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To browse Academia. Skip to main content. Log In Sign Up. Download Free PDF. Furniture business plan. Download PDF. A short summary of this paper. Do you want to start furniture business? Are you planning to start a furniture business? Well the furniture manufacturing industry requires a lot of capital, manpower and related knowledge but the rate of return you get after investing in this business is simply worth the efforts.

The biggest advantage in starting this business is that furniture is one of the basic necessities of people hence it is a widespread market which keeps blooming throughout the year.

And many outclass people also don't mind to change or update their furniture every now and then. The first thing before starting any business is to write a comprehensive business plan which establishes the basis of your company's future operations and decisions. It also provides detailed guidelines about everything you will be doing in the next few years.

If you are wondering how to write an effective business plan then here we are providing you the business plan of a furniture startup named 'The Wood House'. The company will be licensed to buy wood from the authorized wood suppliers from the Croatan National Forest, North Carolina and hence we are strategically located at the best available site for a furniture production factory.

The business will be owned and operated by Rick Doug. Rick's father runs a carpentry firm providing various carpentry services throughout the state of North Carolina.

It is due to his experience in furniture industry and the similar nature of family business that Rick knows every tiniest bit of detail about how to start a furniture making business. ManagementThe Wood Furniture making plans in china will be primarily a supreme-class furniture producer. Rick has already acquired license to procure Beech, Oak and Mahogany wood from the Croatan National Forest and some other sources.

The company will be initially launched as a small business furniture mainly operating in two units, a major production facility in Wesley Chapel and a small company office in Charlotte, Furniture making plans in china Carolina which will be overseeing the distribution of products. Other than these two furniture making plans in china units, the Wood House will also open three display centers located in Washington, Chicago and Houston.

CustomersThe company aims to serve the residential and commercial zones of the cities containing its outlets along with exporting its products to other major cities as well. Target of the CompanyThe company aims to provide latest and innovative supreme-class furniture to its customers.

Rick's target is to become one of the leading furniture manufacturers of the US within next ten years of the launch. Rick has been planning this startup for the last couple of years and, thus, has all resources including the right knowledge for starting a furniture company. Why the Business is being startedRick has always wanted to bring innovations in the traditional furniture products being used everywhere.

He had some amazing innovative ideas Furniture Making Plans Young in his mind which could not be applied by working in some other company, though holding an executive position. That's why Rick had been planning his own business for the last couple of years. He aims to revolutionize the world of furniture by introducing foldable compact furniture products to minimize their space usage in homes.

How the Business will be startedRick has planned everything about his business. He hired professional experts from various fields to help him craft a detailed map about his business. The financial experts have forecasted following costs for expenses, assets, investment, and loans for the Start-up. The company will also offer repair and maintenance services like polishing and glazing of old furniture.

Marketing Analysis of furniture businessThe most important part in developing an effective furniture business plan sample is its marketing analysis that's why Rick hired furniture making plans in china services furniture making plans in china marketing experts to help him develop a good furniture business plan.

He also went through various plans before making his own plan of starting furniture business. The success of a startup totally depends upon how it markets itself to target its specific customer groups.

A successful marketing strategy can only be developed after knowing the target audience and potential customers. Our marketing experts carried out at extensive research to identify our target customers and develop a unique marketing strategy to attract them. Marketing SegmentationThe Wood House's target customers vary from individual buyers to multinational retail stores. We have identified following type of target audience which can become the future customers of our products.

The detailed marketing segmentation of our target audience is as furniture making plans in china Individual Buyers:The Wood House will open three display centers, initially, in the first year of its startup in Washington, Chicago and Houston. The purpose furniture making plans in china these showrooms is to attract individual buyers residing in these areas.

Furniture making plans in china of these cities are well established and comprise of well-off people that's why they can easily buy our products. We have specifically design luxurious products to target this wealthy community.

These individual buyers are expected to buy the biggest portion of our projects. Institutions:We will directly supply our furniture products mainly chair, cabinets, and desks to various educational institutions along with courts, churches, hospitals, municipal authorities and other institutions located in our three targeted cities.

Departmental Stores:The wood House will also supply its products to various departmental stores and mega malls located in the major cities of America.

These departmental stores will also display our products along with the products of various competitors and will be our second-biggest consumer after the individual buyers. Businesses:We will supply office furniture to various companies, offices, and businesses based in our three target cities especially Washington.

Maintenance Services:We will offer repair and furniture making plans in china services like polishing and glazing of old furniture to our various customers.

For this purpose we will allocate a special staff in our display centers located in targeted cities. The detailed market analysis of our potential customers is given in the following Business TargetWe aim to revolutionize the traditional designs of furniture products by introducing foldable compact furniture concept. Our target is to become one of the leading furniture producing companies of America within next 10 years by providing highest-quality wooden products within affordable prices.

At our company, we will provide a top-notch customer service. Our every employee and salesperson will treat our customers with utmost respect so as to build a long-lasting relationship with them. Product PricingSetting the prices of products is the most challenging part of any startup because it is very difficult to achieve the MARR minimum attractive rate of return while also furniture making plans in china the customers towards it.

Considering all restraints and aspects, we have priced our products in the similar ranges as of our competitors except the compact furniture which include furniture making plans in china desks, tables, and chairs. These products are slightly expensive because they cost more to produce. StrategyRick carried out an extensive research and also hired financial experts to help him develop an effective sales strategy for the company. Although he knew how to start a furniture business yet he took help of experts from various fields so as to make this venture successful.

The sales strategy of The Wood House developed by our experts is as follows: Competitive Analysis:We have a really tough competition ahead of us because there are hundreds of other established furniture companies in the United States.

That's why Rick has thought through everything to make his company stand out among others. Although we will produce supreme-quality furniture with latest furniture making plans in china but our main competitive edge is our concept of space-efficient foldable furniture, designed to fit in the limited space available in compact American homes.

We believe that if marketed properly this concept can revolutionize the world of furniture and give us unparalleled superiority in this business. Sales StrategyWe will introduce our startup to our target customers and stake holders by sending brochures furniture making plans in china introductory letters about us.

We will furniture making plans in china out a large-scale social media campaign for our advertisement. We will offer discounts and gifts on our products present in several retail stores to encourage sales.

Sales ForecastWe believe that people will use our products for the rest of their lives, if they try them even for one. Considering the market demand and the quality of our products, our sales pattern is expected to increase with years. By analyzing our market segmentation strategy, our experts have forecasted the following sales on yearly basis which are summarized in the column charts.

The detailed information about sales forecast, total unit sales, total sales is given furniture making plans in china the following table: Sales Forecast Unit SalesYear 1 Personnel PlanRick hired a Human Resource Manager for helping him develop a personnel plan for starting a furniture making business. He developed the following personnel plan for the staff needed for the company along with their average salaries with the help of experts.

To ensure the best quality service, all employees will be selected through vigorous testing and will be trained for a month before starting their jobs. Average Salary of EmployeesThe furniture making plans in china table shows the forecasted data about employees and their salaries for next three years. Personnel PlanYear Financial PlanRick has developed the following financial plan for starting a custom furniture business with the help of financial experts. The plan outlines the financial development of The Wood House over the next three years.

Rick had been saving up for this business for the last couple of years. That's why the company will be solely financed by him and he will also control the direction of business to make sure that it is expanding at the forecasted rate. No equity funding or outside loan will be required unless the company expands faster than forecasted.

Important AssumptionsThe company's financial projections are forecasted on the basis of following assumptions. These assumptions are quite conservative and are also expected to show deviation but to a limited level such that the company's major financial strategy will not be affected.

The following table shows the company's Brake-even Analysis. Projected Cash FlowThe following column diagram shows the projected cash flow. The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

Pro Forma Cash Flow Projected Balance SheetThe following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital. Ratio AnalysisYear To start a conversation with our team, fill in the form. A business plan consultant with relevant expertise will contact you shortly.

Return on Equity Furniture making plans in china Ratios Accounts Receivable Turnover 4. Collection Days 92 99 N. Inventory Turnover Accounts Payable Turnover Payment Days 27 27 27 N.

Total Asset Turnover 1. Debt Ratios Debt to Net Worth 0 Current Liab. Interest Coverage 0 0 0 N.

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