2020/12/09 17:10:22
How to Start a Furniture Business: Step-by-step Guide to Running a Furniture Business
Starting a business is usually a big step, and no matter the type of business it is, the same ground rules that govern their inception are the same. You don’t wake up in the morning and decide to pour all your savings into a business idea and expect it to fly off from the start. It is a process that takes time and patience.
The furniture business is one popular business you can consider starting. It has a stable market since people will always be in need of all kinds of furniture, be it for their homes or their offices. This, however, does not mean you can go ahead and dive into it without a plan. We are going to explore the strings of starting a furniture enterprise, what you need to consider, how to grow it, and some of the pitfalls you may come across.
What Is Furniture Business?
The furniture business is an enterprise where you create and sell furniture pieces like chairs, tables, beds, wardrobes, office furniture, and so much more. It does not necessarily refer to items made out of wood as furniture encompasses anything that fits the profile, whether it is made out of wood, plastic, metal, or any other possible material.
A furniture business goes far beyond creation, it involves the delivery of the said items to the customer, and at the same time, it involves customer care and after-sales services.
How to Start a Furniture Business Online
Starting a furniture business, whether online or one with a physical premise, has to follow certain procedures if you ever hope to be successful in the long run. The following are the notable steps and phases that you have to go through to realize that dream.
Find Your Niche
Being too general doesn’t do much to sustain your business. You may be the best artisan around but dabbling in everything is a risky move. You have to specialize in one area; this is the fastest way to create a loyal clientele base and grow your name. Being known for creating a particular type of furniture cements your reputation in the business. It could be office furniture; focus your energy and artistry into it to the point where your name comes up every time people talk about office furniture.
That is the power of specializing in one niche.
Make a Plan
No type of business can work without a plan, and furniture companies are no exception to this rule. Planning helps you figure out the budget you’ll need, the opening inventory, and whether you will need labor. A plan is not a cure-all problem solver; it will not shield you from the pitfalls ahead no matter how good you plan; however, it is a necessity. It will be the blueprint for your furniture business, something to refer to with every move you make.
Research the Market
It is a fact; people need furniture at all times; however, do not operate on the assumption that anything you create will be gobbled up from the shelves like cookies from the oven. You have to know what people want. Yes, they want furniture, but which type? What style? The type of wood they prefer? All these questions and more can only be answered by a rigorous market research process.
The research will also help gauge the market to know the direction it’s heading towards so you can get ahead of it. This is also the best way to check out all your possible competitors who may pose a threat to your business.
Choose a Strategic Location
If you choose to have a physical premise, then ensure it is in a palace with ample space and accessibility. You will need a lot of space for storage because furniture tends to occupy space, and since they cannot be bought on the spot after being made, they need holding areas before shipping.
The same applies if you are running an online furniture shop. You’ll still need a physical address. It has to be in an area with good access roads for quick deliveries or returns in case the client doesn’t like what they bought or simply wants to swap.
Location is very important to the furniture business, and it is one of those things that takes the most time to nail down. So take your time before putting your name down on a lease.
Take Care of the Legalities
Covering your bases well is the best way to assure your business a chance of survival, and one of those bases is the legal department. You never know what you may face along the way; the legal hurdles will always come and you should be well prepared for that. You will need a good insurance plan, working warranties for your clients, and so on.
The most damaging thing that destroys promising business is defamation, all it takes is one bad thing, and the business is forever tainted. Having formidable legal muscle behind you on top of the following rules will be an added advantage to the prospects of your furniture business.
Open an E-Commerce Shop
If you choose to go the online route then you’ll have to invest in an e-commerce platform. A good online store is one that allows people to search for items quickly, has good and presentable images that reflect what they are going to buy, and has an interactive user interface. It has to look good, too, because people tend to associate nice websites with a reputable business.
Things to Consider When Starting a Furniture Store
When drawing up a plan for your furniture business, there are some things you also have to be aware of, factors that you have to see before breaking ground. The following are the factors you have to consider beforehand.
Operational Permits
You need to clear with the relevant authorities before going ahead with your business idea. Depending on the country or the state you are based in, you may have to pay several business fees through several levels before getting the green light to begin operations. You will also need certificates of occupancy if you choose to run your business from a physical address. Failure to adhere to these regulations will incur a lot of penalties.
Register for Taxes
The government will always get its cut, and that comes in the form of taxes. Depending on the country and the state again, the fees vary, but one thing that is certain is that you will have to pay up to avoid getting into trouble with the law. Fortunately, the automation of the process makes it much easier,; you and you could be done within a day.
A Bank Account
You will need an official bank account registered in the official name of the furniture business. Many people make the mistake of tying their personal bank accounts with their business. Having a separate and dedicated bank account is vital if you want to protect your assets. Furthermore, having a bank account in the name of your business makes it easier for loans and other credit privileges to be extended to you, and that is something you will need down the road once you start expanding.
Define your Brand
Have a clear image before launch. Something that can speak for itself without any need for further elaborations. Your brand goes beyond a simple logo or the company colors; it has to be seen in the design of the products you are dealing with, the unique style of your furniture. It should be something every customer that walks through your doors can identify across the board. You can publish some special decoration and furniture solutions, such as salon suite decor ideas, small hair salon ideas, villa design ideas, ninja turtle room decoration, etc. Achieving that is the ultimate business coup that you can ever pull off; no competitor can deal with that.
The Budget
You will need very substantial capital to get a furniture business. Budget is what determines the location, the number of employees, basically the very nature of the business. Do you plan to be a furniture retailer or manufacturer? The cost gap between the two is vast. That capital will also have to cover the inventory imports from furniture suppliers on top of holding the business afloat for at least a year before things start picking up.
Create a Web Presence
We are living in the digital age; operating a business without a website or a social media account is a suicide, you simply cannot survive. The number of people who are connected to the internet is over 3. Billion, this means that at any given time, there’s someone in the world looking at their phone browsing through the internet. The first thing people ask for when introduced to a new business is the website link to check out what it is that you are offering.
Create a good website and display all the information about your furniture business, including the images of all the products you have. Setting up a website is not expensive or hard; it should take less than a week to do that.
How Profitable Is Furniture Business?
Furniture business has always been a high flying one for years; as populations grow, so do settlements; these houses, as well as business offices that pop up every day, require furniture. This has ensured a constant stream of business for furniture businesses and continues to do so to this day.
How businesses are run has changed with time; now, if you choose to open a furniture business, you will have a lot of effective tools at your disposal to ensure that you see success. There’s no doubt about it; the furniture business is still as profitable as it used to be in the past.
There are more creative designs coming out now, and as the fight against climate change continues, people have become innovative enough to come up with new raw materials for malign furniture, which are cheaper and easy to access.
In the United States, for instance, the furniture revenue in 2020 has hit $260 billion already, all that despite an ongoing pandemic that has effectively hampered much of the buying that has been recorded in previous years. Other places like Australia ($2b) and Europe are also recording impressive numbers.
Therefore, making the conclusion that the furniture business is one of the most profitable businesses out there right now would be a true assertion. If you’d been having doubts on whether to go ahead with your plan to open one, then you have the answer you needed.
How to Promote & Grow Furniture Business
In this day and age, competition is stiff across sectors, and getting your brand out to the public’s attention takes a lot of mettle and investment. Fortunately, that fiercely competitive environment has also created very effective and cheap tools to overcome that hurdle. The following is how you improve the furniture business.
- Social Media: The power of social media cannot be underestimated, it has become the greatest avenue for introducing your business to new audiences, and for a little fee, you can have your enterprise broadcast to a varied audience within a very short time.
- Offers: If you are starting out, it would serve you better if you give your first customers discounts and other exciting offers. This will create instant rapport between your furniture business and them and they will spread the word around for you.
- Hire Professionals: Most startups avoid hiring professionals due to the high salary demands, but when you consider the value they add to the business you’ll realize that you are reaping more. Hire the best sales team you can find and you will see your business engagements rise gradually.
- Customer Relations: Making customers feel appreciated is the most effective way of ensuring that they come back for more. It doesn’t have to be something big; having a simple conversation or knowing them by name, or quickly responding to their concerns is how you turn them into loyal customers.
- Attending Fairs and Exhibitions: Furniture fairs are another great way of creating exposure for your business on a bigger scale to an audience that really matters. Through fair and exhibitions, you don’t just meet new clients, but you get to network with other players in the game, and in the process, you may learn very valuable lessons that will further grow your furniture enterprise.
- SEO: Another effective online strategy that will help direct traffic to your website. This is done through the use of strategic keywords in blogs and online journals that will help push your website to a higher search ranking. For every 1000 people that visit your website through that, you are assured of landing a couple of sales no matter what.
Conclusion
The furniture business is well within the realms of possibilities and outright success if you play your cards right. What you have to be ready for are the many pitfalls that will make you want to quit prematurely, these are normal challenges that every startup business goes through.
Success will not come overnight and it will require considerable input from your end, build your contacts slowly and let the quality of your services speak for themselves, eventually, you will be getting more business than you can handle. For more information on the best furniture trade fairs and exhibitions, get in touch with us and we will provide you with all the details you may need.
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