How Much Does It Cost To Start A Furniture Business? (In 2024)
Looking to start a furniture business?
But curious about:
- how much it costs to start a furniture business?
- what are the typical furniture business startup costs?
- or the actual cost of starting furniture businesses?
Well, we have the data to prove it, supported by real furniture businesses and how much they actually cost to start.
Let's go over it.
What is the average cost of starting a furniture business?
Based on our data reported by actual furniture business founders, the average cost of starting a furniture business is between $2,000 and $350,000.
Additionally, our data shows that the the median startup costs for a furniture business are around $20K.
Remember, though, not all furniture businesses are the same - and neither are people's budgets. It's important to distinguish between different levels or types of furniture businesses
Real World Examples: How much does it cost to start a furniture business?
We asked real furniture business founders and business owners how much it actually cost to get started?
Here is what they said:
Greg Hayes
Founder of Branch Furniture ($500K/month)
"Over the course of two months, we raised $200k from family, friends, and several angel investors who saw potential in what we were building. It was just enough money to produce our first production run, but we also needed to fly in our prototypes, set up a small Manhattan showroom, hold a photo shoot, and build a website...and we had no experience doing any of those things."
Greg Hayes is the founder of Branch, a premium office furniture business that targets growing businesses and offers high-quality, ergonomic office furniture at competitive prices.
Piotr Hołubowicz
Founder of Seedia ($50K/month)
"We reached for European Funds because in the early stages of enterprise development it is very difficult to obtain private funds. The nature of our project, its innovation allowed us to obtain funds to quickly and intensively develop what we do."
Piotr Hołubowicz is the founder of SEEDiA, a business focused on developing smart city technologies using renewable energy.
grier Govorko
Founder of Bentolabs Design ($5K/month)
"It costs roughly USD 500 from memory to incorporate and open a bank account."
Grier Govorko is the founder of Bentolabs, a business specializing in designing and manufacturing modern, stylish flatpack furniture and other designery items.
Anesley Clarke
Founder of B2C Furniture ($1M/month)
"The business is funded privately via the shareholders of the business and being a small business, this model was not sustainable in the long run."
Anesley Clarke is the founder of B2C Furniture, an e-commerce furniture retailer dedicated to providing sustainable and beautifully designed furniture.
Ashley ‘JP’ Lockwood
Founder of Deskmate ($30K/month)
"Cool fact: Deskmate started on £300 and we launched in 3 weeks."
Ashley ‘JP’ Lockwood is the co-founder of Deskmate, a standing desk startup that offers the cheapest standing desks available globally and has sold over 5,000 units since launch.
Nils Wessell
Founder of Brooklyn Butcher Blocks ($25K/month)
"I financed Brooklyn Butcher Blocks on my own dime. This probably made the process slower and more painful in some respects, but I don’t regret it. I think it’s a good way to start because it’ll keep you frugal. It took me a while to understand and appreciate debt since I was brought up to fear debt. That said (and this is a note to any debt-fearing entrepreneurs), I love debt. It’s a huge help. I was lucky that Chase simply offered me a Business Line of Credit."
Nils Wessell is the founder of Brooklyn Butcher Blocks, a woodworking business that started in 2010 and grosses about $220K to $350K annually.
Sasha Weekes
Founder of Timber Grove Studios ($6.5K/month)
"Outfitting a large woodshop costs thousands of dollars. Instead, I started out with an old miter saw that my shop teacher sold me for $30, just enough material for a few shelves to photograph, and my biggest investment - a new nail gun and compressor - came to around $350. Fresh out of school with no savings whatsoever, I got only what I needed and got to work on designing products with it."
Sasha Weekes is the founder of Timber Grove Studios, a home-based woodworking business that started in 2017, specializing in decorative shelving and home decor.
Mel Stutzman
Founder of Countryside Amish Furniture ($250K/month)
"The first web developer I hired took the $10,000 I paid him and disappeared without doing any work. Discouraged but not undeterred, I found a second developer through local connections who work on our site to this day."
Mel Stutzman is the founder of Countryside Amish Furniture, an eCommerce retailer of authentic, wooden furniture made-to-order by Amish artisans, generating millions in sales.
Enjoyed reading these real world examples?
Our platform is full of case studies of successful furniture businesses that you can learn from.
Starting a furniture business - what you should know:
Launching a furniture business entails several critical considerations that can significantly impact your startup costs and overall profitability.
Initial Capital Investment
The startup costs for a furniture business can vary widely. On average, you might need between $50,000 to $500,000 to get started. Costs will depend on the size of your operation, the location, and whether you are manufacturing furniture or just retailing it. For example, a small retail furniture store might get by with $50,000 to $100,000, while a larger manufacturing operation could require upwards of $200,000.
Location and Overhead Costs
Renting a retail space or a manufacturing facility can be a major expense. Monthly rent for a modest retail space may range from $1,500 to $5,000, depending on the city and neighborhood. On the other hand, leasing a larger warehouse or manufacturing space can cost between $10,000 and $40,000 per month. Keep in mind that locations with high foot traffic or those close to affluent neighborhoods can command higher rents but potentially offer higher sales volumes.
Material Costs and Suppliers
The cost of raw materials such as wood, metal, and fabric will also play a significant role in your startup budget. Quality hardwood can cost anywhere from $4 to $10 per board foot, and metal frames might run between $2 to $6 per pound. Securing reliable and cost-effective suppliers for these materials is critical. Buying in bulk can sometimes reduce costs, but be prepared for initial investments of at least $10,000 to $20,000 in raw materials to maintain an adequate inventory.
Labor and Staffing
Labor costs are another crucial factor. Hiring skilled craftsmen can cost you between $20 and $30 per hour, while general labor may cost between $12 and $20 per hour. If you plan to operate a larger facility, you might also need to budget for additional staff such as managers, accountants, and sales personnel, which can add another $5,000 to $15,000 monthly, depending on your staffing needs.
Marketing and Sales
Marketing is essential to attract customers. An initial marketing budget could range from $5,000 to $15,000, covering expenses such as online advertising, social media campaigns, brochures, and perhaps a website. Sales platforms like Shopify or Etsy may also charge fees, ranging from 5% to 10% per sale, which should be factored into your pricing strategy.
Regulatory and Licensing Fees
Don’t overlook the costs associated with business permits and licensing. These can range from a few hundred to a few thousand dollars, depending on your location and the scale of your operations. Additionally, insurance costs—which cover liability, property, and worker's compensation—might add another $1,000 to $4,000 annually to your expenses.
Understanding these variables can help you budget more accurately and prepare for the financial realities of starting a furniture business.
Potential Costs of Starting a Furniture Business
Starting a furniture business involves various costs that can add up quickly, from initial investments in tools and equipment to ongoing expenses such as rent and labor. The following table outlines potential costs to help you plan your budget effectively.
| Category | Description | Estimated Cost Range |
|---|---|---|
| Business Registration | Legal fees for registering your business | $50 - $500+ |
| Licenses and Permits | Necessary local and state licenses | $200 - $1,000+ |
| Rent/Lease | Monthly rental costs for workshop/store space | $1,000 - $5,000/month |
| Utilities | Electricity, water, internet, etc. | $200 - $800/month |
| Insurance | General liability and property insurance | $500 - $2,000/year |
| Tools and Equipment | Saws, drills, sanders, etc. | $5,000 - $50,000 |
| Raw Materials | Wood, metal, fabric, etc. | $5,000 - $20,000 initial |
| Website Hosting & Design | Domain registration, hosting fees, design costs | $300 - $3,000+ |
| Marketing | Advertising, social media promotions, etc. | $500 - $5,000/month |
| Labor Costs | Employee wages, benefits | $2,000 - $15,000+/month |
| Software | CAD software, inventory management, etc. | $200 - $2,500/year |
| Office Supplies | Computers, printers, stationery | $500 - $2,000 |
| Vehicle | Delivery truck or van | $10,000 - $40,000 |
| Miscellaneous | Unexpected costs and buffer | $1,000 - $5,000+ |
By understanding and planning for these potential costs, you can better prepare for the financial challenges of launching your furniture business, ensuring you have the capital required to succeed.
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Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
Download the report and join our email newsletter packed with business ideas and money-making opportunities, backed by real-life case studies.
