writing a business plan

Here is an easy to follow example business plan guide. 

Before starting your business, writing a business plan is essential. 

Business Plan for [Your Candle Making Business]

Executive Summary

[Your Candle Making Business] aims to produce high-quality, handmade candles using eco-friendly materials. Our target market includes home decor enthusiasts, gift buyers, and those seeking wellness and aromatherapy products. We will leverage social media and influencer marketing to build brand awareness and drive sales.

Business Description

• Name: [Your Candle Making Business]
• Location: [City, County]
• Business Structure: Sole Proprietorship/LTD
• Products: Handmade candles, wax melts, candle-making kits
• Mission Statement: To create sustainable, beautifully crafted candles that bring light and warmth to our customers' homes.

Market Analysis

• Industry Overview: The candle industry is growing with increasing demand for eco-friendly and artisanal products.
• Target Market: Home decor enthusiasts, gift buyers, wellness and aromatherapy seekers.
• Competitive Analysis: Competitors include [Competitor 1], [Competitor 2], and [Competitor 3]. We differentiate by offering eco-friendly, customizable candles.

Routes to Market

1. Online Store: Sell through our website and third-party platforms like Etsy and Amazon.
2. Retail Partnerships: Partner with local boutiques, home decor stores, and wellness centers.
3. Pop-Up Shops and Markets: Attend local markets, fairs, and pop-up events.
4. Corporate Sales: Offer bulk orders for corporate gifts and events.

Marketing Strategy

• Branding: Develop a strong brand identity focusing on sustainability and craftsmanship.
• Social Media: Utilise platforms like Instagram, Facebook, TikTok, and Pinterest to showcase products, engage with customers, and build a community. Post regularly, share behind-the-scenes content, and create engaging stories and reels.
• Influencer Marketing: Partner with influencers in the home decor, wellness, and lifestyle niches to promote our candles through authentic content and reviews.
• Email Marketing: Build an email list to send newsletters, promotions, and updates.
• SEO and Content Marketing: Create blog content around candle making, home decor, and wellness to drive organic traffic.

Example Price Points

• Small Candles (4 oz): £17.00
• Medium Candles (8 oz): £25.00
• Large Candles (16 oz): £35.00
• Wax Melts: £6.00
• Candle-Making Kits: £40.00

Pain Points and Solutions

• Quality and Scent: Customers seek high-quality candles with long-lasting scents. We use premium ingredients and essential oils to ensure superior quality.
• Sustainability: Eco-conscious consumers prefer sustainable products. Our candles are made from soy wax, have biodegradable packaging, and are cruelty-free.
• Customisation: Many customers want personalised candles. We offer customisation options for scents, labels, and packaging.

Unique Selling Proposition (USP)

Our USP is the combination of eco-friendliness, customisation, and premium quality. We stand out by offering:

• Eco-Friendly Materials: We use sustainable soy wax, natural fragrances, and biodegradable packaging.
• Customisation Options: Customers can personalise their candles with custom scents, labels, and packaging, making them perfect for gifts and special occasions.
• Handcrafted Quality: Each candle is handmade with care, ensuring superior quality and attention to detail.

Why Should They Buy from Us?

• High-Quality Products: Our candles are made with the best ingredients for a long-lasting and pleasant experience.
• Eco-Conscious Choices: We prioritise sustainability, appealing to eco-conscious consumers.
• Personalisation: Customisable options make our candles unique and perfect for gifts.
• Community and Engagement: We build a community around our brand, offering excellent customer service and engaging content.

Operations Plan

• Production: Source eco-friendly materials and produce candles in small batches to ensure quality.
• Location: Operate from a home studio or small workshop.
• Suppliers: Identify reliable suppliers for wax, wicks, fragrances, and packaging.

Financial Plan

• Startup Costs:

  • Equipment: £2,000
  • Initial Inventory: £3,000
  • Website Development: £1,000
  • Marketing and Branding: £1,500
  • Legal and Miscellaneous: £500
  • Total Startup Costs: £8,000

• Revenue Projections:

  • Year 1: £50,000
  • Year 2: £75,000
  • Year 3: £100,000

• Profit and Loss Statement:

  • Year 1:
    • Revenue: £50,000
    • Cost of Goods Sold (COGS): £20,000
    • Gross Profit: £30,000
    • Operating Expenses: £20,000
    • Net Profit: £10,000
  • Year 2:
    • Revenue: £75,000
    • COGS: £30,000
    • Gross Profit: £45,000
    • Operating Expenses: £25,000
    • Net Profit: £20,000
  • Year 3:
    • Revenue: £100,000
    • COGS: £40,000
    • Gross Profit: £60,000
    • Operating Expenses: £30,000
    • Net Profit: £30,000

• Margins:

  • Gross Margin: 60%
  • Net Margin: 20-30% (depending on the year)

Exit Strategy

1. Sale of Business: Prepare the business for sale by streamlining operations and demonstrating consistent profitability.
2. Succession Planning: Develop a plan to pass the business on to a family member or trusted employee.
3. Merger or Acquisition: Seek opportunities to merge with or be acquired by a larger company in the home decor or wellness industry.