Interested in small furniture store business ideas? If YES, here is how to open a furniture retail shop with no money and no experience. How much does it cost to start up?
How to Start a Furniture Store Business
The sole purpose of a furniture store business is to produce and distribute furniture and get income in return. Opening a retail furniture store business requires various procedures and necessities. It does not matter if you have a degree in furniture making or a self thought skill on how to produce extraordinary modern and vintage furniture, you will also be required to know how to properly plan a business and run it smoothly.
The important factors in opening a new or used furniture store business are listed below;
HOW TO OPEN A FURNITURE STORE
Furniture making is of various types, you may decide you want to produce seats, tables, beds, storage furniture, office furniture or entertainment furniture.
Different materials are required in opening a repurpose furniture store business. Indicate the materials to be used in making your furniture, materials such as wood, plastic, metal, concrete or glass are mostly used.
Do you want to sell to residential buyers, hotel and resorts or commercial customers? Carry out a market study on your competitors and the products you can offer that they don’t. Also determine target customer’s demands and suitable pricing for your furniture.
A resale furniture business would require enough space which will allow you make furniture conveniently and display to customers. If you want to produce residential furniture, your location should have enough space for parents and children to easily move around. Your location should also be easily accessible by your suppliers.
It is advisable to have a warehouse space to store materials, choose a space that’s convenient for you and your suppliers to pick up and drop materials. Your location shouldn’t be based on the most cheapest site, but pick the best affordable location as space is very important in opening a furniture store business.
Gather information on laws and regulations in your area restricting some locations for your workshop.
Suitable Business Structure and Registration
Conscientiously decide your business structure. In opening a furniture store business, your business structure would affect the filing of assets tax. Get a lawyer or a business consultant to guide you on deciding the most suitable business structure.
Business structures include; sole proprietorship, partnership, corporation and Limited Liability Company (LLC).
In opening a furniture store business, any structure or business would require business registration register your furniture business with your state’s Secretary of States, choose your business name and secure a tax identification number from the IRS. Regulations and laws demand that furniture producers adhere to rules placed on production and disposal of hazardous wastes from wood and metal regarding customer’s safety.
A Properly Written Furniture Store Business Plan
A business plan contains company information and strategic success plans. Drafting a business plan is very important when opening a furniture store business as it’ll give a clear understanding of the business to investors and is also used to house important information on your business.
Write a description of the types of furniture you want to produce in your company, the type of materials needed and manpower necessary in opening a furniture store business. Also write on strategies to distinguish yourself from competitors and do better.
Explain your market strategy, not just how you want to market your products but also how you want to further expand your company.
Include your financial prominence in your business plan, it’ll explain to investors how you intend to finance the company and basic information such as company name, agents name, location and operational data.
Your start-up business budget should account for expenses in opening a furniture store business such as;
- Equipment purchase or lease.
- Employees salaries and earnings.
- Marketing and advertising expenditure.
- Purchase of items for business start-up such as wood, plastic metal and any other material you will need.
- Acquisition of business location or rent dues.
- Expenses involved in obtaining license and permit, such as registration, tax identification number and lawyer or consultant charges.
If you do not have enough funds in opening a furniture store business, there are various ways to get investors and finance.
- Loans can be requested from the Small Business Administration and banks.
- You may also seek financial assistance from family and friends, through home equity loans or crowdfunding platforms and partnership with investors.
You may decide to sell your furniture online, open a website to exhibit your furniture to the public. Get an experienced wed designer to give you website a professional look, and website should be updated when new products are available. A photography may also be required, to raise the aesthetics of your furniture.
Furniture prices should be placed after a proper survey of the price range of other producers.
Have you decided to open a furniture store business? It is not a difficult task with proper planning and self commitment. Every successful business starts from a point, a good start-up and management plan would fetch your targeted profit.