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How to Write a Furniture Store Business Plan [Sample Template]

Are you about starting a furniture retail store? If YES, here’s a complete sample furniture retail store business plan template & feasibility report you can use for FREE to raise money . There is hardly any home that does not have one form of furniture or the other.

You will therefore agree that the furniture business over the years have continued to grow in leaps and bounds. This is especially one of the reasons why the industry has continued to be over saturated. This is also one of the businesses that have continued to guarantee good returns on investment.

A Sample Furniture Retail Store Business Plan Template

1. industry overview.

Furniture is a major part of our lives cum facilities; there is hardly any facility that you will come across that you wouldn’t find a piece of furniture in it. This goes to show that the furniture retail stores industry is indeed an important sector of the economy of any country.

Businesses in this industry mainly retail household (living room, dining room and bedroom furniture, upholstered, coffee tables, sofa tables, end tables, sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and TV stands and otherwise), outdoor and office furniture (Desks and home office goods, lamps, recliners, rugs and outdoor furniture make up the rest of sales), except those sold in combination with office supplies and equipment.

The Furniture Retail Stores industry is indeed a major sector of the economy of the united states of America which generates a whooping sum of well over billion annually from more than 28,569 furniture retail outlets scattered all around the United States of America.

The industry is responsible for the employment of well over 217,672 people. Experts project the furniture retail store industry to grow at a 2.5 percent annual rate. The establishment in this industry that has a dominant market share in the United States of America are; Ashley Furniture Industries, Inc. and Inter IKEA System BV.

Statistics has it that the largest product segment of the Furniture Stores industry is living room furniture, which accounts for 49.6 percent of revenue in the industry. This subdivision includes coffee tables, sofa tables, end tables, sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and TV stands.

Prices for products in this subdivision vary considerably depending on brand, style and of course the materials used in making the furniture and they appears to be more expensive than other furniture subdivisions.

As a matter of fact, the high per-unit price of living room furniture has driven growth in this industry, as growing per capita disposable income figures have allowed more consumers to afford living room furniture of which sofas are among the most expensive furniture items sold by operators in the furniture retail stores industry

It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the furniture retail stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S.

In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / furniture retailing stores industry negatively which may result in the closure of some furniture retail stores.

Over and above, the furniture retail store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner without owning a furniture making workshop or you can chose to start on a large scale with a standard furniture making workshop and several outlets in key cities through the United States of America and Canada.

2. Executive Summary

Lord Gabby™ Furniture Store, Inc. is a standard and registered furniture retail store business that will be located in one of the busiest streets in Oklahoma City – Oklahoma. We have been able to lease a facility that is big enough (a 15 thousand square foot facility) to fit into the design of the kind of standard furniture retail store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Oklahoma City – Oklahoma.

Lord Gabby™ Furniture Store, Inc. will retail a wide range of household furniture (living room, dining room and bedroom furniture, upholstered, coffee tables, sofa tables, end tables, sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and TV stands and otherwise), outdoor and office furniture (Desks and home office goods, lamps, recliners, rugs and outdoor furniture make up the rest of sales). We are set to services a wide range of clientele in and around Oklahoma City – Oklahoma.

We are aware that there are several large and small chains of furniture retail store outlets all around Oklahoma, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is well secured with the various payment of options. Lord Gabby™ Furniture Store, Inc. will ensure that all her customers are given first class treatment whenever they visit our furniture retail store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our store and also when making some business decisions.

Lord Gabby™ Furniture Store, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.

Lord Gabby™ Furniture Store, Inc. is a family business that is owned by Lord Gabby Marcus and his immediate family members. Lord Gabby Marcus has a Diploma in Furniture Making and a B.Sc. in Business Administration, with well over 15 years of experience in the furniture industry, working for some of the leading brand in the United States.

Although the business is launching out with just one outlet in Oklahoma City – Oklahoma, but there is a plan to open other outlets all around major cities in the United States and Canada.

3. Our Products and Services

Lord Gabby™ Furniture Store, Inc. is in the furniture retail stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of furniture from top manufacturing brands in the United States and other countries of the world.

We will do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;

• Retailing of household furniture (living room, dining room and bedroom furniture, upholstered, coffee tables, sofa tables, end tables, sofas, love seats, chairs, bookshelves, ottomans, display cabinets, consoles and TV stands and otherwise),
• Retailing stationary sofas/sofa-sleepers
• Retailing bedding
• Retailing master bedroom furniture
• Retailing formal dining furniture
• Retailing entertainment furniture
• Retailing youth and children’s furniture
• Retail other furniture.

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the furniture retail stores industry in Oklahoma and to establish a one furniture retail store in Oklahoma City and in other key cities in the United States of America and Canada.
• Our mission is to establish a world – class furniture retail store business that will make available a wide range of furniture from top furniture manufacturing brands at affordable prices to the residence of Oklahoma City – Oklahoma and other key cities in the United States of America and Canada where we intend opening of chains of furniture retail stores and franchise.

Our Business Structure

Lord Gabby™ Furniture Store, Inc. do not intend to start a furniture retail store business like the usual mom and pop business around the street corner; our intention of starting a furniture retail store business is to build a standard and one stop furniture retail store outlet in Oklahoma City – Oklahoma.

Although our furniture retail store business might not be as big as Ashley Furniture Industries, Inc. and Inter IKEA System BV, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Responsible for fixing prices and signing business deals
• Responsible for providing direction for the business
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization
• Reports to the board

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
• Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
• Defines job positions for recruitment and managing interviewing process
• Carries out staff induction for new team members
• Responsible for training, evaluation and assessment of employees
• Responsible for arranging travel, meetings and appointments
• Oversees the smooth running of the daily office activities.

Store Manager:

• Responsible for managing the daily activities in the store
• Ensures that proper records of furniture are kept and warehouse does not run out of products
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
• Interfaces with third – party suppliers (vendors)
• Controls furniture distribution and supply inventory
• Supervises the workforce in the furniture sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of furniture are purchased and retailed in good price that will ensure we make good profit
• Responsible for the purchase of furniture for the organizations
• Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Ensures that the organization operates within stipulated budget.
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Models demographic information and analyze the volumes of transactional data generated by customer purchases
• Identify, prioritize, and reach out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding increase sales
• Documents all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant / Cashier:

• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensuring compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Responsible for cleaning all the furniture and the store facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the store facility
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our furniture retail store in Oklahoma City – Oklahoma is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in Oklahoma and key cities in the United States and Canada.

We are quite aware that there are several furniture retail stores all over Oklahoma City and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business. We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.

Lord Gabby™ Furniture Store, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Lord Gabby™ Furniture Store, Inc.;

Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of furniture and our excellent customer service culture will definitely count as a strong strength for Lord Gabby™ Furniture Store, Inc.

A major weakness that may count against us is the fact that we don’t have our own furniture making factory, we are a new furniture retail store outlet and we don’t have the financial capacity to compete with multi – billion dollars furniture retail store outlets like Ashley Furniture Industries, Inc., Inter IKEA System BV and co when it comes to retailing at a rock bottom prices for all their furniture and products.

• Opportunities:

The fact that we are going to operate our furniture retail store in one of the busiest streets in Oklahoma City, Oklahoma provides us with unlimited opportunities to sell our furniture to a large number of individuals and corporate organizations.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our furniture store outlets; we are well positioned to take on the opportunities that will come our way.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new furniture retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

If you are conversant with the Furniture Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, ever changing trends and of course the rate of homeownership is major growth drivers for this industry.

No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Furniture Stores industry.

So also, the rising demand for both home and office furniture, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as furniture stores keep prices low to attract more sales amid growing competition.

A close watch on the industry activities reveals that, the Retail Market for Home Furniture and Bedding was hit hard by the recent economic downturn and experienced a decline in revenue in recent time. As part of

Lastly, in recent time, the furniture retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical furniture retail store is located.

8. Our Target Market

Perhaps it will be safe to submit that the furniture retail stores industry has the widest range of customers; almost everybody on planet earth has one or more things that they would need in their houses or offices from a furniture retail store. It is difficult to find households and office facilities without one form of furniture or the other.

In view of that, we have positioned our furniture retail store to service the residence of Oklahoma City – Oklahoma and every other location where franchise cum outlets of our furniture retail stores will be located all over key cities in the United States of America and Canada.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of furniture to the following groups of people and corporate organizations;

• Bachelors and Spinsters
• Corporate Executives
• Business People
• About to wed couples
• Corporate Organizations / Offices
• Government Offices
• Schools and Students (Library inclusive)
• Churches and other religious centers

Our Competitive Advantage

A close study of the furniture retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiffer competition and we are well prepared to compete favorably with other leading furniture retail stores in Oklahoma City – Oklahoma and throughout the United States and Canada.

Lord Gabby™ Furniture Store, Inc. is launching a standard furniture retail store that will indeed become the preferred choice of residence of Oklahoma City – Oklahoma and every other location where our outlets will be opened.

Our furniture retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Oklahoma City – Oklahoma. We have enough parking space that can accommodate well over 30 cars / trucks per time.

One thing is certain; we will ensure that we have a wide range of furniture products available in our store at all times. It will be difficult for customers to visit our store and not see the type of furniture that they are looking for. One of our business goals is to make Lord Gabby™ Furniture Store, Inc. a one-stop furniture shop for both household and corporate organizations.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups furniture retail stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Lord Gabby™ Furniture Store, Inc. is in business to retail a wide range of furniture to the residence of Oklahoma City – Oklahoma. We are in the furniture retail stores industry to

10. Sales Forecast

One thing is certain when it comes to furniture retail stores, if your store is well stocked with various types of home and office furniture and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Oklahoma City – Oklahoma and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.

We have been able to critically examine the furniture retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projection is based on information gathered on the field and some assumptions that are peculiar to startups in Oklahoma City, Oklahoma.

Below is the sales projection for Lord Gabby™ Furniture Store, Inc., it is based on the location of our business and other factors as it relates to furniture retail stores start – ups in the United States;

• First Fiscal Year-: $150,000
• Second Fiscal Year-: $450,000
• Third Fiscal Year-: $1 million

N.B : This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same furniture products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Lord Gabby™ Furniture Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Oklahoma City – Oklahoma. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.

We hired experts who have good understanding of the furniture retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Oklahoma City – Oklahoma.

In order to continue to be in business and grow, we must continue to sell the furniture that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Lord Gabby™ Furniture Store, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our furniture store in a grand style with a party for all.
• Introduce our furniture store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Oklahoma City – Oklahoma
• Ensure that we have a wide range of home and office furniture from different brand at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our furniture store
• Position our signage / flexi banners at strategic places around Oklahoma City – Oklahoma
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in road shows within our neighborhood to create awareness for our furniture store.
• List our business and products on yellow pages ads  (local directories)
• Leverage on the internet to promote our business
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals)

11. Publicity and Advertising Strategy

Despite the fact that our furniture store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our furniture store.

Lord Gabby™ Furniture Store, Inc. has a long term plan of opening outlets in various locations all around Oklahoma and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Oklahoma City before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Lord Gabby™ Furniture Store, Inc.;

• Place adverts on community based newspapers, radio stations and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+  and other platforms to promote our business.
• Ensure that our we position our banners and billboards in strategic positions all around Oklahoma City – Oklahoma
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Lord Gabby™ Furniture Store, Inc. and the products we sell
• Advertise our furniture store business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to furniture stores, it is normal for consumers to go to places (furniture retail outlets) where they can get home and office furniture at cheaper price which is why big player in the furniture stores industry like Ashley Furniture Industries, Inc., Inter IKEA System BV and co will attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with Ashley Furniture Industries, Inc., Inter IKEA System BV and co but we will ensure that the prices and quality of all the furniture products that are available in our store are competitive with what is obtainable amongst furniture stores within our level.

• Payment Options

At Lord Gabby™ Furniture Store, Inc., Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our outlets;

• Payment by cash
• Payment via Point of Sale (POS) Machine
• Payment via online bank transfer (online payment portal)
• Payment via Mobile money
• Payment with check from loyal customers

In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any itches.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.

As for the detailed cost analysis for starting a furniture store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;

• The Total Fee for Registering the Business in Oklahoma City – Oklahoma – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Lord Gabby™ Furniture Store, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring Business Consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
• Cost for Shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ( $500 ) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (stocking with a wide range of home and office furniture) – $250,000
• The cost for counter area equipment – $9,500
• Cost for store equipment (cash register, security, ventilation, signage) – $13,750
• Cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a Website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up our furniture retail store in Oklahoma City – Oklahoma. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Lord Gabby™ Furniture Store, Inc.

Lord Gabby™ Furniture Store, Inc. is a private business that is solely owned and financed by Lord Gabby Marcus and his immediate family members. We do not intend to welcome any external business partner, which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.

These are the areas we intend generating our start – up capital;

• Generate part of the start – up capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 ( Personal savings $200,000 and soft loan from family members $50,000 ) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.

One of our major goals of starting Lord Gabby™ Furniture Store, Inc. is to build a business that will survive off its own cash flow without the need of injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality home and office furniture a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Lord Gabby™ Furniture Store, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare is well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List / Milestone

• Business Name Availability Check:>Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In Progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party / launching party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of home and office furniture: In Progress

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How to write a business plan for your furniture retail shop.

Starting a furniture shop is a great way to capitalize on the ever-growing demand for quality, stylish furniture.

It also offers a great opportunity to build relationships with customers by providing them with personalized service and advice.

Don't start without having built a business plan though.

A business plan is essential for any new project, as it helps to provide clarity and direction by outlining the objectives, strategies, and financials of the venture. Developing a business plan before launching a furniture shop can help to ensure its success.

In short, a good business plan will help ensure the profitability of your furniture retail business .

What should be included in the business plan of a furniture shop? What's the ideal arrangement for the structure? What are the key financial ratios to consider? What techniques can I use to simplify the task of writing a business plan?

Exciting news! The forthcoming article holds all the answers to these questions!

Also, please note that starting your business plan from scratch is not mandatory.

Instead, you can download our business plan for a furniture shop and modify it to meet your specifications.

How to craft an elaborate business plan for a furniture shop

Will a business plan be beneficial for your furniture retail store business.

Yes, you should create a business plan to help guide your furniture retail store business.

Crafting a well-structured business plan will help you to:

• get familiar with the furniture retail store market
• catch up with the new industry developments
• pinpoint what makes a furniture shop successful
• understand the furniture styles, material preferences, and home decor needs of customers
• come up with a winning value proposition for your home furnishings store
• monitor competitor activities and tactics
• find competitive advantages for your furniture retail store business
• find a business model that will lead to a positive bottom line
• craft and execute a winning strategy that encompasses short and long-term objectives
• assess potential risks involved in operating a furniture retail store, such as inventory management, customer satisfaction, and market competition

Our team has drafted a business plan for a furniture shop that is designed to make it easier for you to achieve all the elements listed.

How to structure a business plan for a furniture shop?

Your business plan encompasses plenty of useful information and details. It needs to be organized so that it can be easily read and understood.

When we built and designed our business plan for a furniture shop , we took care to arrange it appropriately.

There are 5 separate sections (Opportunity, Project, Market Research, Strategy and Finances).

1. Market Opportunity

The section at the beginning is called "Market Opportunity."

Our team has compiled vital data and metrics about the furniture retail store business, providing insights and trends for entrepreneurs in the home furnishing industry.

We constantly update all the data to ensure freshness.

2. Project Presentation

In the "Project" section, you can describe your furniture retail store business, including the range of furniture styles and categories you offer, quality craftsmanship, sustainable sourcing practices, personalized design assistance, delivery and assembly services, and the unique value proposition that creates stylish and functional living spaces for customers.

Also, provide a self-introduction at the end of this section.

Discuss your understanding of the furniture industry, your ability to curate stylish and high-quality furniture collections, and how you plan to create a delightful shopping experience for customers. Highlight your commitment to offering diverse furniture options, your expertise in interior design and space planning, and your dedication to exceptional customer service that helps customers find the perfect pieces to enhance their homes or spaces.

We've written descriptions for you. You can keep them as is or customize them to match your business idea perfectly.

3. Market Research

Moving on, there's the "Market Research" section.

This section describes the target audience for your furniture retail store business.

It includes a comprehensive analysis of competitors in the furniture industry and emphasizes your store's unique furniture selections and competitive advantages.

A tailored SWOT analysis is provided as well.

4. Strategy

In the "Strategy" section, you will find a detailed growth plan for your furniture retail store business, outlining all the necessary steps and initiatives to ensure its high profitability.

Additionally, this section encompasses a comprehensive marketing plan for a furniture shop, a strategy to handle risks, and a filled-in Business Model Canvas.

5. Finances

Ultimately, the "Finances" section provides a comprehensive view of the financial aspects and metrics of your project.

How to draft an Executive Summary for a furniture shop?

The Executive Summary provides an initial glimpse into the business plan of your furniture retail store business.

Don't go beyond 2 pages; emphasize only the significant points.

This document is meant to get the reader interested in your business plan.

In the Executive Summary of your furniture retail store business, address the following queries: what types of furniture do you sell in your retail store? who is your target market? who are your competitors in the furniture industry? how do you differentiate from them? what is your budget?

How to do the market analysis for a furniture shop?

The market study of your furniture retail store business helps you understand external factors such as customer preferences for furniture styles, competition within the furniture industry, and emerging trends in interior design.

By conducting an extensive market study, a furniture shop can understand consumer preferences, offer a diverse selection of high-quality furniture, optimize pricing strategies, and execute targeted marketing campaigns, ultimately leading to a loyal customer base, increased sales, and a prominent position in the local furniture market.

Here is what what we've put in the "Market Research" section of our business plan for a furniture shop :

• interesting data points and market insights about furniture retail stores, including furniture sales trends, home decor preferences, and the growth of online furniture shopping
• a list of potential customer segments for a furniture shop
• the competitor analysis
• the competitive advantages to build for a furniture shop

The key points of the business plan for a furniture shop

What's the business model of a furniture shop, business model of a furniture shop.

A furniture retail store's business model centers around selling a range of furniture and home decor items to consumers. Revenue is generated through product sales, potentially offering delivery services or interior design consultations.

The business model focuses on curating a stylish and diverse furniture selection, providing a visually appealing store layout, effective marketing and merchandising strategies, knowledgeable sales staff, and building strong customer relationships through exceptional service and product recommendations.

Success depends on understanding customer preferences and interior design trends, establishing relationships with furniture suppliers or manufacturers, maintaining competitive pricing, and creating an engaging and comfortable shopping experience for customers.

Business model vs Business plan

Business plan and "business model" are not interchangeable, so be careful.

A business model outlines the way a company creates value, generates revenue, and operates.

In a business plan, you explain your business model utilizing a tool known as the Business Model Canvas.

Rest assured, we offer a completed Business Model Canvas in business plan for a furniture shop .

How do you identify the market segments of a furniture shop?

Market segmentation for your furniture retail store business involves dividing your potential customers into different groups based on their furniture needs, preferences, and budget.

These categories may include factors such as residential furniture, office furniture, affordable options, or customers seeking specific furniture styles (e.g., modern, traditional, Scandinavian).

By segmenting your market, you can offer a range of furniture products and services that cater to each segment's specific requirements. For example, you might provide a diverse selection of residential furniture for homeowners and renters, offer office furniture solutions for businesses and professional settings, focus on providing affordable furniture options for price-conscious customers, or develop curated collections of furniture in different styles to cater to various design preferences.

Market segmentation allows you to effectively target your marketing efforts, create inviting furniture displays, and provide a satisfying and personalized furniture shopping experience that meets the unique needs and preferences of each customer segment.

In the business plan for a furniture shop , you will find a comprehensive market segmentation that helps you know and understand your customers.

How to conduct a competitor analysis for a furniture shop?

It's clear that you won't be the only furniture retail store business in your market. There are other retailers offering a wide selection of furniture for homes and businesses.

To develop a successful business plan, it is crucial to conduct a thorough analysis of your competitors, assessing their attributes, strengths, and weaknesses.

Take note of their weaknesses (such as limited product range, poor customer service, or inadequate inventory management).

Why is it important to address these concerns? Because these weaknesses can impact the customer experience when shopping at furniture retail stores.

By focusing on these areas, you can offer a wide selection of quality furniture, provide personalized design assistance, and deliver seamless delivery and installation services, establishing your furniture retail store business as a one-stop destination for stylish and functional home furnishings.

It's what we call competitive advantages—develop them to make your business stand out.

Here are some examples of competitive advantages for a furniture shop: diverse selection of high-quality furniture, stylish and contemporary designs, competitive pricing, personalized furniture consultations, efficient delivery and assembly services, customer loyalty programs.

How to draft a SWOT analysis for a furniture store?

A SWOT analysis can help identify strengths, weaknesses, opportunities, and threats in order to better plan and strategize for a successful furniture retail store business.

As you can guess, there is indeed a completed and editable SWOT matrix in our business plan for a furniture shop

The strengths for a furniture shop

The letter "S" denotes Strengths in SWOT, signifying the project's internal advantages or areas of expertise.

For a furniture shop, potential strengths could include an experienced sales team, a wide variety of furniture styles, a convenient location, and competitive pricing.

The weaknesses for a furniture shop

The "W" in this context stands for Weaknesses, which are the parts of the project that could be better.

For a furniture shop, potential weaknesses include high overhead costs, limited customer base, lack of online presence, and difficulty competing with large chain stores.

The opportunities for a furniture shop

The letter "O" in SWOT stands for Opportunities, signifying the potential advantages or favorable conditions for the project.

In the case of a furniture shop, potential opportunities could include offering online sales, partnering with interior designers, developing a loyalty program, and providing rental services.

The threats for a furniture shop

T represents Threats in SWOT, referring to the external factors or circumstances that can pose risks or challenges to the project's goals.

How to elaborate a marketing strategy for a furniture store?

A marketing strategy is a key element of a business plan as it explains how a business will capture customers and achieve sales targets.

Developing an effective marketing plan will help your furniture retail store business reach potential customers in search of stylish and high-quality furniture pieces.

Furniture shoppers won't visit your retail store business without effective promotion; showcasing the quality, style, and affordability of your products is necessary.

Have you considered creative marketing initiatives to promote your furniture retail store business? Organize interior design workshops or seminars, collaborate with local home decor influencers for brand partnerships, and utilize social media platforms to showcase your stylish furniture collections.

No need to worry if you have no understanding of marketing and communication.

How to build a solid financial plan for a furniture store?

A successful business plan requires comprehensive financial data in order to accurately forecast future performance.

When constructing your business plan, it is crucial to incorporate revenue projections for your furniture retail store business.

Potential investors will feel more confident in your business plan if the revenue projections are based on sensible and well-founded assumptions that they can understand.

Our financial plan for a furniture shop is easy to use and includes built-in checks to help you identify and correct any assumptions, ensuring you create reliable projections with confidence.

It goes without saying that you should create a preliminary budget for launching your furniture retail store business. Don't overlook any expense. By the way, we've listed them all in our financial plan!

The break-even analysis is an essential component of your financial plan, as it provides an indication of whether your furniture retail store business will be profitable or not.

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Don't bother with copy and paste.

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Retail Furniture Manufacturer Business Plan

Start your own retail furniture manufacturer business plan

The House of Pine

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Producing and selling furniture is a $12 billion industry.  The focus of the industry is on the affluent customer who can spend upwards to $3,000 on furniture purchases.  In Richmond, there are fifteen furniture stores that are competing for these customers with deep pockets.  Those customers who can’t afford these high prices are left with a poor selection of inferior products.

In the Richmond Metro area, there are approximately 50,000 residents with modest incomes that do not have a furniture store to caters to their needs for affordable quality furniture. This income demographic has grown tremendously over the past five years but has not been responded to by the area furniture stores. Targeting customers with modest incomes is good business. They are expected to make up half of metro population by 2020–making them the fastest-growing segment of the city’s housing market.

There are three modest-income housing renovation projects underway in Richmond with a combined total of 1,500 units that will be sold as affordable housing.

As the Richmond Metro section revives, The House of Pine will offer customized, ready-to-finish pine furniture that’s hand made and surprisingly affordable. We offer:

• Truly Custom Furniture: An unfinished furniture piece that is crafted for the customer. We’ll customize any piece or create a whole new piece from a customer’s rough sketch. 
• Heirloom Quality Furniture: The furniture is made to last for generations. It’s hand crafted, so each piece is unique.
• Handmade from Quality Pine: Every piece is made by a professional craftsman from the finest pine available. Every piece of pine is checked for grain and texture before it’s used.

1.1 Mission

The House of Pine’s Mission is simple. The customer gets what he/she wants; furniture (one piece or a whole house full) that fits the customer’s space, taste, budget and style preference, from top to bottom!

1.2 Keys to Success

The Keys to Success for The House of Pine are as follows:

• Offer our customers affordable quality furniture that will last.
• Customize any piece as requested by a customer.
• And if customizing a piece won’t quite work, create a whole new piece from scratch, exactly to the customer’s specifications.

Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

The House of Pine will offer customized, ready-to-finish pine furniture that’s hand made and surprisingly affordable. Our target customers are young families and young adults with modest incomes who are looking for the same selection and quality that the high-end customer receives. Each piece is handcrafted from the finest pine and built to last for generations.

2.1 Company Ownership

The House of Pine is owned by Richard Putnam. Richard has over 10 years of experience in furniture manufacturing.

2.2 Company Locations and Facilities

The House of Pine will be centrally located in the industrial section of the Richmond Metro area.

2.3 Start-up Summary

The House of Pine’s start-up costs consists mostly of furniture manufacturing equipment and transport containers. Richard Putnam will invest $50,000.  In addition, he will secure a $130,000 loan.

Products and Services

The House of Pine will offer wood products for the bedroom, living and dining room, and the storage room:

• Entertainment centers;

Market Analysis Summary how to do a market analysis for your business plan.">

In the Richmond Metro area, there are approximately 50,000 residents with modest incomes.  They are expected to make up half of the metro population by 2020–making them the fastest-growing segment of the city’s housing market.

It is estimated that the Richmond Metro area will need 10,000 units of affordable housing in the next seven years.  Currently, there are three renovation projects that represent 1,500 new housing units.  Next year, two new construction projects will be completed offering another 1,000 units of affordable housing.  Another 1,000 unit project, to be located in the Garden Meadows section downtown, is currently in the planning stages.

There are changes occuring around the State University, located downtown, that will also impact the revival of the Richmond Metro area.  Two off-campus housing projects will be completed mid-year that will add an additional 2,000 family housing units to the university area.

4.1 Market Segmentation

The growth of affordable housing in the Richmond Metro area is critical to the success of The House of Pine.

We will aggressively market our target customers who live in the Metro area:

• Young working families;
• Young adults.

Strategy and Implementation Summary

The House of Pine will focus on the modest income furniture customer who live in the Richmond Metro area.

5.1 Competitive Edge

Most of Richmond’s fifteen furniture stores are dispersed throughout the city adjacent to affluent or suburban communities. The stores downtown are high end and offer no affordable products to the Metro residents.

The primary reason for the price of the furniture is the type of wood that is used. A bedroom set made of pine can cost a customer $400.  The same set made in oak or maple will cost $800. The profits are higher by focusing on the more expensive wood.  When using pine, many manufacturers improve their profits by using cheaper construction techniques.  The resulting poor quality of these products have added to a popular misconception that pine is an inferior wood.

The Richmond furniture stores offer a very limited selection of styles in pine.  Most products are selected to maximize the store’s profit, not the customer’s satisfaction, since it is believed the customer has few options.

The House of Pine will build its furniture to last generations and will offer the customer all the popular styles.

5.2 Sales Strategy

We will advertise in the university daily student newspaper as well as the Metro area advertising flyer.  In the advertisements for the store opening, we will have a 20% off coupon. We will continue this discount for the first month of operation.

The metro area also has six community organizations that send out weekly flyers to all community residents. We will advertise in the these flyers.

5.2.1 Sales Forecast

The following is the sales forecast for the three years.

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Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

The store’s owner, Richard Putnam, has worked in the furniture manufacturing industry for over ten years.  This experience began at Ingram’s Fine Furniture, where he worked for five years. Within three years, he reached the position of shift manager. Most recently, Richard was the operations manager at Wasserman Furniture Manufacturing.

Richard is an excellent staff supervisor and will do very well in managing the staff of The House of Pine.

6.1 Personnel Plan

The House of Pine will have the following staff members:

• Assistant manager;
• Office manager/accountant;
• Checkers (1.5);
• Production staff (5);
• Stockers (1.5);

Financial Plan investor-ready personnel plan .">

The following is the Financial plan for The House of Pine.

7.1 Break-even Analysis

The following table and chart show our monthly sales break-even point.

7.2 Projected Profit and Loss

The following table and charts highlight the projected profit and loss for three years.

7.3 Projected Cash Flow

The following table and chart highlight the projected cash flow for three years.

7.4 Projected Balance Sheet

The following table highlights the projected balance sheet for three years.

7.5 Business Ratios

Business ratios for the years of this plan are shown below.  Industry profile ratios based on the Standard Industrial Classification (SIC) code 5712, Furniture Stores, are shown for comparison.

The following is an explanation of the plans divergence with industry ratio profile.

• Sales Growth – will start below the industry average but will be closer to the average after the third year of operation.
• Accounts Receivable – is slightly below average due to the low use of credit for purchases (25%).
• Inventory – is below the industry average because 20% of the furniture will be built to order.
• Long Term Assets, Long Term Liabilities, and Expense of Sales – are higher because The House Of Pine builds furniture on site.

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Free Furniture Business Plan PDF Download

How to Start a Furniture Store Business - Furniture Business Plan PDF

Are you considering starting a Furniture Store Business and are in need of a furniture business plan pdf? if yes, you'll find this free book to be extremely helpful.

This is a practical guide that will walk you step by step through all the essentials of starting your business. The book is packed with guides, worksheets and checklists. These strategies are absolutely crucial to your business' success yet are simple and easy to apply.

Don’t Start a New Furniture Business Unless You Watch This Video First!

Checklist for Starting a Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

Here’s a Valuable Free Gift for You This is a high quality, full blown business plan template complete with detailed instructions and all related spreadsheets. You can download it to your PC and easily prepare a professional business plan for your business. Click Here! To get your free business plan template

The Single Most Important Ingredient for Business Success

The first and most important thing you need to acquire in order to succeed in a small business is... knowledge.

Sounds exaggerated? Listen to this...

According to research conducted by Dun & Bradstreet, 90% of all small business failures can be traced to poor management resulting from lack of knowledge.

This is backed up by my own personal observations. In my 31 years as a business coach and consultant to small businesses, I've seen practically dozens of small business owners go under and lose their businesses -- not because they weren't talented or smart enough -- but because they were trying to re-invent the wheel rather than rely on proven, tested methods that work.

Conclusion: if you are really serious about succeeding in a business... If you want to avoid the common traps and mistakes... it is absolutely imperative that you acquire the right knowledge.

"Why Invent Mediocrity, When You Can Copy Genius?"

That's an excellent quote I picked up from a fellow business owner a few years back. What this means is that you should see what is working and try to duplicate it. Why go through all the trouble of inventing something new, that you don't even know will ever work, when you can easily learn from and duplicate something that has been a proven success?

[ Note: One of the BIGGEST mistakes almost all new businesses make is that they WASTE tons of valuable time, energy and money on trying to create something "new", that has never been tested or proven... only to find out later that it was a total loss. Don't make the same mistake! ]

Hi! My name is Meir. I'm the founder and president of BizMove.com, a successful Internet based information business. I'm also the author of numerous books, mostly in the area of small business management.

I've been involved in small business for the past 31 years of my life, as a business coach, manager of a Furniture Store firm, a seminar leader and as the owner of five successful businesses.

During my career as a business coach and consultant I've helped dozens of business owners start their businesses, market, expand, get out of troubles, sell their businesses and do practically every other small business activity you can think of. You see, I have been there .... done it ... and bought the Small Business t-shirt! -- This free book contains techniques and strategies I've learned during my 31 year small business career.

Here's what you'll discover in the 'How to Start a Furniture Store Business' book:

Success Tip: Setting Goals

Good management is the key to success and good management starts with setting goals. Set goals for yourself for the accomplishment of the many tasks necessary in starting and managing your business successfully. Be specific. Write down the goals in measurable terms of performance. Break major goals down into sub-goals, showing what you expect to achieve in the next two to three months, the next six months, the next year, and the next five years. Beside each goal and sub-goal place a specific date showing when it is to be achieved.

Plan the action you must take to attain the goals. While the effort required to reach each sub-goal should be great enough to challenge you, it should not be so great or unreasonable as to discourage you. Do not plan to reach too many goals all at one time.

Establish priorities. Plan in advance how to measure results so you can know exactly how well you are doing. This is what is meant by "measurable" goals. If you can’t keep score as you go along you are likely to lose motivation. Re-work your plan of action to allow for obstacles which may stand in your way. Try to foresee obstacles and plan ways to avert or minimize them.

Click here! to download your Furniture Store Business plan PDF book for free

Here're other free books in the "how to start a business" series that may interest you:

Here's a Sample 'Executive Summary' for a Furniture Store Business plan :

COMPANY NAME , in business since 1991, designs and custom builds in home offices with Murphy beds, kitchens and baths.  The owner and sole operator of the company, INSERT NAME, has hands on experience with everything from the general contracting, meeting with clients and record keeping.  COMPANY NAME is currently operated from Eveleth, Minnesota and proudly resides in a preserved schoolhouse built in the early 1900s. 

1.1 Objectives

• Increase sales by expanding the business.
• Restore and preserve historic building where the business is currently stationed.
• Increase visibility by implementing an advertising campaign.
• Expansion of services by the end of 2010.

1.2 Mission

To provide excellent service in custom cabinet refacing, custom cabinet building, finishing, installing and remodeling in addition to custom home and office furniture specializing in real wood veneers and custom Murphy wall beds.

1.3 Keys to Success

The keys to success in our business are:

• Superior Customer Service: High-quality care and service.
• Convenience: offering clients a wide range of services and options.
• Location: provide an easily accessible location for customer convenience and preserve a historic building where the company resides.
• Reputation: credibility, integrity, and 100% dedication.

COMPANY NAME is a sole proprietor small home and office decor contracting and supply business located in Eveleth, Minnesota which began business in February of 1991.  The owner of COMPANY NAME, INSERT NAME, has been in construction and designs his whole life. He has hands-on experience in all aspects of the trade from record keeping to design, finishing and installing. He has an electrical background, a contracting license for buildings, a lead license, an advertising background, sales experience and people management skills. He also takes continuing education courses in construction, lead, design, advertizing and people management yearly to keep up with changes in the industry.

2.1 Company Ownership

COMPANY NAME /Murphy Wall Beds a Minnesota Sole Proprietor business based in St. Louis County, privately owned by its principal operator.

2.2 Company History

COMPANY NAME has done custom cabinet refacing, custom cabinet building, finishing, installing and remodeling custom furniture (Home and Office) since 1991.  The company specializes in real wood veneers as well and custom Murphy Wall beds.  COMPANY NAME has successfully been in business still to this day in a depressed economy and totes itself as being the "Cadillac of Refacers". The more detailed numbers in the Past Performance table include other indicators of some concern.  The gross margin % has been declining steadily due to the economy, as we see in the chart.  This concern is part of the general trend affecting all small business owners. The margin squeeze is happening throughout all industries worldwide.

Table: Past Performance

3.0 Products and Services

The following subtopics discuss COMPANY NAME services and an overview of competitors in the vicinity.

How to Be Successful in Business

1. Customer-base Ask yourself: If I just bought this company, how would I sell more/expand what I sell to this customer base?

2. Cash Ask yourself: If I could invest this cash in any one part of this business/niche/product line for the biggest cumulative return/profit over the next 5 years, where would I invest it all?

3. Market Leadership Ask yourself: To remain the market leader for the next 25 years, where should I invest my time and company's resources right now?

4. Reputation Ask yourself: What can I do to double the strength of our current reputation, within the next 6 months?

5. Momentum Ask yourself: What's working well right now and how can I keep it working well?

6. Key Staff Ask yourself: Who are the 5 key people in my organization and what game/plan can I create with them so they'll stick around for a long time?

7. Systems Ask yourself: What systems work so well that we take them for granted? How could we improve them?

8. Responsiveness Ask yourself; How quickly and completely do we respond to changes in our customers, market, technology, staff needs or economic conditions?

9. Intellectual Property Ask yourself: What do we have, IP-wise, that just isn't being as leveraged as it could be?

10. The X Factor What do we have that's very, very special and that we could really maximize, just for the pleasure of it?

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Furniture Store Business Plan Template

Written by Dave Lavinsky

Furniture Store Business Plan Outline

• Furniture Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Furniture Store Plan Here

Operations Plan

The operations plan for Modern Mode Furniture Store is as follows.

Operation Functions:

• Richard DeBluff will be the store Director. He will hire, train, and manage all staff as well as carry out administrative functions for the store.
• 2-4 part time hourly employees to assist with inventory, product display, and customer service.
• 2 Interior Designers who will handle large design projects and store design and staging.
• Richard will hire a third party accounting firm to handle all bookkeeping, payroll, tax payments, and permitting.

Milestones:

Modern Mode Furniture Store will have the following milestones complete in the next six months.

6/1/202X – Finalize lease agreement for 4,000 square foot furniture store location.

6/15/202X – Begin build out of leased space.

6/30/201X – Finalize agreements with furniture distributors to schedule their upcoming product deliveries to the store.

7/1/202X – Richard will meet with the chosen advertising agency to hire them to begin brand image, logo design, website, and social media platforms.

8/1/202X – Final walk through and approval of built out furniture store.

8/15/202X – First shipment of inventory arrives

8/16/202X – Hire employees and begin training

8/18/202X – Stocking and display of product inventory in anticipation of the Grand Opening

9/1/202X – Grand Opening of Modern Mode Furniture Store

How to write a business plan for a furniture manufacturer?

Creating a business plan for a furniture manufacturer is an essential process for any entrepreneur. It serves as a roadmap that outlines the necessary steps to be taken to start or grow the business, the resources required, and the anticipated financial outcomes. It should be crafted with method and confidence.

This guide is designed to provide you with the tools and knowledge necessary for creating a furniture manufacturer business plan, covering why it is so important both when starting up and running an established business, what should be included in your plan, how it should be structured, what tools should be used to save time and avoid errors, and other helpful tips.

We have a lot to cover, so let's get to it!

In this guide:

Why write a business plan for a furniture manufacturer?

• What information is needed to create a business plan for a furniture manufacturer?
• What goes in the financial forecast for a furniture manufacturer?
• What goes in the written part of a furniture manufacturer business plan?
• What tool can I use to write my furniture manufacturer business plan?

Being clear on the scope and goals of the document will make it easier to understand its structure and content. So before diving into the actual content of the plan, let's have a quick look at the main reasons why you would want to write a furniture manufacturer business plan in the first place.

To have a clear roadmap to grow the business

It's rarely business as usual for small businesses. The economy follows cycles where years of growth are followed by recessions, and the business environment is always changing with new technologies, new regulations, new competitors, and new consumer behaviours appearing all the time...

In this context, running a business without a clear roadmap is like driving blindfolded: it's dangerous at best. That's why writing a business plan for a furniture manufacturer is essential to create successful and sustainable businesses.

To write an effective business plan, you will need to take stock of where you are (if you are already in business) and where you want the business to go in the next three to five years.

Once you know where you want your furniture manufacturer to be, you'll have to identify:

• what resources (human, equipment, and capital) are needed to get there,
• at what pace the business needs to progress to get there in time,
• and what risks you'll face along the way.

Going through this process regularly is beneficial, both for startups and existing companies, as it helps make informed decisions about how best to allocate resources to ensure the long-term success of the business.

To maintain visibility on future cash flows

Businesses can go for years without making a profit, but they go bust as soon as they run out of cash. That's why "cash is king", and maintaining visibility on your furniture manufacturer's future cash flows is critical.

How do I do that? That's simple: you need an up-to-date financial forecast.

The good news is that your furniture manufacturer business plan already contains a financial forecast (more on that later in this guide), so all you have to do is to keep it up-to-date.

To do this, you need to regularly compare the actual financial performance of your business to what was planned in your financial forecast, and adjust the forecast based on the current trajectory of your business.

Monitoring your furniture manufacturer's financial health will enable you to identify potential financial problems (such as an unexpected cash shortfall) early and to put in place corrective measures. It will also allow you to detect and capitalize on potential growth opportunities (higher demand from a given segment of customers for example).

To secure financing

Whether you are a startup or an existing business, writing a detailed furniture manufacturer business plan is essential when seeking financing from banks or investors.

This makes sense given what we've just seen: financiers want to ensure you have a clear roadmap and visibility on your future cash flows.

Banks will use the information included in the plan to assess your borrowing capacity (how much debt your business can support) and your ability to repay the loan before deciding whether they will extend credit to your business and on what terms.

Similarly, investors will review your plan carefully to assess if their investment can generate an attractive return on investment.

To do so, they will be looking for evidence that your furniture manufacturer has the potential for healthy growth, profitability, and cash flow generation over time.

Now that you understand why it is important to create a business plan for a furniture manufacturer, let's take a look at what information is needed to create one.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

Information needed to create a business plan for a furniture manufacturer

You need the right data in order to project sales, investments and costs accurately in the financial forecast of your furniture manufacturer business plan.

Below, we'll cover three key pieces of information you should gather before drafting your business plan.

Carrying out market research for a furniture manufacturer

Before you begin writing your business plan for a furniture manufacturer, conducting market research is a critical step in ensuring precise and realistic financial projections.

Market research grants you valuable insights into your target customer base, competitors, pricing strategies, and other crucial factors that can impact the success of your business.

In the course of this research, you may stumble upon trends that could impact your furniture manufacturer.

Your market research may reveal that customers may be looking for furniture that is more sustainable and eco-friendly. Additionally, it could point to a trend of customers wanting furniture that is customizable in terms of size and color.

Such market trends play a pivotal role in revenue forecasting, as they provide essential data regarding potential customers' spending habits and preferences.

By integrating these findings into your financial projections, you can provide investors with more accurate information, enabling them to make well-informed decisions about investing in your furniture manufacturer.

Developing the sales and marketing plan for a furniture manufacturer

As you embark on creating your furniture manufacturer business plan, it is crucial to budget sales and marketing expenses beforehand.

A well-defined sales and marketing plan should include precise projections of the actions required to acquire and retain customers. It will also outline the necessary workforce to execute these initiatives and the budget required for promotions, advertising, and other marketing efforts.

This approach ensures that the appropriate amount of resources is allocated to these activities, aligning with the sales and growth objectives outlined in your business plan.

The staffing and equipment needs of a furniture manufacturer

Whether you are at the beginning stages of your furniture manufacturer or expanding its horizons, having a clear plan for recruitment and capital expenditures (investment in equipment and real estate) is vital to ensure your business's success.

To achieve this, both the recruitment and investment plans must align coherently with the projected timing and level of growth in your forecast. It is essential to secure appropriate funding for these plans.

A furniture manufacturer may incur costs for staff salaries, benefits, and training. They may need to provide tools and safety equipment for their employees, such as protective eyewear, gloves, and earplugs. They may also need to purchase various types of machinery for production, such as saws, routers, and drills. Additionally, they may need to purchase materials such as wood, metal, and fabric to make their furniture.

To create a financial forecast that accurately represents your business's outlook, remember to factor in other day-to-day operating expenses.

Now that you have all the necessary information, it's time to dive in and start creating your business plan and developing the financial forecast for your furniture manufacturer.

What goes into your furniture manufacturer's financial forecast?

The financial forecast of your furniture manufacturer's business plan will enable you to assess the growth, profitability, funding requirements, and cash generation potential of your business in the coming years.

The four key outputs of a financial forecast for a furniture manufacturer are:

• The profit and loss (P&L) statement ,
• The projected balance sheet ,
• The cash flow forecast ,
• And the sources and uses table .

Let's look at each of these in a bit more detail.

The projected P&L statement

The projected P&L statement for a furniture manufacturer shows how much revenue and profit your business is expected to make in the future.

A healthy furniture manufacturer's P&L statement should show:

• Sales growing at (minimum) or above (better) inflation
• Stable (minimum) or expanding (better) profit margins
• A healthy level of net profitability

This will of course depend on the stage of your business: numbers for a startup will look different than for an established furniture manufacturer.

The projected balance sheet of your furniture manufacturer

Your furniture manufacturer's forecasted balance sheet enables the reader of your plan to assess your financial structure, working capital, and investment policy.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

Your furniture manufacturer's balance sheet will usually be analyzed in conjunction with the other financial statements included in your forecast.

Two key points of focus will be:

• Your furniture manufacturer's liquidity: does your business have sufficient cash and short-term assets to pay what it owes over the next 12 months?
• And its solvency: does your business have the capacity to repay its debt over the medium-term?

The cash flow forecast

As we've seen earlier in this guide, monitoring future cash flows is the key to success and the only way of ensuring that your furniture manufacturer has enough cash to operate.

As you can expect showing future cash flows is the main role of the cash flow forecast in your furniture manufacturer business plan.

It is best practice to organise the cash flow statement by nature in order to show the cash impact of the following areas:

• Cash flow generated from operations: the operating cash flow shows how much cash is generated or consumed by the business's commercial activities
• Cash flow from investing activities: the investing cash flow shows how much cash is being invested in capital expenditure (equipment, real estate, etc.) either to maintain the business's equipment or to expand its capabilities
• Cash flow from financing activities: the financing cash flow shows how much cash is raised or distributed to financiers

Looking at the cash flow forecast helps you to make sure that your business has enough cash to keep running, and can help you anticipate potential cash shortfalls.

Your furniture manufacturer business plan will normally include both yearly and monthly cash flow forecasts so that the readers can view the impact of seasonality on your business cash position and generation.

The initial financing plan

The initial financing plan, also known as a sources and uses table, is a valuable resource to have in your business plan when starting your furniture manufacturer as it reveals the origins of the money needed to establish the business (sources) and how it will be allocated (uses).

Having this table helps show what costs are involved in setting up your furniture manufacturer, how risks are shared between founders, investors and lenders, and what the starting cash position will be. This cash position needs to be sufficient to sustain operations until the business reaches a break-even point.

Now that you have a clear understanding of what goes into the financial forecast of your furniture manufacturer business plan, let's shift our focus to the written part of the plan.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The written part of a furniture manufacturer business plan

The written part of a furniture manufacturer business plan is composed of 7 main sections:

• The executive summary
• The presentation of the company
• The products and services
• The market analysis
• The strategy
• The operations
• The financial plan

Throughout these sections, you will seek to provide the reader with the details and context needed for them to form a view on whether or not your business plan is achievable and your forecast a realistic possibility.

Let's go through the content of each section in more detail!

1. The executive summary

The executive summary, the first section of your furniture manufacturer's business plan, serves as an inviting snapshot of your entire plan, leaving readers eager to know more about your business.

To compose an effective executive summary, start with a concise introduction of your business, covering its name, concept, location, history, and unique aspects. Share insights about the services or products you intend to offer and your target customer base.

Subsequently, provide an overview of your furniture manufacturer's addressable market, highlighting current trends and potential growth opportunities.

Then, present a summary of critical financial figures, such as projected revenues, profits, and cash flows.

You should then include a summary of your key financial figures such as projected revenues, profits, and cash flows.

Lastly, address any funding needs in the "ask" section of your executive summary.

2. The presentation of the company

In your furniture manufacturer business plan, the second section should focus on the structure and ownership, location, and management team of your company.

In the structure and ownership part, you'll provide an overview of the business's legal structure, details about the owners, and their respective investments and ownership shares. This clarity is crucial, especially if you're seeking financing, as it helps the reader understand which legal entity will receive the funds and who controls the business.

Moving on to the location part, you'll offer an overview of the company's premises and their surroundings. Explain why this particular location is of interest, highlighting factors like catchment area, accessibility, and nearby amenities.

When describing the location of your furniture manufacturer, you could emphasize its proximity to major transportation hubs, as well as its access to a wide range of possible suppliers. You might also point out that the region has a diverse workforce and a strong commitment to economic growth. Furthermore, the area could offer a competitive tax and regulatory environment, making it attractive to investors. Finally, you may want to mention the potential to expand if needed, as the region is growing and has a vibrant infrastructure.

Finally, you should introduce your management team. Describe each member's role, background, and experience.

Don't forget to emphasize any past successes achieved by the management team and how long they've been working together. Demonstrating their track record and teamwork will help potential lenders or investors gain confidence in their leadership and ability to execute the business plan.

3. The products and services section

The products and services section of your business plan should include a detailed description of the offerings that your company provides to its customers. 

For example, your furniture manufacturer could offer custom furniture design services to customers who are looking for a unique piece of furniture for their home or office. Additionally, they could offer a variety of finish options so that customers can customize the look of their furniture to their own personal preference. Finally, they could also offer upholstery services so that customers can customize the fabric and/or other materials used for their furniture. These services would be beneficial to customers as it would allow them to customize their furniture to their own personal taste.

When drafting this section, you should be precise about the categories of products or services you sell, the types of customers you are targeting and how customers can buy them.

4. The market analysis

When you present your market analysis in your furniture manufacturer business plan, it's crucial to include detailed information about customers' demographics and segmentation, target market, competition, barriers to entry, and any relevant regulations.

The main objective of this section is to help the reader understand the size and attractiveness of the market while demonstrating your solid understanding of the industry.

Begin with the demographics and segmentation subsection, providing an overview of the addressable market for your furniture manufacturer, the key trends in the marketplace, and introducing different customer segments along with their preferences in terms of purchasing habits and budgets.

Next, focus on your target market, zooming in on the specific customer segments your furniture manufacturer aims to serve and explaining how your products and services fulfil their distinct needs.

For example, your target market might include young professionals. This segment likely has money to spend and is looking for quality furniture to fill their new home. They want something stylish that will last for years and will be worth the investment.

Then proceed to the competition subsection, where you introduce your main competitors and highlight what sets you apart from them.

Finally, conclude your market analysis with an overview of the key regulations applicable to your furniture manufacturer.

5. The strategy section

When crafting the strategy section of your business plan for your furniture manufacturer, it's important to cover several key aspects, including your competitive edge, pricing strategy, sales & marketing plan, milestones, and risks and mitigants.

In the competitive edge subsection, clearly explain what sets your company apart from competitors. This is particularly critical if you're a startup, as you'll be trying to establish your presence in the marketplace among entrenched players.

The pricing strategy subsection should demonstrate how you aim to maintain profitability while offering competitive prices to your customers.

For the sales & marketing plan, outline how you plan to reach and acquire new customers, as well as retain existing ones through loyalty programs or special offers.

In the milestones subsection, detail what your company has achieved thus far and outline your primary objectives for the coming years by including specific dates for expected progress. This ensures everyone involved has clear expectations.

Lastly, in the risks and mitigants subsection, list the main risks that could potentially impact the execution of your plan. Explain the measures you've taken to minimize these risks. This is vital for investors or lenders to feel confident in supporting your venture - try to proactively address any objection they might have.

Your furniture manufacturer faces a variety of risks. They may have difficulty finding suppliers of the raw materials they need to create their furniture. If suppliers are limited, the manufacturer could be stuck with high prices for materials and be unable to turn a profit. Additionally, the manufacturer might face the risk of competition from other furniture manufacturers with similar products. If the market is flooded with similar products, the manufacturer may have difficulty selling their furniture.

6. The operations section

The operations of your furniture manufacturer must be presented in detail in your business plan.

Begin by addressing your staff, specifying the main roles and your recruitment plan to support the anticipated growth. Outline the qualifications and experience needed for each role and discuss your recruitment strategies, which may involve using job boards, referrals, or headhunters.

Next, clearly state your furniture manufacturer's operating hours, allowing the reader to gauge the adequacy of your staffing levels. Additionally, mention any considerations for varying opening times during peak seasons and your approach to handling customer queries outside regular operating hours.

The key assets and intellectual property (IP) required to run your business should also be highlighted. If you rely on licenses, trademarks, physical structures like equipment or property, or lease agreements, ensure they are well-documented in this section.

You may have key assets such as the physical space of your factory - the machinery, tools, technology, and employees who power it - as well as valuable Intellectual Property (IP) such as proprietary production processes and furniture designs. Your IP may include any patented designs, unique techniques, or trade secrets that could give your furniture company an edge over competitors.

Finally, provide a comprehensive list of suppliers you intend to collaborate with, along with a breakdown of their services and main commercial terms, such as price, payment terms, break clauses and contract duration. Investors often seek insight into the reasons behind your supplier choices, which may include a preference for higher-quality products or established relationships from past ventures.

7. The presentation of the financial plan

The financial plan section is where we will include the financial forecast we talked about earlier in this guide.

Now that you have a clear idea of the content of a furniture manufacturer business plan, let's look at some of the tools you can use to create yours.

What tool should I use to write my furniture manufacturer's business plan?

There are two main ways of creating your furniture manufacturer business plan:

• Using specialized business planning software,
• Hiring a business plan writer.

Using an online business plan software for your furniture manufacturer's business plan

Using online business planning software is the most efficient and modern way to create a furniture manufacturer business plan.

There are several advantages to using specialized software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You are guided through the writing process by detailed instructions and examples for each part of the plan
• You can access a library of dozens of complete business plan samples and templates for inspiration
• You get a professional business plan, formatted and ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck

If you're interested in using this type of solution, you can try The Business Plan Shop for free by signing up here .

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

Hiring a business plan writer to write your furniture manufacturer's business plan

Outsourcing your furniture manufacturer business plan to a business plan writer can also be a viable option.

These writers possess valuable experience in crafting business plans and creating accurate financial forecasts. Additionally, enlisting their services can save you precious time, enabling you to concentrate on the day-to-day operations of your business.

It's important to be mindful, though, that hiring business plan writers comes with a cost. You'll be paying not just for their time but also for the software they use, and their profit margin.

Based on experience, a complete business plan usually requires a budget of at least £1.5k ($2.0k) excluding tax, and more if revisions are needed after initial meetings with lenders or investors - changes often arise following these discussions.

When seeking investment, be cautious about spending too much on consulting fees. Investors prefer their funds to contribute directly to business growth. Thus, the amount you spend on business plan writing services and other consulting services should be negligible compared to the amount you raise.

Another aspect to consider is that while you'll receive the output of the business plan, you usually won't own the actual document. It will be saved in the consultant's business plan software, which will make updating the plan challenging without retaining the consultant on a retainer.

Given these factors, it's essential to carefully weigh the pros and cons of outsourcing your furniture manufacturer business plan to a business plan writer and decide what best suits your business's unique needs.

Why not create your furniture manufacturer's business plan using Word or Excel?

Using Microsoft Excel and Word (or their Google, Apple, or open-source equivalents) to write a furniture manufacturer business plan is a terrible idea.

For starters, creating an accurate and error-free financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

As a result, it is unlikely anyone will trust your numbers unless - like us at The Business Plan Shop - you hold a degree in finance and accounting and have significant financial modelling experience in your past.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately.

And with the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Also, using software makes it easy to compare actuals vs. forecasts and maintain our forecasts up to date to maintain visibility on future cash flows - as we discussed earlier in this guide - whereas this is a pain to do with a spreadsheet.

That's for the forecast, but what about the written part of my furniture manufacturer business plan?

This part is less error-prone, but here also software brings tremendous gains in productivity:

• Word processors don't include instructions and examples for each part of your business plan
• Word processors don't update your numbers automatically when they change in your forecast
• Word processors don't handle the formatting for you

Overall, while Word or Excel may be viable options for creating a furniture manufacturer business plan for some entrepreneurs, it is by far not the best or most efficient solution.

• Using business plan software is a modern and cost-effective way of writing and maintaining business plans.
• A business plan is not a one-shot exercise as maintaining it current is the only way to keep visibility on your future cash flows.
• A business plan has 2 main parts: a financial forecast outlining the funding requirements of your furniture manufacturer and the expected growth, profits and cash flows for the next 3 to 5 years; and a written part which gives the reader the information needed to decide if they believe the forecast is achievable.

We hope that this in-depth guide met your expectations and that you now have a clear understanding of how to write your furniture manufacturer business plan. Do not hesitate to contact our friendly team if you have questions additional questions we haven't addressed here.

Also on The Business Plan Shop

• How to write a business plan to secure a bank loan?
• Key steps to write a business plan?
• Top mistakes to avoid in your business plan

Do you know entrepreneurs interested in starting or growing a furniture manufacturer? Share this article with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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Furniture Upholstery Business Plan

MAY.08, 2023

1. Furniture Upholstery Business Plan Sample and Template

Upholstery is an art form of transforming furniture into something beautiful and timeless. Starting a furniture upholstery business is a great way to tap into the potential of this industry. With the right business plan, you can succeed in this venture and make it a source of income for you. 

This business plan outlines the necessary steps to get started, including an overview of the market, a competitive analysis, financial projections, and a marketing strategy. This business can be used as a Furniture Business Plan Template . 

With this information, you will be well on your way to success!

2. Executive Summary

Business overview.

Upholstery Solutions is an innovative upholstery company in North Carolina specializing in custom-made furniture and high-end restoration. We are dedicated to providing superior-quality upholstery to residential and commercial clients. We can provide our clients with the finest upholstery services by utilizing our experience, decades of knowledge, and excellent craftsmanship. Our mission is to ensure our customers are 100% satisfied with their upholstery needs. 

We offer a wide range of services, including furniture upholstery, custom upholstery, furniture restoration, and fabric selection. Our upholstery services are available for both residential and commercial customers. We also offer a wide selection of fabrics and materials for our customers to choose from. We strive to provide our customers with the highest quality of service and ensure that the finished product meets their exact requirements. 

We have an experienced and talented team of upholstery professionals dedicated to providing our customers with the highest quality of upholstery services. Our team is highly knowledgeable in both the craft and the art of upholstery and can help our customers choose the best fabrics and materials for their needs. 

We are committed to providing superior customer service and ensuring our customers are completely satisfied with our services. We strive to provide our customers with the best quality of service and the highest level of customer satisfaction in the industry. 

Licensing organization in the Furniture Upholstery industry:

https://dbr.ri.gov/commercial-licensing/bedding-and-upholstered-furniture

Upholstery Solutions is a furniture upholstery business specializing in custom furniture upholstery services. We offer our clients a wide range of services, including furniture reupholstering, fabric selection, custom cushion design, and furniture repair. We create unique pieces of furniture that reflect the personality of each client. 

Our products include: 

• Upholstered furniture
• Custom cushions 
• Reupholstering of furniture 
• Furniture repair services 
• Fabric selection 
• Custom furniture design

Customer Focus

Our furniture upholstery business, Upholstery Solutions, is dedicated to providing our customers with quality upholstery services and products. We understand that customers have unique needs, and we strive to provide them with the best possible experience. Our staff is highly trained and experienced professionals committed to delivering excellent customer service. We use only high-quality materials and the latest techniques to ensure that our customers receive the highest quality product. We offer competitive prices and a wide range of services to meet the needs of our customers. We are committed to providing a personalized experience to ensure our customer’s satisfaction with their purchases.

Management Team

In the Woodworking Business Plan Example , our management team consists of experienced professionals passionate about upholstery design and customer service. Our team is led by our CEO, who has over 20 years of industry experience and a proven track record in developing successful upholstery businesses. Our team also includes a Creative Director, a Production Manager, and an Operations Manager, who are all highly skilled in the art of upholstery design and production. Together, our team is dedicated to providing our customers with the highest quality furniture upholstery services and products at competitive prices while ensuring customer satisfaction and loyalty.

Success Factors

The success of our furniture upholstery business will depend on several key factors. We will need to ensure that our products are of high quality, that we have a good understanding of the upholstery market and its trends, that we have access to the right suppliers of materials, and that we have a reliable customer service system. Additionally, we will need to create an effective marketing and advertising plan to ensure that our business stands out from the competition. Finally, we must have a strong team with the skills and knowledge necessary to make our business successful.

Financial Highlights

The company will initially be funded through a $50,000 loan from a bank, which will cover startup costs such as a new location, equipment, and materials. The company will also seek additional funding from private investors and from family members.

• Anticipated gross sales of $600,000 in the first year of operation
• Anticipated net profit of $125,000 in the first year of operation
• A gross profit margin of 20%
• Initial startup costs of $50,000
• Fixed costs estimated at $50,000 per year 
• The anticipated return on investment of 30% within 5 years

3. Company Overview

Who is upholstery solutions furniture upholstery, highly efficient service.

Highly Efficient Service! I am incredibly happy with the outcome; Alex and his team are highly efficient professionals with a diverse bank of knowledge.

Upholstery Solutions Furniture Upholstery is a professional upholstery service company in North Carolina. We specialize in providing custom, handcrafted upholstery services to our clients. Like Sewing Business Plan , our mission is to provide quality furniture upholstery services to our customers with the highest level of customer satisfaction.

We have an experienced team of upholstery professionals who have years of experience in the upholstery industry. Our team is highly trained in the latest upholstery techniques and technologies, and we are committed to providing our customers with the best possible service.

Our goal is to provide our clients with superior-quality upholstery services at competitive prices. We strive to provide our clients with the most up-to-date upholstery techniques and materials to ensure the best possible outcome. We understand that each customer has unique needs, and we strive to meet them with quality and satisfaction.

We offer various services, including furniture upholstery, upholstery repair, upholstery cleaning, and restoration. We also offer a variety of custom upholstery services, such as custom furniture upholstery, custom upholstery repair, and custom upholstery restoration.

To make our upholstery business profitable, we are committed to providing our clients with the highest level of customer service and satisfaction. We strive to ensure that our clients are satisfied with their projects from start to finish. We believe that our customers deserve the best, and we will do whatever we can to ensure that they receive it.

Upholstery Solutions Furniture Upholstery History

Upholstery Solutions Furniture Upholstery is a family-owned and operated business in North Carolina’s heart. We have provided quality upholstery services for residential and commercial customers since 1997.

In the early days, Upholstery Solutions primarily focused on custom upholstery services, focusing on making custom furniture pieces. Over the years, we have diversified our services to include a wide range of upholstery services, such as furniture refinishing, custom furniture design, and reupholstering.

Our customers continue to rely on us for our expertise in upholstery services and our commitment to providing excellent customer service. We strive to create a warm and welcoming atmosphere in our shop and take great pride in our craftsmanship.

4. Industry Analysis

The furniture upholstery industry is a highly fragmented industry, with small businesses focusing primarily on one region or local area.  In 2018, the value of the upholstered furniture market in the United States amounted to approximately 16.7 billion U.S. dollars. This market was forecast to reach a value of over 20 billion U.S. dollars by 2023.

Source: https://www.statista.com/statistics/1080589/upholstered-furniture-market-size-us/ .

The furniture upholstery industry is highly dependent on consumer spending, as customers often purchase furniture upholstery services during significant life changes such as moving, redecorating, or purchasing new furniture. In addition, furniture upholstery services are often purchased as part of larger remodeling projects.

The furniture upholstery industry is highly competitive. A few large companies dominate the market, while small independent businesses compete with them by focusing on a narrow market segment or offering services of higher quality. As a result, the industry is characterized by low entry barriers and high competition levels.

The Furniture market in the United States is projected to grow by 3.95% (2023-2027), resulting in a market volume of US$295.10bn in 2027. This growth is expected to be driven by an increasing number of people moving into new homes and an increase in remodeling projects. Furthermore, the industry is expected to benefit from an increasing number of furniture stores offering upholstery services.

Source: https://www.statista.com/outlook/cmo/furniture/united-states

In order to remain competitive in this industry, it is important to focus on offering high-quality services, focusing on a specific target market, and marketing aggressively. It is also important to be able to distinguish oneself from competitors through superior customer service, innovative product offerings, and competitive pricing.

5. Customer Analysis

Demographic profile of target market.

The target market for starting an upholstery business is the local residential market. The target market comprises homeowners looking for new furniture or upholstery services for their existing furniture, similar to the Embroidery Business Plan . The demographic profile of this target market is as follows:

• Age: The target market is comprised of homeowners between the ages of 25-65.
• Income: The target market has an income level of $50,000-$150,000 annually.
• Education: The target market is educated with a college degree or equivalent.
• Family Status: The target market is comprised of married couples and families with children.
• Location: The target market is located in the local area.
• Interests: The target market is interested in home improvement projects and quality furniture.

The demographic profile of this target market will be used to inform the business’s marketing strategy. For example, to write an upholstery shop business plan, marketing efforts can be tailored to appeal to the interests and needs of this target market. Additionally, the demographic profile will help inform the type of products and services the business offers.

Customer Segmentation

Our customer segmentation for how to start an upholstery business will focus on three distinct groups:

• Residential customers: This segment consists of homeowners, apartment dwellers, and those who need furniture upholstery for their personal residences.
• Commercial customers: This segment consists of businesses, such as restaurants, hotels, retail stores, and office buildings, that require furniture upholstery services for their establishments.
• Designers: This segment consists of interior designers and decorators, who often require furniture upholstery services for their clients.

6. Competitive Analysis

The furniture upholstery and repair business is a highly competitive field. As such, a new business needs to understand the competitive environment to develop a successful upholstery business description and plan.

Direct and Indirect Competitors

Direct Competitors

• Beautifully Upholstered: Beautifully Upholstered is a full-service furniture upholstery business in New York City. They offer various services, including custom upholstery, reupholstery, and furniture repair. Their services are done by experienced and certified upholsterers, and the quality of their work is very high.
• Upholstery by Design: Upholstery by Design is a furniture upholstery business in Los Angeles. They specialize in custom upholstery, furniture repair, and antique restoration. They are known for their high-quality work and for their attention to detail.
• Advanced Upholstery: Advanced Upholstery is a furniture upholstery business in San Francisco. They specialize in custom upholstery, furniture repair, and antique restoration. They offer various services, including slipcovers, cushions, and more.

Indirect Competitors

• Furniture Stores: Furniture stores such as IKEA, Ashley Furniture, and other large retailers offer furniture at discounted prices. These stores do not offer upholstery services, but they offer furniture cheaper than upholstery shops.
• Interior Designers: Interior designers often offer upholstery services to their clients. These services are typically more expensive than upholstery services offered by upholstery shops, but they often offer unique and customized designs.
• Do-It-Yourselfers: Do-it-yourselfers can purchase furniture and upholstery materials and attempt to upholster the furniture themselves. This is often a cheaper alternative to hiring a professional upholsterer, but the quality of work is often lower.

Competitive Advantage

The competitive advantage of our company lies in our unique approach to upholstery. We specialize in custom upholstery, which allows us to create unique pieces that cannot be found elsewhere. We also use the highest quality materials available, and our attention to detail sets us apart from our competitors. 

Our team of experienced craftsmen can create and repair furniture quickly and efficiently, allowing us to offer competitive pricing. We also offer a wide selection of fabrics, allowing customers to choose from various colors, textures, and patterns. Finally, our commitment to customer service ensures that our customers are always satisfied with the outcome of their projects.

7. Marketing Plan

The marketing plan for the furniture upholstery business will use a mix of traditional and digital marketing techniques.

Traditional Marketing

We will utilize traditional marketing techniques to promote our business. These include:

• Networking: We will attend local business networking events and conferences in order to make connections and promote our business.
• Advertising: We will place ads in local newspapers and magazines, as well as online.
• Direct Mail: We will send out postcards and flyers to potential customers in our target market.
• Public Relations: We will leverage local media relationships to promote our business and products.

Digital Marketing

We will also use digital marketing techniques to reach potential customers. These include:

• Social Media: We will create accounts on Facebook, Twitter, Instagram, and other social media sites and use them to promote our business.
• SEO: We will optimize our website for search engine rankings and pay for targeted ads.
• Email Marketing: We will create a targeted email list and send out regular emails to promote our products and services.

Promotions Strategy

We will use a combination of promotions and discounts to attract customers. These include:

• Referral Programs: We will offer discounts to customers who refer us to their friends and family.
• Coupons: We will offer coupons in local publications and online to attract new customers.
• Free Trials: We will offer free trials of our services to potential customers.
• Contests: We will run occasional contests on our social media accounts, offering discounts or prizes to winners.

Mark-up: Our furniture upholstery business will have a markup of 50% on all products. This will help us to cover our overhead costs and make a profit.

Labor: We will charge an hourly rate of $25 per hour plus labor materials.

Materials: We will purchase all materials from reputable vendors at competitive prices. We will also purchase in bulk to help reduce costs.

Shipping: We will add a flat fee of $10 per order for shipping and handling.

Discounts: We will offer a 5% discount for orders over $500 and a 10% discount for orders over $1000.

Payment: We will accept cash, credit card, and PayPal payments. We will also offer a 30-day payment plan for larger orders.

8. Operations Plan

The operations plan is the core of our business plan, as it outlines how we will run the furniture upholstery business. This plan will include the functions of operations, including the organizational structure of our team, the production process and supply chain management, the product delivery process, and the financial and operational costs associated with this business.

Operation Functions

Organizational Structure: We will establish a team of experienced professionals, including a manager and a team of upholsterers, to handle the business’s day-to-day operations.

Production Process: We will use the latest technology to ensure the highest quality of upholstery and the quickest turnaround times.

Supply Chain Management: We will use our network of suppliers to ensure the availability of the necessary materials and components for our business.

Product Delivery: We will use our own vehicles to deliver our products to customers and third-party services to deliver products to customers outside of our region.

Financial & Operational Costs: We will track our costs and expenses to ensure we are operating the business efficiently and that our costs are in line with our revenue.

3/15/202X – Develop and implement an organizational structure.

3/22/202X – Establish a supply chain network.

4/1/202X – Develop a production process.

4/8/202X – Finalize a delivery system.

4/15/202X –Track operational and financial costs.

4/22/202X – Launch the business.

9. Management Team 

The management team at Furniture Upholstery is comprised of experienced professionals from a variety of industries, united in delivering quality service and craftsmanship to our customers. Our team is focused on providing an outstanding customer experience and creating a workplace that encourages collaboration and innovation.

• Vice President
• Chief Financial Officer
• Chief Operating Officer
• Chief Marketing Officer
• Director of Sales
• Director of Operations
• Director of Human Resources
• Director of Quality Assurance
• Director of Customer Service

10. Financial Plan 

We estimate our upholstery business start-up costs to be approximately $20,000. This includes the cost of our equipment, furniture, materials, and supplies. We also expect our monthly operating costs to be approximately $8,000. This includes rent, utilities, insurance, wages, and other overhead expenses.

Key Revenue & Costs

Key Revenue  

• Retail sales of custom-made furniture: $50,000
• Upholstery services: $34,000
• Repairs and maintenance: $16,000
• Equipment, furniture, materials, and supplies: $20,000
• Rent: $2,500
• Utilities: $1,500
• Insurance: $1,000
• Wages: $4,000
• Advertising and marketing: $2,000
• Other overhead expenses: $2,500

Funding Requirements and Use of Funds

Funding Requirements 

We require $20,000 in startup capital for running an upholstery business to cover the cost of our equipment, furniture, materials, and supplies.

Use of Funds

The funds will be used to purchase the necessary equipment, furniture, materials, and supplies needed to launch our business. The funds will also cover rent, utilities, insurance, wages, and other overhead expenses. Any remaining funds will be used for advertising and marketing costs.

Key Assumptions

Market growth: The furniture upholstery industry is estimated to grow 6.5% annually over the next 5 years.

Customers: The furniture upholstery business plan assumes a base of 1,000 customers in year 1, increasing to 1,200 in year 5.

Revenue: Revenues are projected to grow from $500,000 in Year 1 to $800,000 in Year 5.

Operating Expenses: Operating expenses are projected to grow from $300,000 in Year 1 to $500,000 in Year 5.

Profitability: The furniture upholstery business plan projects a profit margin of 25% in Year 1 and 30% in Year 5.

Investment: The furniture upholstery business plan assumes an investment of $150,000 in Year 1 and $200,000 in Year 5.

Employees: The furniture upholstery business plan estimates the number of employees to be 10 in Year 1, growing to 15 in Year 5.

Financial Projections

Income statement.

All tables in Furniture Upholstery Business Plan PDF .

Is upholstery profitable?

Upholstery can be a profitable business, depending on the type of upholstery services you offer and how you market and manage your business. Many successful upholstery businesses specialize in creating custom pieces or restoring antique furniture. Others focus on producing furniture and other items for commercial clients. With a combination of the right skills, marketing efforts, and business management, upholstery can be a lucrative business.

What type of industry is upholstery?

Upholstery is a trade and craft industry that involves the repairing and refurbishment of furniture, as well as the creation of new furniture using fabrics, leather, and other materials.

Download Furniture Upholstery Business Plan Sample in PDF

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