Are you interested in running a furniture business? If yes, then this guide should help! The furniture business is one of the on-demand business opportunities to try your hand on. It may sound very conventional and mainstream, but this business is quite good in helping you make a profit.
Especially if you succeed to steal the heart of the customers, and tap into the international market. To help you start a successful furniture business, you should check out the guide below!
Will Furniture Business be Able to Generate Profit?
As mentioned before, the furniture business is quite a promising business, because the product has become a necessity for the community. It is forecasted that the global furniture market will reach more than $800 million by the end of 2025.
Some of the advantages offered in setting up this business include:
- Have the opportunity to earn high sales profits
- Has several requests that continue to grow from year to year
- Has a broad target market, both domestically and abroad
What are the Step-by-Step to Start a Furniture Business?
After deciding to set up a furniture business, you have to start preparing several ways to get into it. Every step you will take in starting this business must be planned because you will face many competitors who have successfully made a name for themselves.
1. Target Market Research
The first step in starting a furniture business is identifying potential customers. You can get to know them by determining the appropriate target market.
When you are just starting a business, it would be better if you set a specific target niche. Thus you can focus on researching the interests of target consumers and adjusting products according to their interests. For example, if you are targeting households, the product being sold can be furniture that has the minimalist look but still functional.
2. Create a Business Plan
It is no secret that when you want to develop any business, it will require careful written planning. This is no exception when you start a furniture business. A structured and mature business plan will make it easier for you to do many things, including making important business decisions.
You can start planning your business by finding sources for the production, availability of raw materials, labor, management, administration, marketing, and many others. You should also include your goals and milestones in the business plan. These two will be your guide that helps you to navigate your way in the industry. Without accountable goals, it will be hard for you to achieve success for your company.
3. Allocate Business Capital
You can’t plan on building a furniture business without capital in the first place. The furniture business requires high production costs. Therefore, when starting a furniture business, you must be prepared to spend large capital.
If you are lacking in business capital, then you can apply for a loan at the bank of your choice or find investors for your business. In addition, you can also look for sources of venture capital through furniture business cooperation opportunities. You can collaborate with real estate, hotels, apartments, restaurants, or even school. That way, you can get purchases in large quantities which can be used as your main capital.
4. Check Necessary Permits & Licenses
Knowing what are the permits and licenses you need prior to establishing your furniture business is important. Otherwise, you may have to face hefty fines or even get your store closed due to legal issues. Thus, make sure you check your state permits on what to prepare beforehand.
5. Determine Product Prices
Next is to determine the price of the product. Several things need to be considered in setting the price of a product, such as production costs, competitor prices, and product value.
First, you should set the prices based on production costs. This can be done by adding profit together with the amount of production expenditure (raw materials and operational costs).
Next, you should also look at how much the competitors are offering. This can help you to find out the price competition in the market. However, you don’t have to equate your product prices with competitors because this serves only as a benchmark.
Lastly, you should consider the set prices according to the value of the product. You can charge a high price if your furniture collection is rare or unique. But if the main target is the general public, it’s better if you set an affordable price.
6. Create an Innovative Product
Creativity and innovation are important points in the furniture business. Considering that the competition in this industry is quite tight, you must be prepared to create a unique furniture business. For example, if the product model offered has common features, you can modify it by giving it a unique and different style or color. You must study consumer interests and know how to make innovative and different products.
7. Choose a Strategic Location for the Showroom
After navigating your way through the production process, you can start choosing a strategic business location for your store. When choosing the store location, you should base it around your target market. Aso pays attention to whether there are competitors in your chosen location. Make sure the location you choose is an area with little or no competition.
8. Execute Marketing Strategy
The final step is implementing a marketing strategy. There are so many media choices to help you carry out your marketing strategy. You can market your products through conventional or digital marketing. You should also utilize social media, or run an online furniture business through sales and e-commerce sites.
When you build a business it is also important to remember that finding the right financial accountant that can help to manage your business expenses and profit is important. Without the presence of an accountant, ensuring your business can stay afloat and generate profit will have zero success.
Thus, if you are currently looking for a Singapore accountant for your business entity, don’t forget to look through their previous professional background to check whether they will be suitable for your needs or not. If you have no time to do it by yourself, you can also hire an agency to find the best accountant for you!