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How to Start a Furniture Assembly Business: A Step-By-Step-Guide

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If you’re here, it’s likely you have several questions about how to start a furniture assembly business. In this article, I’ll be answering questions like:

  • Is the furniture assembly business profitable?
  • How does a furniture assembly business make money? 
  • What are the start-up costs for the furniture assembly business?
  • Common business expenses
  • How do I know if the furniture assembly business is a good option for me?

I’ll also be discussing next steps to get started, so if that’s what you’re looking for, you’re in the right place.

Let me tell you that starting a business is a challenge, but with the right guidance and advice, you can start your furniture assembly business.

What is a Furniture Assembly Business?

A furniture assembly business is a business that assembles furniture for their customers. Nowadays, it’s common to find furniture retailers that sell the furniture unassembled.

For those who don’t feel very handy, they may be overwhelmed by the idea of putting together their own furniture, so they like to hire companies who can make the process easier for them–that’s where you would come in.

As a furniture assembly business owner, you could help to alleviate the stress that many people feel when they buy furniture, but get boxes with furniture that needs to be put together. Your service would be to assemble the furniture, which means you may also mount furniture or appliances, and move furniture to the right location.

Is The Furniture Assembly Business in Demand?

According to a report, the U.S. Ready to Assemble (RTA) furniture market made $3.2 billion in 2019. Another report forecasted that the U.S. RTA furniture market will grow at an annual growth rate of 5.18% from 2017-2021. 

Thus, it goes without saying that as the RTA furniture market increases, the demand for furniture assembly services increases automatically.

The report also suggests that customers prefer RTA furniture over fully assembled furniture because of its cost-effectiveness. Fully assembled furniture is usually 20% more expensive than its RTA alternative due to the high labor and assembly costs.

For example, Kitchen Cabinet Kings’ RTA Country Oak Classic  RTA cabinets are sold at around $1,175, while the assembled version of the same cabinets costs around $1,382.

Therefore, It is an opportunity for a furniture assembly business to make money by providing cost-effective assembly services. 

It’s also becoming more common for sites like Task Rabbit, Home Advisor, and others to provide a marketplace where consumers can easily find furniture assembly services. As a result, it has led to more people learning about furniture assembly services, and choosing to hire rather than doing it themselves.

Is the Furniture Assembly Business Profitable?

Profit doesn’t happen by accident. In order to run a profitable business, you have to keep a budget, and ensure your income is higher than your expenses.

This is the equation to calculate profit:

Income – Expenses = Profit

You can definitely run a profitable furniture assembly business as long as you make sure your prices are high enough that you can cover your expenses, pay yourself, and still have money left afterwards.

How Does a Furniture Assembly Business Make Money? 

To make money in a furniture assembly business, you can charge based on the amount of time it might take you to assemble the furniture, and multiply that by an hourly rate that you’d set based on labor rates in your area. 

You can also make money by selling parts that could commonly be forgotten by customers, or you can make money from referring customers for additional products and services. 

For example, maybe you commonly help to mount appliances, but you find that often customers forget the appropriate cords. You can either keep an inventory of necessary cords, or you can refer customers to a vendor that gives you a commission for sales.

The average national cost of labor to assemble furniture ranges from $120 to $175 depending on the size and complexity of the furniture. And, of course, there are companies that charge far above and far below the averages. (source: fixr.com)

IKEA launched its new TaskRabbit assembly service with a flat rate of $36 per item. And now taskers set a per hour rate based on the project complexity.

What are The Start-up Costs for The Furniture Assembly Business?

The good news is that a furniture assembly business doesn’t require a large upfront investment. Many sellers get started with the car they already own, and a few basic handyman tools (a hammer, screwdriver, set of screws, etc.).

As you get more customers, you begin to notice other tools that would be nice to have. You can then reinvest in your business with the income you make. 

Other common costs a furniture assembly business owner may incur include incorporation, taxes, marketing costs, payment processing fees, workspace, tools, and transportation costs. 

However, by setting up the home business, you can cut costs related to your workspace. When you’re starting out, It doesn’t require a large work area (especially if you assemble the furniture at your client’s home or office). 

What are The Tools Required in The Furniture Assembly Business?

Tools are the most critical part of your furniture assembly business and are likely to be one of the biggest investment areas for you. Some tools you may want to consider are:

  • Craftsman standard and hammer/impact drill
  • flat plates
  • toggles 
  • self-tappers
  • hacksaw
  • rubber mallet
  • pry bar
  • vice grips
  • channel lock
  • set of clamps
  • duct tape
  • hammer
  • pencil

In addition to tools you would use on the job, you may also want to consider:

  • Building a website 
  • Getting business cards
  • And possibly keeping an email list, so you can reach out to customers to see if they have other projects. It’s much easier to get a customer who’s already bought from you to buy again.

How do I Know the Furniture Assembly Business is a Good Option for Me?

For many people, they buy new furniture for their home or office with a lot of excitement, but get frustrated when they can’t put the complex parts s together. 

If assembling furniture parts is exciting for you, and you understand the assembly instructions properly, then furniture assembly may be a good business option for you. 

If you are comfortable providing door-to-door services and putting furniture together makes you happy, you can start making money out of it.

How to Start a Furniture Assembly Business Step-By-Step

If you are still reading then I would like to believe that you are determined about starting a furniture assembly business. And, I am sure that with patience and hard work you can achieve success. 

Here are our recommendations for how to start a furniture assembly business, step-by-step…   

1. Create a Business Plan

Planning is the most important step. Before offering your services to customers, you should have the name, structure, and business processes ready. You need to determine the way your business will operate and the services that you will offer.  

How would you like to advertise and promote your company? What would your pricing strategy be, and what are your sales goals?

Your target customers

Define your niche and the customers you want to serve. Would you like to offer your services to anyone looking for an assembly service or just those who buy furniture in selected stores? Do you want to assemble new or old furniture when you move? And, would you cater to home or office furniture or both?

Knowing your target customers is important to avoid wasting time and money reaching irrelevant leads. With a clear customer profile, you can communicate with those who have the best chance of buying your services.

Finances

Before starting your business, you must know how you are going to finance your business?  With finance, I mean the cost that you will incur in setting it up. How are you going to buy the tools? Would you rent a room or set up your home business? When to use your savings or take out a loan. 

Calculate start-up costs and operating costs to organize the necessary finances. But, whichever method you choose, make sure you don’t spend all of your savings building your business.

Prices and services

You need to decide how much to charge for different types of furniture. Would you take a flat fee for each piece of furniture or different fees depending on the complexity? 

It is a good idea to study your competitors and understand their pricing strategy. Understand where the existing assembly businesses lack in serving the customers, and how can you fill the gap to justify your prices. 

Remember, customers look for quality and reliability. You can charge them a premium price than your competitors if you provide them with better assembly services. 

Marketing and advertising

Another significant aspect of a business plan is your marketing costs. How would you like to promote your company, and how much do you want to spend on every ad? Would you spend on billboards and van ads? Let me tell you that displaying your name and contact number on a furniture delivery truck can be a great advertising strategy. 

How much do you want to spend on social media promotions like Facebook and Instagram ads? 

Determine the best advertising medium for a furniture assembly business and allocate the biggest chunk of your ad budget to it.

Income

Finally, you need to calculate the revenue you want to generate from your business. Setting sales targets can help you shape your pricing strategy.

 Click here to download our free business plan template.

2. Incorporate

Your next step should be to incorporate your business. 

And for this, you can take the help of professional legal services such as Incfile and Swyft Filings. They’ll do the incorporation, keep the records, help you with the annual reporting, payment of taxes, and other legal requirements you may need to get your business up and running. 

3. Obtain licenses and permits

Depending on your local government, you may or may not need licenses and permits to run your furniture assembling business. 

In many areas, no licensing or permits are required. The terms, conditions, and fees vary depending on the location and type of business. 

It’s important to verify what you need. Failure to obtain licenses when they’re required can lead to legal problems.

Click here to learn more about your state licensing requirements.

4. Build a Website and Social Media Presence

Many business owners share their new business with family and friends for marketing purposes, and for approval. It’s up to you whether or not you tell family and friends, but it’s not optional for a successful business to run without anyone knowing about it.

The problem most businesses run into at some point is…how do you reach potential customers you don’t know?  

Approximately 87% of your current customers search online before entering a store. Therefore, your business should appear in front of your customers when they Google for the best furniture assembly services. 

You can reach your customers online using your website and social media platforms such as Facebook, Instagram, Twitter, and Pinterest.

It’s also important to optimize your website so people can easily navigate it with their mobile devices. It’s really common that customers review websites on their mobile phones. Thus, a mobile-friendly website can speed up and simplify your conversion processes.

Your website and social media accounts should include details about your services, furniture types, prices, and timelines, etc.

Bigscoots Hosting offers you customized WordPress hosting plans that make it easy and quick to design your website.

Leadpages offers a landing page builder that can showcase your assembly business in a top-of-the-line way

5. Map your Customer Journey

With so many online and offline buying mediums, it is challenging to understand your customers’ buyer persona and purchase cycle. Therefore, to hit the right nail and precisely reach the right customers, you need to map your customers’ journey. 

You need to understand how your customers search for a furniture assembly service. Do they Google it or take references from furniture sellers? If your customers take references then you need to invest more in building a strong network with the furniture sellers in your area. 

If the customers search for such services online, you need to invest in your website optimization to rank high on Google SERP.

When you understand your customers buying behavior, you can reach out to them with your customized offers and sales pitch as soon as they purchase new RTA furniture.

6. Get More People to Know About Your Business

So, by the time you reach #5, you are all set now. You’re operational and have the workspace, tools, and labor ready to launch your services. 

But what about after you serve the first few customers? You need more customers. 

Remember, furniture assembly is not likely to be a daily project for the same client. After assembly, your customers will only need your services when they buy new furniture. Hence, you need to keep attracting new customers. 

In a furniture assembly business, word of mouth is a great form of advertising. So, let your customers talk about your services. 

Ask them for testimonials to share on your website and social networks. You can also ask satisfied customers to rate your company on social media, on sites you’re hired from, on Google, and on other business directories where your business appears. 

Network with furniture retailers in your area and ask them for recommendations. It is best to leave your service brochure or business cards with them.

You can also schedule a Free Consultation to understand how to introduce more people to your business. Also, check out our Startup Entrepreneur’s Toolkit.

7. Sell Your Product or Service

When you meet people who need your services, be prepared to build trust, make them confident that you can help them, and deliver on their expectation. Don’t be too shy to tell them about your services, and to sell yourself.

E-commerce software like ThriveCart E-commerce and Shopify E-Commerce can help you collect payment and make sales online.

These platforms allow you to set up an online shop or checkout pages, upload pictures and descriptions of your products and services, and attract customers and sell your services.

8. Make Money

Your ultimate business goal is to make money, and once you follow these 7 steps, you will start making money. However, you can’t stop here. 

In today’s highly competitive world, you need to continue improving your process to meet your business goals. Some things that you should do consistently are:

  • Evaluate and set goals and a plan
  • Continue to promote your business online
  • Maintain the legal and financial requirements of your local area
  • Improve the quality of your product or service as you get customer feedback

Rinse and Repeat the Process!

Running a business assembly process isn’t a “set-it-and-forget-it” type of thing. You’ll need to continue persisting to:

  • Improve the quality of your service
  • Maintain your tools and get better ones
  • and, to inform more people about your service

Conclusion

I hope you have found the answers to your queries about how to start a furniture assembly business. If you’re ready to start your assembly business with the correct planning and great marketing ideas, don’t miss out on our free consultation. Book here to speak with a marketing pro about the next steps.

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