Candle Making Home Business Plan Template
If you want to start a Candle Making business or expand your current Candle business, you need a business plan.
The following Candle Making business plan template gives you the key elements to include in a winning candle making company business plan.
Candle Business Plan Example
I. Executive Summary
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%
- Spas: 23%
- 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], 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.
[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
[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
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
[Company Name] will primarily offer its products direct to consumers, as well as select retailers and spas. The demographics of the market are:
There are 1.5 million retail and wholesale businesses in the U.S.
The precise demographics of individuals living in the U.S. are as follows:
| United States | |
|---|---|
| Total Population | 312,796,426 |
| Population Male | 49.00% |
| Population Female | 51.00% |
| Median Age | 37.5 |
| Target Population by Age | |
| Age 18 to 24 | 9.99% |
| Age 25 to 34 | 13.08% |
| Age 35 to 44 | 12.94% |
| Age 45 to 54 | 14.64% |
| Age 55 to 64 | 12.43% |
| Median Household Income | $57,639 |
| Households w/disposable income | |
| Income $50,000 to $74,999 | 18.03% |
| Income $75,000 to $99,999 | 12.97% |
| Income $100,000 to $124,999 | 8.65% |
| Income $125,000 to $149,999 | 5.40% |
| Income $150,000 to $199,999 | 5.12% |
| Income $200,000 and Over | 5.34% |
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
Milestones
[Company Name] expects to achieve the following milestones in the following [] months:
| Date | Milestone |
|---|---|
| [Date 1] | Finalize lease agreement |
| [Date 2] | Design and build out [Company Name] |
| [Date 3] | Hire and train initial staff |
| [Date 4] | Kickoff of promotional campaign |
| [Date 5] | Launch [Company Name] |
| [Date 6] | Reach break-even |
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
- Accountant
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
[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
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of ecommerce customers per day | |
|---|---|
| Year 1 | 20 |
| Year 2 | 40 |
| Year 3 | 60 |
| Year 4 | 80 |
| Year 5 | 100 |
| Average number of wholesale accounts | 25 |
| Average order price | $32 |
| Annual increase in order price | 6.00% |
| Annual Lease ( per location) | $25,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRETAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
