Custom Candle Business Plan

1. Case Studies & Research

Case Study: Homesick Candles

Case Study: Ryan Porter Candles

Case Study: Viral "Food Candles" on Etsy

2. How to Legally & Efficiently Start a Candle Business

Legal & Compliance

Business Registration – Set up as an LLC for liability protection. ✅ Insurance – General liability insurance in case of fire-related claims. ✅ FDA Compliance – Candles aren’t regulated as cosmetics, but flammability & safety labeling are required. ✅ Trademarking – Protect your brand name if you plan to scale.

3. Cost Breakdown & Financial Projections

Startup Costs

Expense

Estimated Cost

Wax (Soy, Paraffin, Beeswax)

$500 – $2,000

Wicks & Fragrance Oils

$300 – $1,500

Molds & Containers

$500 – $2,500

Branding & Packaging

$1,000 – $3,000

AI-Generated Product Images (Midjourney, DALL·E)

$0 – $50/month

Etsy Listing Fees & Ads

$100 – $500

Website (Shopify, Etsy)

$300 – $1,500

Total Initial Investment

$2,700 – $11,000

Revenue Projections

Sales Model

Price per Candle

Monthly Sales

Monthly Revenue

Etsy/Shopify Store

$30

300

$9,000

Wholesale (Retail Boutiques)

$15

500

$7,500

Custom Orders & Gifting

$40

50

$2,000

Total Monthly Revenue

$18,500

Potential Net Profit (After Costs): $8,000 – $12,000/month.

4. Product Validation & Pre-Sales Strategy

Step 1: AI-Generated Product Listings

  1. Use Midjourney or DALL·E to create hyper-realistic images of unique food-themed candles (ramen, pizza, ice cream, s’mores).
  2. List them on Etsy with no upfront inventory.
  3. Run $50–$100 in Etsy ads to see if they generate interest.
  4. Track pre-orders. If sales come in, refund & validate demand before spending on production.

Why? No wasted inventory. You only manufacture what sells.

5. Sales & Marketing Strategy

1. Viral Content Strategy (TikTok & Instagram)

2. Influencer & Partnership Strategy

3. Pricing & Scarcity Strategy

Goal: Generate sell-out launches & consistent demand.

6. Step-by-Step Launch Plan

Phase 1: Pre-Validation & Branding (1-2 Months)

Use AI to create product concepts before buying materials.
Set up an Etsy/Shopify store and list pre-sale items.
Test ad spend ($50–$100 on Etsy/Meta ads) for demand validation.

Phase 2: Production & Early Sales (Month 3-4)

Order inventory based on bestsellers.
Create viral social media content daily.
Send PR packages to influencers.
Launch on Etsy & drive traffic.

Phase 3: Scaling & Automation (Month 5+)

Expand product line (seasonal scents, limited editions).
Outsource fulfillment to a co-manufacturer.
Partner with retailers & boutiques for wholesale orders.
Build an email list for repeat customers.

Goal: Hit $10k+/month in sales within 6 months.

7. Scaling & Exit Strategies

Scaling Options

Expand to custom corporate gifting – Big margins in branded candles for businesses.
Retail partnerships – Get products into Target, Urban Outfitters, and specialty gift shops.
Subscription Box Model – Monthly candle clubs with themed limited edition drops.

Exit Strategies

Sell the business (3-5 years) for a 6-7 figure exit.
License designs & scents to big candle brands.
Turn into a lifestyle brand (expanding into home decor, soaps, or fragrances).

Final Thoughts

Viral candles sell. Food + Nostalgia + Novelty is a proven formula.
Test before you invest. Use AI to validate before spending money.
Leverage influencers & TikTok virality. A single viral video can sell out your stock in hours.
Pre-sell, scale, automate. Start small, reinvest profits, and expand strategically.