Furniture Manufacturing Business Plan Example
Furniture Manufacturing Business Plan Example
Business
Plan
[YEAR]
Executive Summary 5
Business Overview 6
Mission 6
Objectives 6
Success Factors 7
Financial Highlights 7
3 Year profit forecast 7
Business
Description 9
Ownership 10
Start-up Summary 10
Startup cost 10
Funding Required 11
Market Analysis 15
Market Trends 16
Target Market Segment Strategy 16
Marketing share 16
Industry Analysis 17
Competition and Buying Patterns 17
Strategy 18
Competitive Edge 19
Sales Strategy 19
Sales Forecast 19
Sales Yearly 20
Milestones 21
Financial Plan 24
Important Assumptions 25
Brake-even Analysis 25
Projected Profit and Loss 26
Projected Cash Flow 29
Projected Balance Sheet 30
Business Ratios 31
Furniture Company | Business Plan [YEAR]
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Executive Summary
Business Overview
Mission
Objectives
Success Factors
Financial Highlights
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Before you think about how to start furniture manufacturing services,
you must create a detailed furniture manufacturing business plan. It
will not only guide you in the initial phases of your startup but will also
help you later on.
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Business Overview
Carpentaria
Mission
Carpentaria
Objectives
Carpentaria
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Success Factors
Carpentaria
Financial Highlights
Carpentaria
The company owners have provided the capital to cover start-up expenses.
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The company currently seeks a 3-year commercial loan to cover the operating
expenses. Specifically, these funds will be used as follows:
FY 1 FY 2 FY 3 FY 4 FY 5
Number of locations 1 1 1 1 1
Average customers/day 20 22 23 25 27
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2.
Business Description
Ownership
Start-up Summary
Funding Required
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Ownership
Carpentaria
Carpentaria Furniture will be owned and operated by Bill Moore who has been in the
furniture industry for the last 20 years. Bill has been planning this startup for the last
couple of years and, thus, has all resources including the right knowledge for starting
a furniture company.
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Start-up Summary
Carpentaria
Total start-up expenses, including tools, software, stationery, and related expenses are
shown below. Bill Moore will provide the bulk of the start-up financing. At the same time,
the company plans to receive a 3-year commercial loan facility, which will help meet the
cash flow
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Startup cost
Expenses 1,550
Assets 1,800
Furniture Company | Business Plan [YEAR]
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Cost distribution
Amount
Investment 2,050
Funding Required
The detailed startup requirements and expenses are given in the table below.
Sign $1,154
Marketing $4,430
Start-up Assets
Long-term Assets $0
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3.
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Before starting a furniture manufacturing business, you must take
many things into consideration such as you must consider what types
of furniture services will you be providing to your customers. Deciding
your services is
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Carpentaria
13/34
Carpentaria
Bill has started the furniture business to introduce space-efficient foldable furniture
products for minimizing space usage along with the commercial production of usual
furniture products. The company will also offer repair and maintenance services like
polishing and glazing of old
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14/34
4.
Market Analysis
Market Trends
Target Market Segment Strategy
Industry Analysis
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The most important component of an effective furniture
manufacturing business plan is its accurate marketing analysis. If
you are starting on a
smaller scale, you can do marketing analysis yourself by taking help from this
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Market Trends
Carpentaria
Carpentaria
Marketing share
Furniture Company | Business Plan [YEAR] 16/34
Segments Market share
High-end Residential 40
Mid-Range Residential 15
Commercial Development 45
Growt Year
Potential Customers h 1 Year 2 Year 3 Year 4 Year 5 CAGR
Industry Analysis
Carpentaria
• Resellers of complete cabinet sets using stock items where the cabinets turn up
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Carpentaria
The high-end cabinet market understands the concept of service and support and
is more likely to pay for it when the offering is clearly stated.
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17/34
5.
Strategy
Competitive Edge
Sales Strategy
Milestones
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After identifying the market demand, market trends, and the potential
customers of the startup, the next step is to define an effective strategy
for attracting those customers. Like marketing analysis, sales strategy
is also an
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Carpentaria
Sharonville, Ohio is experiencing steady growth in the high-end residential markets and
there is a consensus of continued growth in the area. Taking part in this growth, while
providing attention to the design development, ordering process, project management,
and installation
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Competitive Edge
Carpentaria
Our competitive edge is our ability to provide high volumes and flexibility
in style while maintaining a quality product backed by excellent service.
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Sales Strategy
Carpentaria
Sales Forecast
The following table shows the projected cabinet sales. As the company gets established
in the market, we anticipate strong sales growth over the next three years.
Furniture Company | Business Plan [YEAR]
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Sales Yearly
Sales
Other $0 $0 $0
Other $0 $0 $0
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Milestones
The accompanying table lists important program milestones, with dates and managers in
charge, and budgets for each. The milestone schedule indicates our emphasis on planning for
implementation.
Brent &
Business Plan 1/15/2020 1/31/2020 $2,000 Marketing
Marty
Brent &
Door Research 1/15/2020 1/26/2020 $500 Web
Marty
Brent &
Design of Sales Literature 1/22/2020 1/31/2020 $1,000 Department
Marty
Marty &
Make Industry Contacts 1/15/2020 2/28/2020 $1,000 Department
Brent
Showroom Feasibility Marty &
Study 1/25/2020 1/31/2020 $1,000 Department
Brent
Totals $7,950
Furniture Company | Business Plan [YEAR]
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6.
Management Summary
Personnel Plan
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The management plan is also an important component of a
furniture manufacturing business plan since it gives you an
estimate of the staff
required for your startup as well as the costs incurred on their salaries. So,
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Carpentaria
Personnel Plan
This table shows salaries for the whole company. Salary increases are kept to a
minimum to help the growth of the company. An administrative assistant will be hired
later in the year.
TOTAL PEOPLE 4 6 7
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7.
Financial Plan
Important Assumptions
Brake-even Analysis
Projected Profit and Loss
Projected Cash Flow
Projected Balance Sheet
Business Ratios
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The last component of a furniture manufacturing business plan is an in-
depth financial plan. The financial plan crafts a detailed map of all the
expenses needed for the startup and how these expenses will be met by
the earned
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Carpentaria
Important Assumptions
The financial projections of the company are forecast on the basis of the following
assumptions. These assumptions are quite conservative and are expected to show
deviation but to a limited level such that the company’s major financial strategy will
not be affected.
Plan Month 1 2 3
Other 0 0 0
Brake-even Analysis
Assumptions:
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Projected Profit and Loss
Commercial Furniture
$1,043,320 $1,294,152 $1,825,328
Sales
Bad Debt $0 $0 $0
Furniture Company | Business Plan [YEAR]
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2024 2025 2026
Amortization of
$0 $0 $0
Current Assets
Additional Expense
$82,757.0
Long Term Depreciation 9 $70,897.87 $58,352.62
Total Expense
Owner's Distribution
$0 ($174,009.68) $435,025.50
Retained Earning Closing
$80,000 $0 $0
($174,009.6
8) $435,025.50 $2,289,693.02
Furniture Company | Business Plan [YEAR]
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Projected Cash Flow
Sales Tax $0 $0 $0
Income Tax $0 $0 $0
Assets Sell $0 $0 $0
Common Stock $0 $0 $0
Preferred Stock $0 $0 $0
Owner's Contribution $0 $0 $0
Summary
Projected Balance
Sheet
Accounts Receivable $0 $0 $0
Inventory $0 $0 $0
Accounts Payable $0 $0 $0
Paid-in Capital $0 $0 $0
Common Stock $0 $0 $0
Preferred Stock $0 $0 $0
Owner's Contribution $0 $0 $0
Check $0 $0 $0
Business Ratios
Industry
Year 1 Year 2 Year 3 Profile
Percent of Sales
Main Ratios
Additional Ratios
Activity Ratios
Debt Ratios
Liquidity Ratios
Additional Ratios
33/34
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