Free Candle Store Business Plan
For Raising Capital from Investors, Banks, or Grant Companies!
Please note that the financials
in this complete free business plan are completely fictitious and may not
match the text of the business plan below. This free business plan demonstration
purposes only. If you are interested in purchasing the completed editable MS Word
and Excel documents for this business plan, please click the button below! Also,
the text of the business plan is formatted with a fully automated
table of contents.
It should be noted that there is no special software required to use these
templates. All business plans come in Microsoft Word and Microsoft Excel format.
Each business plan features:
- Excecutive Summary
- Company and Financing Summary
- Products and Services Overview
- Strategic Analysis with current research!
- Marketing Plan
- Personnel Plan
- 3 Year Advanced Financial Plan
- Expanded Financial Plan with Monthly Financials
- FREE 30 Page Sample Private Placement Memorandum
- FREE PowerPoint Presentation for Banks, Investors,
or Grant Companies!
- All plans are updated for 2013!
1.0 Executive Summary
The purpose of this business plan is to raise $100,000 for the development of candle store while showcasing the expected financials and operations over the next three years. Candle Store, Inc. (“the Company”) is a New York based corporation that will provide sales of candles, incense, and related items to customers in its targeted market. The Company was founded by John Doe.
1.1 Products and Services
As stated above, the Company, through its retail store, intends to hold an expansive inventory of candles (of many sizes and scents), candle sconces, incense, and related home comfort items. Mr. Doe anticipates that the business will generate gross margins of 60% on each item sold throughout the store. The Company will also maintain an online sales platform so that the Company can generate additional sales from outside of its retail location. Mr. Doe will have this online platform developed shortly after retail operations commence. The third section of the business plan will further describe the services offered by the Candle Store.
1.2 The Financing
Mr. Doe is seeking to raise $100,000 from as a bank loan. The interest rate and loan agreement are to be further discussed during negotiation. This business plan assumes that the business will receive a 10 year loan with a 9% fixed interest rate.
1.3 Mission Statement
The Candle Store’s mission is to become the recognized leader in its targeted market for having an expansive inventory of candles, incense, and other home comfort items.
1.4 Mangement Team
The Company was founded by John Doe. Mr. Doe has more than 10 years of experience in the retail management industry. Through his expertise, he will be able to bring the operations of the business to profitability within its first year of operations.
1.5 Sales Forecasts
Mr. Doe expects a strong rate of growth at the start of operations. Below are the expected financials over the next three years.
1.6 Expansion Plan
The Founder expects that the business will aggressively expand during the first three years of operation. Mr. Doe intends to implement marketing campaigns that will effectively target individuals and local artisans within the target market. The business will also develop an expansive online platform so that the Company can maximize its inventory turnover.
2.0 Company and Financing Summary
2.1 Registered Name and Corporate Structure
Candle Store, Inc. The Company is registered as a corporation in the State of New York.
2.2 Required Funds
At this time, the Candle Store requires $100,000 of debt funds. Below is a breakdown of how these funds will be used:
2.3 Investor Equity
Mr. Doe is not seeking an investment from a third party at this time.
2.4 Management Equity
John Doe owns 100% of the Candle Store, Inc.
2.5 Exit Strategy
If the business is very successful, Mr. Doe may seek to sell the business to a third party for a significant earnings multiple. Most likely, the Company will hire a qualified business broker to sell the business on behalf of the Candle Store. Based on historical numbers, the business could fetch a sales premium of up to 4 times earnings.
3.0 Products and Services
Below is a description of the candle products and related services offered by the Candle Store.
3.1 Sales of Candles and Related Merchandise
The primary revenue source for the business will be the direct sale candles, candle sconces, incense, candle holders, and other related items. Currently, Mr. Doe is sourcing these inventories from a number of vendors across the United States that will provide the Candle Store with an expansive inventory of candles of different sizes, scents, and colors in addition to the business’ ancillary merchandise. In order to generate a community atmosphere for the business, the Company may also source a potion of its inventory from local artisans that specialize in producing candles and metal/wooden candle sconces and incense holdings.
3.2 Online Sales and Gift Baskets
In order to further drive sales, the business will also develop an online ordering platform that will allow customers from anywhere in the country to place orders for the Company’s extensive line of candles and related products. This method of distribution will be further covered in the fifth section of the business plan. Finally, the Company will assemble gift baskets of candles and related merchandise. This is an important tertiary revenue center for the business as the Company will generate a substantial number of gift basket orders during the holiday seasons, Mother’s day, as well as for corporate gifts, anniversaries, and birthdays.
4.0 Strategic and Market Analysis
4.1 Economic Outlook
This section of the analysis will detail the economic climate, the candle retailing industry, the customer profile, and the competition that the business will face as it progresses through its business operations. Currently, the economic market condition in the United States is moderate. The meltdown of the sub prime mortgage market coupled with increasing gas prices has led many people to believe that the US is on the cusp of a double dip economic recession. This slowdown in the economy has also greatly impacted real estate sales, which has halted to historical lows.
4.2 Industry Analysis
Within the United States, there are approximately 5,000 retailers (with one or more locations) that specialize in the sale of candles and related merchandise. Each year, these retailers aggregate generate $3 billion of revenues while providing jobs for more than 30,000 people. Annual payrolls have exceeded $700 million in each of the last five years. One of most common trends within the industry is to concurrently develop online sales platforms in addition to maintaining retail locations. Mr. Doe fully intends to capitalize on this trend once the Candle Store retail location opens and begins to generate revenue. The revenues generated from the website (and other e-commerce portals) will ensure that the business maximizes its inventory turnover on a monthly basis.
4.3 Customer Profile
The Candle Store’s average client will be a middle to upper middle class man or woman living in the Company’s target market. Common traits among clients will include: • Annual household income exceeding $50,000 • Lives or works no more than 15 miles from the Company’s location. • Will spend $25 to $100 per visit to the Candle Store. In this section of the analysis, you should describe the type of customer you are seeking to acquire. These traits include income size, type of business/occupation; how far away from your business is to your customer, and what the customer is looking for. In this section, you can also put demographic information about your target market including population size, income demographics, level of education, etc.
4.4 Competitive Analysis
This is one of the sections of the business plan that you must write completely on your own. The key to writing a strong competitive analysis is that you do your research on the local competition. Find out who your competitors are by searching online directories and searching in your local Yellow Pages. If there are a number of competitors in the same industry (meaning that it is not feasible to describe each one) then showcase the number of businesses that compete with you, and why your business will provide customers with service/products that are of better quality or less expensive than your competition.
5.0 Marketing Plan
The Candle Store intends to maintain an extensive marketing campaign that will ensure maximum visibility for the business in its targeted market. Below is an overview of the marketing strategies and objectives of the Candle Store.
5.1 Marketing Objectives
• Establish relationships with local artisans and businesses within the targeted market.
• Implement a local campaign with the Company’s targeted market via the use of flyers, local newspaper advertisements, and word of mouth advertising.
• Develop an online presence by developing a website and placing the Company’s name and contact information with online directories.
5.2 Marketing Strategies
Mr. Doe intends on using a number of marketing strategies to ensure maximum visibility for the Candle Store. Foremost, he intends to source a highly visible retail location from which the Company will conduct business. This location will feature highly visible signage that will inform the public of the Company’s offerings and its grand opening. The business will also maintain a sizeable amount of print/media advertisement in local newspapers, journals, and flyers that are distributed throughout the community. The Candle Store will also develop ongoing relationships with event planners and corporate gift companies that will outsource some of their gift basket needs to the Company. These relationships will be an invaluable source of referrals for the business. Finally, the Candle Store intends to develop its own online website that will showcase the retail location, its hours of operation, contact information, and location information. Once retail operations are in full swing, e-commerce functionality will be added to this website so that people from all over the country can order gift baskets for local and long distance delivery.
In this section, describe the pricing of your services and products. You should provide as much information as possible about your pricing as possible in this section. However, if you have hundreds of items, condense your product list categorically. This section of the business plan should not span more than 1 page.
6.0 Organizational Plan and Personnel Summary
6.1 Corporate Organization
6.2 Organizational Budget
6.3 Management Biographies
In this section of the business plan, you should write a two to four paragraph biography
about your work experience, your education, and your skill set. For each owner or
key employee, you should provide a brief biography in this section.
7.0 Financial Plan
7.1 Underlying Assumptions
• The Candle Store will have an annual revenue growth rate of 9% per year.
• The Owner will acquire $100,000 of debt funds to develop the business.
• The loan will have a 10 year term with a 9% interest rate.
7.2 Sensitivity Analysis
In the event of an economic downturn, the business may have a decline in its revenues. Candles and related products are purchased with discretionary income. As such, the business may see a decline in top line income during times of economic recession. However, the high margins generated by the business will ensure that the Company can remain profitable and cash flow positive despite moderate pullbacks in revenue.
7.3 Source of Funds
7.4 General Assumptions
7.5 Profit and Loss Statements
7.6 Cash Flow Analysis
7.7 Balance Sheet
7.8 General Assumptions
7.9 Business Ratios
Expanded Profit and Loss Statements
Expanded Cash Flow Analysis