What is a home, office, or school without furniture? It will be just another empty space, so you will agree that people will always need chairs for sitting, beds to sleep on, a wardrobe for clothes and so on. That is why the furniture business in Nigeria is very lucrative; it is in high demand.
However, there are so many carpenters in the country already, so to succeed, you must follow some procedures and make your business stand out from the competition. Fortunately, this guide will show you how to start a lucrative furniture business in Nigeria, follow the steps accurately and you will surely be successful.
How to Start A Lucrative Furniture Business In Nigeria
Learn Carpentry Skills
This is optional, but before starting a furniture business, it will be an added advantage if you know how to make furniture yourself. Even if you hire staff, you should still be able to tell if they are doing things correctly.
So the first step to starting a furniture business is to learn carpentry skills from another company; by so doing, you will also be learning how to run such a business successfully. However, whether you have carpentry skills or not, the following procedures can help you start your furniture business.
Do Market Research
You need to study the furniture market in Nigeria to determine the types of furniture that are more in demand. Consider trends, customer preferences, your location and competition. Then, since there are many types of furniture, you can’t do everything, you have to decide on the type you will make, and you will need to consider your target market when choosing a niche.
You can make kitchen furniture, children’s furniture, office furniture, bathroom variety, garden and outdoor furniture, luxury furniture, or even focus on furniture remodelling.
Develop a Business Plan
Now that you have decided on your niche and target market, it is time to make a business plan. This will help you commit your ideas and strategies to writing and it will give your business direction as you progress. A well-detailed business plan will also give you easy access to loan opportunities and investors.
A business plan should contain the following:
- Executive summary.
- Business overview.
- Market overview.
- Financial highlights.
- The company overview.
- Product and services.
Acquire Finance for Your Business
Finance is a crucial aspect of every business; without the required capital, you cannot successfully start and run a furniture business, so how do you finance this business?
Here are the various sources of capital to consider for establishing your furniture business.
- Self-financing: This is good if you have enough money to establish the business independently.
- Loans From Banks: Many banks are willing to lend money to entrepreneurs for their startups, but you will need a good business plan and evidence of business registration.
- Grants From Government Agencies: government agencies or organisations also offer funds to business owners in Nigeria. Grants are not meant to be repaid, they are like free money.
- Investors: Some investors may be interested in your business if they go through your business plan and are assured you are on the right path to making profit. They can invest in your business or provide the funds you need to start it up.
- Equipment Leasing: Another way to ease the financial burden of your new business is by leasing the equipment you need; this way, you can pay in bits, weekly or monthly.
Register Your Business Name
It is vital to register your business name with the Corporate Affairs Commission in Nigeria; this will make your business recognised as a separate entity from its owner; it will also help you quickly gain the trust of investors and clients.
Acquire Intellectual Property Protection
It is not enough for your business to be registered; another essential procedure is acquiring intellectual property protection in Nigeria. So many ideas and creativity are involved in the furniture business, but these things are intangible, so you must protect them.
Get an Office Space With a Good Showroom
The next step is to get an office space for your furniture business. This office space needs a showroom or at least space to create one. The showroom will be used to display your products so that passers-by will quickly be attracted to them.
Your office should be in a buzzing area, preferably a roadside building, so many people can see the location and visit the office.
Get the Equipment You Need
Now that you have an office space, you can start buying all the equipment you need; again, you do not need to have carpentry skills for this business, so this is the point where you also begin to employ all the staff you need for the business. The following staff would be required for a furniture business.
- Arm makers.
- Hand carvers.
- Cabinet makers.
- Marketing officers.
- Product testers.
- Furniture finishers.
- Receptionist or Secretary.
- Quality control inspectors.
- Product designers.
Market and Promote Your Business
Once you are all set up, you will need to invest in marketing to have an edge over your competitors; you can reach a wider audience and attract more prospective customers through fliers, social media marketing, influencer marketing, a website or mobile app, affiliate marketing and so on.
Also, connect with other businesses that can recommend your services to their customers, such as interior decorators, building developers, and companies that sell building materials. In addition, at the early stage of this business, you have to ensure your prices are fair and consistent with the quality of your products.
The furniture business in Nigeria is very profitable and enjoyable. It will give you a chance to express your skills and creativity, and you will create excellent employment opportunities for many people.
If you already have carpentry skills, this is an avenue to use your skills for something more rewarding and expressive. If you have followed all the guidelines in this guide, you can now open your furniture business and start creating the masterpiece you have always desired.