

However, if you plan to expand your business in the future or want to provide a personalized shopping experience, opening a physical store could be beneficial. Consider starting small by participating in local markets or renting a pop-up shop before committing to a permanent location.

How can I ensure consistent quality control for my candles?

To ensure consistent quality control for your candles, establish strict quality standards from the beginning.

Regularly test your products for fragrance strength, burn time, and appearance. Document these standards along with detailed manufacturing processes so that every batch of candles meets your desired specifications.

Implementing thorough inspection procedures at each stage of production will help identify any issues early on and maintain high-quality standards throughout your business operations.

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.

Executive Summary

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.

Company Description

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.

Industry Analysis

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.

Customer Analysis

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.

Competitive Analysis

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.

Marketing Plan

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.

Operations Plan

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.

Management Team

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.

Financial Plan

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:

Income Statement

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

Balance sheet.

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!

Other helpful articles.

Why & How to Write a Candle Company Mission Statement

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

Accountants/Cashiers

Customer Service Executives

E-commerce and web content Manager

Security Guards

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.

• Opportunities:

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 2024]

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.

Fortunately, you’re in the right place. Our team has helped develop over 100,000 business plans over the past 20 years, including thousands of candle making business plans.

The following candle making business plan template and example gives you the key elements you must include in your plan. In our experience speaking with lenders and investors, the template is organized in the precise format they want.

You can download our business plan template (including a full, customizable financial model) to your computer here.

Candle Business Plan Example

I. executive summary.

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name], located in [insert location here], is a well-known candle manufacturing company that makes eco-friendly organic candles made with high quality ingredients. The Company carefully curates its collection and only chooses sophisticated scents. The Company distributes its products nationwide to major retailers and select department stores. The Company’s products are also available directly to consumers via their website and a local brick and mortar location. The Company’s goal is to become one of the leading candle manufacturing companies in the area.

Products Served

[Company Name] manufactures and sells unscented and scented candles. It will offer the following products to its customers:

• A variety of everyday candles such as tapers, votives, pillars and floating candles
• Soy Candles
• Novelty Candles
• Unscented Candles
• Signature Scented Candles

Customer Focus

[Company Name] will primarily offer its products direct to consumers, as well as select retailers and spas. The demographics of the market are:

• Individual Buyers: 57%
• Retail Locations: 20%

Management Team

[Company Name] is led by [Founder’s name], who has been in the candle manufacturing business for [x] years. [Founder’s name] is a seasoned entrepreneur with a degree in Chemistry and a Master’s Degree in Business Management. During his internship at [insert company], he acquired in-depth skills in candle making & designing. Additionally, he worked for large and reputable organizations in the course of his career, learning how to manage and run a candle making business before starting [Company name].

Success Factors

[Company Name] is qualified to succeed due to the following reasons:

• There is currently a high demand for candles in the U.S.
• In addition, the company surveyed the population and received highly positive feedback pointing towards an explicit demand for their products, supporting the business after launch.
• The management team has a track record of success in the candle making business.
• The candle business is a proven, successful business in the United States.

Financial Highlights

[Company Name] is currently seeking $270,000 to launch its candle making company. Specifically, these funds will be used as follows:

• Manufacturing equipment and facility setup: $200,000
• Working capital: $70,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

II. Company Overview

Who is [company name], [company name]’s history.

[Founder’s Name] is an entrepreneur with a passion for candle designing who seeks to create a legacy that will make the company stand out uniquely from its competitors. [Company Name] will become a known candle manufacturer in [Location], offering a wide selection of candles.

Upon surveying the local customer base and finding the potential retail location, [Founder’s Name] incorporated [Company Name] as an S-Corporation on [date of incorporation].

[Founder’s Name] has selected an initial location and is currently undergoing due diligence on each property and the local market to assess the most desirable location for the manufacturing facility.

Since incorporation, the company has achieved the following milestones:

• Found retail space and signed Letter of Intent to lease it
• Developed the company’s name, logo, and website
• Determined raw material requirements
• Began recruiting key employees with experience in the candle making industry

[Company Name]’s Products/Services

Iii. industry analysis.

[Company Name] competes against small, individually owned candle-making companies and major regional or national chains. The candle market size was valued at $7.3 million last year is projected to reach $10.7 million in the next five years, growing at a CAGR of 5.26%. The growth of the market is being driven by an increase in the number of hotels, restaurants, wellness facilities, as well as the number of household candle purchases. Increased home renovation and home décor activities have driven the demand for scented candles in the residential sector.

IV. Customer Analysis

Demographic profile of target market.

There are 1.5 million retail and wholesale businesses in the U.S.

Customer Segmentation

The Company will primarily target the following customer segments:

• Individual Buyers : Individual consumers, especially households will be key targets for the company. Scented candles will be a leading product for the households.
• Spas : The second target group comprises spas. As candles have therapeutic properties, commercial businesses like spas frequently use scented candles. The Company will offer its products, at a wholesale rate to this segment.
• Retail Locations : Other retail locations such as specialty shops, home décor stores and mass merchandisers such as department stores and drug store chains will also be a valuable customer segment for the Company.

V. Competitive Analysis

Direct & indirect competitors.

Wax Shop Wax Shop is one of the popular candle shops in town and has been in business for xx years. Wax Shop offers a wide array of products that one would expect from a candle shop- scented candles, votives, tapers, jar candles and more. Besides offering candles, Wax Shop offers other products including reed diffusers, linen spray, room spray, wax melts, and pure-fragrance oil.

Home Fragrance Inc Home Fragrance Inc is a manufacturer of quality candles and industrial waxes. Candles ranging from pressed tealights to custom votives and scented pillar candles to private-label filled candles, Home Fragrance Inc’s flexible production facility allows it to meet unique manufacturing demands with a quick turn-around time without compromising quality. Waxes ranging from paraffin to natural and custom wax blends to wax additives. The company is a 5th generation family-owned and run facility, based in the [location] uses high-grade raw materials and tests every production batch to provide consistent and uniform products – ranging from industrial to luxury. Home Fragrance Inc, on the other hand, does not sell its products through retail stores.

Candle Coop Candle Coop was established in [xx]. It has a solid reputation for treating its clients right. Candle Coop’s differentiating factor is proprietary soy wax formula. This unique blend of wax offers a natural and environmentally friendly solution to fragrance the home. The exclusive odor eliminating formula it uses seeks and eliminates odor molecules, rather than masking the smell. Candle Coop’s Pure Air Odor Eliminating candles work on almost any type of odor; pet, garbage, cooking, basement, bathroom.

Competitive Advantage

[Company Name] enjoys several advantages over its competitors. These advantages include:

• Management : The Company’s management team has xx years of business and marketing experience that allows them to market and serve customers in an improved and sophisticated manner than the competitors.
• Relationships : Having lived in the community for xx years, [Founder’s Name] knows all of the local leaders, newspapers, and other influencers. As such, it will be relatively easy for [Company Name] to build brand awareness and an initial customer base.
• Great service at an affordable price : The wide range of products and services offered by [Company Name] nearly equals the most premium positioned competitor, [Competitor Name]. However, [Company Name] will offer candles at a much more affordable price.

VI. Marketing Plan

The [company name] brand.

[Company name] seeks to position itself as an upper-middle-market competitor in the candle making industry. Customers can expect to receive beautifully-designed candles from skilled artisans for a price somewhere between discount chains and luxury establishments.

The [Company Name] brand will focus on the company’s unique value proposition:

• Offering a wide collection of candles for different occasions and settings
• High quality, eco-friendly ingredients
• Moderate price point
• Well-trained staff that prioritizes customer satisfaction
• Thorough knowledge of the industry

Promotions Strategy

[Company Name] expects its target market to be individual buyers, retail locations and spas throughout the US. The Company’s promotional strategy to reach the audience includes:

Pre-Opening Events Prior to launching the business, [Company Name] will organize pre-opening events designed for prospective customers, local merchants, and press contacts. These events will create buzz and awareness for [Company Name] in the area.

Public Relations [Company Name] will hire an experienced PR agency/professional(s) to formulate a compelling PR campaign to boost its brand visibility among the target audience. It will look to garner stories about the company and its offerings in various media outlets like newspapers, podcasts, television stations, radio shows, etc.

Social Media Marketing Social media is one of the most cost-effective and practical marketing methods for improving brand visibility. The Company will use social media to develop engaging content in terms of different candle designs and customer reviews that will increase audience awareness and loyalty. Engaging with prospective clients and business partners on social media platforms like Facebook, Instagram, Twitter, and LinkedIn will also help understand changing customer needs.

Word of Mouth Marketing [Company name] will encourage word-of-mouth marketing from loyal and satisfied clients. The Company will use recommendations and word-of-mouth marketing to grow the customer base through the network of its existing customers. The Company will be incentivizing its existing customer base to encourage their friends to come and try their product for the first time.

Special Offers The Company will introduce special offers to attract new consumers and encourage repeat purchases, which will be quite advantageous in the long run.

Pricing Strategy

[Company Name]’s pricing will be moderate, so customers feel they receive great value when availing of the products they are paying for. The customer can expect to receive high-quality candles for a more affordable price than what they pay to ultra-premium brands.

VII. Operations Plan

Functional roles.

[Founder’s Name] will run the day-to-day operations of the candle manufacturing plant, including scheduling, sourcing and purchasing supplies and basic equipment, keeping the company’s books, maintaining legal licenses, handling insurance, and ensuring that the company meets government regulations.

To execute on [Company Name]’s business model, the company needs to perform several functions, including the following:

Administrative & Service Functions

• General & administrative functions including legal, marketing, bookkeeping, etc.
• Inventory management
• Hiring and training staff
• Candle Making and Packaging
• Maintenance personnel

VIII. Management Team

Management team members.

[Company Name]’s most valuable asset is the expertise and experience of its founder, [Founder’s Name]. [Founder’s Name] has been working in the candle manufacturing business for many years. [Founder’s name] is a seasoned artisan with a degree in Chemistry and holds a Master’s Degree in Business Management. He has immense interest in new candle making techniques, and also has the capital needed to start the business. [Founder] also has personal relationships with highly skilled chandlers in the candle making industry.

Hiring Plan

[Founder] will serve as the CEO. In order to establish candle making business and retail stores, the company will need to hire the following personnel:

• Candle Makers [Number]
• Product Development Manager
• Sales and Marketing Manager
• Store Manager

IX. Financial Plan

Revenue and cost drivers.

[Company Name]’s revenues will come from the sale of candles- both retail and wholesale. The major costs for the company will be staff salaries and supplies. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

Capital Requirements and Use of Funds

Key assumptions.

  5 Year Annual Income Statement

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Candle Making Business Plan Template

Published Aug.29, 2018

Updated Apr.22, 2024

By: Noor Muhammad

Average rating 4.3 / 5. Vote count: 15

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Table of Content

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.

Executive Summary

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.

Company Summary

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.

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5.1.1. Households

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.

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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.

Personnel Plan

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.

Financial Plan

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.

Download Candle Making Business Plan Sample in pdf

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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.

Startup financing

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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Build your business credit quickly with an easy approval net 30 account from Wise Business Plans. Or check out the top 10 net 30 vendors to find the best one for you to help build your business credit .

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.

Executive Summary

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.

Company Analysis

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 .

Industry Analysis

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.

Customer Analysis

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.

Looking for Professional Business Plan Writing Services for Your Candle Making Business?

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Competitor Analysis

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.

Marketing Plan

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.

Operations 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.

Management Team

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:

Ownership Structure

Internal Management Team

External Management Resources

Human 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.

Financial Plan

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.

Income 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.

Balance Sheet

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.

Do you want to Finish Your Candle Making Business Plan in less the one day?

Wouldn’t it be nice if your business plan could be completed faster and easier?

With wise business plans Business Plan Template , you can finish your candle making business plan in just 6 hours or less with a 30-Day Money-Back Guarantee!

Also, you can download our 300+ free business plan templates covering a wide range of industries.

OR, we can create your candle making business plan for you

Since 2010, Wise business plans’ MBA professional business plan writers has developed business plans for thousands of companies that have experienced tremendous success.

Download Our Candle Making Business Plan Template

We will show you some real-world business plan examples so you may know how to write your own, especially if you are seeking a bank loan or an outside investment and need to use SBA-approved formatting.

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Candle Business Plan Template

Make your own candle business plan by modifying candle business plan template on venngage..

• Size Letter (8.5 x 11 in)
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• 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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• Oct 5, 2023
• 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 . Consider candle dropshipping also.

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:

Executive summary

Company name, description, and domain

Ecommerce market analysis

Products you’re selling and why

Operations plan

Marketing and advertising plan

Financial 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?

Allison Lee

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.

• Sell Online

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Candle Making Business Plan Template & Guidebook

Starting a candle making business is a great way to turn your creative passion into a rewarding business venture. Having a comprehensive business plan is key to successfully launching and growing your business. This article will guide you through the process of creating a business plan with the help of the #1 Candle Making Business Plan Template & Guidebook.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Candle Making Business [11 Steps]
• 10+ Best & Profitable Candle Making Business Ideas [2023]

How to Write a Candle Making Business Plan in 7 Steps:

1. describe the purpose of your candle making business..

The first step to writing your business plan is to describe the purpose of your candle making 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 making business:

Our mission at (Name of Candle Making Business) is to create luxurious and beautiful handcrafted candles that bring light, warmth, and joy to our customers. We strive to infuse our creations with the highest quality materials, in order to provide a luxury candle experience that surpasses expectations.

2. Products & Services Offered by Your Candle Making Business.

The next step is to outline your products and services for your candle making 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 making 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 making business includes the following elements:

Target market

• 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?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your candle making 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?

Competitive analysis

• 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?

Marketing channels

• 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 making business?

• Candle Making Supplies: Wax, wicks, dyes, fragrances, molds, and other ingredients
• Equipment: Melting pots, thermometers, pouring jugs and stirring tool
• Permits: Depending on the local regulations in your area you may need to apply for a business license or register with the local municipality.

5. Management & Organization of Your Candle Making Business.

The second part of your candle making 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 making 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 Making 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

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 making business varies based on many different variables, but below are a few different types of startup costs for a candle making 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 making 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 making 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 making 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 Making Business Plans:

Why do you need a business plan for a candle making business.

A business plan is an essential document for anyone launching a new business or looking to expand an existing one. It serves as a roadmap to ensure that all aspects of the business are clearly laid out before beginning operations. A business plan for a candle making business should include details about the target market, product lines, competitive advantages, potential risks and growth potential. The plan should also contain financial projections and a pricing strategy to help guide the development of the business.

Who should you ask for help with your candle making business plan?

You should ask for help from a professional business consultant or a Small Business Administration (SBA) representative. They will be able to provide you with the resources and guidance necessary to create an effective business plan. Additionally, you could look into online business planning tools, including Business Plan Pro and LivePlan, which can help guide you through the process of creating your plan.

Can you write a candle making business plan yourself?

Writing a business plan for a candle making business can be complex, especially when factoring in the details. It is possible to write a business plan yourself, but there are many helpful resources available that can provide guidance. An effective business plan should include industry analysis, market research, product description and pricing, management and operations plans, financial plans, and marketing plans. Consulting with professional business advisors or online services can help provide the necessary structure and skills to write an effective business plan.

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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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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.

How much do you need?

with Fundera by NerdWallet

We’ll start with a brief questionnaire to better understand the unique needs of your business.

Once we uncover your personalized matches, our team will consult you on the process moving forward.

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

Coloring agents

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.

Start Your Dream Business

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.

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