How to Start Your Furniture Business
Want to start a furniture business? Check out this article to learn how to start your own furniture business step by step.
The home furniture business has grown significantly over the past few years. Pandemics force people to spend more time at home. So they may find that some areas need renovations, which leads to further increases in the furniture business. In any period, home improvement or home furnishing remains an essential activity, and it continues to be a hot investment area. If you are considering starting your own furniture business, you must have both the ambition and a thorough understanding of your venture. To make your start easier, we will guide you to walk through some critical questions. This article might be a stepping stone for your prosperous business. Now, future winner, read on!
Q1: How Does the Furniture Industry Grow?
The furniture or home furnishing industry consists of businesses that manufacture and sell products related to interior decoration, such as soft furnishings, cabinets, lighting, and other household appliances.
There will never be a shortage of demand for furniture since countless new buildings are being constructed every day. Even during pandemics, home furnishing business growth remains steady. Moreover, globalization and the e-commerce boom helped boost the industry. As reported by Global Market Insights, the furniture market was valued at USD 545.78 billion in 2020, and it is estimated to grow at a CAGR of 5.4% from 2021 to 2027. The industry is expected to reach 62,496.5 Kilo Tons in volume by 2027, representing an annual growth rate of approximately 4.8%. Also, according to the report, Asia Pacific is leading the furniture market.
(source: Global Market Insights)
OPPEIN, the leader of the custom home furnishing companies in China, shared its financial report for 2021. This report stated that the company's annual sales revenue reached USD 3.14 billion with the steady growth of multichannel sales, including retail, wholesale, and franchise. As one of the industry-leading companies, the success of OPPEIN proved that now is the right time to take advantage of the furniture market and share the wealth this booming industry brings.
Q2: Own a Franchise or Start Your Own Company: Which is Better?
As you prepare to start a furniture business, one of the first considerations you should make is to decide the type of investment. You can either buy a franchise of a famous brand or start your company from scratch. These two options come with their pros and cons. Here we will compare the process of these two investments.
Startup Furniture Company
Starting your own company is never an easy task, and here is a summary of some of the procedures you may have to work through.
1. Do local market research
Since you are targeting your local market, you should analyze the local trends and preferences in detail. You must understand the market and guarantee that there are buyers for your products.
2. Make a business plan and get finance
You must devote time to defining marketing strategies, managing the business, and developing financial and organizational projections to succeed in your furniture business. In addition, you should estimate your budget to ensure stable financial support for your furniture business.
3. Register the company and get a license
Upon beginning your furniture business, registration and qualifications are essential. Making a memorable trademark could be a stepping stone to your business's success.
4. Source and open your showroom
In most cases, people can only open a furniture store, so you may have to find a reliable manufacturer to produce your furniture. And with official cooperation, you should start planning your local stores. Getting the perfect location will make your business much easier in the future.
5. Hire and train employees
Team building would be much more important than you thought. While doing business, a skilled team will save you from a lot of hassle. As for staffing, you may need designers, salespeople, customer service representatives, and even some managers.
Own A Franchise Store
Starting a new company can be a challenging endeavor. To mitigate the risk of starting up a brand-new company, we suggest you get a franchise from a famous company in the industry, which will make your success easier.
Typically, there are three steps involved in owning a furniture franchise:
1. Find a trustworthy company
Contact well-known companies and check their requirements and franchise policy. You should research potential partners as thoroughly as possible to find the most qualified one. Consult with companies about your business plan and understand their support policy.
2. Pass the company's evaluation
Since a franchise partnership is a two-way choice, you may have to pass the evaluation to own the franchise. Typically, this includes identifying your financial status, experience in the furniture industry, and the feasibility of your business plan.
3. Sign the franchise agreement and pay the fee
As long as everything goes smoothly, you will be on your way to becoming a franchisee. When signing a contract, read every section of the document and ask any questions that you may have. Do not be impulsive when choosing a franchise. It will cost you money and time. It is advisable to have an accountant review the financial statements to ensure that the projected returns are accurate.
4. Hire employees and start your business with support
Still, you will need to build your showroom team to run the business. Nevertheless, as a franchisee, the franchisor will be responsible for training your employees to ensure quality service for the brand. Some companies will even send skilled staff to your showroom to help you.
In this way, you will not have to do all the specific work on your own to start a furniture business. It is possible to save considerable time and money by working with an experienced company. If you do not have much experience in the furniture industry, a franchise will make the process of starting up much easier for you. Furthermore, franchisors would provide a protected territory policy. That means the franchise owner will be the only franchisee in the region with no competitor from the same company, which guarantees your exclusivity at the local.
How do franchisees perform in terms of revenue? OPPEIN, for example, has provided discount products, technical support, and professional team building to its more than 7,000 franchisees worldwide. Their franchisees generated revenues of more than USD 2.41 billion in 2021.
Q3: How Can You Find a Trusted Franchisor?
If you are interested in becoming a franchisee, now, let's discuss how to find a trustworthy cooperator. Those with experience in the furniture business may recognize some of the most well-known brands in the industry. However, that does not mean the more famous, the better. World-famous brands always have strict requirements for franchising, and you may need to pay a substantial fee to acquire a franchise with them. It is critical to find your potential cooperators who are already known in a particular region or country and are willing to expand their international presence.
Assess the scale and business conditions of the company as well as the franchisees of the company. Next, you can prepare a list comparing the pros and cons of the companies you are considering. Taking the time to analyze the company thoroughly could assist you in making the right decision.
Obtain information to analyze the pros and cons of a company in the following steps:
Find some of the well-known companies.
Make initial contact to understand their company culture.
Search or ask for their franchisee management system.
Take the time to interview their current franchisees.
Arrange a visit to the corporate headquarters and the stores.
Just as OPPEIN, the leading brand of home furnishings in China, is offering franchise opportunities worldwide. OPPEIN is a public company that is obliged to disclose its business and financial information regularly to the public. Compared to other privately owned companies, this company has a substantial amount of data available to compile a complete assessment. Look for reliable franchisors such as OPPEIN and conduct further analysis to make the best decision for your furniture business.
To conclude, the home decor or furniture business has a wide opening, and now is a great time to get involved. Those who are fighters may want to consider starting a furniture company with a detailed business plan. But if you are seeking an easier route to success, purchase a franchise from a trusted corporation.
Looking for more information about OPPEIN franchise opportunities? Visit the OPPEIN FRANCHISE page to learn more.