How to Start Your Own Custom Design Furniture Business

Step-by-Step Guide

1. 1

   Step 1: Find your niche.

   Decide specifically what kind of furniture you will create, such as home furnishings, office furniture or cabinetry.
   
   Specify the materials you intend to use, such as wood, metal and upholstery.
   
   Identify your target market.
   
   For example, decide if you will sell to residential, resort or commercial customers.
   
   Also, determine if you will sell only locally or if you will reach out to a broader market.Perform a market analysis to assess the demand for your furniture.
   
   Identify your target market and their distinguishing characteristics and needs.
   
   Also, look at your competitors to find out what they don’t offer.
   
   This will tell you if your product fills a gap in the market.
   
   Finally, a market analysis studies appropriate pricing for your product and your target market.
2. 2

   Step 2: Opt for a brick and mortar store or an online business.

   You may choose to rent a store front with a workshop and sell your furniture to walk-in customers.
   
   Alternatively, you might choose to develop a website and take only online orders.
   
   Or, you may choose to do both.
   
   Whichever option you choose impacts your decision about the physical location of your business.
   
   Also, it impacts the amount of money you need to start your business., If you plan to open a physical store, find a space that suits your customers’ needs.
   
   For example, if you are making custom cabinets, find a space that’s large enough to display different options.
   
   Or, if your target market is residential, choose a space that’s easy to find and accommodates parents with children and strollers.
   
   Also, consider your suppliers.
   
   Find a location to which your suppliers can easily ship.Research zoning laws and regulations in your area to determine where you are permitted to run your business.If you are going to do all of your business online, then you still need to find a location for your workshop.
   
   Find a space that’s big enough to complete your work efficiently and that’s convenient for your suppliers.
   
   Depending on the type of materials you need to keep on hand, you may also need a warehouse space.
   
   Choose one that is large enough for suppliers to easily pick up and drop off materials.
   
   Don’t choose your location based on the most affordable rent.
   
   Rather, choose the best location you can afford that attractively displays your furniture and efficiently accommodates your customers. , Choose a business structure for your business, such as a corporation, partnership or sole proprietorship.
   
   The business structure you choose affects how you file your income taxes.
   
   Consult a certified public accountant (CPA), lawyer or other business advisor to help you make this decision.Register your business with the Secretary of State in the state where you plan to do business.
   
   Obtain a federal tax identification number from the IRS, and check in with your state to determine if you need a state tax identification number., Every state requires some form of business or license to operate legally in that state.
   
   Visit the website of your state government to research what is required to open your furniture business in your state.
   
   Your state may have specific regulations about the location of your furniture making business.
   
   Also, familiarize yourself with state and federal consumer safety regulations.Furniture manufacturers must comply with requirements regarding formaldehyde emissions from wood, greenhouse gas reporting, hazardous air pollutants from wood and metal coatings and hazardous waste disposal., Every entrepreneur should invest time in writing a business plan.
   
   It commits your ideas and plans to writing and provides a road map to success.
   
   Often, woodworkers see themselves as artists devoted to their craft.
   
   As such, developing sound business practices may not come naturally to them.
   
   Further, they may view time devoted to business practices as detracting from the quality of their work.
   
   However, if you want your furniture-making business to be successful, you must invest time defining your marketing strategies, developing financial projections and organizing and managing your business.Write a company description that explains the kind of furniture you make, how you make it, how you’re different from your competition and who you target customer is.
   
   Explain your market analysis.
   
   Describe how you have researched other furniture manufacturers and how your business fills a need in the market.
   
   Define your business structure, such as a sole proprietorship, partnership or corporation.
   
   This decision has important tax ramifications.
   
   Describe your product line, such as exactly what kinds of furniture you manufacture, what materials you use and how it benefits your customers.
   
   Explain how you plan to market your furniture business.
   
   This includes not only how you plan to advertise, but also how you plan to grow your business with new products or expansion into new markets.
   
   Supply financial projections for the next five years.
   
   This is especially important if you plan to finance some of your startup costs.
   
   Creditors will want to see your financial projections.
3. 3

   Step 3: Choose a location.

4. 4

   Step 4: Structure your business.

5. 5

   Step 5: Obtain licenses and permits.

6. 6

   Step 6: Write a business plan.

Detailed Guide

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