Do you want to start a wooden furniture-making business?

For making custom design furniture, you must have a strong ability to pay attention to detail. You should know how to design furniture that will fulfill your customers’ needs.

Besides having the skills necessary for making bespoke furniture, you also require business management skills.

Here is how you can start your business:

Define Your Business

You should first make up your mind about the type of furniture you will be creating. You can specialize in cabinetry, office furniture or home furniture. You should also know the materials that you will be using for your designs like upholstery, wood and metal.

Will you be selling to commercial or residential customers? You should also think about whether you want to sell locally or at a wider level.

You will have to examine the market to understand the demand that will exist for your furniture. You should specify the target market and write down its needs.

You should take a look at your competitors to know what they are not offering. It will be best if you can find a product that fulfills a gap in the furniture market.

After studying the market, you will be able to decide the best prices for your wooden furniture products.

Will You Run an Online Business or a Physical Store?

You may decide to run a storefront that has a workshop. You can then make and sell wooden furniture to customers who walk into your store.

Or you can decide to make a website where you will be taking orders online. It would be best for you to do both.

Select a Location

If you are opening a physical storefront, then you must select a location where you will get more customers. The storefront that you choose should be big enough to display your wooden furniture to customers.

It should be easy for suppliers and vendors to ship to your location.

You should go through zoning laws and rules to find out in which areas you are allowed to operate your furniture making business.

Even if you decide to sell online, you will need a workshop. You will have to select a location where your suppliers can deliver easily. There should be enough room at the chosen location to create wooden furniture.

You will also require a warehouse to store materials and supplies.

Rent alone should not be determining factor for your location. You should find a location where there will be more customers and where you have enough space to showcase your wooden furniture.

Select a Business Structure

You should choose a business structure like sole proprietorship, partnership or a corporation. The structure that you select will determine how you will be filing your taxes. You should consult an attorney or a certified public accountant to make the best decision for your needs.

Obtain Tax Identification Numbers

Have your business registered with the US Department of State. You should apply to the IRS for a federal tax identification number. You should check to see whether a state tax identification number is required or not.

Obtain Permits and Licenses

You will need some kind of business license to legally run a wooden furniture making business in your area. You should go to the official state website from where you will be able to find out about the licenses and permits that you will need for your business.

There may be rules as to where businesses may be located in your state.

You should have full knowledge of safety regulations so that you can legally comply with them all.

Write Your Business Plan

It might seem like work, but you must take out time to write a good business plan.

The business plan helps you to get your plans and ideas in the written form. A sound business plan is necessary for maximizing the chances of success for your business.

Write down what type of furniture you will be making and how it will be fabricated. Explain whats unique about your business and how it differs from your competitors. Define your target customers.

Describe the market in detail. Explain how your business fulfills market demand.

You should state the business structure because it will have tax consequences.

Describe the kinds of products you will specialize in. What sort of wooden furniture will you be making and how it will benefit your customers.

Think about how you will promote your business. Besides advertising, you must describe how your business will expand.

Forecast Costs

You need to forecast business expenses so that you can prepare for them. If you will be taking a loan, you will know how much to borrow. If you can forecast your sales, then you will also be able to calculate your projected profits.

There are many different business costs that you will have to add up. These include the following.

  • The cost of structuring your business. Include any fees paid to lawyer or CPA. Also add in the fees paid for registering your business and for acquiring an IRS tax number.
  • Add up all costs for obtaining permits and licenses. Also project how much it will cost you to comply with safety and environmental regulations.
  • Lease or purchase of your commercial establishment.
  • Lease or purchase of furniture making equipment.
  • Cost of inventory like textiles, wood, metal and glass for making furniture.

You should also add advertising costs and employee pay.

Buy Equipment

You should make up a list of all items and equipment you will need to buy for your workshop to make wooden furniture.

Bottom Line

You can start a wooden furniture making business by following the steps mentioned above.