Any business venture in today’s tough economy is surely welcome. For the business-minded Australian who loves cute items for children, why not venture into the kids’ furniture industry? Even if you don’t know how to build these types of furniture, which includes the children’s table or a high chair for babies, there are many ways that you can market them and earn additional income stream. All you need is a capital in both monetary and desire for these items that continue to rise in popularity throughout these years.
Kids’ Furniture Business Idea
This article presents many options, techniques, and ideas on how you can start your bright future in the children’s furniture industry.
Used or New Furniture
You have the option to sell either new or used furniture. This may depend on the capital that you have. Selling new furniture will provide you with items in pristine condition. However, it may be more costly to start up because the items will be more expensive than the used ones, even if you add the repair and cleaning costs on top of the acquisition cost of used furniture.
Another good thing about used furniture is that you have a wider room for profit because you can wiggle the price during negotiation, since you are knowledgeable on the acquisition and repair expenses. This is almost impossible with new furniture. As you earn more experience you can also find new ways to lessen the repair and cleaning cost which is great in helping you save thousands of dollars. With $75,000 to $100,000 as capital, you may already be able to start your own refurbished children’s furniture store.
Buy an Existing Furniture Store
If you have a bigger capital, why not buy an existing furniture store? This is a great way to put your business on an excellent position with investors compared to starting your furniture store from the ground up. Acquiring an established store gives you the opportunity to provide an already-established brand, which is a great advantage in increasing an already large number of target markets in the furniture industry.
Open a Franchise Store
Franchising is another great option for starting out in this business. By becoming a franchisee of a popular furniture brand you can substantially minimise the risk of experiencing failure in this business. You can leverage the franchise’s successful branding, reputation, and track record to instantly take your new business to higher ground.
More Tips to Consider on Kids’ Furniture Business
Here are more tips that can help you survive in a tough market in this industry.
Evaluate Your Competitors in this Business
It is a key strategy to get to know more on the same business establishments offering the same items andthat are operating within your store’s location. Take some time to research about your competitors and properly evaluate their strengths and weaknesses. Avoid doing what you think is harmful to their businesses and improve on their strengths. You may be able to find crucial techniques to offer something fresh and unique to your clientele.
Seek Advice from Seasoned Furniture Business Owners
Talk with people who are already in this business, but only to those with their stores located not within away from the vicinity of your store address, in another town or farther. Furniture businesses operating within your area will most likely not talk to you about giving advice because you are now a direct competitor. However, if you can find someone from another town or farther, those store owners who have been in the same business for many years may give you advice on tips and techniques on surviving in this competitive industry. That will indeed prove to be very valuable.
Formulate a Business Plan
Starting any business requires a sound plan for the business to persist. Your business plan will detail your marketing strategies, the development of a financial projection, and how your business will be organised and managed.
In short, your business plan is the blueprint for the future of your business, and it involves the following:
- Choosing a business structure: Will you open a sole proprietorship business, a corporation, or a partnership? The type of business structure will impact how your income taxes will be filed. Consult with a lawyer or business advisor about this.
- Formulating a clear definition for your company: What types of furniture are you selling? How are you going to make them? What materials will be used? How will your customers benefit from them? Describe the product line of your furniture business and go into specific details; such as will you be making furniture suited only for small babies, like a children’s table or a high chair, or will you also offer furniture and toys for older children?
- Detailing the techniques on how to market your furniture business. This includes your plans on advertising your business and how you plan to grow it by introducing new product lines and possible expansions in the future.
- Providing a clear explanation of your market analysis. Know more about your competitors and other businesses offering similar products and/or services as yours.
- Creating the financial projections for your business in the next five to ten years. This is important in attracting business creditors and investors who may want to know about your financial outlook in new markets.
Licences and Permits
There are specific requirements for every state on what licences and permits are needed in order for a business to legally operate. Log on to your state government’s website and know more about these requirements; which include state regulations regarding the location of your kids’ furniture business, laws that regulate the emissions of formaldehyde, greenhouse gas, and other hazardous and pollutants that are a result of the by-product of the furniture making process.