Furniture business plan helps the entrepreneur to understand, to visualize, to plan and to identify risks even before making any investments in the business. Preparing a business plan involves detailed research so that all the aspects of the given business is evaluated and appropriate decisions are made. Globally, the domestic furniture contributes to 65% of the total production value while corporate or office furniture and hotel contributes to 15% each and other are 5%. In India, as of 2006 the furniture market was worth of $7.9 billion and India was the largest importer with 17% of global share.
The target market for a furniture business will be upper middle class and rich people around the showroom location aged between 30 to 55, especially working couples and the offices within 15 to 20 kilometres range. The major expenses will be on rent, inventory, insurance, licence and permits, salary, electricity, maintenance marketing and working capital.
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All organizations are made up of group of capabilities that are coming from People, Processes and Systems. These capabilities are working together in a seamless manner to deliver the requisite capabilities to the customer. The various capabilities that need to be addressed in a furniture business plan are given below:
People involved in the business are the owner or the managing director, advisors, administrative or financial manager, operations manager, interior designer, marketing officer, technical staff, service staff and a part time SEO marketer if the company is planning to sell online.
Apart from the retail sales in the showroom, online sales and delivery, consulting service for interior design and advising the customer with best alternatives can be offered. Other processes are accounting, administration, marketing and promotional activities.
The systems involved are inventory and purchase management system, Billing system, sales software. The facilities required for the furniture business are a showroom, office spaces, storage and workshop, garage and service. The products that will be on sale will be wood or cane furniture, like dining tables, coffee tables, chairs, and the furniture sets like bedroom furniture, living room furniture, dining room furniture, office furniture. Other than the products the office accessories like computer, software, server, printer, scanner, telephone. And the pickup and delivery vehicles either owned or leased.
Most of the businesses have professional bodies across the globe and being associated with these organizations tremendously helps in understanding the current trends in business. Some of the professional bodies are listed below for your reference:
Association of Furniture Manufacturers & Traders Lakhi Industry House,
Mumbai - 400078.
BIFMA678 Front Ave. NW, Ste. 150
Grand Rapids, MI 49504-5368
Australian Furniture AssociationLevel 3, Building 5, Holmesglen Institute, Batesford Road, Chadstone, 3148
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