Candle Making Business Plan
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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.
Download the Candle Making business plan template (including a customizable financial model) to your computer here <–
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:
- 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
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.
Download the Candle Making business plan template (including a customizable financial model) to your computer here <–
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.
The precise demographics for Countryroad Candle Company are:
| Total | Percent | |
|---|---|---|
| Total population | 1,680,988 | 100% |
| Male | 838,675 | 49.9% |
| Female | 842,313 | 50.1% |
| 20 to 24 years | 114,872 | 6.8% |
| 25 to 34 years | 273,588 | 16.3% |
| 35 to 44 years | 235,946 | 14.0% |
| 45 to 54 years | 210,256 | 12.5% |
| 55 to 59 years | 105,057 | 6.2% |
| 60 to 64 years | 87,484 | 5.2% |
| 65 to 74 years | 116,878 | 7.0% |
| 75 to 84 years | 52,524 | 3.1% |
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.
Download the Candle Making business plan template (including a customizable financial model) to your computer here <–
Competitive Advantage
Countryroad Candle Company will be able to offer the following advantages over their competition:
- 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.
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.
Pricing
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.
Download the Candle Making business plan template (including a customizable financial model) to your computer here <–
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
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.
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:
- 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
Download the Candle Making business plan template (including a customizable financial model) to your computer here <–
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
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Total Revenues | $360,000 | $793,728 | $875,006 | $964,606 | $1,063,382 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $64,800 | $142,871 | $157,501 | $173,629 | $191,409 | |
| Lease | $50,000 | $51,250 | $52,531 | $53,845 | $55,191 | |
| Marketing | $10,000 | $8,000 | $8,000 | $8,000 | $8,000 | |
| Salaries | $157,015 | $214,030 | $235,968 | $247,766 | $260,155 | |
| Initial expenditure | $10,000 | $0 | $0 | $0 | $0 | |
| Total Expenses & Costs | $291,815 | $416,151 | $454,000 | $483,240 | $514,754 | |
| EBITDA | $68,185 | $377,577 | $421,005 | $481,366 | $548,628 | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| EBIT | $41,025 | $350,417 | $393,845 | $454,206 | $521,468 | |
| Interest | $23,462 | $20,529 | $17,596 | $14,664 | $11,731 | |
| PRETAX INCOME | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Use of Net Operating Loss | $0 | $0 | $0 | $0 | $0 | |
| Taxable Income | $17,563 | $329,888 | $376,249 | $439,543 | $509,737 | |
| Income Tax Expense | $6,147 | $115,461 | $131,687 | $153,840 | $178,408 | |
| NET INCOME | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 |
Balance Sheet
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $30,000 | $33,072 | $36,459 | $40,192 | $44,308 | |
| Total Current Assets | $184,257 | $381,832 | $609,654 | $878,742 | $1,193,594 | |
| Fixed assets | $180,950 | $180,950 | $180,950 | $180,950 | $180,950 | |
| Depreciation | $27,160 | $54,320 | $81,480 | $108,640 | $135,800 | |
| Net fixed assets | $153,790 | $126,630 | $99,470 | $72,310 | $45,150 | |
| TOTAL ASSETS | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $315,831 | $270,713 | $225,594 | $180,475 | $135,356 | |
| Accounts payable | $10,800 | $11,906 | $13,125 | $14,469 | $15,951 | |
| Total Liability | $326,631 | $282,618 | $238,719 | $194,944 | $151,307 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| Total Equity | $11,416 | $225,843 | $470,405 | $756,108 | $1,087,437 | |
| TOTAL LIABILITIES & EQUITY | $338,047 | $508,462 | $709,124 | $951,052 | $1,238,744 |
Cash Flow Statement
| FY 1 | FY 2 | FY 3 | FY 4 | FY 5 | ||
|---|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | ||||||
| Net Income (Loss) | $11,416 | $214,427 | $244,562 | $285,703 | $331,329 | |
| Change in working capital | ($19,200) | ($1,966) | ($2,167) | ($2,389) | ($2,634) | |
| Depreciation | $27,160 | $27,160 | $27,160 | $27,160 | $27,160 | |
| Net Cash Flow from Operations | $19,376 | $239,621 | $269,554 | $310,473 | $355,855 | |
| CASH FLOW FROM INVESTMENTS | ||||||
| Investment | ($180,950) | $0 | $0 | $0 | $0 | |
| Net Cash Flow from Investments | ($180,950) | $0 | $0 | $0 | $0 | |
| CASH FLOW FROM FINANCING | ||||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 | |
| Cash from debt | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow from Financing | $315,831 | ($45,119) | ($45,119) | ($45,119) | ($45,119) | |
| Net Cash Flow | $154,257 | $194,502 | $224,436 | $265,355 | $310,736 | |
| Cash at Beginning of Period | $0 | $154,257 | $348,760 | $573,195 | $838,550 | |
| Cash at End of Period | $154,257 | $348,760 | $573,195 | $838,550 | $1,149,286 |
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: