How To Start A Candle Business In 2023

Kelly Main

Reviewed By

Updated: Apr 5, 2022, 3:00pm

How To Start A Candle Business In 2023

Table of Contents

1. put a plan together, 2. register your candle business, 3. prepare to make your product, 4. build a website, 5. choose additional channels to sell your candles, 6. calculate your sales price, 7. market your candle business, frequently asked questions.

People love to use candles to relax, set a mood or even cover smells that may arise. If you’re a pro at creating scent profiles or a beginner looking to get started, a candle business could be the perfect side hustle. The materials to make candles can be affordable when buying wholesale, and the production process is fairly simple. Follow along to learn how to start your own candle business in seven steps.

To get started, you’ll need to put together a business plan. You should start by picking a business name or a trade name that is easy to remember and recognizable to customers. The business plan should also include your target audience, strategies for reaching your candle-buying niche and more general ideas for marketing.

The product type is the next part of the business plan. You’ll need to decide on the size of your candles, what type of wax and how many different scents you’ll want to produce. This will determine your workflow and prices.

To start your business , you’ll need to register your business and get an EIN (Employer Identification Number). With an EIN, you’ll be able to open a business bank account and access materials at wholesale prices. This will be incredibly useful for keeping startup costs down. Although it costs about $50 to $100 to start an LLC (depending on the state), an LLC is the better option because you’ll be able to hire employees if and when you start scaling up.

It’s also important to familiarize yourself with the legal requirements for small businesses in your city or state. If you’re setting up the candle business as a side hustle initially and don’t have time for the paperwork for an LLC, you can use an LLC service to set up your business and get going with the products and marketing.

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Click on the state below to get started.

People tend to love candles with eye-catching designs, in addition to nice fragrances. Even if you’re not a graphic designer, you can work with Adobe Photoshop or Canva to create simple, elegant designs for your candles. If you’re interested in a more complex design or prefer to outsource to a professional, you can use Creative Market, Fiverr or Upwork to commission a design from a professional creator.

Source Product Materials

Finding product materials is the next step. You can find receptacles for your candles through a bulk item supplier such as Alibaba. Additionally, you could look into restaurant wholesalers near you if you wanted to use something such as a mason jar or a decorative glass. Finally, using recycled materials such as wine bottles or jam jars could be visually appealing.

There are many types of wax that can be used for candles: paraffin, soy, beeswax, granulated wax and more. You’ll want to do a few trial samples with your chosen wax to make sure it’s giving the scent you want. Your candle wax supplier will also likely be able to advise you on wicks, dyes and scents that work best with your candle wax.

Source Packaging

Shipping is normally the largest cost for a small business. When you’re putting together a plan for shipping, you’ll want to consider speed, cost and what kind of materials will surround the candle to keep it safe in transit. Using recycled materials might attract a target audience of conscious consumers, but you’ll have to price the candles accordingly.

Design Your Labels

If you’ve chosen to design your logo on your own with Adobe InDesign, Photoshop or Canva, you can do the same for labels. It might be easier to create a standard label for candles with customizable sections for changing the scent, the size or the name of the candle. If you want custom designs for each scent, you might want to employ a designer from the services listed above so you can focus on the product.

The label should include your business name, the scent of the candle, the size in fluid ounces and more information that customers might want to know. You might want to include where the candle is made, what the wax is and your company’s website.

C&E Craft Co. is a good example of a candle company with a simple design that it can swap out with new ideas, such as its “ Smells Like David Rose ” candle. These candles tap into already existent fandoms with the character names. Their colors and text change. On the other hand, Bath & Body Works candles all have very different designs .

Even if you plan to sell via a third-party platform such as Etsy, you should build your own website. Not only will having your own business website increase your brand’s visibility online, but it also helps make your business appear more credible and professional, while also opening up the opportunity to direct sales. To make the process easier, choose an easy-to-use website builder with e-commerce capabilities.

Here are the best platforms for building an online store :

Picking a content management system also depends on how much time you want to invest in your website, in addition to the upfront costs.

In addition to your website, you will most likely want to sell your candles across multiple channels, such as Etsy , Amazon , and even Instagram . This increases your exposure online, which will help your candle business land more sales. Additionally, building relationships with local retailers could also be a good way to sell your candles directly with minimal shipping costs.

Generally, you will want to aim for a 25% to 50% profit margin on your candles. Calculating anticipated expenses early will be important in determining prices. If you need to host your products on Etsy or Amazon and have to build more monthly expenses into your business, you might have to price your candles a little higher in the beginning, with changes depending on sales volume in the future.

Additionally, most online payment processors charge a small fee of around 30 cents, plus 3% of the transaction, so you should work that into the candle prices as well. If you’re making all of these custom candles, you should determine how much time you can spend, especially if this candle company is starting as a side business.

Starting with free or low-cost marketing is the best way to get off the ground, especially if your business is on the side for now. You should start by searching out Facebook groups, subreddits or other social media communities of fragrance lovers. You can also offer barter exchanges to influencers for posting about your candles.

You can also join some local entrepreneur groups to network and get advice from more experienced professionals. You might be able to make connections and find new avenues for marketing your candle business.

Are candles easy to make?

Candles are generally considered easy and inexpensive to make at home, which makes them a good business opportunity. Once you have the materials and the basic method down, you can make many easily.

How do you create a seller account on Etsy?

To create a seller account on Etsy, go to Etsy and create a business account. From there, you can set up your shop preferences , including your shop’s name. After you’ve created your Etsy seller account, you can then create product listings from within your account dashboard.

What is the average profit margin on a candle?

The average profit margin on a candle is around 25% to 50%. Keep in mind that this can vary based on a variety of factors such as the average cost of materials, shipping, labor, and your unique niche or target market.

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Julia is a writer in New York and started covering tech and business during the pandemic. She also covers books and the publishing industry.

Kelly is an SMB Editor specializing in starting and marketing new ventures. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. Additionally, she manages a column at Inc. Magazine.

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How To Start a Candle Business in 2023 (Guide and Examples)

Start a candle business

If you’re an entrepreneur who is eager to burn the midnight oil with a new business venture, we’ve got a potential business idea for you: selling homemade candles.

When it comes to creating a product that’s practical and hot (literally and figuratively), learning how to make candles is a skillset that’s useful even for the hesitant DIYer.

So, if you’re curious about how to make homemade candles and start a candle business, let’s look at how you can make money online with this trending product.

Start selling candles online 🕯️

Why make and sell homemade candles?

Types of homemade candles, how to start a candle business, candle business tips, starting your candle making business, candle business faq.

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Homemade candles have become an essential home decor item—an industry expected to reach $5 billion by 2026, according to MarketWatch . In past years, the commercial use of candles has seen a sharp increase, with spa and massage using scented candles for soothing effects, and restaurants creating aromatic environments for customers. 

Consumers also buy candles as a focus point for their home decor, as well as for aromatherapy like relaxation and stress reduction, according to the National Candle Association . Taking a quick look on Google Trends shows us that global interest for homemade candles is consistent:

Google Trends graph showing steady interest in homemade candles over the past 2 years

And while candles may be used for various purposes across the globe, most of the searches for homemade candles are concentrated around North America, the UK, and Australia. This is great intel for candlemakers looking to find a market for their DIY products:

Google Trends interest by region

Next, Google Trends demonstrates plenty of interest in specific types of candles—from scented to soy and everything in between. Shoppers’ interest in candles is not only strong, but runs the gamut. 

So, when an eager entrepreneur is making decisions about what kind of products to create, this knowledge is a powerful insight to help you build a collection that resonates with potential customers.

In addition to the popularity of this hot product, candles offer business owners a number of other benefits, including:

From the standpoint of a DIY business, learning how to make candles is a skill that can be transformed into a viable income stream. But before we tackle the topic of creating homemade candles of your own, let’s take a look at the popular types that are piquing shoppers’ interest.

One of the big advantages when it comes to making candles for your business is the variety—there’s likely a type of candle out there that will catch the eye of any potential customer.

Not sure where to start? Here are some of the top types of homemade candles you can explore when planning your candle business opportunities.

Soy candles

One of the hottest candle varieties on the market today, soy candles are made from a base of soy wax. This wax is derived from soybeans and, therefore, is made from vegetables (opposed to regular oil- or paraffin-based candles). The soy wax segment is expected to grow at a compound annual growth rate of 8.5% from 2019 to 2025, according to Grand View Research . 

Soy Candle from homesick

Not only are soy candles made from a renewable resource, they also burn cleanly and for longer. That way, customers get more bang for their buck when it comes to getting a longer-lasting candle.

Scented or aromatherapy candles

This is one of the most common varieties of candles. Scented or aromatherapy candles offer a spectrum of scents for customers looking to spruce up their homes with pleasant smells.

Whether they’re meant to mask a normal household stench or simply create a unique scentscape, these candles come in dozens of scents—so there’s a smell that will appeal to almost everyone.

KUSH scented candle by Boy Smells

Aromatherapy candles makers market their products as offering specific benefits that correlate to certain scents. Generally, the recipes for these candles use essential oils that are meant to enhance physical or mental well-being. For example, lavender scents are often associated with relaxation.

Vegan candles

There’s a growing segment of shoppers that are concerned with the materials businesses use to make their products—particularly any animal ingredients. Basic candles often contain animal byproducts like beeswax, which isn’t desirable for some consumers.

Vegan candle example

But here comes vegan candles to the rescue! Vegan candles use modified formulas with ingredients like soy wax, plant-based waxes, fragrance oils, and natural fragrances.

Decorative candles

When entering a homeware store, you’ve likely noticed candles that come in many colors, shapes, and sizes. Some candles are made purely for decorative purposes—they aren’t necessarily scented and aren’t made from special ingredients. They simply add a certain something to a space in your home.

Decorative candle example

Decorative candles often come in complicated shapes, feature accessories, and employ complicated designs.

Create a candle business name

Your target market are the people you want to reach with your marketing efforts. These are the buyers who will be most interested in your products and most likely to convert to customers. In the candle industry, target markets are broken down into three categories:

Decide on which market you’ll go after. Do you want to get into retail stores like Nordstrom or Macy’s? Then mid-market may be the best route. Want to only sell through your own website and other online boutiques? Prestige candles may be your calling. 

Choosing your market will help with everything from sourcing materials to building your brand and packaging. Once you have a segment in mind, you’ll want to decide on the types of candles you’ll create. 

While doing your research, note what kind of candles customers are buying. Are eco-friendly, vegan candles best suited for your market? Or are potential customers OK with paraffin wax candles, despite their impact on the environment. 

The candles you choose to sell will determine the type of brand you create. 

The second step in starting a candle making business is building a brand. A brand helps you build an audience, influences your marketing efforts, and makes it easier to create better products for your customers. 

A good brand is crucial for candle businesses in particular. The industry has grown so significantly over the past decade that it can feel impossible to break in. 

Let’s look at three ways you can stand out in the saturated candle market.

Unique and interesting fragrance blends 

Fragrance is the most important buying factor for consumers today. Research by the National Candle Association shows that three-fourths of candle buyers say it is “extremely important” or “very important” in their selection of a candle. 

One way to stand out from the competition is with interesting fragrances. Developing a new blend immediately carves a place in the market for you. Rather than offer standard floral and woodsy scents, opt for more complex and sophisticated smells buyers can’t find elsewhere: scents that make people think or remember something or feel a sense of mystery and intrigue.

Brand story

A brand story is the fastest way to connect with buyers. It’s a narrative that shapes and communicates your brand to people. It’s the foundation on which your mission, message, and voice is built. 

Brand stories, especially in the candle business, are captivating, human, and honest. It should make people feel something, which then drives them to take action—whether it’s a signup, purchase, donation, etc. 

Take Keap Candles story for example. The founders, Harry Doull and Stephen Tracy, were unhappy with their jobs in tech. They want to do something more meaningful and inspiring with their work and turned to candle making. 

To find your story, ask yourself:

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Visual identity

Your visual identity (which includes your logo, photography, website, social media, and packaging) is the most direct way to influence how people feel about your candle business. 

When it comes to your candle brand, you want to pay close attention to the aesthetic of your products. Customers will use your candles for their scents and a home decor complement, so you want to design products in-line with your audience.

For example, Boy Smells brand is all about elevating your intimate world. They are bright, sensual, and accessible to all genders.

Boy Smells Visual Brand

The brand’s visual identity embraces both masculine and femininity in a simple, straightforward way, empowering people from all walks of life, wherever they find strength. It adds this identity into all its marketing assets, from website to social media, as well as to over 300 retail locations worldwide. 

Once you interact with Boy Smells, chances are you won’t forget it. That’s the power of strong visual identity. 

Read more: How to DIY a Stunning Visual Brand for All Your Online Platforms (No Photoshop Required)

At this point your candle business is shaping up nicely. You’ve probably come up with a few business names along the way, and now’s the time to decide on one. 

Be sure to keep your candle business name ideas short and simple. That’ll make it memorable and easy for buyers to pronounce. If your name is too difficult to remember, you’ll miss out on free word-of-mouth marketing. 

If you’re still stuck on a business name, use Shopify’s business name generator to stir up fresh ideas. All you have to do is enter a keyword, click Generate Names, then browse thousands of auto-generated name ideas for your company.

A business plan  guides your entire operation when creating a candle business. It helps define your strategy, pinpoint challenges, understand what resources you need, and analyze your business idea  before launch. 

Ask yourself: What is the end goal for my brand? Who are my direct competitors? Do I want to be sold in retail outlets like Target or Nordstrom? Or do I want to start an ecommerce store  and sell directly to my customers? 

Identify your business goals and keep them in mind as you build out your candle making brand.

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As we’ve demonstrated, there are plenty of candle types you can create in your own kitchen. Here, we’ll show you how to make a basic soy candle. You can take the same basic ingredients, tweak them slightly, and create your own customized recipe.

Gather your materials

Candling making supplies

For this homemade soy candle recipe, you’ll need:

While you likely have some of these items sitting around your house, you can easily procure the rest without busting your budget. You can find soy wax in bulk on sites like AliExpress or Bulk Apothecary for around $4 per pound.

Merchants looking to source jars or other glass containers can look on AliExpress for a variety of bulk-buying options, or check their local thrift store or dollar store for inexpensive containers.

See our guide on Aliexpress !

Essential oils are available at your local craft store or on Etsy or Amazon . The remainder of the ingredients can be found at almost any grocery store.

Prep your wax and container

Prep your container

Now, let’s prep your materials to get your candle wax ready. Take your soy wax and put it into your double boiler on your kitchen stove to melt. Fill the bottom pot with water and the top with the soy wax and turn the burner to medium heat. Stir the wax with your spatula, making sure you break up any chunks.

While the wax is melting, take your wick and glue the end to the bottom of your glass container. Allow glue to dry, which will keep your wick in place as you pour your wax.

Customize your candle mixture

Customize your candle mixture

Once your wax melts, take your preferred essential oil and stir into your mixture at a ratio of one ounce per pound of wax. If you’d like to change up the color of your candle wax, stir in chunks of non-toxic crayons.

Once your ingredients are melted and mixed, let it cool to 130–140 degrees Fahrenheit. Check the mixture with your thermometer to ensure it reaches the correct temperature.

Prep your pour

Prep your pour

Now that your wax mixture is cooled to the correct temperature, it’s time to pour it into your jar. Hold the wick upright with one hand and pour the mixture out of the pan with the other. Fill up three quarters of the jar with the hot wax mixture.

To keep the wick upright, tie its end to the pen and set it across the opening of your jar.

Finishing your candle

Finish your candle making process

Allow your wax to firm up before beginning your final pour. You may see a small sinkhole in the wax around the wick—don’t worry, that’s normal. Here’s where we correct this issue.

Take the remaining wax mixture and pour the remaining quarter into the jar. Allow the rest of the wax to set completely. Once the wax is firm, snip off the excess wick with some scissors, and your candle is ready to burn!

Now that your candles are ready to go, where should you sell them? A great place to start is your own ecommerce store. 

Creating an online store sounds like a daunting task compared to listing your candles on online selling sites like Amazon. But these marketplaces cut deep into your profits and don’t let you express your brand freely. Your online store is not only more profitable in the long run, but acts as a digital home for your brand. 

Online candle store example: KEAP Candles

When it comes to building an online store, Shopify is the simplest way to start. You can build an ecommerce website without any coding or huge budget. 

For a monthly fee, you get a beautiful storefront, SSL certifications, high-speed web servers, cart abandonment recovery, and other beginner-friendly marketing and sales tools. You even get access to the Shopify App Store , which offers over 4,000 plugins to improve your store and sell more online. 

Create a marketing plan 

You’ve got the recipe for success—now it’s time to figure out how to sell your soy candles (or other homemade candles).

Like many business-to-consumer retailers, one of the most lucrative mediums to sell candles is online. You can use multiple digital platforms, like social media and your own ecommerce site, to reach potential customers around the world.

While every digital medium won’t be a successful sales platform for every merchant, here are a few places entrepreneurs can try to help them get started.

Although the following list doesn’t cover every channel merchants can explore for their fledgeling business, these are some solid options to help market your own business online.

Although selling online is a viable avenue for merchants, don’t be afraid to try selling IRL.

Homemade candles are compact and travel well—which makes them ideal for selling on the go. Your sweet-smelling home decor items are ideal for displaying in craft shows and pop-up shops and gives merchants the opportunity to get in-person feedback directly from potential customers.

Still not sold on selling in person? Going IRL for sales has a number of other benefits, including:

Although physical sales require different skills than sitting at your desk, a little know-how and the right tools can make it simpler to make sales on the go. Use a mobile point-of-sale system like Shopify POS to help you set up your shop or booth at your next flea market, farmer’s market, craft fair, and/or maker fair, and keep transactions quick and simple.

Whether you’re starting a candle making side hustle or kicking off full-time, keep these candle business tips in mind:

Take amazing product photos 

Great product photography is key to convincing people to buy your candles. Make sure you can clearly see the shape and label of your candles. Up for a challenge? Stage an image of the candle in use in your home so shoppers can envision it in theirs. You can hire a professional photographer to take your photos or take high-quality photos with a smartphone .

Cowboy Kush candle

Create more selling opportunities 

Having recurring customers is more profitable than constantly finding new ones. Test different cross-sell and upsell opportunities to drive more revenue from your existing customers. You could also offer subscription boxes , like Frostbeard Studio . The brand offers a Candle of the Month Club, where customers get a brand new candle every month for a set price. 

Frostbeard studio candle of month club

Expand your product line 

Brands like Tofino Soap Company repurpose their scents for products like soaps, shampoos, balms, perfumes, and other things to make and sell online . It’s an easy transition for many candle makers because the scents are already developed, you just need to create the new product. You can then upsell customers based on scents they buy often, create scent-centric care packages, and reach new audiences.

Tofino Soap product offers

Push holiday sales 

Approximately 35% of candle sales happen during the Christmas holiday season, according to the National Candle Association , with 76% of buyers viewing candles as an appropriate holiday gift. Prepare for this season by creating holiday campaigns with special promos and ads targeted at potential buyers.

Stay on top of consumer trends

Stay up to date with what’s going on in your niche. Use resources like Facebook IQ , Think with Google , and Nielsen to understand customer pain points and track breakout trends. You can use this insight to come up with new product ideas, fragrances, and marketing campaigns to promote your brand. 

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You’ve gotten this far, which means you now have a great grasp on how to get started with your own homemade candle business. With the tools and knowledge above to help you make and sell your homemade candles, you can move forward to create your own income stream using your DIY skills.

Have ideas on how to make candles for novice DIYers? Share your tips and advice in the comments section below.

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Candle Making Business Plan Template

Written by Dave Lavinsky

candle making business plan template

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 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

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.

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:

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:

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:

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:

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:

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:

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:

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 truly be an expert. 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.

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 business plan?

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How to Start a Candle Business: A Step-by-Step Guide

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We all like our homes to smell nice and to feel cozy. What better way to make this happen than by lighting some candles. Not only are they an affordable indulgence, but they also make great gifts and literally brighten any room.

If you’re considering starting a business and are passionate about wicks, soy blends, and mastering the perfect scent, then starting a candle business may be the perfect fit for you. Keep reading to learn how to start a candle business.

How to start a candle business in 7 steps

Starting a candle business is a lot of work, but can also be very rewarding. Before you let your excitement take the lead, pause and consider following some of these steps first. To give your candle business the best shot at success, you’ll need to get all of your financial, legal, and marketing ducks in a row.

Step 1: Perfect your craft

When a candle is good, it can help you destress, add a decorative flair, or set the mood. But when a candle is bad, it can be a disaster. A candle can smell too sweet. Too floral. Too smoky. Or, the scent can be so weak it winds up smelling like nothing at all. Essentially, it’s easy to step too far in one direction and make a candle that no one wants to burn. Before you go through the process of starting a candle business, you’ll want to brush up on the basics of how to make a good candle and develop a few signature scents. You’ll need to master how to ensure a good burn time, how to make a scent that permeates a room, and how to create a scent that people will love.

You’ll also want to define what will make your candle line stand out. Will each candle be inspired by a different exotic location? Will you use really unique glassware to house your candles? Will you have witty names that make your candles perfect for gifting? A good scent and an affordable price point will get you far in the candle game, but you’ll also need to make sure there is a way for your brand to stand out in a very saturated market.

Step 2: Create a business plan

Making candles is a creative process. Not to mention fun. Which is why it may be hard to tear yourself away from your experimenting to write a business plan. But writing a business plan is a creative endeavor too. And a little bit analytical. So put both sides of your brain to work, because the process of creating a business plan will prove invaluable to you throughout the life of your business.

A good business plan will contain several sections that can help keep your business on the right path as well as show your value to any potential investors or lenders. Ideally, you’ll do this step before starting a business, but it’s never too late to whip one up. Having a business plan will make the process of growing your business so much easier and can help you introduce the important details of your candle business to others. If you’re nervous about creating a business plan from scratch, consider using a business plan template or business plan software that can help you through the process.

Choose a business name

If you haven’t already chosen your business name, doing so while you’re in the process of pulling together your business plan is a good idea. Try to come up with a catchy business name that will stay in customers’ minds while also describing what kind of business you run. Of course, you’ll want to double check that your chosen name is actually available before moving forward with it. Confirm your desired name’s availability with your secretary of state’s website to see if your chosen business name is currently in use. Doing a simple Google and trademark search can also be helpful. If your desired name is free and clear, make sure you reserve your domain name and social media handles before someone else grabs them.

Choose a business entity

Another benefit of writing a business plan is that it will encourage you to choose a legal structure for your business. Choosing the right business entity is very important and a decision that should not be taken lightly. A few common forms of business entities are sole proprietorship, general partnership, limited liability company (LLC), and corporation.

If you’re struggling to decide what type of business structure you should choose, consulting a business attorney or tax expert can help. The extra expense may save you a lot of stress down the line, as the type of business structure you choose will affect your taxes, risk level, and other important factors. After you’ve chosen your business entity, you will register your candle business with the necessary federal and state agencies.

Define your products and services

Are you planning on selling candles? How about essential oils or reed diffusers? Will you take custom candle orders? You’ll need to define exactly what types of products or services your business will offer. Ask yourself the following questions in order to better understand what your products and services will be.

What type of scent-based products will you sell?

What will you charge for them?

Where will you purchase your candle supplies?

How much will these supplies cost?

How much will production cost?

Now that you have a business plan, you can use it moving forward to help guide your candle business.

Step 3: Get the proper licenses, permits, and insurance

This may not be the most fun step in the road to starting a candle business, but it is an important one. When you start a business, you’ll have to ensure you’re obtaining the proper licenses, permits, and insurance required by your local and federal government. These requirements will vary based on your location, business type, and chosen business structure. Chances are, you’ll require multiple business licenses at the state, federal, and local level. If you need help getting started, the SBA is a great resource, as is your local chamber of commerce.

Does your business require employees to help it run? Then you’ll need to obtain your employer identification number (EIN), which is required for tax purposes. Even if you don’t plan on hiring soon, there are some pretty valuable benefits of getting an EIN you should think about.

Something else worth looking into is business insurance , especially if you’ve hired employees. In that case, you may need to carry workers compensation, unemployment, or disability insurance. General liability and commercial property insurance may also be necessary. You should check with a business lawyer to make sure you have the right coverage for your business—especially when you consider the fact that as an owner of a candle business, you’ll be working with flammable materials. Do your due diligence and research your local fire codes and speak with your insurance representative about your fire coverage needs.

Step 4: Decide where to sell your goods

Where are you planning to sell your candles? How about online, in a boutique, or at your local farmers market? You can always open your own storefront, but maybe you want to start small at first and sell your candles to local boutique owners. Consider all the options available to you and don’t be afraid to start small while you build brand loyalty and get customer feedback.

If you want to sell online, but aren’t ready to launch your own ecommerce website, you can always sell your candles on a digital marketplace like Amazon or Etsy . There are countless helpful ecommerce platforms you can choose from, so take your time investigating which is the best fit for your business.

Step 5: Find small business funding

It’s a cliché, but sometimes it takes money to make money, and starting a candle business is no exception. In order to pay for supplies, marketing, production, insurance, legal council, and more, you’ll may need some sort of business funding. Start by considering the following funding options.

Business lines of credit : A more flexible form of credit than a standard business loan, a business line of credit provides you with a set amount of money that you can choose to draw from only when you need it.

Business credit cards: Newer business owners may be better off with a business credit card , as they require less credit history than a loan. Generally, you can find a 0% intro APR credit card, which is like having an interest-free loan if you pay off your balance before the introductory offer is over and a variable APR sets in.

Equipment financing: If your business requires expensive equipment, then equipment financing may be your best option. Generally for this type of financing, a lender loans money specifically to purchase equipment. They then use this equipment as collateral for the loan.

Startup funding: A brand-new business owner should consider startup financing options such as SBA microloans or a business grant . Crowdfunding has also become a popular option for easy startup funding.

Once you obtain your funding or begin to rack up expenses or earn income, you should take steps to keep your business and personal finances separate from each other. Then, consider finding an accounting software program to manage your business’s financials.

Step 6: Find and manage candle supplies

At first, you may be able to just pop over to your local craft supply store to get some wax and scents for your candles. But once your business begins to grow, you’ll save a lot of money by buying supplies in bulk from a wholesale supplier. You’ll want to start sourcing affordable supplies straight away so you can test for quality and find the right supplier for you. Some candle making supplies you might need are:

Wax such as paraffin, gel, soy, beeswax, or another type

Containers for candles

Fragrances such as essential oils

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.

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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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

Key Success Factors for the Candle Making Business

Key Success Factors for the Candle Making Business Plan

Despite the challenges of the Candle Making industry, we have identified 4 factors that can help you boost profitability, efficiency, and ultimately success.

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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.

candle making business plan template

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

Funding Sources for Candle Making Business Plan

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.

Looking to Build Credit for Your Candle Making Business?

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.

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:

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.

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:

Departmental Stores, Wholesalers, Churches, Spa Beauty Salons, Home Furnishing Stores, Religious groups, hotels and restaurants, families, couples, party planners, homeowners, etc.

Customer analysis may be divided into two parts: Psycho-social profiles  and D emographic profiles

With regards to demographics, include information about: When moving residential, the ages, genders, locations, and income levels of your customers. When targeting businesses, describe what kind of business, size, and location your target customers are.

The psychological profiles of your target clients reveal their wants and needs. The better you understand and identify these demands, the better your chances of attracting and retaining customers will be.

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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:

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:

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:

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:

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:

Read Later: How to create a financial plan in a business plan .

Free: Balance Sheet Template

Create a financial statement for your business by downloading our free balance sheet templates.

List any additional material you cannot include elsewhere, such as resumes from key employees, licenses, equipment leases, permits, patents, receipts, bank statements, contracts, and personal and business credit histories.

Attach your full financial projections along with any supporting documents that make your plan more compelling in the appendix.

Pro Tip: Find out what to include in a business plan appendix when writing a candle making business plan.  

Summary of the Candle Making Business Plan

A candle business plan is a worthwhile investment. As long as you follow the template above, you will become an expert in no time. By following the template, you will understand the candle making business, your competition, and your customers. The plan will help you understand the steps necessary to launch and grow your candle making business.

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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.

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How to Write a Candle Making Business Plan [Sample Template]

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;

4. Our Mission and Vision Statement

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;

Product Development Manager

Fragrance and Coloring Manager

Human Resources and Admin Manager

Sales and Marketing Team


Customer Service Executives

E-commerce and web content Manager

Security Guards

5. Job Roles and Responsibilities

Chief Executive Officer – CEO (Owner)

6. SWOT Analysis

Our several years of experience in the field together with input from a reputable business consultant has led to our ability to be able to develop an effective SWOT analysis that will help us in running the business better. The SWOT analysis helped greatly in ensuring that we looked at the business critically as it relates to market and the industry at large.

The SWOT analysis is a profiling of our strengths, weaknesses, available opportunities and threats that is likely to either help or affect us negatively during the course of running our business in Tulsa City, Oklahoma and in the United States of America as a whole. Revealed below is the critical SWOT analysis that was conducted for Bright Light® LLC Candles;

Our greatest strength lies in the fact that we offer all shapes and sizes, as well as several flavors of candles to our vast customers. We are also not resting on our oars as we keep developing fragrances that are rare finds which would endear us to our customers, especially those who are bored of regular fragrances.

Another huge strength of ours is in the vast experience of the Chief Executive Officer, who has more than ten years experience in this industry. Also, the fact that our franchises are of high quality, coupled with our descriptive eBooks and consultancy services, also adds largely to our strengths.

Our weakness for now lies in the fact that we would have to operate regionally at first, thereby majorly limiting our business for the first few months of operations to a certain section of the United States of America.

There are various opportunities that abound in the candle making industry and the fact that we are continually working on bringing forth new fragrances with some of our productions offers limitless opportunities for us as a company.

Knowing how every business faces threats every now and then, we are prepared for the threats that will occur during the course of running this business, and while some threats might not be so difficult to handle, like the arrival of a competitor, other threats lie a bad economy, which might affect consumers’ spending power might be difficult to handle.


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;

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.


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.

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 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;

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;

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.

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;

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;

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;

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

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