Every apartment and building that is into use certainly use furniture for various purposes. If you look at your home or in the room where you are sitting you would find out that you are surrounded by furniture. The desk on which your computer is placed, the chair on which you are sitting, the sofa on which you comfortably sit, the dining table on which you eat your favourite meals and the bed on which you sleep.
All such things are basically part of the furniture made up of woods. It is quite impossible to imagine a life without furniture and is one believes so then one can also say that the furniture and its business is going to stay here for quite a long time ahead or at least for next few decades.
If one talks about United States, the usage of furniture has been immense and you can find even many parts of your house or building is made from woods and other such furniture products. The United States furniture market is a $96.4 billion as calculated in the year 2014 and is about to grow at 2.9% annually in 2019.
The market seems to be recovering and is expected to grow at similar pace. The sale of furniture has now shifted to online market where $32 billion worth of shopping was done through online platform and it is growing at 11% growth rate in 2018.
The environmental awareness and a trend to minimise the use of furniture products to reduce cutting of trees also has some negative impact on the market but the growing innovations and other measures have thwarted it to some extent.
One can say by looking at the data that it would be quite profitable to enter into this market especially with few innovations and path breaking ideas to succeed in this business.
Young entrepreneurs have much to gain from this sector if they come up with some innovative custom design furniture ideas. Here are 15 such profitable business ideas in furniture sector that you should think about:-
15 Profitable Business Ideas in Furniture Sector:
- Furniture Manufacturing Business
- Furniture Refinishing and Restoration Business
- Customized Furniture Making Business
- Furniture Store or Showroom Business
- Office Furniture Business
- Hospital Furniture Business
- School Furniture Business
- Kids Furniture Business
- School and College Furniture Business
- Furniture for Pets
- Online Furniture Store
- Furniture Rental Business
- Flipping Furniture for Profit
- Furniture Painting and Polishing Business
- Collect and Sell old Furniture to Restoration Company
In order to flourish in the furniture it is always important to add value to your product. With little changes and value addition you add a lot to your product which gives you high returns. Applying some mind can also give you some fantastic ideas that can give you great returns. People these days are focusing on interiors of their homes and are very particular about furniture which adds stars to their home. Most of them look for impressive and extra ordinary designs and styling which makes their home different from the rest. Thus focusing on designs and looks can make your business a success.
Now if you have got an initial understanding regarding furniture business then the next paragraph will explain you about the steps that you need to take to start your furniture business.
Steps Involved in Starting a Furniture Business:
Selecting your Niche:
Before you move ahead and take the initial step of starting your business it is quite advisable to first choose the right niche for your business. The above fifteen niches mentioned can be one which you may choose. While choosing from these 15 you should give a serious thought on pros and cons.
In simple terms, if you want to choose a niche then you must know why you are choosing and will you be able to make it a success. There are many other factors involved while choosing the right niche for you and that includes capital investment, return on investment, size of business, administration, demand in market, scope for future and many more.
Prepare a Business Plan:
A business plan is very essential for starting your business as it works as a guide for your business. It will give you a detailed insight about your business and what steps you must take in which direction in order to reach at your destination. Get in prepared by a professional team.
A business plan necessarily requires a feasibility analysis test which will give a base for your business plan. Make it comprehensive to understand each and every aspect of your business before you progress ahead. read more about how to write a perfect business plan
For every business you require capital investment. Depending on the choice you made in the first step of selecting niche, you will be required to make capital investment. Choosing the niche and making other important decisions should consider the amount of investment you are willing to make.
For example, starting a showroom of furniture that also endorse prominent brand requires adequate amount of funding. Your feasibility analysis report and your business plan will have a thorough analysis of the same. Managing funds require loans from banks, small investments, partnerships, inviting investors, etc.
Legally Register your Business:
This is entirely a legal and official business which will require help from advisors. You need to first choose the legal entity that will fit your business. If you want to start small, then a proprietorship business would be the best. If you feel like starting big then partnership or LLP would suffice.
Get it registered following due process and don’t compromise with official documents where asked as it can lead you into future trouble. Get registered to the taxation system and get approvals from wherever necessary. Don’t feel reluctant in consulting experts in registering your business.
Secure License and Insurance:
It is obvious that you require several licenses, permissions and approvals to start your furniture business. Since your furniture business will use wood as raw material therefore certain permissions from environmental authority must be taken as per the procedure established by the law.
Also, wood products like the plywood come with certain qualitative merits therefore you should always try to supply goods that have the approval from the authority related to quality to ensure that your customers don’t doubt on your products quality.
Insurance is something which every business these days go for. Insuring your business is necessary to avoid losses in case if there is any damage to your business.
Decide Location of your Business:
Location of your business will depend on many reasons. The first reason is your target market and the potential market which can be attracted from the place of your business. A business showroom amidst the market ensures better traffic which will boost your business.
Secondly, getting a shop whether on lease or full ownership requires hefty money given the place of your business. If it is located in populated market then the rate will be high.
If you are into furniture manufacturing business as well then you can have your showroom in the market and your manufacturing unit and warehouse at a place which is cheaper to lease or own.
Market Analysis, Competitor Research and Pricing:
The above mentioned feasibility analysis test will do all such jobs for you. It will give you a brief summary of market analysis, your competitors and the pricing strategy.
Market analysis will give you an idea about potential of your product in the market, what people are looking for and what is the demand in the market.
Competitor research will provide you your potential competitors in the market and how you can do better than them and lastly the pricing strategy will keep a note about all of such impacts that will impact your business. Therefore, you should spend a decent time and money on your feasibility analysis report as it will be the key factor in shaping your business.
Equipment and Resources for your Business:
It is obvious that you will require certain equipment and resources for your business. Depending upon your choice of niche your resources you will have to get those resources to start your work.
The equipment section contains machines, tools, manufacturing plant, vehicles, wood, paint, polish, and many other materials. For them you will require a good investment to purchase such products. Create a network of suppliers who will supply you such resources for your business. Keep a high range of variety to fit the market requirements.
Establishing Business Place, Office and Hiring Employees:
If you have chosen the location, the next step is to establish the business place and equip your office. The important step of them all is hiring employees. Since your business would be in its nascent stage, it would be advisable to hire limited employees with multiple skills to ensure that many areas are covered with limited employees. This will save your money, space and overall management.
You can also take help from other established businesses or an expert in your business field while hiring employees especially when it comes to manufacturing and designing.
Hiring contractors and Sub Contractors:
There are various works that require contract based services and you don’t really need to hire employees. It is obvious that certain types of work require special skills and technology which is not always possible to afford on your own. Get into contract with such businesses that work in special manufacturing and designing field.
As and when you get an order from your client you can hire them on contracts to work for you. For all this you require to make networks and contacts within your furniture field. Take help from already established businesses and people who are into this field.
Market to Potential Clients:
Business is always between the requirement and fulfillment, problem and solution. Never get deviated from this and whatever niche you choose make sure you have a potential market. There are also markets that are made and for that you need to address certain problems to give solution for them.
In the furniture market, people are craving for innovated designs that fit their requirement. Focus more on innovation and design to address your potential clients. Use marketing strategies to target your potential market and attract them into your fold.
Starting with your Business:
After the above works are done it is time to start your business. It is very obvious that starting your business and the initial days of your business are always the hardest. Don’t lose hope in case you don’t get as expected. Slowly and gradually move on, identify where you are short, make changes and try it again.
In case your business goes good, don’t feel complacent but work much harder to grow more. Don’t be too ambitious but move step by step for future strategies and goals.
The first target for your business should be return on investment. Try to get at least 30% of the ROI in the first year itself. It is obvious that you would have made such strategies to get returns based on your investment.
For every week, month and year you should have a target which you should achieve in order to succeed in your business. Make it realistic based on facts and data you have regarding your analysis.
The above list of 15 business ideas related to furniture has both simple and complex business. One is simple, with limited invest, small business size, and limited growth while the other is complex, hefty investment, big business size, unlimited growth, etc. Choose what you feel is doable based on the reality in front of you.
You can start with a small business and can shift to bigger one slowly or you can start with the bigger one. It all depends on your will and the size of the investment. If you are nascent into the business world then start with small which is easy to manage and chances of success is relatively good whereas failure isn’t much expensive.
Furniture business has huge potential in it. Even a mediocre business will give you respectable returns. Start with a strong motivation and remain to determine until the end and you will definitely be a success in the furniture business.