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Starting A Furniture Business
If your passion lies in creating pieces of art from wood and you want a solid business idea to pursue, the furniture manufacturing business might be apt for you. The Indian furniture industry is expected to account for $61 billion by the end of year 2023. So you know that this is a growing field you can make your space in. The need for improved infrastructure and conscious interior decor is rising by the hour. If you have the skill to create beautiful furniture items, you should consider setting up your furniture manufacturing plant.
‘How to start a furniture business?’ is the first question that pops up if you are genuinely considering turning your passion for wood into a sustainable business. We have compiled a list of steps, investment estimates, and tips that will enable you to make a well-thought-out action plan to start your furniture manufacturing business.
1. Research the market
As mentioned earlier, the Indian furniture industry is set to boom. However, researching the market on an individual level is a must. Market research can be specific to your location. This will help you understand better how to start a furniture company and scale it in your vicinity.
Customer demographics and needs differ from time to time and from place to place. To start your own furniture business, you need to research the market in direct relation to your specific business idea.
2. Identifying the target audience
Remember, having no definite target to hit is just like taking a blind shot in absolute darkness. The shot might hit the bull’s eye, or it might not. Instead of basing your furniture manufacturing business on luck, approaching it with a detailed and well-designed plan will help you know exactly where to hit your shot.
A defined target audience for your furniture business will help you create a foolproof business plan. Your marketing efforts will have a direction, and evaluation-based changes can be implemented accordingly.
3. Gauge your potential
Post your market research; it is pivotal to carve your niche. For a furniture manufacturing business to be a success, you need to be clear on what it is that you offer. Will your furniture manufacturing plant produce corporate-style furniture or home decor? Will your furniture company cater to a category of customers, or will it be for all? What will your aesthetics look like?
A lot of these decisions will help you build a foundational business plan. This will enable you to have a vision for the future as you start your own furniture business, and you can estimate your potential correctly.
4. Machinery investment
After raw materials, the next most important aspect to look into is the machinery required for your furniture manufacturing plant. To start a furniture company, your investment in machinery would have to be accounted for. If you are a small-scale furniture manufacturing business, then this investment won’t be as high.
But if you are building a large-scale furniture company, then machinery costs will play a significant role in your cost sheets. The machinery required to start a furniture business would range from stationary machines, processing equipment, automatic packing machinery, etc.
Also Read: Mattress Brands In India
5. Licenses and permits
No business can sail through if they don’t have the necessary licenses and permits in place. GST papers, factory laws, MSME registration, trade license, NOCs, and NDAs are just among the few documents that need to be with you as you start your furniture manufacturing plant. It is also of key importance to have your business insured.
Having legal guidance before you start your furniture business will help you get all your policies and documents ready. Get your trademarks, patents, and copyrights in place as well before you enter the market. All of these significant papers will help you avoid any possible obstacles in the future.
6. Hire your workforce
Starting your own furniture business is no easy deal. It requires effort and hard work, as does any other business you decide to venture into. And to help you turn your hard work into smart work, hiring a team is vital. Especially for a furniture manufacturing plant, hiring a skilled workforce is crucial.
You need people to help you make those machines you invested in work. You can divide your workforce into skilled and unskilled labour. Post which, you can work on creating teams and leaders accordingly who can train each other in business and manufacturing functions accordingly.
7. Raw materials sourcing
To start a furniture business, an essential aspect you need to consider is the sourcing of your raw materials. Find and maintain cordial and healthy relationships with vendors who can provide you with the best quality raw materials. To start a furniture manufacturing business, you would ideally need the right kind of wood, which will be based upon the type of furniture you intend to create.
Additionally, your furniture manufacturing business would need metal, steels, fasteners, screws, handyman tools, plastic, packing material, etc. Having a clear picture of the required raw materials will save you from needing excess storage space and sourcing costs.
8. Define your business identity
Having a business identity sets you apart. Brand identity includes the name of your business, its values, mission, vision, and more. It creates a space in the industry for yourself, and a strong business identity makes that spot unshakable. To start a furniture company, building a business brand is crucial.
It will help you communicate with your target customers about your offerings. A brand essence will also establish a long-lasting relationship with your customers. The identity of your furniture manufacturing business, if relevant and robust, will warrant you with successful leads and a loyal customer base.
9. Hire a marketing professional
If defining the identity as you start your own furniture business seems like an unnerving task to you, it is best to hire a marketing expert. A marketing professional will support your brand vision and help you bring it to life. A robust marketing strategy that is packed with ingenious and creative ideas can make or break your furniture manufacturing business.
Reaching out to the right clients, the right market, with the right promotional tools is all taken care of by the marketing professional. Consider hiring one for the right direction for your marketing and branding efforts.
Bonus tip- Furniture Manufacturing License
Having a professional certification in anything you do increases your credibility 100x times. And for this reason, you can pick up the best available furniture-making courses available online, which cater specifically to your interests and business.
This will help you make your point of why even though you are new to the industry, you can still be trusted. It will make sense to your customers that you know what you are doing. If you intend to start a furniture business on a small scale, this could be a great way to acquire your customers.
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FAQs On Furniture Manufacturing Business
Q. Can you start a furniture company online?
Ans. Any business can be started online, and a furniture business also makes it to the list. Having an online furniture business will help you reach out to your customers more efficiently and at possibly lower costs. It will also save you the costs of a physical store. However, don’t forget that even with an online furniture company, you would need a warehouse to store your inventory and stock. Those are costs that you can’t escape. A furniture manufacturing business, whether fully online or offline, should ideally have an online presence since digital is only growing. The amount of presence you would like on the platforms is your choice.
Q. What is the required investment for this business?
Ans. Having an estimate of the total investment required to start your own furniture business is paramount. Consider INR 10 to 15 lakhs to be a base investment required to start a furniture business. You can raise these funds through angel investors, or if you have the capital in hand, you could invest it in yourself. A well-devised business plan will act as a support to you when you pitch your furniture manufacturing business idea to an investor. It will also give you a financial projection that will provide you with some clarity on how your capital funds will be used and multiplied.