People's standard of living in India has improved over the years. Furniture plays an essential role in making their home impressive. Hence Indian furniture business expands to wardrobes, tables, sofas, chairs, almirahs and kitchen furniture, etc.
If you also want to start working in this growing business, you can begin at a furniture shop in your area.
The article covers a business strategy, materials required, licenses and certificates, cost of operating a furniture store, profit margin, etc.
Steps needed to be taken to start a furniture business in India
From beginning the furniture business to taking it to new heights, you must take some essential steps. Which are discussed below.
#1 Make a Business Plan
Select the type of furniture business you want to launch. Is it only a store, or will you have an internal manufacturing facility for furniture? Manufacturing is a complex endeavor that requires a thorough understanding of the necessary talent and innovation. Your company will expand, and you will need to hire professionals.
#2 Identify your business location
Choosing a suitable site for your business is the first step in the furniture industry. The best locations for furniture store businesses are in areas where new homes, apartments, and complexes are being developed and in middle-class to upper-middle-class residential districts.
A shop with at least 2500 to 3000 square feet is required. More areas could be needed if you wish to start on a huge basis.
#3 Find suppliers for raw materials
The procurement of your raw materials is a crucial factor you must take into account when starting a furniture business. Find and keep close, strong relationships with suppliers who can provide you with the best raw materials.
When creating a furniture manufacturing firm, the most suitable materials will depend on the type of furniture you plan to make.
#4 Identify your products
In the furniture business, you can roll out a wide variety of products. Furniture for children, TV stands, wall storage, mattresses, bedside tables, couches, armchairs, beds, desks, drawers, cabinets, cupboards, wardrobes, dining room sets, shoe cabinets, study lamps, mirrors, and more.
When starting out, outline which products you want to manufacture in the initial stages. You can then evolve further and expand your catalog as your business grows.
#5 Required workforce
Hiring a team is essential to transforming your hard work into innovative work. A furniture manufacturing facility has to hire a competent crew in particular.
You can establish salaries for employees between 15,000 and 18,000 rupees per month. The overall workforce will depend on the size of the firm you intend to launch.
#6 Required registration and license
If a business doesn't have the required licenses and permissions in place, it cannot operate. Therefore, when starting your furniture manufacturing facility, you must have a few specific pieces of paperwork with you, like GST papers, factory legislation, MSME registration, trade licenses, NOCs, and NDAs.
Additionally, getting business insurance is crucial. Any CA or legal organization can assist you in obtaining these documents.
#7 Machinery investment
The machinery needed for your furniture manufacturing company is the second most crucial factor to consider after raw materials. If you were to start a furniture business, your machinery investment would need to be considered. This expenditure won't be as significant if your company produces furniture on a modest scale.
However, if you establish a sizable furniture company, machinery expenses will heavily influence your cost sheets. It is because several types of machinery, such as stationary equipment, processing tools, automatic packaging equipment, etc., are needed to launch a furniture business.
#8 Establish the identity of a business
You may stand out by using a distinctive business identifier. Your brand identity includes your company's name, values, and vision. It assists you in creating a niche for yourself in the industry, and a strong brand identification makes that unchallengeable. Establishing a company identity is essential for starting a furniture business.
It will facilitate your ability to explain your offerings to your target market. Additionally, a brand essence will help you build enduring relationships with your clients. If your furniture manufacturing company's identity is strong and relevant, it will guarantee you successful leads and a following of devoted customers.
#9 Marketing of business
If creating a brand as you launch your furniture company appears daunting, it is preferable to engage a marketing specialist. A marketing expert will support your brand vision and work with you to make it a reality. Your furniture manufacturing company's success depends on having a solid marketing plan full of innovative and unique concepts.
The marketing specialist takes responsibility for reaching out to the appropriate customers, market, and promotional techniques. Consider hiring one to guide your marketing and branding efforts properly.
#10 Types of the furniture business
Many furniture businesses are in vogue today, all of which are profitable. You can choose anyone from the list below. In which Bamboo, Wooden, Steel, and Leather business are prominent.
1. As decorative furniture, bamboo and cane artisan pieces are highly well-liked. The furniture in question is lightweight. Cane and bamboo are primarily human weaving processes that use bamboo slivers to create valuable items like sofa sets, chairs, tables, raking chairs, etc.
2. Leather is well-liked as a luxury and lifestyle good. As a result, it gives the company a highly encouraging profit margin. These are frequently used as living room and dining room furniture in homes. However, the biggest market is for office furnishings. With significant financial investment, you can launch a leather furniture manufacturing company.
3. Making furniture out of steel is profitable. Demand can be found all year long. You may start this business with some inexpensive equipment and raw supplies. Even you can set up the unit at home. Steel almirahs, cabinets, and chairs are today widely used in industrial, commercial, and domestic activities.
In India, wooden furniture has traditionally been used in homes. Based on their strength and which is defined by their wood density, there are two primary classifications: Hardwood and Softwood. It does, however, support a variety of items. Teak wood, Sissoo wood, Satinwood, Sal wood, Rosewood, Pinewood, Mulberry wood, Mahogany wood, and other types of wood are on the list. You can launch a home-based business creating wooden furniture.
In conclusion
The furniture business in India is vast, and furniture is a necessity for homes, offices, and commercial spaces. This makes it one of the most lucrative industries.
If you are looking for ways to finance your business, turn to Tata Capital. Tata Capital’s business loans will help you provide capital for your upcoming business, maintain a steady cash flow, and always have money at hand for your immediate business needs. We offer attractive interest rates and flexible EMI options, so that you can run your business worry-free. Visit our website to learn more.
30 January 2023
6 mins read
Twitter
Facebook
Previous Post
