Ember and Oak Candle Co.

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Ember and Oak Candle Co. is a small handmade candle company in Tennessee. We pour candles, wax melts and soaps in a leased workshop, sell them online and at markets, supply a growing list of local shops, and teach candle-making workshops and parties. Our customers want a gift or a home scent that feels personal and well made.

The problem is simple. Many candles on the shelf are made in huge factories, smell like everything else and say little about what is inside them. We make small batches, label them clearly, test every new scent and tell customers exactly how to burn a candle safely.

Here is what our numbers show. We expect sales of $140,550 in Year 1, growing to $487,200 by Year 5 as we add shops, markets and online customers. We expect a profit of about $4,600 in Year 1, growing to about $59,900 by Year 5.

We need $54,000 in total. That covers $30,000 in startup costs (melting and pouring equipment, work tables, the first order of wax and jars, the lease deposit, safety testing, insurance and branding) and a cash cushion for the first months. I am putting in $12,000 of my own money, and I am asking for a $30,000 SBA loan plus $12,000 from an investor or partner.

I am Tanya Ellis, the owner. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Ember and Oak Candle Co. will be a limited liability company (LLC) in Tennessee, owned by Tanya Ellis. An LLC is a business type that generally keeps your home and savings separate from the business's debts and lawsuits, although a lender may still ask for a personal guarantee. A business attorney or the Small Business Development Center (SBDC) can explain how it works in our state.

What we believe. A candle should be safe first and beautiful second. We test before we sell, we label honestly and we answer every customer question.

What we offer:
- Candles. Soy and coconut-blend candles in jars and tins, in a small set of core scents plus seasonal ones.
- Soaps, wax melts and gift sets. Bar soaps, wax melts, and gift boxes that bundle a candle with a soap or melt.
- Wholesale. Candles sold in bulk to gift shops, boutiques, salons and cafes at a lower price per candle.
- Workshops and parties. Candle-making classes in the workshop for birthdays, bridal showers and corporate groups.
- Later, as we grow: custom candles with business logos and a subscription box. The numbers in this plan do not include these.

The space. In Year 1 we will lease a small workshop of about 800 square feet with a pouring area, a packing station, shelves and a small class corner. We budget $12,600 a year ($1,050 a month) for rent and utilities, and the plan assumes this grows about 10% a year as we move to a larger space.

Licenses and insurance. We will register the LLC with the state, get a business license, an EIN (the business tax number from the IRS, free at irs.gov) and a sales tax permit, and ask the local fire department and building office what the workshop needs before we start melting wax. We will carry general liability, property and product liability insurance, plus workers' compensation once we hire. Candles are consumer products, so we will follow the federal and industry safety labeling rules, including warning labels, and keep a record of every batch. Soap is regulated differently depending on what is claimed about it, so we make no medical or skin-healing claims and will confirm our labels with the FDA's rules or an attorney.

Where things stand today. This plan is my starting point. Before I sign a lease or buy equipment, I will make small test batches at home or in a shared space if the local rules allow, test each scent, and ask at least 10 shops whether they would stock us. If I cannot get at least 3 written orders or letters of interest, I will change the plan before I spend money.

Problem & Opportunity

Customers and shop owners have trouble finding candles they can trust.

1. Mass-produced sameness. Many shelves are full of similar candles with scents that fade or smell harsh.
2. Unclear labels. Customers cannot always tell what wax, fragrance or wick is inside, or how to burn the candle safely.
3. Safety worries. Poorly made candles can tunnel, crack jars, smoke or burn too hot.
4. Few reliable local suppliers. Small shops want local products but struggle with late orders, high minimums or products that vary from batch to batch.
5. Few places to make something together. Groups want a fun, hands-on activity for a birthday, shower or team event.

How we will find out if people want this before we spend money. I will sell test batches at 2 to 3 markets, ask at least 10 local shops what they would pay and order, and ask 20 people what they look for in a candle. Our Year 1 plan needs about 3,600 candles sold online and at markets and about 1,800 sold wholesale, so I will ask for at least 3 written orders or letters of interest first.

Products & Services

What we sell. We have four product lines, each priced simply.

1. Candles sold online and at markets. The plan assumes an average of about $26 per candle in Year 1, rising to about $30 by Year 5. Wax, jars, wicks, fragrance, labels and packaging cost about $8.50 per candle in Year 1. We expect about 3,600 candles in Year 1 (about 300 a month), growing to about 9,400 a year by Year 5.
2. Candles sold wholesale to shops. The plan assumes about $13 per candle in Year 1, rising to about $15, with about $7.50 per candle in direct costs. We expect about 1,800 candles in Year 1, growing to about 7,400.
3. Soaps, wax melts and gift sets. The plan assumes about $14 per item in Year 1, rising to about $16, with about $5 per item in direct costs. We expect about 1,200 items in Year 1, growing to about 3,900.
4. Candle-making workshops and parties. The plan assumes about $45 per guest in Year 1, rising to about $53, with about $9 per guest in supplies. We expect about 150 guests in Year 1, growing to about 600.

Our prices. A clear price list for each size, a lower wholesale price per candle with a case minimum, and a per-guest price for workshops. The prices in this plan are averages across sizes.

How it works for a customer:
1. A customer orders online or buys at a market, or a shop owner places a wholesale order by email or phone.
2. We pour in small batches, let candles cure for the right amount of time, and check each batch before it ships.
3. Every candle carries a label with the scent, weight, burn instructions and safety warnings, and a batch number.
4. Orders ship within a few days, and wholesale orders have a clear delivery date.

Gross margin, explained. "Gross margin" is the share of each sale left after paying for wax, jars, wicks, fragrance and packaging. Our plan shows about 63% in Year 1. That money pays the team, rent, shipping supplies, insurance and other bills. Team pay is counted separately, under payroll.

Market Analysis

Who will use us:
- Gift buyers who want a handmade present, including for weddings, birthdays and holidays.
- People who buy candles for their own home and return for new scents.
- Local shops, boutiques, salons, cafes and gift stores that want local products.
- Groups who book workshops and parties.

Where we will work. Online customers anywhere in the country, local markets within about an hour's drive, and shops within about 60 miles for easy delivery.

How we sized the plan. Our Year 1 plan needs about 300 candles a month sold directly, about 1,800 sold wholesale, and about 150 workshop guests. That is a small amount of production for a workshop of this size. I will check the real numbers by selling at markets and asking shops before spending money.

Season. October through December brings most gift sales, and spring and Mother's Day are busy. The numbers show a yearly average. We plan ahead by making extra stock in late summer and taking wholesale orders for the holidays early.

We are careful on purpose. The plan assumes one small workshop with part-time help, so quality stays consistent.

Competitive Landscape

Other choices customers have:
1. Large candle brands and big-box stores. Familiar and often cheap, but less distinctive.
2. Other handmade candle makers online and at markets. Many are good, so quality and story matter.
3. Grocery and home goods stores. Convenient, but with a narrow choice.
4. Gift shops that make their own candles, which compete for local shelf space.
5. Doing it themselves with a kit, which costs less but takes time and can be unsafe if done badly.

How we will win customers: honest labels, tested scents, safe burn instructions, small-batch quality, reliable delivery to shops and a fun workshop. These are promises we have to keep, and any competitor could make them too, so we will measure ourselves on them every week.

Marketing & Sales Strategy

How customers will find us.
- Local markets and craft fairs, with a booth that lets people smell every scent.
- A simple online store with clear photos, burn instructions and gift sets.
- Wholesale outreach. Visit local shops with samples and a one-page price list, and offer a starter set at a small discount.
- Social media photos and short videos of the pouring process, plus an email list for new scents and holiday gifts.
- Workshops and parties. Promote them to bridal groups, offices, church groups and community centers.

Marketing budget. About $6,000 a year in Year 1 (about $500 a month), growing about 10% a year, plus about $2,400 a year for market and craft show fees. The logo, labels, website and photos are paid for from startup costs ($3,200).

Operations Plan

How the business runs day to day.

The space and layout. A pouring area with a heat source and work table, shelves for curing candles, a packing station, a small stockroom, and a corner for workshops. Everything is lit, clean and labeled.

A normal week:
1. Plan the week's batches from orders and stock levels, and order supplies.
2. Pour candles on set days, cure them for the right time, trim wicks, label and inspect them.
3. Pack and ship online and wholesale orders on set days and prepare for markets.
4. Teach workshops and parties on weekends or evenings.

Safety. Wax is heated only with the right equipment and a thermometer, never left unattended, and the workshop has fire extinguishers, a clear exit and a no-flame rule in the stockroom. We keep safety data sheets for every fragrance oil, wear gloves and eye protection, and keep children out of the pouring area. Before selling a new scent we run burn tests for safe flame height, jar temperature and soot, and keep notes for each batch. We label every candle with warnings and instructions, and we recall a batch and tell customers if a problem is found.

Honest claims. We say what is in each product and do not claim that a candle or soap treats, cures or prevents any health condition. We use terms like "natural" and "eco-friendly" only when we can show what they mean.

Equipment. About $12,500 to start: melting and pouring equipment, work tables and curing racks, a label printer, computer and card reader, and a packing station. We set aside about $2,500 a year after that to replace and add equipment as we grow.

Running costs in Year 1: workshop rent and utilities about $12,600, website, shipping supplies and card fees about $4,200, marketing and samples about $6,000, insurance about $2,400, market and craft show fees about $2,400, and accounting, labels and legal about $2,400. That is $30,000 in all.

Payment. Online and market customers pay at once. Shops are invoiced and most pay within 30 days, so we keep a cushion of cash to cover the wait and a stock of ingredients ahead of the holidays.

Management & Organization

Who runs the business. Tanya Ellis, owner and maker. As owner I will pour and test candles, develop scents, manage orders, sell at markets and handle the money side of the business. I plan to pay myself $30,000 a year in salary.

The team. Pay figures include payroll taxes and workers' compensation insurance.
- Production assistant (part-time): one in Year 1, two in Years 2 and 3 and three in Years 4 and 5, at about $17,000 a year each (about 20 hours a week).
- Production lead (full-time): none until Year 3, one in Years 3 and 4 and two in Year 5, at about $30,000 a year each.
- Orders and customer care (part-time): one starting in Year 2 and two from Year 4, at about $17,000 a year each.

We hire people who are careful, patient and reliable, train everyone on the same written safety and batch steps, and pay on time.

People who will help us: a bookkeeper or tax preparer, an insurance agent who understands product liability, a business attorney for a one-time review of our labels and wholesale terms, and a free mentor from SCORE or the Small Business Development Center (SBDC).

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (4 to 6 months ahead): test scents and burn each batch, sell test batches at 2 or 3 markets, ask at least 10 shops about orders and get at least 3 in writing, register the LLC and get an EIN, open a business bank account, get insurance and equipment quotes, find a workshop, ask the fire department what it needs, and have an attorney review the lease. Sign the lease only after the shop orders and the safety test results are in hand.
- Year 1: open with the owner and one part-time assistant, with about 3,600 candles sold directly and about 1,800 wholesale, $140,550 in sales and a profit of about $4,600.
- Year 2: add orders and customer care help, with about 5,200 candles sold directly and about 3,200 wholesale, $226,700 in sales and a profit of about $17,100.
- Year 3: add our first full-time production lead, with about 6,800 candles sold directly and about 4,800 wholesale, $320,180 in sales and a profit of about $36,200.
- Year 4: grow shop list and online sales, with about 8,200 candles sold directly and about 6,200 wholesale, $406,920 in sales and a profit of about $48,800.
- Year 5: about 9,400 candles sold directly and about 7,400 wholesale, with a larger team, $487,200 in sales and a profit of about $59,900.
Growth depends on winning shops, building an online audience and keeping every batch safe and consistent, so treat the later years as goals, not promises.

What we check every week: candles poured and sold, batch tests passed, wholesale orders, average order value, returns and complaints, workshop bookings and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $54,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $30,000, listed item by item in the Startup Costs section: $3,800 for wax melters, pouring pots, scales and thermometers, $3,300 for work tables, shelving, curing racks and storage, $2,400 for label printer, computer, photo setup and card reader, $3,000 for packing station and shipping scale, $6,000 for first order of wax, wicks, jars, fragrance oils and boxes, $2,400 for lease deposit and first month of rent, $1,800 for lighting, electrical outlets and ventilation fan, $600 for business license, sales tax permit and local permits, $2,400 for safety testing of the candle line, labels and legal setup, $3,200 for branding, logo, website and product photos, and $1,100 for first insurance payment.
- A cash cushion of about $21,200: the deepest hole our cash falls into while we build our shop list and online audience (about $2,000) plus about 3 months of running costs (about $19,300). Lenders call this "working capital."
- Together that comes to about $51,200, rounded up to the nearest $500: $51,500.
We are raising $2,500 more than that, $54,000 in all, to leave extra room for loan payments in the first years and for stock ahead of the holidays.

Where the money comes from:
- My own money: $12,000.
- Amount requested as a loan: $30,000.
- From an investor or partner: $12,000.

Kind of funding we are looking for. An SBA 7(a) small loan through a local bank or community lender, plus investor or partner money. SBA Microloans, which go up to $50,000 through nonprofit lenders, are another place to ask; their repayment times are usually shorter, so the monthly payment would be higher. Investor or partner money is not paid back with interest, but the person gets a share of the business. A family member, a friend, a local investor or a business partner could fill this part. Put any agreement in writing.

How we will pay it back. We expect a profit of about $4,600 in Year 1, growing to about $59,900 by Year 5. With this funding, the business has money in the bank at the end of every year of the plan, and the lowest year-end balance is about $35,400, at the end of Year 1. The loan is planned at 12.75% interest over 10 years, so payments of about $444 a month (about $5,322 a year) are already included in our cash flow. We chose 12.75% as a cautious planning rate. Ask the lender for the real rate, which may be lower or higher.

What we are offering the lender: our equipment as collateral (something the lender can claim if the loan is not repaid) and my personal guarantee (my promise to repay from my own money if the business cannot).

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: start pouring a small number of candles in a shared or licensed space if the local rules allow (check first), sell at weekend markets and online, and add a few shops. Startup can be roughly $4,000 to $6,000 for a melter, pots, supplies, labels, insurance and a simple website. Get your own quotes.
- Phase 2: once you have regular shop orders and sell out at markets, lease a small workshop, hire part-time help and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume (one page is fine) and any licenses or training certificates.
- A personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- Proof of insurance, or a quote.
- Burn test notes and a sample candle label with warnings.
- A wholesale price list and sample order form.
- A letter or quote for the workshop space, and the lease once you have it.
- Quotes for the melting and pouring equipment.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Candles Sold Online and at Markets: about $26 per candle in Year 1, rising to $30; about $8.50 per candle in direct costs, rising to $9.50; about 3,600 candles in Year 1, growing to 9,400.
- Candles Sold Wholesale to Shops: about $13 per candle in Year 1, rising to $15; about $7.50 per candle in direct costs, rising to $8.50; about 1,800 candles in Year 1, growing to 7,400.
- Soaps, Wax Melts and Gift Sets: about $14 per item in Year 1, rising to $16; about $5 per item in direct costs, rising to $5.80; about 1,200 items in Year 1, growing to 3,900.
- Candle-Making Workshops and Parties: about $45 per guest in Year 1, rising to $53; about $9 per guest in direct costs, rising to $11; about 150 guests in Year 1, growing to 600.
- Pay: Owner / Maker $30,000 (1/1/1/1/1); Production Assistant (part-time) $17,000 (1/2/2/3/3); Production Lead (full-time) $30,000 (0/0/1/1/2); Orders and Customer Care (part-time) $17,000 (0/1/1/2/2). The numbers in parentheses are how many people we plan to have in Years 1 through 5. Pay figures are yearly and include payroll taxes and workers' compensation.
- Other yearly costs in Year 1: workshop rent & utilities $12,600, website, shipping supplies & card fees $4,200, marketing and samples $6,000, business and product liability insurance $2,400, market and craft show fees $2,400, and accounting, labels & legal $2,400. These grow between 5% and 25% a year as the business grows.
- Online and market customers pay at once, but shops are invoiced. At the end of Year 1 about $8,433 (6% of Year 1 sales) is owed to us by wholesale customers or still on its way from payment processors.
- Tax rate: 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs