A lot of people dream of becoming their own boss. That’s why when a business idea pops up, some people choose to quit their nine-to-five jobs to pursue their dream of being an entrepreneur.
If you’re passionate about improving people’s homes with beautifully crafted furniture, starting a furniture business can be fulfilling. Since people have been staying indoors to practice social distancing, homeowners have time to improve their homes. A survey shows that 61 percent of homeowners have done home improvement projects since March 1, 2020.
Staring A Furniture Business: What You Should Know?
Market research by Technavio, a global technology research and advisory company, predicts that the home furniture market in the U.S. will increase at a compound annual growth rate (CAGR) of more than two percent from 2020 to 2024. The market is also likely to grow by $8.08 billion during the same period.
The COVID-19 has had adverse effects on businesses across industries, forcing some companies to shut down. Experts, however, believe the pandemic will only have a low impact on the home furniture market.
Like starting other types of ventures, extensive research and planning are vital to reaching your goals for your furniture business. Launching a business can be both exciting and exhausting. There are several factors you need to consider when you’re starting out.
Here are the top three things you need to know before you open your furniture business.
1. Create A Business Plan
Planning your business carefully is essential to become a successful entrepreneur. You’ll face different challenges during the first few years of your business, especially financially. Having a strong business plan can help you overcome these hurdles.
Your plan should include the costs involved in opening a furniture store, whether you plan to sell your products online, in a physical store, or both. You also need a warehouse to manage your deliveries efficiently.
Don’t forget the costs you have to spend to pay your employees, suppliers, and materials needed for your products. You might need to work with design consultants to make sure you produce items that will stand out in the market.
Apart from the costs, you should also include other factors you need to run your business in your plan. For example, you need to determine your target market and the marketing strategy you plan to roll out to reach them.
2. Find Your Niche
Competition is tough in the furniture retail industry, especially if you have to compete with giant furniture brands. It’s important to find a niche that these companies are not reaching. Simply doing what others are doing will not get you noticed. Have a unique selling point (USP) that will convince consumers to support your brand instead of others.
Selling bespoke wooden furniture, for example, can give you an edge over those who sell mass-produced pieces. Your customers can choose whether they want the wood to be stained and finished or leave it unfinished. When staining wood furniture, it’s best to use rags for even application of the product. Make sure you do extensive research to provide your potential customers with high-quality selections.
Additionally, your brand can focus on a specific type of furniture, be it office furniture or home furniture. The materials you use for your products can also be your USP. For example, using sustainably sourced materials can appeal to a specific market. A survey shows that 38 percent of Americans have shopped sustainably since the COVID-19 pandemic started.
3. Advertise Your Products
Advertising is a crucial part of running a business. It helps you reach your target consumers and get the word out. There are different ways to advertise your products based on your budget and market.
It’s important to know your market so your strategy can focus on your customers’ needs. You should also emphasize your strengths in your marketing campaigns. If you’re offering a free service or discounts, make sure to mention them to attract more customers.
Increasing your online presence will also help you expand your reach. People spend more time online, be it for entertainment or for shopping. Use different social media platforms, including Facebook, Instagram, and YouTube, to promote your brand, tell your story, and connect with your customers.
Once you have come up with a clear business plan, found your niche, and designed a marketing strategy, you’re ready to start building your team. Make sure to have a trained sales team and an efficient crew to deliver excellent quality customer service.
Running a furniture retail store can be stressful and exhausting. But as your business grows, all your hard work will all be worth it. Spend time researching the market and creating a strong business plan to ensure everything goes well.