Small Business: Furniture Manufacturing

Business ideas by directions

Spacious halls of furniture stores often create the illusion of an excess supply of furniture on the market.

However, this illusion is quickly dispelled when trying to pick up furniture to your liking and the right size. Everyone who has made repairs in an apartment knows that even after a small redevelopment it is very difficult to find furniture of the right size in order to optimally use the space of the room. Legal entities experience no less difficulties when they begin to arrange client rooms and arrange commercial equipment.

Small Furniture Manufacturing Business: Perspectives

Therefore, a small business based on the production of furniture remains in demand and profitable today. A small furniture manufacturing business differs from large manufacturers in its ability to adapt to customer needs. A set of simple equipment and computer programs allows us to produce furniture of no less high quality than in the factory version.
And the possibility of taking measurements on the spot increases the chances of small furniture manufacturing firms in competition with large manufacturers.
Modern furniture production technologies make it possible to make precise blanks, which are then used to assemble furniture at the customer’s site. We are talking not only about the production of cabinet furniture, but also about various components of office furniture, commercial equipment, and so on. In all cases, similar technologies, tools, and even accessories are used.

Furniture production: specialization

However, a small furniture manufacturing business is most successful when it specializes in certain lines of business. For example, you can organize the production of furniture for corporate clients. The conclusion of contracts for the production of commercial equipment for the distribution network allows you to receive stable orders for the same type of furniture as the network develops.

Many small firms specialize in the production of kitchen furniture, sliding wardrobes, cabinet furniture for residential premises according to orders and projects of the population.
Often, for a successful start of a small furniture manufacturing business, it is enough to conclude an agreement with a large building materials store or a renovation company.
Such cooperation brings constant orders from clients who are engaged in the renovation of new or old apartments. Masters usually recommend that customers install inexpensive furniture for individual orders.

Specialization allows a furniture manufacturing company to use the same type of fittings, technological developments, ready-made blocks and give high quality work. As it develops, a small furniture manufacturing business can increase the number of workshops and expand the area of ​​​​specialization.

For a successful start of a small furniture manufacturing business, it is necessary to carefully study the market and conduct marketing research, having calculated the profitability of the project in advance. This is all the more important if it is planned to buy or rent large premises for the organization of production or purchase expensive equipment such as panel saws or edge banders.

Furniture production: business format

It must be clearly understood that the simplicity and high profitability of this type of business give rise to high competition. There are many intermediaries on the market who take orders from customers and transfer them for production to larger firms, sometimes even located in another city. However, a small local furniture manufacturing business is always more competitive as it can measure and fit furniture on site.

In furniture production, it is very important to have reliable suppliers of materials for production and a well-organized transport scheme. The degree of customer satisfaction and, consequently, the prestige of the company and the growth of its income depend on the quality of materials and delivery times.

Experience shows that the profitability of a small furniture manufacturing business reaches 25-30 percent. However, it is possible to more accurately calculate the profitability of a future business only after conducting marketing research and preparing a business plan.