Owning a furniture store will seem like a tempting business idea to many. It really is. Due to the tendency among the population to update the home interior every 5-7 years, the demand for upholstered and cabinet furniture remains at a stable level. With an average store check of 9-10 thousand rubles. monthly profit reaches 300 thousand rubles .
Of course, this business has its pitfalls and difficulties, and success will depend on many factors. To take into account all the nuances and features, it is necessary to clearly plan each step of the activity. And you should start with an analysis of the positive aspects and disadvantages of the business.
Pros:
- High profit
- Opportunity to choose a different business format
- Steady demand for furniture
- No seasonality as such
Minuses:
- Market oversaturation
- Long payback
- Large financial costs
Before choosing your direction, consider options for the furniture trade.
Furniture store formats
- Special shop. It involves the sale of one category of goods, mainly in sets: kitchen furniture, upholstered furniture, bedroom furniture, office furniture and others.
- Standard furniture store with an area of 250-950 sq. m. Offers a diverse range of main product groups: furniture for nursery, bedroom, kitchen, office. In general, about 200 or more items of low and medium price categories. The range is presented by Russian manufacturers.
- Furniture hypermarket . On an area of 1 thousand square meters. m. a wide range of various furniture is presented, about a thousand or more positions of the average price range. The exhibition hall is designed for expensive exclusive custom-made furniture. Requires large investments and involves a narrow target audience.
- Online store. Realizes, as a rule, inexpensive furniture of one or several types. Allows you to save on rent, salaries of employees and initial investments. For the organization, you will need to create a website, fill it with content with a photo and description of the product, its characteristics.
When choosing a format, consider:
The size of the settlement, since in a small village with a population of several thousand people it will not be possible to sell expensive furniture, which is most in demand in large cities.
- Price category based on a wide target audience
- Store location and competitors
- Financial opportunities
You can combine several formats, for example, sell not only offline, but also through the site. Usually customers prefer to see the product with their own eyes, touch the material and discuss all the details. In this regard, it is more profitable to open a regular furniture store.
How to open a furniture store
Before opening a point, it is necessary to develop a concept, study the preferences and needs of the population in furniture. To do this, at least one hundred respondents are interviewed on the following topics:
- What furniture do you change most often?
- What type of store would you like to see
- Which price segment do you prefer: luxury, economy or middle class
- What is more important to you: price or quality and similar questions
It is important to determine the target audience of the store . Basically, these are young and middle-aged people who have their own housing and a stable income.
Different areas of the city are suitable for the location of a furniture store: bedrooms, central streets, trading floors.
The main requirement in this case will be the distance from direct competitors and visibility from the road.
To start a business, you need to invest at the start:
- Purchase of goods 450 thousand rubles.
- Rent of premises 50 thousand rubles.
- Repair work 60 thousand rubles.
- Registration of documents 15.thous. rub.
- Purchase of equipment 35 thousand rubles.
- Advertising and signage 60 thousand rubles.
- Purchase of vehicles 300 thousand rubles.
Total: 970 thousand rubles.
As you can see, the opening will require a considerable amount that needs to be found somewhere. Plus, monthly expenses for wages to employees, rent, utility bills, taxes, and more will be added to this.
You can take a loan from a bank, but keep in mind that investments will pay off in a year and a half. Therefore, additional funds are needed for this time. To save money, you should find manufacturers who agree to deferred payment.
Competitor analysis
Be sure to analyze the behavior of competitors: what they offer, their pricing policy, advantages and disadvantages . Visit the furniture stores of the city, explore the range of online stores. So you will understand whether the niche on which the bet is made is occupied.
It is also good to know the opinion of those who have been working in the furniture market for a long time. For example, furniture manufacturers who know consumer demand and preferences.
You can visit furniture exhibitions, where you can not only study the demand of buyers, but also get acquainted with suppliers.
Finding a suitable room
The following premises are suitable for furniture trade:
- in a shopping or business center
- on the ground floor of a residential building, retail outlet
- on the first floor of an apartment building located on the first line
- in a separate building for commercial real estate
The room must comply with the requirements of sanitary and building codes, be well lit, have a ceiling height of at least 2.5-2.7 meters , with passages between furniture for the convenience of customers, equipped with a fire extinguishing system.
The area is chosen based on the size of the outlet. For a small store, 80-130 sq. m., for the average 150-200 sq. m., for the online format, 90-100 sq. m. for a warehouse.
The main requirement for the premises will be the presence of a rear entrance with a transport access for the convenience of loading or unloading furniture.
At first, it is better to conclude a lease for 2-3 months or with a monthly payment. The rental price depends on the location and size of the store and averages from 40-50 thousand rubles. Since tenants usually do not return the money paid in advance, and the place may not be profitable and you will have to look for another room.
Premises renovation
The selected room needs to be prepared: carry out repair work, decorate the hall. Cosmetic repairs will require about 50-60 thousand rubles .
Equipment will not have to be purchased, as the space will be filled with exhibition furniture samples. Also, complex design of the premises is not required, the main thing is to provide customers with access to the goods and not to clutter up the aisles.
From the equipment you will need office furniture and office equipment for the store staff and cleaning equipment. Pay attention to the sign. Let it be colorful and bright. It will take 30 thousand rubles to make it. After that, we move on to the next stage of the plan.
We determine the suppliers and work out the assortment
The success of the business will largely depend on the reliability of furniture manufacturers and suppliers. Study reviews and information about them on the Internet, get to know regional partners. Choose trusted suppliers who have been on the market for a long time. Purchased furniture should be inexpensive and of high quality, have the appropriate certificates.
An economical option would be cooperation with Russian manufacturers focused on the low and medium price segment . At the same time, furniture can be taken for sale or purchased in bulk, as well as on order. You can work with different brands, dividing them into product categories, or with just one.
At first, it is desirable to work with several representatives to determine the best option. Having settled on one of them in the future, you can already sign an agreement on individual terms.
When choosing an assortment, they are guided by the format of the store and the most popular categories of furniture. There are two main types:
- related to the mass market, characterized by average quality and affordable price. Widely represented in ordinary furniture stores.
- luxury goods made in Poland, Italy and other European countries.
You can choose in special showrooms.
For a standard outlet, furniture can be as follows:
- upholstered: armchairs, sofas, poufs, etc.
- kitchen: sets, tables, chairs, corners
- cabinet: cabinets, chests of drawers, computer tables, cabinets
- bedroom: beds, sofas
- to order according to the client’s sizes, design solutions
- transformable and built-in furniture
- In addition to furniture, it is advisable to offer various accessories for the interior of the house: vases, paintings, blankets, hangers, and more.
Do not try to satisfy all customer requests, work with popular options. To deliver furniture, you need to resolve the issue with vehicles: buying your own or working with a logistics company under a contract.
Business registration
The activity must be registered as an individual entrepreneur or LLC. The advantages of IP will be: minimal documentation and ease of design, the ability to expand to 3-4 points. Disadvantage: the need to respond with personal property in case of an unsuccessful business.
An LLC is opened in case of large-scale activities and business expansion, as well as the opportunity to cooperate with any partners without additional documents.
Be sure to indicate all OKVED codes for which you plan to work:
- 52.44.1 on retail sale of furniture
- 51.47.1 for the wholesale of furniture, non-electric and household appliances
- 52.44 on retail sale of furniture and household goods
- 52.48.11 for the sale of office furniture
You must select the type of taxation. The best would be the simplified tax system with the payment of 6% of net income or 15% of income minus expenses.
From the documents you will need:
- The passport
- TIN
- Registration Application
- Payment of state duty
For a legal entity: the decision to establish an LLC, the authorized capital and the charter of the company
To open a furniture store you need:
- Conclude an agreement with the municipal service for the removal of garbage and solid waste
- Sign a lease agreement
- Draw up an employment contract with employees
- Obtain permission from Rospotrebnadzor and the Fire Service
Hiring
For a small furniture store, you should hire:
- one or two salespeople with a shift work schedule and wages consisting of two parts: salary and percentage of sales
- two loaders and a furniture assembler to work in the state
- part-time accountant and janitor
The requirements for the staff will be: decency, goodwill, neat appearance, quick learner.
The number of employees increases with the increase in the outlet and the scale of the business.
Business risks
The furniture business has some risks:
- high competition, which can lead to low demand and loss of profit
To minimize, they carefully consider the marketing strategy and pricing, and try to develop their own concept. - slight seasonality, expressed in a decrease in sales in the summer. Downtime these days pay off before the holidays and on weekends, when there is an influx of buyers.
- defective goods requiring a markdown. Careful selection of furniture suppliers will reduce the risk.
Like any other business, the furniture trade requires promotion. Use all possible channels for this:
- own website, social networks
- advertising in the media, on transport
- distribution of leaflets
- banners
- bulletin boards
- participation in furniture exhibitions
To attract customers, arrange promotions and discounts, pre-holiday sales. Work for the future and open new outlets.
Remember, the profit of the store depends on the variety of assortment, cost and customer demand. Don’t worry if there are no daily sales. Even with the number of 6-7 clients per week and an average check of 10 thousand rubles. You will be able to reach payback in 6-7 months.
A clear business plan with detailed calculations and an effective marketing policy will help shorten the time.
Only with a competent approach and reasonable business management is the furniture business able to grow into a prosperous enterprise that consistently generates income.
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