business plan for furniture workshop

Furniture Manufacturing Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Arts & Craft Sector

Are you about starting a furniture manufacturing company ? If YES, here’s a complete sample furniture manufacturing business plan template & feasibility report you can use for FREE to raise money.

The furniture manufacturing industry is indeed a lucrative one. However, it is such that requires plenty of capital to start. This type of business needs loads of manpower as well as capital to run. This is essentially because it requires that furniture in produced and you will agree with me that this will include lots of processes. From sourcing for the raw materials to preparing the materials and what have you.

A Sample Furniture Manufacturing Business Plan Template

1. industry overview.

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

Businesses in this industry mainly manufacture or make 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).

The Furniture Manufacturing industry is indeed a major sector of the economy of the united states of America which generates a whopping sum of well over billion annually from more than 3,533furniture manufacturing companies scattered all around the United States of America. The industry is responsible for the employment of well over 105,640 people.

Experts project the furniture manufacturing industry to grow at a 2.0 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., Herman Miller, HNI Corporation and Steel Case.

Research carried out by IBISWORLD clearly stated that proximity to downstream markets is an important competitive factor in this industry, since it enables furniture manufacturers to increase the speed of delivery and reduce transportation costs.

The regions in the United States that accounts for the largest number of furniture manufacturing companies also have the largest populations. With 25.8 percent of the industry establishments and more than a quarter of the US population, the Southeast region of the United States houses the largest number of industry facilities.

Little wonder this region also accounts for the highest number of furniture wholesalers and retailers, making it an ideal location for household furniture manufacturers that want to be in close proximity to downstream buyers.

Over and above, the furniture manufacturing industry is a profitable industry and it is open to any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in small 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

Bill The Carpenter™ Furniture, Inc. is a standard and registered furniture manufacturing that will be located in Sharonville – Ohio; in an ideal location highly suitable for the kind of business we want to establish. We have been able to lease a facility that is big enough (a 20 thousand square foot facility) to fit into the design of the kind of standard furniture manufacturing company that we intend launching.

Bill The Carpenter™ Furniture, Inc. will manufacture 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).

We are set to services a wide range of clientele in and around Sharonville – Ohio. We are aware that there are several large and small furniture manufacturing companies all around Ohio, 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.

Bill The Carpenter™ Furniture, Inc. will ensure that all our customers are given first class treatment whenever they visit our furniture manufacturing workshop. 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.

Bill The Carpenter™ Furniture, 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.

Bill The Carpenter™ Furniture, Inc. is a family business that is owned by Bill Moore and his immediate family members. Bill Moore 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.

3. Our Products and Services

Bill The Carpenter™ Furniture, Inc. is in the furniture manufacturing industry to manufacture both home and office furniture; 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 give our clients and potential clients options.

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

• Manufacturing 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),
• Manufacturing stationary sofas/sofa-sleepers
• Manufacturing metal household and office furniture
• Manufacturing custom architectural woodwork and other fixtures
• Manufacturing showcases, partitions, shelving and lockers

4. Our Mission and Vision Statement

• Our vision is to become the leading brand in the furniture manufacturing industry in Ohio and to establish a one furniture manufacturing company in Ohio.
• Our mission is to establish a world – class furniture manufacturing business whose products will not only be retailed in the United States of America, but also be exported to other countries of the world.

Our Business Structure

Bill The Carpenter™ Furniture, Inc. do not intend to start a furniture manufacturing business like the usual carpenter shops around the street corner; our intention of starting a furniture manufacturing company is to build a standard and one stop furniture manufacturing company in Sharonville – Ohio.

Although our furniture manufacturing company might not be as big as Ashley Furniture Industries, Inc., Herman Miller, HNI Corporation and Steel Case et al, but we 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 stakeholders (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)
• Workshop Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

• Carpenters and Furniture Markers
• 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.

Workshop Manager:

• Responsible for managing the daily activities in the workshop
• Ensures that proper records of furniture are kept and warehouse does not run out of finished furniture
• Ensures that the workshop is in tip top shape and easy to locate
• Interfaces with third – party suppliers (vendors) of raw materials (woods, forms, clothes, steels, nails and accessories et al)
• Controls furniture distribution and supply inventory
• Supervises the workforce in the furniture manufacturing workshop.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of furniture making raw materials are purchased and used for the manufacturing of furniture
• Responsible for the purchase of furniture raw material 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
• Identifies, prioritizes, and reaches 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
• Develop, execute and evaluate new plans for expanding increase sales
• Document all customer contact and information
• Represent the company in strategic meetings
• Help increase sales and growth for the company

Carpenters and Furniture Making Experts

• Responsible for manufacturing 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),
• Responsible for manufacturing stationary sofas/sofa-sleepers
• Manufactures household and office metal furniture
• Manufactures custom architectural woodwork and other fixtures
• Manufactures showcases, partitions, shelving and lockers.

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
• Ensures 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 finished furniture and the workshop facility at all times
• Ensures that toiletries and supplies don’t run out of stock
• Cleans both the interior and exterior of the workshop facility
• Handles any other duty as assigned by the workshop manager.

6. SWOT Analysis

Bill The Carpenter™ Furniture, Inc. is in business to become one of the leading office and household furniture manufacturing companies in the whole of Sharonville – Ohio and we are fully aware that it will take the right business concept, management and organization – structure to achieve our goal.

We are quite aware that there are several furniture manufacturing companies all over Sharonville – Ohio 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.

Bill The Carpenter™ Furniture, Inc. employed the services of an expert HR and Business Analyst with bias in manufacturing 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 Bill The Carpenter™ Furniture, Inc.;

Our core strength lies in the high quality of our finished furniture, the power of our team and the state of the art and well – equipped furniture making factory that we own. We have a team of highly trained and experienced carpenters and support staff members that can go all the way to produce top notch office and household furniture.

We are well positioned in the heart of Sharonville – Ohio and we know we will attract loads of clients from the first day we open our furniture manufacturing company for business.

A major weakness that may count against us is the fact that we are a new furniture manufacturing company and we don’t have the financial capacity to compete with multi – billion dollars furniture manufacturing companies such as Ashley Furniture Industries, Inc., Herman Miller, HNI Corporation and Steel Case et al when it comes to manufacturing furniture at a rock bottom prices.

So also, we may not have enough cash reserve to promote our furniture manufacturing company the way we would want to do.

• Opportunities:

The fact that we are going to operate our furniture manufacturing company in one of Sharonville – Ohio 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 manufacturing workshop; 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 be faced with 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 manufacturing company 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 Manufacturing 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 Manufacturing 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.

Lastly, in recent time, the furniture manufacturing landscape has seen tremendous changes in the last 20 years; it has grown from the smaller carpenter workshop to a more organized and far reaching massive furniture making factory. This trend has benefited them in such a way that they can comfortably sell their furniture nationally and also export them to other countries of the world.

8. Our Target Market

Perhaps it will be safe to submit that the furniture manufacturing 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 manufacturing company to service the residence of Sharonville – Ohio and every other location where showroom cum outlets 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 manufacture 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 manufacturing 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 manufacturing companies in Sharonville – Ohio and throughout the United States and Canada. Bill The Carpenter™ Furniture, Inc. is launching a standard furniture manufacturing company that will indeed become the preferred choice of residence of Sharonville – Ohio and every other location where our showrooms and outlets will be opened.

Our furniture manufacturing company is located in an ideal property highly suitable for the kind of manufacturing company that we want to run. We have enough parking space that can accommodate well over 30 cars / trucks per time.

One thing is certain; we will ensure that we manufacture a wide range of furniture products in our furniture manufacturing workshop at all times. It will be difficult for customers to visit our furniture showroom and not see the type of furniture that they are looking for.

One of our business goals is to make Bill The Carpenter™ Furniture, Inc. a one-stop furniture manufacturing company 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 amongst the best within our category ( startups furniture manufacturing companies ) 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

Bill The Carpenter™ Furniture, Inc. is in business to manufacture and retail a wide range of furniture to the residence of Sharonville – Ohio. We are in the furniture manufacturing industry to

10. Sales Forecast

One thing is certain when it comes to furniture manufacturing business, if you are into the manufacturing or various types of both home and office furniture and even outdoor furniture, 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 Sharonville – Ohio 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 manufacturing 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 Sharonville – Ohio.

Below is the sales projection for Bill The Carpenter™ Furniture, 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-: $350,000
• Second Fiscal Year-: $750,000
• 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 manufacturing or 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 Bill The Carpenter™ Furniture, 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 Sharonville – Ohio.

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 manufacturing 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 Sharonville – Ohio.

In order to continue to be in business and grow, we must continue to manufacture and sell the furniture that is available in our showrooms which is why we will go all out to empower our sales and marketing team to deliver. In summary, Bill The Carpenter™ Furniture, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our furniture manufacturing company and showroom in a grand style with a party for all.
• Introduce our furniture manufacturing company by sending introductory letters alongside our brochure to organizations, households and key stake holders in Sharonville – Ohio
• Ensure that we manufacture a wide range of home and office furniture
• Make use of attractive hand bills to create awareness and also to give direction to our furniture showrooms
• Position our signage / flexi banners at strategic places around Sharonville – Ohio
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage on road shows within our neighborhood to create awareness for our furniture manufacturing company and showroom.
• 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 manufacturing company and showroom 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 manufacturing company.

Bill The Carpenter™ Furniture, Inc. has a long term plan of opening our showrooms in various locations all around Sharonville – Ohio and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Sharonville – Ohio 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 Bill The Carpenter™ Furniture, 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 Sharonville – Ohio
• 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 Bill The Carpenter™ Furniture, Inc. and the furniture products we manufacture and sell
• Advertise our furniture manufacturing company and showroom 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 manufacturing companies, it is normal for consumers to go to places (furniture manufacturing companies and showrooms) 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., Herman Miller, HNI Corporation and Steel Case and co will always attract loads of corporate and individual clients.

We know we don’t have the capacity to compete with Ashley Furniture Industries, Inc., Herman Miller, HNI Corporation and Steel Case et al, but we will ensure that the prices and quality of all the furniture products that we manufacture and are available in our showroom are competitive with what is obtainable amongst furniture stores within our level.

• Payment Options

At Bill The Carpenter™ Furniture, 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. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for furniture purchased.

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 manufacturing 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 on;

• The Total Fee for Registering the Business in the United States of America – $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 Bill The Carpenter™ Furniture, 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.
• The total cost for hiring Business Consultant – $2,500.
• The total cost for payment of insurance policy covers (general liability, workers’ compensation and property casualty) coverage at a total premium – $9,400.
• The total cost for long – term leasing of a standard warehouse and showroom – $250,000
• The total cost for remodeling the warehouse and showroom – $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 total cost for Start-up inventory (purchase of furniture making tools and equipment and the purchase of furniture making raw materials inclusive) – $250,000
• The total cost for counter area equipment – $9,500
• The total cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The total cost for the 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 total cost of launching a Website: $600
• The total cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $950,000 to successfully set up our furniture retail store in Sharonville – Ohio. Please note that this amount includes the salaries of all the staff for the first month of operation.

Generating Funding / Startup Capital for Bill The Carpenter™ Furniture, Inc.

Bill The Carpenter™ Furniture, Inc. is a private business that is solely owned and financed by Bill Moore 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 $700,000 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 number 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 Bill The Carpenter™ Furniture, Inc. is to build a business that will survive off its own cash flow without the need for 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 manufacture durable and quality furniture and 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.

Bill The Carpenter™ Furniture, 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 retraining 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 facility (warehouse and showroom): 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 Custom Furniture in 9 Steps: Checklist

By alex ryzhkov, resources on custom furniture.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you passionate about creating beautiful, custom furniture pieces? Do you have a talent for woodworking and a vision for designing unique pieces that reflect your clients' personal taste? If so, starting a custom furniture business might be the perfect venture for you. In the United States, the custom furniture industry is thriving, with a steady growth rate of 7.2% annually. With the right business plan in place, you can tap into this lucrative market and turn your passion into a profitable enterprise.

Before you embark on your journey of building a custom furniture business, it is essential to have a solid business plan in place. This roadmap will help guide you through the process and ensure that you set yourself up for success. In this blog post, we will walk you through a 9-step checklist for creating a comprehensive business plan for your custom furniture venture.

The first step in writing your business plan is to determine your target market. Who are your ideal customers? Are you targeting homeowners, interior designers, or commercial clients? Understanding your target market will help you tailor your products and marketing efforts to meet their specific needs and preferences.

Next, it's important to conduct thorough market research. This will involve analyzing industry trends, customer preferences, and market demand for custom furniture. By gathering this information, you can identify opportunities for growth and differentiation in the market.

You also need to identify your competition. Who are the other custom furniture businesses in your area? What sets them apart? Analyzing your competitors will help you define your unique selling proposition and find ways to stand out in a crowded market.

Once you have a clear understanding of your target market and competition, it's time to analyze the potential costs and financial projections for your business. This step will involve outlining your startup costs, identifying potential revenue streams, and creating a realistic financial forecast.

A robust marketing strategy is crucial for attracting customers to your custom furniture business. You will need to identify the most effective channels for reaching your target market and develop a plan to promote your products and services.

Developing a pricing strategy is another important step in your business plan. You need to determine how much to charge for your custom furniture pieces to ensure that you cover your costs and generate a profit. Factors to consider include material costs, labor expenses, and market demand.

To establish your custom furniture business, you will need to choose a business structure. This could be a sole proprietorship, partnership, or corporation, depending on your unique circumstances and long-term goals.

Finally, it's essential to gather all the necessary legal and regulatory information to comply with local laws. This may include obtaining any required licenses or permits, understanding tax obligations, and ensuring that your business operations meet all legal requirements.

By following this comprehensive checklist, you can create a solid business plan for your custom furniture venture. With a well-thought-out plan, your business will be poised for success in the thriving custom furniture industry. So, roll up your sleeves, grab your tools, and start building the foundation for your dream business today!

Determine Your Target Market

Determining your target market is crucial when starting a custom furniture business. By identifying your ideal customer base, you can tailor your products, marketing, and overall business strategy to meet their needs and preferences. Here are key steps to help you determine your target market:

• Conduct market research: Research the potential demand for custom furniture in your area or the target market you plan to serve. This will give you insights into the market size, customer preferences, and any gaps or opportunities you can capitalize on.
• Identify demographics: Determine the specific demographics of your target audience, such as age, gender, income level, and location. This information will help you understand who your ideal customers are and how to effectively reach them.
• Understand psychographics: Go beyond demographics and delve into the psychographics of your target market. Consider their interests, lifestyle choices, values, and motivations. This data will allow you to create furniture designs and marketing messages that resonate with their unique preferences and aspirations.
• Assess customer needs: Identify the specific needs and pain points of potential customers who would benefit from custom furniture. This could include individuals who desire personalized designs, those with unique spatial requirements, or those seeking furniture with specific materials or styles.
• Research customer behaviors: Analyze the purchasing behaviors and patterns of your target market. Understand their preferred shopping channels, where they seek product recommendations, and what influences their decision-making process. This will help you optimize your marketing efforts to effectively reach and engage with your target customers.

Tips for determining your target market:

• Consider conducting surveys or interviews with potential customers to gather valuable insights into their preferences and needs.
• Observe trends in the furniture industry and stay updated with design and style preferences to better serve your target market.
• Do not limit yourself to one target market; narrow down your focus to specific segments within a broader target market to ensure a more effective and tailored approach.

Conduct Market Research

Conducting market research is an essential step in writing a business plan for your custom furniture venture. This research helps you gain valuable insights into your target market, understand customer preferences, and identify potential opportunities and challenges. Here are some important considerations when conducting market research:

• Identify your target audience: Determine who your ideal customers are and understand their needs, preferences, and buying behavior. This will help you tailor your product and marketing strategy accordingly.
• Analyze industry trends: Stay updated on the latest trends in the custom furniture industry. This includes keeping an eye on popular design styles, materials, and manufacturing techniques. By staying informed, you can adapt your offerings to meet customer demands and stay ahead of the competition.
• Study your competitors: Research other custom furniture businesses in your area or online to understand their offerings, pricing, and target market. This analysis will help you identify gaps in the market and differentiate your business from the rest.
• Assess market demand: Determine the demand for custom furniture in your target market. This involves understanding the size of the market, potential growth opportunities, and consumer spending habits. By evaluating market demand, you can assess the feasibility of your business idea and make informed decisions.

Market Research Tips:

• Utilize online resources:
• Consider conducting surveys or interviews:
• Attend industry events and trade shows:
• Network with professionals in the industry:

By conducting thorough market research, you will gain valuable insights that will shape your business strategies and increase your chances of success in the custom furniture industry.

Identify The Competition

Identifying the competition is a crucial step in developing a business plan for your custom furniture business. By understanding who your competitors are, you can determine their strengths, weaknesses, and unique selling points, which will help you position your business effectively in the market. Here are some important points to consider when identifying your competition:

• Research local and online competition: Start by researching local custom furniture businesses in your area. Visit their websites, browse their product catalogs, and take note of their pricing and design styles. Additionally, explore the online marketplace, as there are numerous custom furniture businesses operating online. Analyzing their websites and customer reviews will provide valuable insights.
• Identify their target market: Determine who your competitors are targeting as their primary customer base. This will help you understand potential gaps in the market that you can capitalize on, and it will also assist in defining your target market more clearly.
• Assess their unique selling propositions (USPs): Determine what makes your competition unique. Are they known for their high-quality craftsmanship, quick turnaround times, or extensive customization options? Understanding their USPs will help you differentiate your own business.
• Evaluate their pricing strategies: Take note of how your competitors price their custom furniture. Do they offer competitive prices or cater to a luxury market? Understanding pricing trends and positioning will guide your own pricing strategy.
• Analyze customer reviews and feedback: Customer feedback can provide valuable insights into the strengths and weaknesses of your competitors. Pay attention to positive reviews to identify what customers appreciate, as well as any negative feedback that offers opportunities for improvement in your own business.

Tips for Identifying the Competition:

• Utilize online search engines and directories to discover local and online custom furniture businesses.
• Participate in industry events, trade shows, and networking opportunities to connect with professionals in the custom furniture industry.
• Follow your competition on social media platforms to stay updated on their latest products, promotions, and customer engagement strategies.
• Consider reaching out to former customers of your competition for their insights and experiences.

Define Your Unique Selling Proposition

One of the key elements in creating a successful business plan for custom furniture is defining your unique selling proposition. This is what sets your furniture business apart from the competition and attracts customers to choose your products and services over others.

To define your unique selling proposition, you need to identify the specific qualities, features, or benefits that make your custom furniture business stand out. Consider what makes your furniture designs different, special, or better compared to what is already available in the market.

Here are some important steps to help you define your unique selling proposition:

Brainstorm ideas:

Focus on customer needs and desires:, highlight benefits:, research the competition:, create a compelling value proposition:.

Defining your unique selling proposition is crucial as it forms the foundation for your marketing and branding strategies. It helps you differentiate your business and effectively communicate the value you provide to customers. By clearly defining your unique selling proposition, you can position your custom furniture business as the preferred choice in the market.

Analyze The Potential Costs And Financial Projections

When starting a business, it is crucial to carefully analyze the potential costs and create accurate financial projections. This step will help you determine the feasibility and profitability of your custom furniture business. Here are some important aspects to consider:

• Startup Costs: Identify all the expenses you will incur to start your custom furniture business. This includes equipment, tools, materials, furniture showroom setup, marketing materials, and any required permits or licenses.
• Operational Costs: Calculate the recurring expenses necessary to run your business on a day-to-day basis. These may include rent for workspace, utilities, maintenance costs, employee salaries, and marketing expenses.
• Revenue Projections: Estimate the potential revenue your business can generate based on market research and projected sales. Consider factors such as your target market, pricing strategy, and competition.
• Profit Margins: Determine the profit margins you expect to achieve for each piece of custom furniture. This will depend on the costs of materials, labor, and overhead expenses. It is important to ensure that your profit margins are sufficient to cover all expenses and provide a reasonable return on investment.
• Cash Flow Analysis: Evaluate the timing of cash inflows and outflows to ensure you have sufficient funds to cover expenses and maintain positive cash flow. Consider factors such as payment terms with customers, the timing of material purchases, and any financing or credit arrangements.

Tips for Analyzing Costs and Financial Projections:

• Be conservative in your revenue projections to avoid overestimating earnings.
• Consider potential risks and uncertainties that could impact your financial projections, such as changes in the economy or fluctuations in material prices.
• Regularly review and update your financial projections as your business evolves.
• Consult with a financial advisor or accountant to ensure the accuracy of your projections and to gain valuable insights into financial management.

By conducting a thorough analysis of potential costs and creating realistic financial projections, you will have a better understanding of the financial viability of your custom furniture business. This information will not only help you make informed decisions but also assist in obtaining financing or attracting potential investors.

Create A Marketing Strategy

A strong marketing strategy is essential for the success of any business, including a custom furniture business. It allows you to effectively communicate your brand message, reach your target audience, and generate significant interest in your products. Here are some important considerations to keep in mind when creating your marketing strategy:

• Identify your target audience: Before you can effectively market your custom furniture, you need to know who your ideal customers are. Consider factors such as demographics, lifestyle, and personal preferences to create a clear picture of your target audience.
• Define your brand identity: Your brand identity is what sets you apart from your competition. Clearly articulate your unique selling proposition and what makes your custom furniture business special. This will help you attract customers who resonate with your brand and value the unique aspects of your products.
• Choose the right marketing channels: Once you understand your target audience and brand identity, you can select the most effective marketing channels to reach them. This may include a combination of online platforms such as social media, website, and email marketing, as well as offline tactics like attending trade shows or partnering with local interior designers.
• Create compelling content: Content marketing is a powerful tool to engage potential customers and showcase your expertise in custom furniture. Consider creating blog posts, videos, or even a podcast that provide valuable information and inspiration related to furniture design, craftsmanship, and trends. This will help establish your authority in the industry and build trust with your audience.
• Engage with your audience: Building relationships with your customers is essential for long-term success. Use social media platforms to engage with your audience, respond to inquiries, and share updates about your latest projects. Consider hosting events or workshops to provide a personalized experience and nurture customer loyalty.
• Monitor and adapt: As you implement your marketing strategy, it's crucial to regularly monitor its effectiveness. Pay attention to metrics such as website traffic, social media engagement, and sales conversions. Use this data to make informed decisions and adjust your strategy as needed to maximize your marketing efforts.
• Collaborate with influencers or bloggers in the home decor or furniture industry to gain exposure to a wider audience.
• Offer special promotions or discounts during key holidays or seasonal events to incentivize potential customers.
• Utilize customer testimonials and reviews to build credibility and trust in your brand.

Develop A Pricing Strategy

Developing an effective pricing strategy is crucial for the success of your custom furniture business. It requires a careful analysis of various factors, including your costs, market demand, and competition. Here are some important considerations to keep in mind:

• Understand your costs: Before setting your prices, it is essential to have a clear understanding of your costs. Calculate the direct costs involved in creating custom furniture, such as materials and labor, as well as indirect costs like overhead expenses. This will help you determine the minimum price you need to charge to cover your expenses and achieve profitability.
• Consider market demand: Research the market demand for custom furniture and assess the willingness of customers to pay for personalized pieces. Understand the value that your unique designs and craftsmanship bring to the market and align your prices with the perceived value by your target customers.
• Evaluate your competition: Analyze the pricing strategies of your competitors in the custom furniture industry. Assess how their prices compare to the quality and level of customization they offer. This will give you insights into how you can position your pricing in the market.
• Offer pricing options: Consider offering different pricing options to cater to a wider range of customers. This could include basic packages with standard features and upgrades or premium packages with premium materials and intricate designs. Providing options allows customers to choose based on their budget and preferences.
• Factor in your desired profit margin: Determine the profit margin you aim to achieve for each custom furniture piece. Consider the value you provide and the level of craftsmanship involved when setting your profit margin. Ensure that your pricing strategy allows for a reasonable profit while staying competitive in the market.

Tips for developing a successful pricing strategy:

• Regularly review and adjust your prices based on market trends and changes in costs.
• Offer incentives or discounts for repeat customers to encourage loyalty.
• Consider bundling services or offering package deals to maximize customer value.
• Communicate the unique value and benefits of your custom furniture to justify the pricing to customers.
• Monitor customer feedback and adapt your pricing strategy accordingly.

Establish A Business Structure

When starting a custom furniture business, it is important to establish a proper business structure . This will not only determine how your business is legally organized but also impact other factors such as liability, taxation, and decision-making.

Here are some tips to help you establish the right business structure for your custom furniture business:

Consider your goals and long-term plans

• Think about whether you want to run your business as a sole proprietorship, partnership, limited liability company (LLC), or a corporation.
• Each business structure has its own benefits and drawbacks, so it's important to choose one that aligns with your future aspirations and growth plans.

Consult with professionals

• Seek guidance from an attorney or a trusted business advisor to understand the legal and tax implications of each business structure.
• They can help you choose a structure that fits your specific needs and avoids any potential pitfalls along the way.

Consider liability protection

• Since the custom furniture business involves creating products for customers, it's essential to protect yourself from potential liabilities.
• Choosing a business structure that offers personal liability protection, such as an LLC or a corporation, can safeguard your personal assets in case of any legal issues or financial setbacks.

Once you have chosen the appropriate business structure for your custom furniture business, you will need to register your business with the relevant state authorities and obtain the necessary licenses and permits. It's essential to comply with all legal and regulatory requirements to operate your business smoothly and avoid any penalties or complications in the future.

Remember, establishing a solid business structure lays the foundation for your custom furniture business and sets you up for success as you navigate the competitive market and build strong relationships with your customers.

Gather Necessary Legal And Regulatory Information

As you build your custom furniture business, it is essential to ensure that you comply with all relevant laws and regulations. Failing to meet legal and regulatory requirements can result in penalties, legal issues, and damage to your reputation. To avoid these complications, it is crucial to gather the necessary legal and regulatory information to operate your business smoothly.

Here are some important steps to consider:

• Consult with a legal professional: Seek advice from an experienced business attorney who can guide you through the legal requirements specific to your custom furniture business. They will help you understand any permits, licenses, or registrations you may need to acquire.
• Research local zoning regulations: Different areas have varying zoning regulations that may affect your ability to operate a custom furniture business from your chosen location. Ensure that your business complies with applicable zoning laws to prevent any issues in the future.
• Register your business: Decide on a legal structure for your business, such as a sole proprietorship, partnership, or limited liability company (LLC), and complete the necessary registration process with the appropriate government authorities.
• Obtain necessary permits and licenses: Research and apply for any permits or licenses required to run a custom furniture business in your locality. These may include building permits, sales tax permits, or specialty trade licenses.
• Protect intellectual property: If you plan to create unique designs for your custom furniture, consider registering for copyright or design patents to protect your intellectual property.
• Regularly review and stay updated with changes in legal and regulatory requirements to ensure ongoing compliance.
• Consider consulting with an accountant to understand any tax obligations specific to your custom furniture business.
• Keep accurate records of all legal and regulatory documents to make it easier to provide proof of compliance, if necessary.

Taking the time to gather the necessary legal and regulatory information will provide you with a strong foundation for your custom furniture business. It will give you peace of mind, protect your business, and allow you to focus on delivering exceptional craftsmanship and personalized experiences to your customers.

In conclusion, writing a business plan for a custom furniture business requires careful consideration of various factors. By following the nine steps outlined in this checklist, entrepreneurs can create a solid foundation for their venture. Identifying the target market, conducting market research, and analyzing costs and financial projections are essential for understanding the business's potential success. Defining a unique selling proposition, creating a marketing strategy, and developing a pricing strategy are crucial for positioning the business in a competitive market. Establishing a suitable business structure and gathering necessary legal and regulatory information help ensure compliance and mitigate risks. By following these steps, entrepreneurs can navigate through the complexities of starting and running a custom furniture business with confidence.

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Woodworking Business Plan Template

Written by Dave Lavinsky

Woodworking Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their woodworking companies. 

If you’re unfamiliar with creating a woodworking business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a woodworking business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What is a Woodworking Business Plan?

A business plan provides a snapshot of your woodworking business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan for a Woodworking Business

If you’re looking to start a woodworking business or grow your existing woodworking company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your woodworking business to improve your chances of success. Your woodworking business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Woodworking Businesses

With regards to funding, the main sources of funding for a woodworking business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for woodworking companies.

Finish Your Business Plan Today!

How to write a business plan for a woodworking business.

If you want to start a woodworking business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your woodworking business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of woodworking business you are running and the status. For example, are you a startup, do you have a woodworking business that you would like to grow, or are you operating a chain of woodworking businesses?

Next, provide an overview of each of the subsequent sections of your plan. 

• Give a brief overv iew of the woodworking industry. 
• Discuss the type of woodworking business you are operating. 
• Detail your direct competitors. Give an overview of your target customers. 
• Provide a snapshot of your marketing strategy. Identify the key members of your team. 
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of woodworking business you are operating.

For example, your company might specialize in one of the following types of woodworking businesses:

• Plywood manufacturing : this type of woodworking involves manufacturing the plywood to be used for material for housing, ships, vehicles, and furniture. It is an economical, factory-produced sheet of wood with precise dimensions. 
• Wooden furniture making: this type of woodworking manufactures wood that is commonly used for beds, sofa sets, cupboards, dressing units, sitting arrangements, tables, etc.
• Wooden jewelry making: this type of woodworking uses technically upgraded machinery to produce wooden contemporary jewelry.
• Wooden interior: this type of woodworking manufactures the wood used for the interior part of a room, such as wooden flooring, wall, ceiling, etc.

In addition to explaining the type of woodworking business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of items produced with positive reviews, reaching X number of products sold, etc.
• Your legal business structure. Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the woodworking industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the woodworking industry educates you. It helps you understand the market in which you are operating. 

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your woodworking business plan:

• How big is the woodworking industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your woodworking business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your woodworking business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: furniture stores, home builders, contractors, and individuals.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of woodworking business you operate. Clearly, individuals would respond to different marketing promotions than home builders, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are othe r woodworking businesses. 

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes large home improvement stores, tool shops, and craft or hobby stores. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of woodworking business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide custom items and designs?
• Will you offer products that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a woodworking business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type o f woodworking company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide plywood manufacturing, wooden interior products, wooden furniture, or wooden jewelry?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of yo ur plan, yo u are presenting the products you offer and their prices.

Place : Place refers to the site of your woodworking company. Document where your company is situated and mention how the site will impact your success. For example, is your woodworking business located in a busy retail district, a business district or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your woodworking marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites 
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your woodworking business, including ordering and sourcing wood, designing products, billing vendors and/or suppliers, etc. 

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth product, or when you hope to reach $X in revenue. It could also be when you expect to expand your woodworking business to a new city.  

Management Team

To demonstrate your woodworking business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company. 

Ideally, you and/or your team members have direct experience in managing woodworking businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a woodworking business or successfully running a small craft store.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance s heet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you produce 5 items per day, and/or offer custom designs ? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your woodworking business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt. 

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a woodworking business:

• Cost of equipment and wooden supplies
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your factory location lease or a list of products you plan to manufacture and sell.  

Writing a business plan for your woodworking business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the woodworking industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful woodworking business.  

Woodworking Business Plan FAQs

What is the easiest way to complete my woodworking business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your woodworking business plan.

How Do You Start a Woodworking Business?

Starting a woodworking business is easy with these 14 steps:

• Choose the Name for Your Woodworking Business
• Create Your Woodworking Business Plan
• Choose the Legal Structure for Your Woodworking Business
• Secure Startup Funding for Your Woodworking Business (If Needed)
• Secure a Location for Your Business
• Register Your Woodworking Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Woodworking Business
• Buy or Lease the Right Woodworking Business Equipment
• Develop Your Woodworking Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Woodworking Business
• Open for Business

Don’t you wish there was a faster, easier way to finish your Woodworking business plan?

OR, Let Us Develop Your Plan For You

Since 1999, Growthink has developed business plans for thousands of companies who have gone on to achieve tremendous success.   Click here to see how a Growthink business planning advisor can create your business plan for you.

Other Helpful Business Plan Articles & Templates

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

Furniture Store Business Plan

You’ve come to the right place to create your business plan.

We have helped over 100,000 entrepreneurs and business owners create business plans and many have used them to start or grow their furniture store companies

Sample Business Plan For a Furniture Store

Click each link below to see an example of how to write each essential component of a business plan for your furniture store:

Next Section: Executive Summary >

Furniture Store Business Plan FAQs

What is a furniture store business plan.

A furniture store business plan is a plan to start and/or grow your furniture store business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your furniture store business plan using our Furniture Store Business Plan Template here .

What Are the Main Types of Furniture Stores?

There are many types of furniture stores. Most stores focus on traditional designs and concepts, some stores sell discount affordable furniture, and some stores will sell from only one designer or manufacturer. Other furniture stores sell modern furniture that can either be affordable, moderately priced, or priced on the high-end.

What Are the Main Sources of Revenue and Expenses for a Furniture Store Business?

The primary source of revenue for furniture stores are the products sold at the store and/or warehouse. The furniture store will purchase the items at cost, add a markup, and sell to the public at the marked up cost. 

The key expenses for a furniture store business are the cost of purchasing the product inventory for display, procurement, and shipment of the items. Most times, furniture products come from out of town manufacturers that are in other cities or overseas. Other expenses are the rent and utilities for the facility as well as payroll and marketing costs.

How Do You Get Funding for Your Furniture Store Business Plan?

Furniture store businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Outside investors, crowdfunding, and/or friends or family are other typical funding options. This is true for a traditional furniture store business plan or a custom furniture business plan.

What are the Steps To Start a Furniture Store Business?

Starting a furniture store business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Furniture Store Business Plan - The first step in starting a business is to create a detailed furniture store business plan that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your furniture store business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your furniture store business is in compliance with local laws.

3. Register Your Furniture Store Business - Once you have chosen a legal structure, the next step is to register your furniture store business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your furniture store business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Furniture Store Equipment & Supplies - In order to start your furniture store business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your furniture store business. This includes creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful furniture store business:

• How to Start a Furniture Store Business

Where Can I Get a Furniture Store Business Plan PDF?

You can download our free furniture store business plan template PDF here . This is a sample furniture store business plan template you can use in PDF format.

How to Start a Woodworking Business (and Make $15K/Month)

• 2 years ago

We were wondering how to start a woodworking business so we looked for a company that was already a successful woodworking business. We found John Blunt, founder of Seattle-based community woodworking shop  IsGood Woodworks .

John started IsGood in 1992 without accepting loans or investors. Over the years John grew IsGood from a small, self-funded contract woodworking business into an industry-renowned community woodworking shop that generates approximately $2 million in annual revenue.

Woodworking is an undeniably  profitable industry . In fact, the US woodworking industry was already valued at $258.5 billion in 2018 and is expected to reach an astonishing $291.3 billion by 2024. For those who are highly skilled, woodworking is a lucrative industry. Starting your own woodworking business is rewarding for 3 reasons:

• You are your own boss when opening a woodworking business
• Starting a woodworking business provides an amazing revenue stream
• Opening a woodworking business connects you with your community and other business owners.

If you’re ready to start the journey of opening a woodworking business, follow this step-by-step guide on how to start a woodworking business. Let’s get started by discussing how to develop the shop skills necessary to become a world-class woodworker.

Step 1: Develop your woodworking skills

The first step to starting a successful woodworking business is to develop your woodworker skills.

John had already accumulated a lot of woodworking experience prior to starting IsGood Woodworks. In his own words:

If you’re already well-versed in woodworking, then move ahead to step 2.

If you’re looking to build your woodworking skills, the  Woodworkers Guild of America  offers many resources for people looking to learn the basics or expand upon their current skill set.

You should also check to see if your area has any woodworking businesses like Is Good Woodworks where you can become a member and participate in woodworker workshops and classes. If you really want to know how to start a woodworking business, there is no better way to learn than from a small woodworking business owner.

Keep reading for information on what type of small woodworking business opportunities there are.

Step 2: Ideas for Starting a Woodworking Business

In addition to developing the skills necessary when opening a woodworking business, you’ll also need to decide what kind of woodworking business you will open. Woodworking businesses typically fall into several categories:

• Custom Furniture Business – Building furniture that is more ornate in design
• Cabinetry Business – Building storage spaces for a home
• Craft Business – building artistic trinkets, jewelry, and other items out of wood
• Carpentry Business – Building frames of house, windows, and doors according to local code.
• Business Focused on Finishing Work – Working on floorboards, baseboards, and other decorative parts of houses.
• A Woodworking Incubator – IsGood is basically a woodworking incubator. It provides tools and wood for other creators who need a space to start a woodworking business. If your area doesn’t already have a woodworking incubator, this may be a perfect opportunity for small business owners.
• Check out Medium’s Woodworking Blogs for other ideas about opening a woodworking small business.

Which type of woodworking business you want to start will probably be impacted by the demand for the service or products in your area. Let’s look at some frequently asked questions about woodworking.

Who are the major players in woodworking?

According to FDMC 300 annual report, a report by Pollmeier that tracks the sales of cabinet, furniture, millwork, store fixture, home organization, components, and other wood products industries, the top 5 woodworking companies are:

• Ashley Furniture Industries Inc. – $6.32B Furniture
• Steelcase Inc – $3.724B Furniture and Interior Architecture Products
• Andersen Corp – $2.5B Millwork, Windows, and Doors
• Herman Miller – $2.486B Commerical and Residential Furniture and Storage Systems.
• Jeld-Wen Inc – $2.475B Wood Windows and Doors, Millwork, Exterior, and Interior Doors

Furthermore, revenue has to exceed the following amounts to be one of the top woodworking businesses owners:

• Top 15: $1B
• Top 25: $400m
• Top 100: $75m
• Top 300: $10m

As you can see it doesn’t take insanely high revenue to break into the top 300 woodworking business list.

John makes around $15k/mo ( $180k/year). Anyone willing to put in the hard work can make money when you start your own woodworking business from your wood products and woodworking skills.

What is the industry outlook?

IBISWorld , estimates wood product manufacturing is a $6 billion industry, and the top 50 companies only control approximately 30 percent  of the market. That means there is $4.2 billion left for small woodworking businesses.

According to Globe News Wire The construction industry will be growing by about 2.2% for the foreseeable future, but business owners may find challenges in the woodworking business due to labor and lumber shortages.

This suggests that those wondering how to start a woodworking business should factor in higher than normal inflation until the woodworking supply chain stabilizes from pandemic disruptions.

Step 3: Identify the Ideal Target Market

When starting any type of business, you  must  identify your ideal target market, understand that market well, and know how to reach them if you want your woodworking business to succeed. Otherwise, you might not generate enough revenue to keep your doors open!

A great way to identify and conceptualize target markets is creating buyer personas – in-depth, accurate (yet fictional) descriptions of the ideal customer or client you’d like to sell to when starting your woodworking business.

By creating buyer personas, a business owner can paint a thorough picture of the client base to sell your products.

Forbes  provides the perfect detailed guide for putting together buyer personas.

Once you’ve identified your target market, it’s time to perform detailed market research on that audience to gauge their interests. This will help you decide what items to sell (and what materials you’ll need to sell those items).

Customer Base Example 1: Your target audience is well-off adults aged 30-60, they might be interested in smaller household wood pieces such as rocking chairs, dining table sets, or ornate boxes and keepsakes.

What’s more is that after you’ve identified and researched your target market, you can create print and digital advertising materials that cater specifically to that market (and display them in spaces where that market is likely to spend time).

Making Facebook ads (digital) and placing flyers near office buildings or in industry-related publications (print) would be useful for reaching this target market.

If you build a solid enough client base, your business will reap long-term benefits from it. With IsGood, John built such a meaningful client base that it allows his business operations to come full circle. As he says:

For more hacks and tips watch another interview we’ve done with Daniel Westbrook, owner of Westbrook Carpentry and Millwork:

Another client base might be real estate wholesalers who can refer you to contracts they recently sold.

If you think like John when it comes to client and market outreach, you’ll make the right connections when you start your business and grow your woodworking business in no time!

Step 4: Create a Woodworking Business Plan

Use the knowledge you compiled in step 2 to create a comprehensive woodworking business plan for your woodworking shop. The SBA offers a helpful video guide for  constructing a business plan !

In addition to the SBA resources, check out these free business plan templates!

• One-page business plan  template
• Template for a plan generator  by state
• Our Blog: How to Write A Business Plan (Plus Examples and Templates)

Here’s the kicker… In woodworking, building a highly organized business plan is somewhat contingent on funding. John’s advice was:

John started IsGood with practically no funding, but he was able to design a more flexible business plan that worked for him:

Regardless of your situation, your business plan should be adaptable so it can grow with your woodworking business. Just make one!

Identify Potential Challenges You’ll Face as a Business Owner

In case you might be asking yourself: “Will I face any trying challenges when starting my woodworking business?” – the answer is yes.

Without a doubt, any new business owner is going to face obstacles in the startup process – after all, challenges foster growth!

This article from  Small Biz Trends  details the 10 biggest challenges that small business owners face when starting a small business. From government regulation and tax compliance to generating cash flow and expanding client bases.

Perhaps the challenge from this list that is most worthy of mentioning, however, is the 7th one: staying passionate. When asked about any mistakes he made in the process of growing his shop, John responded with:

For John, Making the switch from contract work to opening his shop is what allowed him to remain passionate about his work and to grow IsGood Woodworks into a successful business in turn.

John also noted that one of the biggest challenges he faces as a woodworking shop owner is balancing the needs of each community member with the needs of his community as a whole. As he says:

Step 5: Figure out Your Funding Sources and Budget (i.e., Fund Your Woodworking Business)

There are two essential financial components when it comes to starting your own business –budgeting and finding funding.

Similar to budgeting in your personal life, creating and maintaining a professional budget is a vital component of starting a successful business. The budget should include:

• Costs associated with business licensing
• Costs of any tools and equipment you need
• Costs of liability insurance to protect your business if something goes wrong.
• Employee costs
• Costs of daily operations
• Paying yourself

The initial cost for enough woodworking supplies to get your business going is estimated at $3,500; $2,000 for material costs and $1,500 for power tools. It gets better once you get going!

Another budgeting factor you need to consider now?

Rent. In fact, John says:

For reference, the startup cost for IsGood Woodworks was around $3,000.

Budgeting resources:

• A complete guide to creating your  business budget  and managing expenses
• A breakdown of the  necessary costs  for a woodworking business

You should have figured out how much funding you need based on the budget for your woodworking business, but you can learn how to start a woodworking business without learning more about the funding types.

For funding, you’ll typically want to know how you will cover at least enough to cover the startup costs and the first year’s operating expenses. You can do this through a combination of any of the following:

• Personal funds/personal assets – Most common way business owners start a business.
• A loan from family or friends – If your family can afford to help and believes in the business plan, they may be willing to.
• Funds from a business partner – A business partner can help with the funding but will get a percentage of the earnings. In addition, multiple business owners may complicate decision-making.
• Government programs – There are often government grants for minorities, women, and economically disadvantaged areas. Check the SBA site to see if you qualify.
• Crowdfunding – Pitching your idea and getting retail investors to fund your company.
• Credit cards – Be careful because of high-interest rates, but if you can pay the balance each month, this may be a great way of funding.
• Home equity loan – Taking equity from your home is another option to fund a business especially if current interest rates are lower than your current interest rate.
• Business loan – check out our partners
• Rollover for business startups (ROBS)

You might need to self-fund like most entrepreneurs do. This can be done by tapping into savings or a 401(K), reaching out to family and friends, or – in John’s case – making ongoing investments and working hard to accumulate the funds. As he explains:

You can always reach out to investors or apply for a small business loan, but it is important to bear in mind that IsGood Woodworks grew into a multi-million dollar shop from being entirely self-funded.

What’s the bottom line? Basically, there is no right or wrong way to acquire funds to start a woodworking business – just acquire them!

The SBA provides a comprehensive  business funding  guide that has a lot of good information about getting funds when starting a business.

Keep reading for how to pick a name when your start a business.

Step 6: Pick a Woodworking Business Name

There are several key components that go into the creation of a good woodworking business name. Some of the primary considerations of picking a business name include:

• Does the Name explain the products a woodworking business makes?
• Does the name hint at the business location?
• Does the name make the business easy to remember?
• Is the business name easy to spell?

When picking your business name, make sure it clearly states what your business does (i.e., woodworking/woodworks/etc.) but avoid being too specific – you don’t want to limit your opportunities for growth with a niche name.

You might want to include the word “furniture” if you make custom furniture out of wood, but if you make artistic wood products, you might want to include the word “Craft” in the name when starting a craft business.

Keep it Simple

Don’t pick a name with complicated spelling or confusing presentation – keep it as short and simple as possible.

Stay True to Yourself

Whatever name you choose for your woodworking business, make sure it represents the heart of your company and aligns with the brand you’re trying to cultivate.

Register a Domain

When registering a domain name for your business, always go for a .com.

Both  GoDaddy  and  Instant Domain Search  are great resources for registering a .com domain name quickly and easily – as if that’s not enough, Instant Domain Search will show you what’s available in real-time!

John’s business name (IsGood Woodworks) is so great because it utilizes every component mentioned above.

Once you’ve decided on your business name, registered a domain, and run it by those who will be honest with you, register it with the government. The SBA provides a  useful guide  for how to do this.

Step 7: Create a Legal Structure for a Woodworking Business

When starting any business, you absolutely have to sort out the legalities. This isn’t the fun part, but it  is  required if you want your business to take off!

It is crucial that a woodworking business make it a point to follow all legal requirements when starting a business. Depending on the kind of business you start, you may be working in other people’s homes or have employees that could get hurt while working with wood, power tools, and other equipment.

I’ve broken it down into two essential components for any up-and-coming woodworking business owner.

Develop a Legal Structure

You can develop a legal structure on your own, but it’s encouraged that you work with an accountant, attorney, tax specialist, or government official of some kind for the best outcome.

The most common legal business entities are sole proprietorships, partnerships, LLCs, and corporations.  Our partners at Better Legal can help you set up your business legal structure.

Sole proprietorship

A sole proprietorship means the business owner is entitled to all of the profit (i.e., pass-through taxation) but is responsible for all potential risk and debt. For this reason, a sole proprietorship is not the way to go when starting a woodworking business.

If someone gets hurt, it will impact your personal life because your personal finances and your business finances are tied together. you can lose everything from one accident that occurs when someone is working with wood products. It’s just not worth it.

Partnership

A partnership is any informally organized business owned by 2 or more people. Similar to a sole proprietorship, partnership owners are to be held personally liable for any actions taken against the company.

Limited Liability Company

An LLC  (Limited Liability Corporation)  is a legal business entity that offers personal liability protection for the business owner while simultaneously offering pass-through taxation.  Limited liability companies can be single or multi-owner LLCs, making them a great way for a woodworker to start a business.

LLCs will typically need to have an operating agreement especially if the business is a multi-owner LLC.

Most woodworking business owners are encouraged to establish their business as an LLC because of the heightened risk of product liability, workplace injuries, and property damage.

Corporation

Establishing a corporation means limited personal liability protection and tax benefits. However, corporations are required to follow more operational guidelines than LLCs. They also incur double taxation, meaning you’ll have to pay income tax and corporate tax.

Obtain Business Licenses, Permits, Tax Forms, and Insurance

Regardless of the legal structure you implement, find out if your woodworking company requires any business licenses, tax forms, or permits to operate legally.

This  SBA tool  will help you when it comes to applying for a business license or permit.

Some of the most common requirements for a woodworking business include:

Sales Tax Permit

Unemployment insurance.

• General Liability Insurance

Keep reading for references on how to make sure your furniture or craft business is running legally.

Most states have a sales tax, and you need to adhere to their requirements. This blog isn’t the place to discuss the permits for all 50 states, but Avalara has a guide on Sales Taxes . Check it out.

Some states will only charge tax on the material costs, while some will charge tax on the wood products and the revenue from labor. Before you start your business, make sure you understand how sales tax works in your area so you don’t pay too little or too much.

Unemployment insurance protects employees if they are laid off. While we hope your woodworking business will not have to lay off employees, recessions occur. The U.S. Chamber of Commerce has a ton of information on unemployment and also offers links to each state agency that handles state unemployment.

You’ll have to pay $420 per employee on a federal level plus any state UI.

Business Insurance/ Liability Insurance

Business insurance is necessary to protect woodworking businesses when accidents occur. The primary types of business insurance include:

• Business General Liability Insurance – For when costly damage occurs to a person or their property.
• Professional Liability Insurance – If you do the structural analysis for a home and then the structure collapses you might need this type of business insurance.
• Cybersecurity insurance – if your woodworking business handles sensitive data like credit cards, social security numbers, and other information hackers might want you might want this type of business insurance.

Most of these types of business insurance should be readily available from your local insurance agent.

Now that you are familiar with the legal requirements of starting a woodworking business, let’s look at some of the things you’ll need to do before your woodworking business is ready to take on clients.

Step 8: How to Start a Woodworking Business

Here’s the deal: starting a woodworking business requires a lot of leg work. You can’t run a successful woodworking business without considering:

• Find a Location
• Purchasing tools and equipment
• Materials costs
• Implementing the business systems
• Following safety and ethical business practices
• Establishing a pricing structure

There are many moving parts when you start a woodworking business. John told us some of the most challenging aspects of how to start a woodworking business including:

That means most of the skills John needed to learn weren’t the operation of power tools and the basics of running a workshop. They were the soft skills of business management.

For extra help understanding the process, of how to start a woodworking business, check out our step-by-step YouTube guide on  how to start a business !

Keep reading to learn how to find a location for a woodworking business.

Find a Location for your Woodworking Business

Finding a location for your woodworking business will often need to be done sooner or later. You might be lucky enough to start a woodworking business from home, but as a small home-based business grows, new business owners will need to find a location for their woodworking business.

That said, it’s better to establish your funding sources, budget, and legalities first. It can be helpful to research the costs of a location before you start a woodworking business because customers are often resistant to paying higher prices because you purchased a workshop.

Include the costs of starting a business location in your pricing method, which we’ll discuss later.

There are a handful of factors involved in picking the right location – refer to this  SBA business location guide  for more information.

With some hard work and luck, you might be able to find a location as quickly as John did for IsGood. In his words:

Acquire Tools and Materials for Woodworkers

From backsaws to sanders, to wood products, you cannot operate a successful woodworking business without acquiring all necessary tools and materials first!

Before starting your woodworking business, consider obtaining the following tools and equipment to work with wood:

A table saw is the first piece of large equipment you should purchase as a woodworker. A woodworker will need a table saw to make precise, straight, smooth cuts on wood boards of different sizes.

Unlike a table saw, a backsaw is a hand tool that is characterized by a stiffened rib running alongside the edge opposite the cutting edge. Though it isn’t quite as precise as a table saw, it’s much easier to use on wood products when on a job site or in tight areas where power tools may be more dangerous.

Orbital Sander

An orbital sander is a handheld sanding power tool and a cheaper, easier-to-use alternative to a belt sander. Belt sanders move more quickly and abruptly along the wood, so orbital sanders are better power tools for new business owners that are still developing their skills.

Circular Saw

The circular saw is one of the most versatile tools you can have in your shop. Circular saws can be bought as stationary or portable tools. These tools serve many different purposes but are particularly good for cutting large wood boards.

The king of tools. It might seem obvious, but having a high-quality hammer (or multiple) in your shop is essential. It will last you a long time and cause less fatigue than cheap tools.

Routers are handheld tools that can be used to carve patterns, designs, and grooves across multiple pieces of wood. Even better, you can use these tools to recreate patterns from broken pieces.

Clamps are a must when it comes to building projects in the shop, as they hold different components together before the final product is assembled. Always buy more of these tools than you think you need because you WILL need them all!

Dust Collector

If you want to maintain a clean, safe shop, you need to purchase a dust collector (which does exactly what it sounds like). However, you can always use a vacuum cleaner in the meantime. These tools are essential when working with wood in customers’ homes.

Chisels are inexpensive, highly useful handheld tools used to cut and shape wood. Because you’ll want them to be as sharp as possible, try to buy a high-quality set. These are great when building custom furniture or small wood products that need exquisite detail.

Measuring Tape

As the most affordable item on this list (like $10 affordable), the measuring tape is invaluable to a woodworker. Consider upgrading to a woodworker’s ruler or measuring block after a while for more accurate measurements.

Thickness Planer

If the job involves finishing work, a planer is an arguably essential tabletop tool used to trim the wood down to a consistent thickness. Be careful with planers, though, as it’s easy to accidentally waste wood while using them.

Somewhat similar to a planer, a jointer is used to produce perfectly flat edges on wood boards so that they can be connected edge-to-edge. Some woodworkers call this tool a necessity, while others avoid it.

Whether you are a home-based business working out of your garage or a busy workshop, you MUST have a dedicated bench for conducting your woodworking projects. The best part? You can make your own out of wood for under $200! Check out this super sweet rolling workbench with extra storage space for wood, tools, and other commonly used materials.

For more information, here is an in-depth list of  27 essential woodworking tools .

Material Costs

Material costs will include:

• The cost of wood
• The cost of dowels
• The cost of wood glue
• The cost of screws and nails
• Cost of stain/paint and other types of wood coloring
• Cost of sealants
• Other wood materials and accessories

For each job, you’ll need to consider the materials you need and the cost associated with them. If you want a good reference point for materials cost in different industries, check out the Ready Ratios website for the typical gross sales margin:

Gross Margin=(Sales-Expenses Attributable to Sales)/Sales

Depending on what type of products you sell, the Gross Margin will be between 10-40% of revenue. Businesses will often sell products based on (2.5x Cost of Goods Sold) to make sure that the gross margin will guarantee the gross margin creates the profit they want for each product they sell.

Check out this Lumen Learning tutorial on estimating projects for custom furniture to understand more about estimating based on material costs.

Keep reading for tips on how a woodworking business manages its customer base.

Hire Woodworkers and Other Employees

Hiring employees is more than likely going to be a necessity after some time because running and performing woodworking aspects of a business is hard labor. And after all, what business owner doesn’t want the opportunity to take a break from running their woodworking business every once in a while?

Of course, there are a handful of expenses that come along with hiring employees for your own woodworking business. That said, it is imperative that you take the following steps.

Pay the employees of your woodworking business.

Employee compensation will be your biggest expense here – they want to make money just as you do. This expense shouldn’t be a problem if you’re generating solid revenue and don’t require much staff.

Because of the structure of his shop, John only has two employees working at IsGood Woodworks – the three of them are able to teach classes and run the business efficiently!

Get an EIN for Your Workshop

Every business operating in the United States needs an employer identification number. It doesn’t matter if you are running a home business, operating on a free business license, or trying to create the next billion-dollar furniture business, you have to have an EIN.

An Employer Identification Number (EIN) is basically a social security number for businesses. Just like an SSN, an EIN is necessary to have; you’ll need it to open a business bank account, file tax returns, and apply for business licenses.

Apply for an Employer Identification Number (EIN) with the IRS – alternatively, call 800-829-4933 for more information.

Maintain Tax Filing Requirements for Your Woodworking business

As a new business, federal and state guidelines will require you to keep a record of employment taxes for at least 4 years. Luckily, a complete  IRS tax filing guide  is available.

Follow Federal Employment and Labor Laws

The DOL requires many small business employers to display poster notices for employees, either electronically or physically in the workplace.

A comprehensive  employer guide  for how to display and distribute these posters is available on their website.

Other Requirements

• The  Federal Unemployment Tax Act  (FUTA) requires any business with employees to pay a payroll tax.
• Employment Eligibility Verification (Form I-9) allows business owners to verify the identity and employment clearance of every person they hire.
• Meeting Occupational Health and Safety Administration ( OSHA ) standards enforce workplace safety and are necessary for any business (and highly relevant in an industry as physical as woodworking).
• Worker’s Compensation Insurance is a must in woodworking, as it helps businesses avoid the cost of an employee’s medical bills and lost wages following a workplace injury.

Implementing the Business Systems for A Woodworking Business

Before opening a woodworking business, you’ll need business systems in place to:

Sell your products (typically a website)

Manage customers information, accept payments, keep track of inventory.

• Manage human resources.

Marketing Systems

Let’s look at each of these to help you understand how to start a woodworking business.

When you start a woodworking business, you will need to have a website. It provides a place for your customers to interact with your business. What type of website you’ll need depends on whether you are selling products online or just creating a web presence.

eCommerce: Sell products online

If you’ll be selling products online, you’ll need an eCommerce site like those found on Shopify . These sites have extensive backends and APIs to make conducting business such as managing inventory, accepting online payments, and handling sales tax requirements easier.

In addition, e-commerce sites have product pages, collections to classify products such as wood jewelry, wood furniture, and home decor.

Websites to maintain a web presence

If you aren’t selling products online, you should still have a website, but it won’t need as many features. Websites are one of the best ways to create a web presence and are easy for a business to maintain.

All they really need is some pictures, descriptions of your services, some information about your company, and ways to contact you. Check out our blog How to create a website to learn more about building websites.

You’ll need to keep track of customers interactions with your business. Maintaining customer data is normally done through software called a CRM (Customer Relationship Management). Capterra is a great place to r ead reviews of CRM to establish which will work best for your business.

CRM can be integrated with email, phone calls, payment processors, your website, and almost anything else that is software-based.

Accepting payments for a woodworking business is typically done 3 ways:

• Through website
• Through a Point-of-Sale System (POS)
• Through a mobile card reader

Depending on your business model you may need all three, but many businesses only need one or two of the option. For instance, if you don’t have a store a customer comes to, you can skip the POS.

Paypal handles most small business payments, but Square , and other providers are available as well. Until you are making over $250,000 there is not much difference between the payment processors. If you scale past that, some of them offer custom rates.

Keeping track of inventory can be a real challenge especially for a woodworking company where you have oddly shaped pieces of wood. Some of the aspects you should track in woodworking include:

• Purchased materials
• Scrap that will go to waste (Unless you are running a business like John that lets other craftsmen use the scraps in exchange for their membership dues).
• Finished products.

Each of these will go into your accounting. There are various ways to monitor them including:

• Hand counting
• Using scales to detect changes in weight
• Connection to POS so that every time a sale is made changes are counted.

A business will often need to use a combination of strategies to minimize the work from a manual hand count, but verify that the electronic strategies are accurate. Using multiple strategies can reduce hand counts from once a week to quarterly or annually.

Manage human resources

Once you have employees, your business will need to manage human resources. This includes aspects such as payroll, tax filing, and documentation. I suggest paying a human resource company to manage it once managing human resources starts taking more than 5 hours per month. Check out Capterra’s comparison of HR companies .

There are a ton of free marketing tools to use. You should familiarize yourself with them or hire someone who specializes in marketing woodworking businesses. Some of my favorite marketing tools are:

• Google My Business – Shows a listing on Google Search and Google Maps for your business
• Google Analytics – Data analytics that you can connect to all your web assets. ( Make sure to exclude your network IPs from the tracking)
• Facebook Pixel – Facebook’s data tracking. If you are good with development, you can include a separate pixel for each product or service your woodworking business offers to have more detailed analytics.
• Open Broadcaster Software – Great software for creating videos, podcasts, and live streams.
• Social Media – Facebook, LinkedIn, YouTube, Instagram, Tiktok, Pinterest

All these providers have extensive help sections to help business owners and their employees learn more about how to maximize results with their software. Just go to their help features and it will give you great links for anything you need to know.

Print materials like business cards and flyers still work well for businesses too.

Follow Safety and Ethical Guidelines for Woodworking Businesses

It’s time to get serious. As an employer, following safety and ethics guidelines is critical in the woodworking industry as you will more than likely have employees working under you in risky conditions.

In case you might be asking yourself what exactly a “risky condition” is, physical dangers in this profession include:

• Severed fingers
• Skin and respiratory diseases (from wood dust and chemical exposure for finishing)

Of course, there are many measures that you can (and should) put in place to avoid extreme worker injury and illness. Obeying ethical guidelines as a woodworking shop owner includes the following:

• The development and implementation of written safety and emergency response procedures
• Providing thorough worker orientation, training, and supervision
• Executing a process for identifying, evaluating, and controlling any workplace safety hazards
• Regularly inspect your workplace, all equipment, and work procedures to help identify any potential hazards
• Investigating accidents (or close calls) to pinpoint causes and prevent recurrences
• Holding regular health and safety meetings for your workers
• Keeping useful records related to workplace health and safety (training processes, safety discussions and inspections, and incident investigations)
• Determining the extent of on-hand first aid required for your shop

The OHSA website provides a comprehensive list of  woodworking safety guidelines  that any responsible shop owner should follow.

Establish a Pricing Structure

If you want to make money, establish a pricing structure that will lead to a successful woodworking business. After all, this is an essential component to starting and managing a lucrative business. When it comes to pricing, there are 2 factors to consider above all else:

Competitors

Conduct thorough research on top market competitors in the industry (e.g. Rockler).

You can start by checking out the  top 20 woodworking companies  in North America and a longer list of  woodworking competitors  – look them up, examine their pricing models, and make yours even better!

Cost and Labor

Not only is it important to research the competition – you have to ensure that you’re making a profit off of whatever you sell.

This informative guide from  The Wood Whisperer  provides new business owners with the perfect pricing formula: materials cost (+10%) + (hourly rate x project hours)

Step 9: Have a Solid Brand and Marketing Strategy

Having both a strong brand and a working marketing strategy in place for your business is crucial if you want to see real profit growth.

When developing a working marketing strategy for your business, it will help you greatly to:

• Create a social media following (Facebook, Twitter, LinkedIn, maybe even Instagram). Start a woodworking blog and invite those in your network to read it. Advertise it to your target audience.
• Design a showroom in your shop, even if your shop is your own home. Build some of your key pieces and display them in a way that showcases their utility to customers.
• Send direct mail with shop information to new homeowners in your area. Invest in creating a booklet with samples of your best work to send out.
• Rent space at trade shows, and make sure to choose those that your target audience is most likely to attend (e.g. home remodeling shows).

This  Hubspot blog post  is an awesome reference for small businesses looking to develop or improve their marketing strategy.

You can’t begin outreach until you look inward, meaning that you can’t implement a great marketing strategy without knowing your brand.

Brand development is a vital component in starting and running any successful business; for brand strategy purposes, consider the following:

• Brand Identity – Develop a strong brand identity by defining your brand, establishing clear company values to humanize your business, and differentiating yourself from other woodworking shops.
• Brand Strategy – Perform a  SWOT analysis  of your business to better understand yourself and identify industry threats, produce a clear narrative (where your business is at now versus where it’s headed), and construct a strong visual brand.
• Brand Loyalty – Be transparent with your customers; provide authentic customer service, listen to and engage with them regularly (on social media and in-person), and always deliver high-quality products.

For visual brand development purposes, check out this woodworking business logo generator!

John does a great job when it comes to combining digital marketing for IsGood with community engagement. In his words:

Like John, try to prioritize digital strategy development – it is 2021, after all! Keep everything as up-to-date and relevant as possible to ensure audience engagement.

Both  Canva  and  Piktochart  are wonderful, easy-to-use resources for creating your own digital and print marketing materials. Want to know the best part? They’re free to use!

Step 10: Make Your Business Stand Out

Money flows when your business grows, and your business grows when it’s noticed!

For a small woodworking business, there are several ways to stand out among the competition and distinguish yourself as a worthy competitor in the industry.

Find a Niche

Finding a  niche that works  for you is the key to operational success for small woodworking business owners.

Whether it be a product type (e.g., chairs, high-end frames, birdhouses, tables, keepsakes) or a skill set (e.g., restoration and repairs, because many woodworkers turn these jobs down), there’s a great niche for any shop.

Help Others

This method of making your woodworking shop stand out in the crowd may not seem as obvious, but it is just as necessary.

After all, some of the best clients and professional relationships come from spreading your knowledge and sharing resources with others in the woodworking industry.

Simply put, think of it as networking with a little more generosity thrown into the mix.

John holds the process of helping other woodworkers close to his heart and attributes that to the success of his shop in comparison to others. In his own words:

John became more successful than ever when he transitioned his business from contract work to a community shop that’s primary focus is helping others succeed. As he puts it:

What’s Next?

To recap this step-by-step guide for how to start a woodworking business, ask yourself the following questions:

• Do I have the required skills to start a woodworking business?
• Do I understand the basics of this process?
• Do I know how to create a business plan?
• Will I be able to acquire funding to make a profit/make this business lucrative?
• What are the costs?
• Where will my business be located?
• Will I be able to acquire the tools and materials needed?
• Will I be comfortable communicating with clients?
• Can I afford to hire employees when necessary?
• Why am I starting a woodworking business?
• Do I need any additional help or advice?
• How can I develop a working brand and marketing strategy?
• What exactly must I do to be successful?

By now, you should have all of the knowledge about how to start your own woodworking business – it’s time to take the next step!

If you after reading this, you don’t think starting a woodworking business is right for you, there are a ton of other options. You can:

• Buy a business through our Businesses for Sale
• Learn about starting a food truck
• Consider starting a screen printing shop .

Let us know in the comments below if you have any questions. We’d love to help!

Brandon Boushy

Brandon Boushy lives to improve people’s lives by helping them become successful entrepreneurs. His journey started nearly 30 years ago. He consistently excelled at everything he did, but preferred to make the rules rather than follow him. His exploration of self and knowledge has helped him to get an engineering degree, MBA, and countless certifications. When freelancing and rideshare came onto the scene, he recognized the opportunity to play by his own rules. Since 2017, he has helped businesses across all industries achieve more with his research, writing, and marketing strategies. Since 2021, he has been the Lead Writer for UpFlip where he has published over 170 articles on small business success.

Related posts

• April 18, 2024

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• April 15, 2024

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• April 11, 2024

Best Networking Groups for Small Business Owners

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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.

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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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The financial plan for a furniture making enterprise.

Running a successful furniture making business goes beyond just having a keen eye for design and craftsmanship; it's also about making smart financial decisions.

In this post, we'll dive into the essentials of crafting a financial plan that can help your furniture making business thrive.

From understanding your startup costs to managing daily expenses and projecting future growth, we're here to guide you through each step.

So, let's get started on the path to making your furniture making dreams a financial success!

And if you need to get a full 3-year financial analysis of your project without having to do any calculations, please download our financial plan tailored for furniture makers.

What is a financial plan and how to make one for your furniture making enterprise?

A financial plan for a furniture making enterprise is an in-depth roadmap that guides the financial aspects of your furniture business.

Think of it as drafting a blueprint for furniture creation: You need to identify the raw materials available, the types of furniture you aim to produce, and the costs involved in manufacturing these pieces. This plan is crucial when starting a new furniture making business, as it turns your passion for crafting furniture into a sustainable, organized operation.

So, why is a financial plan important?

Imagine you're preparing to open a bespoke furniture workshop. Your financial plan will help you comprehend the expenditures required - like renting workshop space, acquiring woodworking tools and machinery, initial costs of wood and other materials, employing skilled craftsmen, and marketing expenses. It’s similar to assessing your workshop tools and budget before beginning a significant furniture project.

But it's more than just a list of expenses.

A financial plan can provide crucial insights, akin to perfecting a unique furniture design. For instance, it might show that using exotic hardwoods is prohibitively expensive, leading you to seek quality local wood sources. Or, you may discover that hiring a large team of craftsmen isn't necessary during the initial phase of your venture.

These insights help in avoiding overspending and over-hiring.

Financial plans also serve as a tool for predicting potential risks. Suppose your plan indicates that you can only break even – where your revenue equals your expenses – if you sell a certain number of furniture pieces monthly. This realization points out a risk: What if your sales don’t meet this target? It prompts you to think of alternative strategies, such as offering custom design services or partnering with retail outlets, to boost income.

How does this differ for furniture making businesses compared to others? The key difference lies in the nature of the costs and revenue patterns.

That’s why the financial plan our team has formulated is specifically designed for the furniture making industry . It’s not suitable for general application to other types of businesses.

Furniture making enterprises have unique expenses such as the cost of durable and varied materials, investment in high-quality tools, and adherence to safety and environmental standards. Their revenue can also vary significantly - consider how design trends might influence sales, in contrast to more stable businesses like a grocery store, where product demand is more consistent.

Of course, our financial plan takes all these specific aspects into account. This enables you to create tailored financial forecasts for your new furniture making venture.

What financial tables and metrics include in the financial plan for a furniture making enterprise?

Developing a financial plan for a new furniture making enterprise is essential for ensuring its success and long-term sustainability.

It's important to recognize that your future furniture business's financial plan is more than just figures on paper; it's a detailed guide that navigates you through the initial phases and aids in maintaining the business over time.

Let's begin with the most fundamental element: the startup costs. This encompasses everything required to launch your furniture making enterprise.

Consider the expenses of acquiring or leasing a workshop space, purchasing woodworking tools and machinery, initial stock of wood and materials, furniture for your office space, decorations, and even the signage for your enterprise. These costs provide a clear view of the initial investment necessary. These have been comprehensively listed in our financial plan , so you won’t need to search elsewhere.

Next, factor in your operating expenses. These are the ongoing costs that will be incurred regularly, such as salaries for craftsmen and staff, utility bills, material purchases, and other daily expenses. Accurately estimating these expenses is crucial to understand how much your enterprise needs to earn to be profitable.

In our financial plan, we've already inputted all the necessary values, giving you a realistic idea of what these should look like for a furniture making business. As with any projections, these can be adjusted in the 'assumptions' tab of our financial plan.

A key table in your financial plan is the cash flow statement, which is also included in our package. This statement details how cash is expected to flow in and out of your business.

It provides a monthly and annual breakdown that includes your projected revenue (the income you anticipate from selling furniture) and your projected expenses (the costs of operating your enterprise). This statement is vital for foreseeing periods when additional cash reserves might be needed or when you can plan for growth or investment.

Another important table is the profit and loss statement, also known as the income statement, which is part of our financial plan as well.

This essential financial table offers insight into your business's profitability over a certain period. It lists your revenues and subtracts the expenses, indicating whether you are making a profit or incurring a loss. This statement is crucial for understanding the financial health of your furniture making enterprise over time.

Additionally, don't overlook the break-even analysis (also included, of course). This calculation informs you of the amount of revenue your enterprise needs to generate to cover all costs, both initial and ongoing. Knowing your break-even point is crucial as it sets a clear sales target to achieve.

We've also incorporated other financial tables and metrics in our financial plan (such as a provisional balance sheet, financing plan, working capital requirement, ratios, charts, etc.), offering you a complete and detailed financial analysis of your future furniture making enterprise.

Can you make a financial plan for your furniture making enterprise by yourself?

Yes, you actually can!

As mentioned above, we have crafted a user-friendly financial plan specifically designed for furniture making business models .

This plan includes financial projections for the initial three years of your venture.

Within this plan, you'll find an 'Assumptions' tab that comes with pre-filled data. This data encompasses revenue assumptions, a comprehensive list of potential expenses unique to furniture making businesses, and a hiring plan. You can easily customize these figures to suit the specific needs of your project.

Our detailed financial plan covers all the crucial financial tables and ratios required for a furniture making enterprise, including the income statement, cash flow statement, break-even analysis, and a provisional balance sheet. It's designed to be fully compatible with loan applications and is accessible to entrepreneurs at all levels, even those with no previous financial experience.

The process is automated to remove the need for manual calculations or complex Excel tasks. Simply enter your data into the designated fields and choose from the provided options. We've made the process straightforward and user-friendly, catering even to those who are new to financial planning tools.

If you encounter any difficulties, please don't hesitate to contact our support team. We promise a response within 24 hours to help solve any issues you might have. Furthermore, we offer a complimentary review and correction service for your financial plan once you've inputted all your assumptions.

What are the most important financial metrics for a furniture making enterprise?

Succeeding in the furniture making business requires a blend of creative craftsmanship and astute financial management.

For a furniture making enterprise, certain financial metrics are particularly crucial. These include your revenue, cost of goods sold (COGS), gross profit margin, and net profit margin.

Your revenue represents the total income from furniture sales, providing insight into the market's reception of your products. COGS, encompassing the cost of materials and direct labor, is vital for understanding the direct costs tied to your furniture production.

The gross profit margin, calculated as (Revenue - COGS) / Revenue, indicates the efficiency of your production process. The net profit margin, the percentage of revenue left after all expenses, reflects your overall financial health.

Projecting sales, costs, and profits for the first year involves analyzing various factors. Begin by examining the local market and identifying your target customers. Estimate your sales considering aspects such as showroom foot traffic, competition, and pricing strategy.

Costs should be categorized into fixed (like workshop rent and utilities) and variable costs (like materials and labor). Be prudent in your estimates, and factor in seasonal variations in sales and costs.

Creating a realistic budget for a new furniture making enterprise is essential.

This budget must cover all anticipated expenses, including workshop rent, utilities, equipment, initial material inventory, labor, marketing, and an emergency fund. Allocate funds for unforeseen expenses, and keep your budget flexible, revising it regularly based on actual performance.

In financial planning for a furniture making business, key metrics include your break-even point, cash flow, and inventory turnover.

The break-even point indicates the sales volume needed to cover your costs. Positive cash flow is crucial for operational continuity, while a good inventory turnover rate suggests efficient material management.

Financial planning can vary widely among different types of furniture businesses.

For instance, a mass-market furniture producer might focus on quick inventory turnover and cost-effective materials for high-volume sales. Conversely, a bespoke furniture studio might incur higher costs for premium materials and skilled labor, emphasizing custom pricing and client experience.

Identifying signs that your financial plan may be off-track is essential. These indicators are all listed in the “Checks” tab of our financial model, providing guidelines for timely corrections and adjustments to your plan to achieve relevant metrics.

Red flags include consistently missing sales targets, rapidly diminishing cash reserves, or materials inventory that is either depleted too quickly or accumulates without use. If your actual figures consistently deviate from your projections, it's a clear sign that your financial plan needs revision.

Finally, the key indicators of financial health in a furniture making enterprise's financial plan include a stable or increasing profit margin, healthy cash flow that covers all expenses comfortably, and consistently meeting or surpassing sales goals.

No worries, all these indicators are “checked” in our financial plan , and you will be able to adjust them as needed.

You can also read our articles about: - the business plan for a furniture making enterprise - the profitability of a a furniture making enterprise

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Office Furniture Manufacturer Business Plan

Start your own office furniture manufacturer business plan

Willamette Furniture

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.">.

Willamette Furniture Mfr. has been riding a growth spurt, having discovered the high-end direct mail channel that gave us a push to new potential volumes through channels. Bolstered by appearances in specialty catalogs, we were able to develop another additional channel through distributors of office equipment that sell directly to corporations.

This annual business plan calls for another three years of accelerated growth. Because our sales growth has brought some working capital implications, we are carefully planning to manage growth and provide for steady cash flow.

We also expect to be profitable as never before. In all, this plan is a healthy company with good growth prospects, looking to manage its orderly growth in the near future.

1.1 Objectives

• Focus on the new channels to increase sales beyond the $1 million mark by Year 3.
• Maintain a gross margin close to 60%, despite the sales increase.
• Increase the net profit significantly by Year 3.

1.2 Mission

Willamette Furniture Mfr. helps create pleasant, productive office environments with well-designed furniture that incorporates new technology into the classic office mode, in which real people can work happily. We are sensitive to the look and feel of good wood and fine furniture as well as to high-powered personal computing. We always provide the best possible value to our customers who care about quality office environments, and we want every dollar spent with us to be well spent. We also create and nurture a healthy, creative, respectful, and fun office and workshop environment, in which our employees are fairly compensated and encouraged to respect the customer and the quality of the product we produce. We seek fair and responsible profit, enough to keep the company financially healthy for the long term and to fairly compensate owners and investors for their money and risk.

1.3 Keys to Success

• Uncompromising commitment to the quality of the end product: quality wood, quality workmanship, quality design, quality of end result.
• Successful niche marketing: we need to find the quality-conscious customer in the right channels, and we need to make sure that customer can find us.
• Almost-automatic assembly: we can’t afford to ship fully-assembled desks, but assembly must be so easy and automatic that it makes the customer feel better about the quality, not worse.

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.">

Willamette Furniture Mfr. is a privately-owned specialty manufacturer of high-end office furniture for computer users who care about elegant office space. Our customers are in all levels of business that can afford very high quality office furniture, plus a growing portion of high-end home offices.

2.1 Company Ownership

Willamette Furniture Mfr. is an Oregon corporation, subchapter S, owned entirely by Jim and Susan Graham. It was created in 1992. At that time the product line and industrial property rights (including trademarks) were purchased from the heirs to the Willamette Association, which was a 1970s commune in rural Oregon.

2.2 Company History

Willamette Furniture Mfr. had actually existed since the 1970s as a “hippy commune,” but its present existence began in 1992 when the furniture line was purchased by Jim and Susan Graham. The Grahams moved to Oregon from California and purchased the business as part of the move.

Sales took a big jump in 1997, when we reached more effective channels of distribution. The key was winning a place in the Premier Executive office furniture catalog, which led to winning the interest of the Needham furniture distributors, and display space in several hundred stores.

Profitability and working capital were problems during our recent growth, but we believe we now have costs and cash flow under control.

2.3 Company Locations and Facilities

Willamette Furniture Mfr. is located in a single facility in the West Eleventh industrial district in Eugene, OR. The facility includes office and workshop space, access to the local bus route, and good parking.

Willamette Furniture Mfr. offers very high quality office furniture designed to effectively incorporate computer machinery into the executive office or home office. The key to the line is an ergonomically effective desk that still looks like an executive desk, looks very good in a high-end home office, but is intended to accommodate the personal computer.

3.1 Product Description

• Our main line is the Willamette computer desk in several versions. This is an elegant piece of office furniture designed to look good in executive office or home office, and at the same time be ideal for real use of the computer. The two critical elements of ergonomics — keyboard height and angle and monitor height and angle — are completely adjustable. Cable runs and shelving add to the utility of the executive computer, without sacrificing elegance.
• We also make complementary pieces to fill out the office suite, including file cabinets, printer stands, and bookcases.
• We also make custom designs to fit exact measurements.

3.2 Competitive Comparison

Within our niche we have two significant competitors, Acme Computer Furniture and ABC Manufacturing. Acme is a bigger company but like us, operating mainly in our same niche, whose marketing is better than its product quality. ABC is a subsidiary of Haines Furniture, a major furniture manufacturer, which has recently targeted our niche.

In general, however, our competition is not in our niche. We compete against generalized furniture manufacturers, cheaper computer-related furniture, and the mainstream merchandise in the major furniture channels and office supply stores. It isn’t that people choose our competitors instead of our product, it is that they choose lesser quality, mainstream materials instead of the higher quality furniture we offer.

3.3 Sales Literature

Sales literature is attached as an appendix to the plan.

For 1998 we plan to develop a company catalog, which would include some other products for the same target customers. The focus will be the executive office catalog, with furniture, lamps, other accessories.

3.4 Sourcing

Our Oregon location is a distinct advantage for local wood. We can buy higher quality oak and cherry than either of our competitors (one in California, one in New York). Since our sales increased over the last two years, we have been able to buy at better prices, because of higher volumes.

We work with three wood suppliers, all local. Bambridge supplies most of our oak, and a bit of cherry and some other specialty woods. Bambridge has been in business for as long as we have, and has given us good service and good prices. This is a good, stable supplier. Duffin Wood Products is a good second source, particularly for cherry and specialty woods. We’ve used Merlin supplies as well, frequently, for filling in when either of our main two suppliers were short.

We also work with a number of specialty manufacturers for furniture fittings, drawer accessories, glass, shelving accessories, and related purchases.

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3.5 Technology

We depend on our dominance of the latest in technology of ergonomics, combined with classic design elements of fine furniture. We must remain on top of new technologies in display, input and output, and communications. For example, our latest models are already assuming the desktop digital scanner as a frequent accessory, and audio for use in creating presentations, email attachments, etc.

Our assembly patents are an important competitive edge. No competitor can match the way we turn a drawback — having to assemble the product — into a feature. Our customer surveys confirm that customers take the interlocking assembly system as an enhancement to the sense of quality.

3.6 Future Products

In 1998 we will introduce the new line based on the executive laptop computer, with docking station to connect to a network. The new furniture has a different configuration to assume easy access to the docking station, and better use of the space that doesn’t have to be dedicated the the CPU case.

We are also going to accommodate larger monitors, the 17″ and 21″ sizes that are becoming much more common, particularly in our high-end market. As we do, we will also be watching for the new technology providing wall-mounted flat screens, the liquid plasma and similar technologies.

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

Our target market is a person who wants to have very fine furniture with the latest in technology, combined with an old fashioned sense of fine woods and fine woodworking. This person can be in the corporate towers, small or medium business, or in a home office. The common bond is the appreciation of quality, and the lack of price constraints.

4.1 Target Market Segment Strategy

Our segment definition is of itself strategic. We are not intending to satisfy all users of office furniture intended for use with personal computers, but, rather, only those who are most demanding. We are definitely out to address the needs of the high-end buyer, who is willing to pay more for quality.

In our particular market, we also seek the buyer who appreciates two attributes: the quality of furniture workmanship and the excellence of design, with an understanding of technology and ergonomics built in.

4.1.1 Market Needs

We understand that our target market needs more than just office furniture. The need grew out of the special needs of personal computing, when combined with office furniture — keyboards at correct height, monitors at correct height, proper channels for cables, and other amenities. Our target customer wants to have all of that plus fine furniture. There is a need for quality, reassurance of wood and good workmanship. We don’t just sell office furniture, we sell office environment and design, plus workmanship.

4.1.2 Market Trends

Our market has finally grown to recognize the disparity between most of the standard office furniture sold through channels, and our own products.

The development of the high-end office worker, office owners, and baby-boomer executive is an important trend for us. We now have people who are using computers who also appreciate the old-fashioned workmanship of good furniture.

4.1.3 Market Growth

According to [source omitted], the market for office furniture is growing at XX percent per year, and is projected to increase. The market for PC-related office furniture is growing even faster, at YY percent per year, and is projected to top $XX billion by the year 2000.

Most important is the growth in home offices with personal computer equipment. As the cost of the computer goes down, steadily, the number of home offices goes up. According to [omitted], this is about 36 million right now, growing at 15 percent per year. Households spent $XX billion last year to equip home offices, and 15 percent of that was spent on furniture.

4.2 Market Segmentation

• Corporate executives : our market research indicates about 2.5 million potential customers who are managers in corporations of more than 100 employees. The target customer is going to be at a high executive level, in most cases, because the purchase price is relatively steep compared to standard office furniture.
• Small business owners: our customer surveys indicate a strong market among the owners of businesses with fewer than 100 employees. There are 11 million such businesses in this country, most of them with concentrated ownership that makes the owners potential customers.
• Home offices: the home office business has proliferated during the 1990s, and we also have home offices for people employed outside the home. This is a big market, some 36 million home offices, growing faster than other markets.

4.3 Industry Analysis

The office furniture industry has undergone a great deal of change in this decade. The growth of the office superstores made a few large brands dominant. They produce relatively inexpensive furniture that makes compromises in order to stay at the low price level.

Makers of higher quality furniture are in general shuffling for niches to hide in. Although Willamette Furniture Mfr. was essentially developed around a niche, many of the more traditional furniture makers are looking for niches, trying to deal with declining sales as the main volume goes elsewhere.

4.3.1 Industry Participants

The main volume in the industry is now concentrated in four main brands, all of which compete for retail sales through major retail chain stores: Office Depot, Office Max, Staples, and others. These same four are also concentrating efforts as well in the major club discount stores, the Price Club, Costco, Sams, etc.

The growth of the office superstores made a few large brands dominant. Designs are similar and quite competitive, costs and cost control is critical, and channel management and channel marketing are the keys to these business’ continued success.

In mainstream office furniture, the rise of the office store channel has siphoned a lot of volume from the older and more traditional manufacturers. The channels that sold the more traditional lines are also suffering. What’s left are smaller brands, smaller companies, and divisions of more traditional furniture companies.

There are also some traditional manufacturers still making desks as part of furniture lines focused mainly on home furnishings. Some of these have looked at times at our niche, and are competing for the same dollars.

4.3.2 Distribution Patterns

The four main manufacturers are selling direct to the office superstores and buying discount clubs. This accounts for the main volume of distribution. The office furniture customer seems to be growing steadily more comfortable with the retail buy in the chain store.

The major corporate purchases are still made directly with manufacturers. Although this is still a major channel for some of the more traditional manufacturers, it is essentially closed to new competition. The direct channel is dominated by two manufacturers and two distributors. The distributors will occasionally take on a new line — happily, this has helped Willamette Furniture Mfr. — but the main growth is in retail.

Published research indicates that 51% of the total sales volume in the market goes through the retail channel, most of that major national chains. Another 23% goes through the direct sales channel, although in this case direct sales includes sales by distributors who are buying from multiple manufacturers. Most of the remainder, 18%, is sold directly to buyers by catalogs.

4.3.3 Competition and Buying Patterns

In direct sales to corporations, price and volume is critical. The corporate buyer wants trouble-free buying in volume, at a great price. Reliable delivery is as important as reliable quality.

In the high-end specialty market, particularly in our niche, features are very important. Our target customer is not making selections based on price. The ergonomics, design, accommodation of the computer features within the high-quality feel of good wood, is much more important than mere price. We are also seeing that assembly is critical to shipping and packing, but our customer doesn’t accept any assembly problems. We need to make sure that the piece comes together almost like magic, and as it does, it presents a greater feel of quality than if it hadn’t required assembly at all.

4.3.4 Main Competitors

Acme Computer Furniture Acme has been operating since the middle 1980s, and grew up with computer-related furniture. It was one of the first, certainly the first we are aware of, to develop personal computer desks and market through advertising in computer magazines. Today they are about twice our size. They have a very nicely done catalog and good relationships with two distributors.

Strengths: good marketing, strong advertising budget, relationships with distributors, strong direct sales. Weaknesses: the product is more standardized, and of lesser quality, with less sense of design and materials and workmanship.

ABC Manufacturing ABC Manufacturing is a division of Haines Furniture, the second largest manufacturers of mainstream home furnishings. Haines bought ABC three years ago and is focusing on our niche. We see very good quality product, and an excellent sense of design, but little movement in channels or catalogs.

Strengths: financial backing, product quality. Weaknesses: ABC has not seemed to understand our niche, where to find the buyers, how to market as a specialty niche instead of the more traditional furniture channels.

Strategy and Implementation Summary

We focus on a special kind of customer, the person who wants very high quality office furniture customized to work beautifully with modern technology including personal computers, scanners, internet connections, and other high-tech items. Our customer might be in larger corporations, small or medium business, or in a home office with or without a home-office business. What is important to the customer is elegance, fine workmanship, ease of use, ergonomics, and practicality.

Our marketing strategy assumes that we need to go into specialty channels to address our target customer’s needs. The tie-in with the high-end quality catalogs like Sharper Image is perfect, because these catalogs cater to our kind of customers. We position as the highest quality, offering status and prestige levels of purchase.

The product strategy is also based on quality, in this case the intersection of technical understanding with very high quality woodworking and professional materials, and workmanship.

Our most important competitive edge is our assembly strategy, which is based on interlocking wood pieces of such high quality that assembly is not only a pleasure for our customers, it is actually a feature that enhances the sense of quality.

5.1 Strategy Pyramid

Our main strategy at Willamette Furniture Mfr. is to position ourselves at the top of the quality scale, featuring our combination of superb technology and fine old-fashioned woodworking, for the buyer who wants the best quality regardless of price. Tactics underneath that strategy include research and development related to new designs and new technology, choosing the right channels of distribution, and communicating our quality position to the market. Programs are mainly those listed in the milestones table, including new design programs, new equipment to keep up with design, channel development, channel marketing programs, our direct sales, and our continued presence in high-end catalog channels and new presence in the web.

5.2 Value Proposition

Willamette Furniture Mfr. gives the discriminating personal computer user, who cares about design and quality furniture and quality of working environment, a combination of highest quality furniture and latest technology, at a relatively high price.

5.3 Competitive Edge

Our competitive edge is our dominance of high-technology ergonomics and traditional high-quality furniture workmanship. Although there are many computer furniture manufacturers, and many computer lovers, few have brought the two crafts together as we have.

5.4 Marketing Strategy

Our product is positioned very carefully: this is high-quality office furniture combining workmanship and ergonomics for the customer who understands quality, is a user of high technology equipment, and is willing to spend money on the best. Unlike the mainstream products, we do not use laminates or cheap manufacturing technology.

Our marketing strategy is based mainly on making the right information available to the right target customer. We can’t afford to sell people on our expensive products, because most don’t have the budget. What we really do is make sure that those who have the budget and appreciate the product know that it exists, and know where to find it.

The marketing has to convey the sense of quality in every picture, every promotion, and every publication. We can’t afford to appear in second-rate catalogs with poor illustrations that make the product look less than it is. We also need to leverage our presence using high-quality catalogs and specialty distributors.

5.4.1 Pricing Strategy

We will maintain our pricing position as a premier provider. We are the best product available, for the most discriminating consumer. We intend to maintain our separation from the price competition at the lower end of the business. Our plan calls for no significant changes in pricing.

5.4.2 Promotion Strategy

Our most important vehicle for sales promotion is the direct mail catalog published by the specialty retailer such as Sharper Image and its competitors. Our advertising budget of $264 million goes mainly for space in the specialty catalog.

We also participate in major industry events, including both the Spring and Fall national computer furniture shows and the fall computer show. Our total budget for events is $40,000, plus about half of the $31,000 travel budget.

This year we will also promote our products with an in-house catalog including our own products plus related merchandise of interest to the same target market.

5.4.3 Distribution Strategy

Our most important marketing program is [specifics omitted]. Ivy Bells will be responsible, with budget of $XX,XXX and milestone date of the 15th of July. This program is intended to [objectives omitted]. Achievement should be measured by [specific concrete measurement].

Another key marketing program is [specifics omitted]. [Name] will be responsible, with budget of $XX,XXX and milestone date of [date]. This program is intended to [objectives omitted]. Achievement should be measured by [specific concrete measurement].

5.4.4 Positioning Statement

For discriminating personal computer users who want to integrate their PCs with fine furniture, the Willamette line offers exquisite workmanship and design combined with state-of-the-arts ergonomics and technology. Unlike the Acme line, Willamette Furniture makes no design compromises for standardization.

5.5 Sales Strategy

For the next year we continue to focus on growing presence in the high-end direct mail catalog that finds our specialty customer. We will work with Sharper Image and Broadview more than ever, and we expect to gain position in the major airline catalogs as well. Specialty retail is a new channel that could become important for us.

Our work with distributors has been promising. We hope to continue the relationship with distributors selling directly to larger corporations, even though this takes working capital to support receivables.

5.5.1 Sales Programs

Specific sales programs:

• Catalog sales: develop placement with one additional catalog catering to the high-end office executive, paying of course for space and positioning. The budget is $10,000 for this program, due March 15, with Jan responsible.
• Distributor sales: we need to develop at least new distributor, spending for co-promotion as required, and making direct sales calls. The specific responsibility is Jan’s, and due date is May 15, with a budget of $15,000.
• Direct sales: we will do a mailing of a new in-house catalog, developed by the marketing department, to add to our direct telephone sales. Jan will be responsible, without a budget or a deadline because the catalog is a marketing program.

5.5.2 Sales Forecast

Our sales forecast assumes no change in costs or prices, which is a reasonable assumption for the last few years.

We are expecting to increase sales, growing from $225 thousand last year to $450 thousand in the next year, which is about doubling in size. The growth forecast is in line with our last year, and is relatively high for our industry because we are developing new channels. In 1999 and 2000 we expect growth closer to 50% per year, to a projected total of more than $1 million in 2000.

We are projecting significant change in the product line, or in the proportion between different lines. The key to our growth is the growth of the new channels, with the main desk.

Our seasonality, as shown in the chart, is still a factor in the business. We tend to sell much better in Spring and Fall, and sales drop in the summer.

5.6 Milestones

The accompanying table shows specific milestones, with responsibilities assigned, dates, and (in most cases) budgets. We are focusing in this plan on a few key milestones that should be accomplished.

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.">

We are a small company owned and operated by Jim and Susan Graham, husband and wife, as a Subchapter S corporation. Jim is the developer and designer of the products, and Susan manages the company as president.

Management style reflects the participation of the owners. The company respects its community of co-workers and treats all workers well. We attempt to develop and nurture the company as community. We are not very hierarchical.

6.1 Organizational Structure

Susan Graham, President, is responsible for overall business management. Our managers of finance, marketing, and sales report directly to Susan.

Jim Graham, designer, is responsible for product design and development, assembly, and manufacturing. Our workshop manager reports directly to Jim.

As co-owners, Jim and Susan jointly develop business strategy and long-term plans. Jim is strong on product know-how and technology, and Susan is strong on management and business know-how.

6.2 Management Team

Susan Graham, 43, president, had a successful career in retail before becoming half owner of Willamette Furniture Mfr. She was an area manager of Ross Stores, a buyer for Macy’s, and merchandising assistant for Sears and Roebuck. She has a degree in Literature from the University of Notre Dame.

Jim Graham, 44, workshop manager, designed furniture for Haines Manufacturing before becoming half owner of Willamette Furniture Mfr. He was responsible for one of the first executive desks designed to include customized fittings for personal computers, and was one of the first to design the monitor inside the desk under glass. He has an B.S. and M.S. in industrial design, from Stanford University and the University of Oregon, respectively.

Terry Hatcher, 34, is marketing manager. Terry joined Willamette Furniture Mfr. from the marketing department of the Thomasville Furniture chain, having been in charge of national catalog production and catalog advertising. Terry also managed direct sales at one of the furniture distributors that has since died to industry consolidation. Terry has a B.A. degree in literature from the University of Washington.

6.3 Management Team Gaps

We depend on our professionals, our CPA and our attorney, for some key management help. We don’t have a strong background in finance or business management.

As we grow we will need to develop more manufacturing technique, more mass production. Leslie grew up with the hand-made and custom furniture business, knows fine woodworking well, but admits a weakness in establishing standardized assembly.

6.4 Personnel Plan

The personnel table assumes slow growth in employees, and 10% per annum pay raises. We already have a strong benefits policy (with fully-paid medical, dental, and life insurance, plus a profit sharing and 401K plan) and very low turnover.

Salaries are generally in line with market pay for the Eugene area, although our benefits are above standard market level, so we ultimately pay a bit more for our people than what might be considered standard in our market. Eugene, however, is on average a lower wage location than most of the more developed industry areas.

As we grow, we expect to see steady increases in our personnel to match the increases in sales.

Financial Plan investor-ready personnel plan .">

The financial picture is quite encouraging. We have been slow to take on debt, but with our increase in sales we do expect to apply for a credit line with the bank, to a limit of $150,000. The credit line is easily supported by assets.

We do expect to be able to take some money out as dividends. The owners don’t take overly generous salaries, so some draw is appropriate.

7.1 Important Assumptions

The accompanying table lists our main assumptions for developing our financial projections. The most sensitive assumption is the collection days. We would like to improve collection days to take pressure off of our working capital, but our increasing sales through channels makes the collection time a cost of doing business.

We also expect to see a decline in our inventory turnover ratio, another unfortunate side effect of increasing sales through channel. We find ourselves having to buy earlier and hold more finished goods in order to deal with sales through the channel.

7.2 Key Financial Indicators

The following chart shows changes in key financial indicators: sales, gross margin, operating expenses, collection days, and inventory turnover. The growth in sales will be very hard to manage. We expect our gross margin to be a bit lower than before, because our projections show a slight decline as we go into new product areas and face new competition.

The projections for collection days and inventory turnover show that we are already expecting a decline in these indicators, because of increasing sales through channels.

7.3 Break-even Analysis

Our break-even analysis is based on running costs, the “burn-rate” costs we incur to keep the business running, not on theoretical fixed costs that would be relevant only if we were closing.

Our assumptions on average unit sales and average per-unit costs depend on averaging. We don’t really need to calculate an exact average, this is close enough to help us understand what a real break-even point might be.

The essential insight here is that our sales level seems to be running comfortably above break-even.

7.4 Projected Profit and Loss

We do expect a significant increase in profitability this year, and in the future, because we have learned how to deal with the increasing sales levels of selling through channels. Despite the lower profitability levels of recent years, we expect to see very strong net profits in 1998, and remain at that level through 2000. Our higher sales volume has lowered our cost of goods and increased our gross margin. This increase in gross margin is important to profitability.

7.5 Projected Cash Flow

Although we expect to be more profitable in 1998, we still have drains on the cash flow. We need to invest $25,000 in new assembly and manufacturing equipment, plus $15,000 in new computer equipment, and another $10,000 in miscellaneous short-term assets, including office equipment. Because of our increased sales through channels, and necessary increase in inventory levels, we need to increase working capital. We plan to extend our credit line to cover as much as $150,000 in short-term credit, backed by receivables and inventory.

7.6 Projected Balance Sheet

Our projected balance sheet shows an increase in net worth to more than $400 thousand in 2000, at which point we expect to be making compelling profits on sales of $1.1 million. With the present financial projections we will be careful in supporting our working capital credit line, and we are growing assets both because we want to — new equipment — and because we have to grow receivables and inventory to support growth in sales through channels.

7.7 Business Ratios

Our ratios look healthy and solid. Gross margin is projected to decline slightly, return on assets will run well above industry standards, and return on equity is excellent. Debt and liquidity ratios also look good, with our Quick ratio increasing over the next three years.  The standard comparisons are based on SIC code 2521, manufacturers of wood office furniture.

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Woodworking Business Plan Example

SEPT.04, 2018

Do you want to start woodworking business plan?

Do you want to start a woodworking business? The business has a widespread market and inclusive demand throughout the year, as there is a substantial category of people which never compromise on spending money to adorn their property with high-quality artistic wooden pieces. So, it can the most righteous and profitable business for you, if you are a creative carving master, and have good management skills too.

Before starting a custom woodworking business , you have to make a thorough business plan covering all the details about how you will start and run your business. To guide you about the startup costs, the employees and tools you will need and the competitive aspects you have to come up with, we are providing the sample business plan of a woodwork business startup named, ‘Logan Woodcraft’.

Executive Summary

2.1 the business.

Logan Woodcraft will be a woodwork company with its outlet and workshop combined, located on the Strip in Las Vegas. Company will be owned by Christopher Logan and will be licensed from the authorized wood suppliers to buy wood and the required machinery for woodwork. Logan’s serving as an interior designer for the last 4 years, have helped him in knowing even the tiniest detail about how to get into woodworking business.

2.2 Management

Logan has prior experience of working with wood, still, he has decided to organize each and everything before starting a woodworking business . The company will buy the wood from the suppliers and will hire some carpenters and artists to work on Logan ideas and the orders of interior wooden designs desired by the people.

2.3 Customers

Majority of the people decorate their property like decks, terrace, staircases, lawns, balcony and kitchens etc. with wooden adornments. Many just buy the beautiful wooden pieces and decorations for placing inside their houses. As the Strip is the center of entertainment palaces and luxury hotels, so our customers will not only be the residents of the city but also the tourists and the managers of resorts and palaces.

2.4 Target of the Company

Our business targets are as follows:

Company Summary

3.1 company owner.

Christopher Logan will be the owner of the company. Logan is a famous interior designer, crafting unique items of wood is Logan’s hobby, even some of his handmade wooden sculptures were kept in the International Woodworking Fair last year.

3.2 Why the Business is being started

Logan has been related with making designs, and artifacts since his childhood. He is called by various shows and programs to give interior designs ideas. By starting a woodwork business, Logan wants to use his experience, skill, and passion on a larger scale to earn profit.

3.3 How the Business will be started

Logan has done a great research on how to start a woodworking business , his first decision was to open the outlet in a strategically most visited area. To start the business, he’ll hire carpenters, artists, salespersons etc. and will buy the required inventory and tools. The startup requirements are as follows:

The detailed start-up requirements and liabilities as forecasted by experts is given below:

Services for customers

As the woodwork business offer a wide range of opportunities so, you must decide your service s before setting up a woodworking shop and focus on just enhancing those services in the early stages.

The products and services that Logan Woodcraft will keep at the shop are:

• Beautifully carved wooden decoration pieces and sculptures
• Designated wooden chests
• Designated wooden cradles
• Wooden toys
• Wall to wall woodworking

Logan Woodcraft’s major serving will be adorning the stage and sets with beautiful woodworks in events and programs. The company will also take orders on doing interior wood designing in the residential or commercial buildings.

Marketing Analysis of Woodworking Business

The most significant part in developing a woodworking business plan  is its accurate marketing analysis. Knowing the customers’ demand before you start your own woodworking business is really helpful in deciding your services and sales strategy for business .

excellent work

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Before writing a carpentry business plan , you must go through sample woodworking business plans  available online. However, if you want to start woodworking business  on a larger scale then you must seek the services of professional marketing analyst to do accurate marketing analysis for your business.

5.1 Market Trends

The business of woodworking is in great demand and keep blooming throughout the year especially in well-established areas or in most visited places. According to IBISWorld, there are more than seven thousand woodworking businesses running in the United States, generating a revenue of $8 billion annually. The business is responsible for employing about 38 thousand people and carpenters around the country. Above all, the demand of this business is rising day by day as reported by the same source, that the business is growing at an annual rate of 4.5 percent. All these statistics are a proof that you won’t be at loss provided that you plan and market your business successfully.

5.2 Marketing Segmentation

Considering the wider audience and large market demand, Logan had hired an expert marketing analyst, who has identified the following categories as his target audience.

The detailed marketing segmentation of our target audience is as follows:

5.2.1 Individual Buyers: Logan Woodcraft will present beautiful pieces of architecture made of wood. The residents and visitors of our vicinity will surely like our wooden decoration pieces and small and large sculptures for keeping in their houses as well as for giving gifts. We expect that this category will also buy our wooden chests, cradles and our other elegantly carved wooden products and will avail our services of decorating their lawns, and galleries.

5.2.2 Institutions & Companies : To maintain a decent environment, educational institutes, offices, and companies prefer woodwork for interior designing. To let such people, know about our skills and ideas of decorating their offices, terraces, lawn’s boundaries, staircases, and doors etc. we’ll send them our brochures and offer them discounts to try our services.

5.2.3 Resort & Event Managers: A significant portion of our target customers will be comprised by the restaurants or bar managers who need modern and unique ideas to decorate their lodgings with wood. We’ll have discounts and special offers for them if they avail our services for adorning their interior and exterior and for making wood designated sets for major events.

5.2.4 Production Designers & Art Directors: Considering the fame Logan had gained after arranging some sets for T.V. shows broadcasting, our marketing analyst also identify the art directors as our target group. For shooting and designing the sets and props those directors will surely avail our services.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

We aim at becoming the most renowned and the most visited woodworking shop in the whole Las Vegas. Our target is to gain popularity among our customers so that they always consult our services whenever they require woodwork for their estate or for hosting events and programs. Our financial goal is to balance the costs of our startup within the three months of our launch.

5.4 Product Pricing

Setting the prices of products and services is undoubtedly the most challenging part while starting a new business, as it is difficult in the initial stages to earn a profit while keeping low prices. You can have an idea of the wooden product prices by going through any woodworking business plan example available on the web. In this woodworking business plan sample , we are providing the pricing scheme of Logan Woodcraft.

Logan has decided to offer various discounts on his servicing to the managers and art directors so that they won’t hesitate to try our servings. The prices of wooden products are also kept slightly lower than our competitors to gain more customers, as the thing that drive the customers inside a new shop is its extraordinary appeal or low pricing.

The most important part after starting a small woodworking business is to advertise your services to let your target customers know about you. In fact, there are more chances of a startup to end as a failure if its owner failed to market his products and services. After starting a woodworking shop , you must pay attention to make an effective sales strategy to increase your sales and profit.

6.1 Competitive Analysis

Our biggest competitive advantage is the reputation of our owner, known for his unique and incomparable design ideas. Logan got familiarity in Las Vegas after the wonderful sets he made for the television shows broadcasting. Secondly, we are in a location which most people visit throughout the year. Whenever the tourists or visitors see a glimpse of the display and appeal of our entrance and products, they will surely buy at least a small wooden decoration piece or sculpture from our shop. Another competitive advantage is our beautiful entrance and doorway of our outlet. We have done appealing wooden work on our exteriors to attract the customers towards our shop.

Lastly, we have displayed some of our best items on our website so that all people can get a know-how about our distinguished work.

6.2 Sales Strategy

To advertise our services and products, we’ll post the photos of our best and unique items on our website. We’ll also advertise the interior designs we had made with wood, through social networks, posters and brochures. To encourage sales company will offer discount on all servicing during the initial stages of the launch.

6.3 Sales Forecast

Considering the market demand and the beauty of our products, our sales pattern is expected to increase with years. Our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

6.4 Sales Monthly

6.5 Sales Yearly

Personnel plan

Personnel plan is really the footstep for the success of a business. The success of a business varies with the dedication of its employees. If you want to know about how to start a small woodworking business and that how many persons will be required to start a woodwork business, you can take help from this sample business plan on how to start a woodworking shop  written for Logan Woodcraft.

7.1 Company Staff

Logan is all-in-all in carving wooden products and making unique designs, he needs a staff for working on his ideas, so he has decided to be in the production center and not be the manager himself. He’ll hire the following persons:

• 1 General Manager to manage the operations
• 2 Accountants to maintain financial records
• 3 Artists/Designers for presenting and drawing new designs
• 8 Carpenters for woodworking
• 4 Salespersons to operate display centers
• 3 Sales and Marketing Executives responsible for delivering products to retailers and discover new ventures
• 2 Technicians for maintaining machines
• 2 Drivers for transporting wood and other material
• 1 Front Desk Officer to act as a receptionist for receiving interior design orders
• 2 General Workers for routine tasks

7.2 Average Salary of Employees

Financial plan.

To estimate the woodworking business profit , you have to devise a comprehensive financial plan. An effective financial plan forms the base of the success of a startup and helps in evaluating the woodworking business margin and financial turnouts. Making a financial plan helps you by guiding that how you can be able to balance the startup costs, the salaries of your employees and the costs of raw material with the profits earned. The company will be financed by Logan himself since he was unaware of the statistics and trends of formulating a financial plan, so he hired an expert financial advisor to make a detailed financial plan for his business. You can also take help from this sample business plan of Logan’s Woodcraft, as we are providing it free of cost.

8.1 Important Assumptions

8.2 brake-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

Download Woodworking Business Plan Sample in pdf

OGScapital staff also specialize in compiling such as manufacturing business plan , coal mine business plan , business plan for a metal casting shop , furniture business plan , firewood business plan , skateboard store business plan , help to draw up a business plan for a bank loan and etc.

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Furniture Business Plan Template [Updated 2024]

IX. Financial Plan

This Section's Contents

Revenue and Cost Drivers

Capital requirements and use of funds, key assumptions& forecasts.

[Company Name]’s revenues will come from the sale of furniture and décor items to customers.

The major costs for the company will be cost of goods sold (supplier costs), salaries of the staff, and rent for a prime location. In the initial years, the company’s marketing spend will be high, as it establishes itself in the market.

[Company Nameis seeking a total funding of $460,000 to launch its store. The capital will be used for funding capital expenditures, manpower costs, marketing expenses and working capital.

Specifically, these funds will be used as follows:

• Store design/build: approximately $170,000
• Working capital: approximately $290,000 to pay for Marketing, salaries, and lease costs until [Company Name] reaches break-even

Below please find the key assumptions that went into the financial forecast and a summary of the financial projections over the next five years.

5 Year Annual Balance Sheet

5 Year Annual Cash Flow Statement

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

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Furniture Business Plan Outline

How to Set Up a Woodworking Workshop: A Step-by-Step Guide

Woodworking is an art that requires creativity, patience, and precision. From designing a piece of furniture to constructing a custom home, woodworking has an endless potential to transform ideas into reality. But, the success of any woodworking project depends on having the right tools, materials, and a workspace. Whether you are a seasoned woodworker or a beginner, setting up a woodworking workshop can be a daunting task. The good news is, with the right guidance and planning, anyone can create a functional and efficient workspace that will inspire creativity and lead to satisfying results. In this article, we will guide you through the process of setting up a woodworking workshop, step by step. From choosing the right location to purchasing the necessary equipment, we’ll cover everything you need to know to create a space that is safe, organized, and conducive to your creative pursuits. So, roll up your sleeves, grab a cup of coffee, and let’s get started on the journey of building your dream woodworking workshop!

Factors to Consider for Determining the Space of Your Woodworking Workshop

Another important factor is the location of the workshop. Look for a well-ventilated and well-lit area that’s free of hazards. Avoid areas with dampness or moisture that could potentially damage your tools and materials.

Ensure that the space has adequate electrical outlets to accommodate your tools and machinery. If necessary, consider hiring an electrician to install additional outlets.

Access to the workshop is another consideration. Is there a door that’s large enough to accommodate larger projects? Will you need to make any modifications to the space to accommodate your needs?

Finally, keep in mind the impact of noise on others around you. Woodworking can be noisy, so choose a location that’s isolated enough from other people or buildings to minimize disruptions.

Determining Your Workshop Layout

To start, create a rough sketch of your workshop layout before moving any equipment or furniture. This will allow you to identify potential problems and create a visual reference for your workspace.

When placing your tools and materials, consider your workflow and plan for easy access to your workbench and storage areas for maximum efficiency. Adequate storage space is also important to keep your tools, materials, and finished projects organized. You can consider adding shelves, cabinets, and pegboards to maximize storage .

Good lighting is essential for safety and productivity. Plan for adequate lighting by adding overhead lights, task lighting, or natural light if possible.

When placing larger machinery such as table saws, planers, and jointers, ensure there is enough room for safe operation and ventilation. It is also important to create a designated area for applying finishes that is well-ventilated and away from your other tools and machinery.

Finally, plan for flexibility as your skills and projects evolve over time. A well-planned workshop can be adapted to meet your changing needs.

Lighting Tips for a Well-Equipped Woodworking Workshop

Properly positioning your lights is important to avoid shadows and glares that can make it difficult to see your work. Aim for even illumination throughout your workspace by strategically placing lights around your workbench and other areas where you’ll be working.

Natural light can be a valuable addition to your woodworking workspace. If possible, position your workspace near windows or skylights to take advantage of natural light. Natural light is not only more flattering, but it can also reduce eye strain and fatigue.

Installing dimmer switches can be helpful in adjusting the intensity of your lighting to suit different tasks or times of the day. For example, you might want brighter lighting for detailed work, but dimmer lighting for sanding or finishing.

Investing in high-quality bulbs that offer bright, even light and have a long lifespan is essential. Look for LED bulbs that are energy-efficient and have a color temperature that mimics natural daylight. High-quality bulbs will not only improve the overall look of your workshop, but they will also save you money in the long run.

Choosing the Right Tools for Your Woodworking workshop

• Circular saw: A circular saw is a versatile and portable tool that can make straight and angled cuts in wood, plywood, and other materials. It’s ideal for cutting lumber, panels, and sheets and can be used for many projects. Circular saws come in corded and cordless models and can be fitted with different blades for cutting different materials.
• Jigsaw: A jigsaw is a handheld power tool used to make curved cuts in wood and other materials. It’s also great for cutting holes and notches. Jigsaws come in corded and cordless models and can be fitted with different blades for cutting different materials and making different types of cuts. They are especially useful for making intricate shapes and designs.
• Table saw: A table saw is a stationary power tool essential for making precise cuts in wood. It’s ideal for ripping lumber and cutting large pieces of wood into smaller pieces. Table saws come in different sizes and configurations and can be fitted with different blades for cutting different materials. Some models also feature adjustable fences and other accessories for making specialized cuts.
• Miter saw: A miter saw is a stationary power tool perfect for making angled cuts and crosscuts in wood. It’s ideal for making precision cuts for furniture, cabinetry, and other woodworking projects. Miter saws come in different sizes and configurations and can be fitted with different blades for cutting different materials. Some models also feature adjustable fences and other accessories for making specialized cuts.
• Planer: A planer is a stationary power tool used to smooth rough wood surfaces and make them even. It’s ideal for removing imperfections from rough lumber and reducing the thickness of boards. Planers come in different sizes and configurations and can be fitted with different blades for cutting different materials. They are especially useful for preparing wood for finishing and other woodworking operations.
• Router: A router is a handheld or stationary power tool used to shape wood edges and make grooves and decorative designs and used to cut holes and mortises. Routers come in different sizes and configurations and can be fitted with different bits to make different cuts. They are especially useful for custom moldings, decorative edges, and other ornamental details.
• Drill press: A drill press is a stationary power tool used to drill precise holes in wood and other materials. It consists of a rotating drill bit driven by an electric motor. Drill presses come in different sizes and configurations and can be fitted with different bits for making different types of holes. They are especially useful for making accurate and consistent dowels, screws, and other hardware holes.
• Chisels: Chisels are hand tools used for carving and shaping wood and creating intricate designs. They come in various shapes and sizes and can remove material, shape edges, and create details. Chisels are especially useful for making mortises, carving designs, and other precision work.
• Sanders are power tools that smooth out rough surfaces and give wood a polished finish. Several types of sanders include belt sanders, orbital sanders, and random orbital sanders. Sanders come in different sizes and configurations and can be fitted with different grits of sandpaper for different types of sanding. They are especially useful for preparing wood for finishing and other woodworking operations.
• Clamps: Clamps are used to hold wood securely in place and make it easier to glue and finish. They come in a variety of sizes and styles.

Starting with the basics is a good idea for new woodworkers. Basic tools like a handsaw, chisels , drill, hammer, and screwdriver set can help you get started and build your collection over time. Investing in high-quality tools is also important, as they are more accurate, last longer, and are less likely to break or malfunction.

Using tools that are comfortable and ergonomic is also key to preventing fatigue and injury. Look for tools with handles and grips that are designed to reduce strain on your hands and wrists. Cordless tools can also be a great option for greater flexibility in your workspace.

Keeping your tools sharp is essential for accurate and efficient work. Sharpening tools like sharpening stones or jigs can help you maintain the condition of your tools and improve their longevity. By following these tips, you can ensure that you have the right tools for your woodworking projects and that they are in top condition for years to come.

Set up your workbench

Once you have your workbench, it’s important to position it in a place where you have plenty of room to move around and access your tools. Positioning it near a window or under good lighting will help improve visibility , which is important for accurate work. You should also consider positioning it near a power source for easy access.

A vise is an essential tool for holding your workpiece securely while you work, allowing you to make accurate cuts. Mounting a vise to your workbench is a great idea, ideally with a quick-release feature for fast adjustments. This will help you keep your workpiece stable and make your work easier.

Adding drawers, shelves, and cabinets to your workbench is a great way to keep your tools organized and within reach. Having a designated place for each tool will save you time and help you work more efficiently.

Installing a power strip on your workbench is useful for powering your tools and charging your devices. Choose a power strip with surge protection and enough outlets for your needs. You can also attach a power strip to the side of your workbench to keep cords off the floor and out of your way.

Protecting your workbench surface is important to prevent scratches and damage, and to make it last longer. Covering it with a durable and easy-to-clean material, such as a rubber mat or a sheet of plywood, is a great way to achieve this. This protective surface will help ensure that your workbench stays in good condition and can be used for years to come.

Install safety equipment

A cluttered workspace can also pose a hazard, so it’s important to keep your workspace clean and organized. This includes sweeping up sawdust and other debris, as well as properly storing tools and materials. Additionally, electrical hazards are a real danger in any woodworking workshop, so it’s important to avoid using frayed or damaged cords, not overloading outlets, and use extension cords only when necessary.

Staying focused on the task at hand is also important, as distractions can lead to accidents. Taking breaks when necessary to avoid fatigue is crucial, and seeking proper training can be incredibly helpful in learning proper techniques and safety procedures. It’s always better to seek guidance from an experienced woodworker or take a class when starting out in woodworking, as safety should always be a top priority in any woodworking workshop.

Plan for ventilation

Once you’ve selected a fan, it’s important to position it strategically in your workshop to move air effectively. This may mean placing it near a window or door, or in a central location within the space. In addition, consider opening windows and doors to provide additional ventilation and draw fresh air into your workspace while pushing out dust and fumes.

To further enhance ventilation in your woodworking workshop, you may want to consider investing in a dust collection system. These systems can effectively remove sawdust and other debris from the air, particularly if you’re working with fine dust or other materials that can be harmful to your lungs. And, even with proper ventilation, it’s still a good idea to use a respirator when working with certain materials or generating a lot of dust or fumes to ensure maximum protection for your health.

Overall, ventilation is a crucial aspect of safety in any woodworking workshop. Taking the time to select the right fan, position it correctly, and consider additional measures like dust collection and respirators can help to protect your health and create a safe and comfortable workspace.

How Much Space do I Need?

The amount of space you need for a woodworking shop can vary depending on the size and type of projects you will be working on, the number and size of tools you have, and the amount of storage space you need.

As a general rule of thumb, you should aim for at least 100-150 square feet of dedicated workspace for a small to a medium-sized woodworking shop. This would allow enough space for a workbench, some storage, and some larger woodworking machines.

For larger woodworking shops, the space requirements can increase significantly. If you have a large table saw or other industrial-sized woodworking machines, you will need more space to accommodate them. Additionally, if you plan to work on larger projects, such as furniture or cabinetry, you will need more space to move around and work comfortably.

It’s important to remember that having more space in your woodworking shop can also help you work more efficiently and safely. Having enough room to move around and store materials and tools can reduce the risk of accidents and injuries, and can also make it easier to focus on your work.

The amount of space you need for your woodworking shop will depend on your specific needs and the size and type of projects you will be working on. A small to medium-sized woodworking shop should have at least 100-150 square feet of dedicated workspace, while larger woodworking shops may require more space to accommodate larger machines and projects.

What are key mechanical considerations for a woodworking shop, specifically related to power, heat, and cooling?

Power is essential in running woodworking equipment safely and efficiently, and it is important to ensure that the shop has enough electrical outlets and circuits that are up to code. You may need the help of a licensed electrician to install any additional electrical service or upgrades.

Woodworking shops generate a lot of heat, dust, and fumes, so it is important to have good heating and cooling systems. A ventilation system can help to cool down the space by bringing in the fresh air and exhausting hot air in the summer, while a heating system will keep the shop warm in winter. An HVAC system can also help remove dust and fumes, improving the air quality in the shop.

Dust collection is also a crucial consideration in a woodworking shop as fine dust particles generated during woodworking can pose a health hazard if inhaled over time. Installing a dust collection system can help mitigate this risk and improve the air quality in the shop. The dust collection system can be integrated with various power tools, capturing the fine dust particles before they become airborne.

Good lighting is necessary for a woodworking shop to ensure that you can see your work clearly and avoid mistakes. You may need to install additional lighting fixtures, especially if the shop has no windows or poor natural lighting.

Overall, taking care of mechanical considerations when setting up a woodworking shop can create a comfortable, efficient, and safe working environment that will allow you to create high-quality woodwork pieces.

What Type of floor?

The type of flooring you choose for your woodworking shop is an important decision that can impact the safety, durability, and functionality of your workspace. There are several flooring options available, each with its own advantages and disadvantages.

Concrete is a popular choice for its durability and ease of maintenance, while vinyl is affordable and can be designed to resemble other materials. Rubber is a good choice for reducing fatigue and noise, and epoxy is resistant to stains and impact. When choosing a flooring type, consider the specific needs of your woodworking projects and the type of machinery and tools you will be using.

By choosing flooring that is durable, easy to clean, and provides a safe and stable working surface, you can create a woodworking shop that is both functional and comfortable to work in.

Can I share a garage shop with cars?

Sharing a garage shop with cars is possible, but not ideal for several reasons. Safety concerns are a significant issue when it comes to sharing space with cars, particularly when working with heavy machinery that produces sawdust, chips, and other debris. Storing woodworking tools safely and securely is a must to avoid accidents that could harm people or damage vehicles. Space limitations are another issue, especially in small garages, where finding adequate storage for tools and materials can be challenging.

Dust and debris generated during woodworking can also settle on cars, causing damage to the paint and interior. Additionally, sharing a garage with cars can create temperature and humidity issues, as vehicles produce heat and moisture that can affect the wood and tools. While it’s possible to share a garage shop with cars, it’s essential to take precautions to minimize these potential issues.

Setting up a woodworking workshop can be a fulfilling and enjoyable experience for both beginners and experienced woodworkers. By following the tips and guidelines outlined in this article, you can create a safe, organized, and efficient workspace that will allow you to pursue your passion for woodworking to the fullest.

Remember to plan ahead, invest in quality tools and equipment, prioritize safety and comfort, and be mindful of the materials and supplies you’ll need. With dedication, practice, and a little creativity, you can transform your woodworking dreams into a reality and create beautiful, functional, and long-lasting pieces that you can be proud of. Happy woodworking!

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Sup? This is John Boson signing in from my very own Woodworking station here! I hate to introduce myself as a Woodworking expert, rather I am more of a person who loves to share knowledge for people's interests. Ping me at [email protected] to let me know if my job on this website has helped you or not. Also, you can request for my honest review or a piece on any know-how topic for what I will try my best. Cheers! Signing out!

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