Candle Store Business Plan and SWOT Analysis

Candle Store Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Candle Store Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Candle Store business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

  • Bank/Investor Ready!
  • Complete Industry Research
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PDF Format
  • Meets SBA Requirements

In every economic climate, people enjoy going to candle stores and people will continue to go to them directly rather than purchasing these goods online. This is primarily due to the fact that many people want to try out the candles especially as it relates to their scent prior to making a purchase. Many candle stores often act also as gift shops by offering a small variety of trinkets, gift cards, and related items that are normally associated with these types of businesses. The low pricing point associated with the sale of candles typically makes these businesses able to remain profitable even during a time of economic recession. The startup cost associated with a new candle store typically ranges anywhere from $50,000 to $100,000 depending on the location of the business. It should be noted that many of these businesses can be started for a lower amount of capital depending on the location. Candle stores are open in rural areas typically do have lower startup costs. The inventory acquisition costs associated with these businesses is very low.

A candle store SWOT analysis is frequently developed when an entrepreneur is thinking about starting one of these businesses. As it relates to strengths, candle stores are almost able to remain profitable. The startup costs are low, and the barriers to entry are the gross margins generated from sales typically ranges anywhere from 50% to 80% depending on the types of products sold. Candle stores also have the ability to sell a significant amount of their products on an online capacity.

For weaknesses, these businesses provide products that are not considered to be a necessity. However, many people frequently place candles within their homes. As such, these businesses typically are always able to find a market for these products.

As it relates to opportunities, candle stores are able to expand their operations by establishing e-commerce operations in addition to establishing additional retail locations.

There are no known threats as relates to these businesses conducting operations. Only a major and severe economic recession would impact the way that these companies conduct their operations.

Given that this is a retail business, many financial institutions are willing to provide the necessary capital secured by the  fixtures, and equipment. The candle store business plan should feature a three year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. Candle and gift stores generate $5 billion per year. The industry employs about 75,000 people.

Of utmost importance to the business plan, is the development of a demographic analysis that showcases population size, household income, percentage of people at purchase candles on an ongoing basis, and other demographics that are common to this business. Also be developed which includes taking a look not only other area candle stores but also gift shops and new age stores as well. This will ensure that the company is not opening in a saturated market.

A candle store marketing plan also needs to be developed to ensure that the business can be easily found at the onset of operations. Foremost, most candle shop entrepreneurs source highly visible retail locations that can be seen by thousands if not tens of thousands of people on a daily basis. This will ensure the people are familiar with the location when they need candles or small gifts. While this may translate into a higher rental expense, it is very important for any retail store to have an extent on outstanding location that ensures that people can find it very quickly with on street signage.

In addition to maintaining an expensive retail presence, almost all candle stores maintain  an online presence. This is very important given that many retail stores struggle to find an audience these days as many people now shop online. As such, maintaining a standalone e-commerce website coupled with profiles unpopular selling platforms like eBay, Amazon, Etsy, and Walmart.com – ensures that sales be made even if people are not quickly coming into the retail store. Many entrepreneurs will launch their e-commerce operations in conjunction with launching a retail store. In fact, many retailers will often start as an e-commerce business before they establish a traditional brick-and-mortar retail operations.

A presence on social media is warranted for this type of business given that people frequently will provide recommendations for specialty shops. Additionally, platforms like FaceBook now allow entrepreneurs to integrate e-commerce functionality into their operations. As such, this can become a very quick way to ensure that people find business very quickly. Reviews regarding the expansive inventory and strong level of customer service can be integrated into social media platforms such as FaceBook, Twitter, and Instagram in order to ensure that the business can be seen from a number of different sales channels.

Candle stores will always remain profitable even during times of economic recession given that people consider this part of their home lifestyle. These businesses are able to generate gross margins that ensure the underlying rental expenses and debt obligations are serviced on a monthly basis without too many issues. There is nothing major about this industry that is going to change moving forward, and it will remain as a popular small retail business in most economic climates.