Do you need help starting a candle company? If YES, here is a sample candle-making business plan template.
Candle-making is big business. This is because people buy candle products for a variety of reasons. If you have considered becoming a participant in this industry, this candle-making business plan sample will be of immense benefit.
By using this sample, you get the best guidance possible on how to write a working plan for your candle business.
It strips away the non-essentials and goes straight to the point.
CANDLE PRODUCTION BUSINESS PLAN GUIDE
Starting up any business would require an idea, if you have carefully decided on venturing into the candle-making business, you should understand to an extent what starting up a candle business entails.
Here is a sample business plan for starting a candle manufacturing business.
Research on the Business
Starting up a candle-making business requires a basic understanding of candles and candle-making. Firstly, you should decide what type of candles you will be making and the wax to be used.
When deciding the type of candle business to start, it is advisable to start with the basics. Taper candles, as well as container candles, are the easiest forms of candles, but you can also decide to work with other mold and pillar candles.
Wax is gotten from different sources and comes in different forms. The wax gotten from bees has a natural honey aroma and might not require artificial fragrance.
The composition of beeswax varies depending on the climatic condition, the geographic location, and the sort of flowers the bees associate with. Beeswax has been said to be the most expensive of wax types.
Paraffin wax is another product of refined crude oil. Paraffin wax is the most popularly used candle wax. When burnt, it produces flames which may cause reactions that include vomiting and nausea. Paraffin wax differs in price according to the extent of refining.
Animal fats, vegetable oil, synthetic hydrocarbons, and mineral oil are also sources of wax. Stearin, soy wax, and gels fall under this category.
Draw a Candle Making Business Plan
A business plan entails the opportunities, weaknesses, strengths, and goals of any business. Business plans should be kept short and easy to understand. You must understand the nature of your intending candle-making business to produce a proper plan.
Candles are in high demand in residential places as they’re used as decorations in homes, churches, and walkways. It should not be difficult picking out a suitable workplace.
Your plan should answer questions such as;
- Who are the consumers of your products?
- Source of your finance?
- What are the drawbacks of starting up your business? etc.
These and more are questions that your plan must answer.
Financing Your Candle Making Business
Do you have enough funds required to start up your candle-making business? If not, you must seek financial support.
If you want to run a large-scale candle-making business and you don’t have the financial backup, securing a loan from a commercial bank, angel investors, friends or family members should be something you should consider.
If securing a bank loan doesn’t work out, you should consider the Small Business Administration (SBA). This organization grants loans to business operators who have been unable to secure a commercial bank loan.
Decide a Business Structure for Your Business
A very important part of starting up a business is deciding on a suitable business structure. Listed below are the four basic business structures you can decide on for your candle-making business.
- Sole Proprietorship and Partnership
Now, if you’ve decided to maintain full ownership and control of the business, Sole proprietorship should be a suitable option as you are personally responsible for the ups and downs of the company.
- Corporations and Limited Liability Company (LLC)
You may want to separate your personal drawbacks from the business inconveniences, it is advisable to work as a corporation as corporations separate business-related liabilities from personal liabilities.
Limited Liability Company (LLC) unlike the sole proprietorship doesn’t hold you responsible for the company’s debt and liabilities.
In structuring up a candle-making business as a corporation or a Limited Liability Company, some legal documents would be required.
Legalize your Business
Employ a lawyer who would assist and advise you on how to acquire the needed certificates, licenses, and permits in the case of a corporation and register your business name.
An article of incorporation is very important, it is a document that contains your candle business name, goals and purpose, structure, stock details, and other business information.
Obtain an Employer Identification Number (EIN) from the IRS and purchase an insurance policy as it is very important before launching.
Advertising Your Candle Making Business
This is very important if you want to break through in the candle-making business. you have to let people know that your business exists. Make your brand unique, pick a suitable logo to attract customers.
Create awareness of your product through online marketing, market your products in local stores and sell at local fairs. You can also place discounts on products when launching to attract customers.
CANDLE PRODUCTION BUSINESS PLAN EXAMPLE
Your candle business plan will be a vital requirement for getting access to loans, as well as registrations.
Another reason you need a good candle production business plan is to be able to implement growth-friendly strategies for your business.
Without further waste of time, let’s get into the details;
- Executive Summary
Candle Lights LLC is a candle-making business located in Albuquerque and producing top-quality products for the growing market. Our business is new and seeks to expand to cover the state of New Mexico and beyond.
As a business with a deep understanding of the market, we seek to satisfy our client’s needs for quality and affordability.
This will be achieved through the production of products that meet international standards. In the coming years, we seek to expand our business to cover new markets both nationally and internationally.
This expansion will be implemented through the purchase of more equipment, machinery, and an experienced workforce.
- Products and Services
People use candles for a host of reasons.
We are equal to the task as we produce assorted varieties of fragranced candles. These include widely available and popular fragrances as well as new ones which are constantly formulated by our R&D department.
A few include floating candles, birthday candles, utility candles, liturgical candles, tapers, votives, and outdoor candles.
In addition to these, we will also provide services such as training, formulation, and sale of candle fragrances as well as consultancy services.
- Vision Statement
At Candle Lights LLC, we seek to be among the foremost candle-making businesses. Our vision is to eventually become a major national player in candle manufacture. This will eventually pave the way for the international export of our products. We have our sights set on breaking into the major top 10 candle-making businesses in America within half a decade.
- Mission Statement
Our mission as a new candle-making business is to build a brand synonymous with quality. This will be achieved by ensuring our products pass a stringent quality control test. This is aimed at endearing us to our target market. While focusing on quality, we will ensure our products are well within the reach of everyone.
- SWOT Analysis
We recognize that to achieve our objective, identifying our strengths and weaknesses is necessary.
Given this, we have conducted a SWOT analysis to examine our strengths, weaknesses, opportunities, and threats faced by our business. The results have been revealing and disclose the following;
There are lots of candle products in the market. These come in different fragrances, sizes, and colors. We are not only going to produce similar products but will go a step further in experimenting with new and unique products.
This will focus on new fragrances as well as health-impactful products.
To achieve these objectives, we have a team of dedicated workforce who help in running the different departments. Some of these include the quality control department, the research, and development department as well as the marketing department.
These are vital to the growth of our business and present us with an advantage.
Currently, there are major and well-known candle brands with immense control over different aspects of the business. These include distribution channels as well as marketing.
Also, these are international brands that are easily recognizable. We understand that achieving our objective is an uphill task yet very possible. Thankfully are workforce is sufficiently experienced to handle these challenges.
- Candle Business Opportunities
Our innovative drive is where opportunities about for our business. To stay relevant, we have identified that we will need to develop newer and better products to compete with the major players.
Our research and development department comprises some of the best minds in the industry. These experts have brought their several years of experience to bear on the job.
Threats abound in the form of competitors and competition for market share. These are situations we have identified and prepared for.
However, there are bigger threats such as economic meltdown which erodes the circulation of disposable income. The good thing is that the latter does not happen all the time.
- Market Trends
Scents govern the candle market. Sales are mostly driven by a variety of scents or fragrances. There have been a lot of investments in the development of new scents.
Also, methods of distribution have improved over the years. The internet has played a major part in this as orders are easily placed online from major distributors.
- Target Market
Candles are used by a vast majority of individuals.
These products are used on occasions, for lighting, to obtain a certain feeling, etc. Our target market is varied and includes households, churches, singles, and married, as well as other religious organizations.
- Sales Projection
There are a lot of factors that influence sales. Using current market realities, we have surveyed to obtain our projected sales within a 3-year period. The results have been positive and reveal the following;
- First Financial Year $450,000.00
- Second Financial Year $850,000.00
- Third Financial Year $1,400,000.00
- Competitive Advantage
We have put in a tremendous amount of effort to ensure that we establish a clear advantage over our competitors.
This comes by way of the experience of our workforce as well as our welfare package and friendly work environment.
These contribute to increase productivity and help us achieve our goals faster.
- Sales and Marketing Strategy
We have put in place a world-class marketing department consisting of highly qualified professionals. These have achieved tremendously and contributed to the growth of many businesses.
This department will embark on a series of marketing campaigns that will include the use of social media platforms, roadshows, an incentivized referral program, and paid adverts in dailies and electronic media.
This candle-making business plan sample enables you to put together a compelling and effective plan. You do not need to be confused or spend a fortune-seeking the help of experts.
The general procedure can be followed while providing the necessary information about your intending startup.