A repurposed furniture business involves taking old, worn-out, or unwanted furniture and transforming it into something new, functional, and aesthetically pleasing. This type of business aims to reduce waste by giving old furniture a new lease of life instead of throwing it away.
Repurposing furniture can involve a range of techniques such as painting, reupholstering, and adding decorative features. The resulting pieces are often unique, one-of-a-kind items that can be sold for a profit.
A repurposed furniture business can operate in several ways. Some businesses source and repurpose furniture themselves, while others may take on furniture that people donate or sell. Some businesses may also offer custom repurposing services, where they transform clients’ existing furniture to suit their needs and style.
The repurposed furniture business is part of the home furnishings industry and available data shows that the market size of the Home Furnishings Stores industry is $62.1 billion in 2023.
Steps on How to Write a Repurposed Furniture Business Plan
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Executive Summary
Laurent Jefferson® Repurposed Furnitures, Inc. is a West Bloomfield, Michigan-based repurposed furniture business that specializes in transforming old, worn-out furniture into unique and functional pieces. We are equipped to reduce waste and provide our customers with affordable, eco-friendly alternatives to new furniture.
We source our furniture from various places, including secondhand stores, estate sales, and online marketplaces. Our team of skilled artisans then use a range of techniques to repurpose and transform the furniture, including painting, reupholstering, and adding decorative features.
As a socially and environmentally responsible business, we are committed to reducing waste and promoting sustainable living. We believe that repurposed furniture not only benefits our customers but also helps to create a more sustainable future. Laurent Jefferson is the founder and CEO of Laurent Jefferson® Repurposed Furnitures, Inc.
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Company Profile
a. Our Products and Services
Laurent Jefferson® Repurposed Furnitures, Inc. will be involved in selling repurposed furniture. In addition to selling our repurposed furniture, we also offer custom repurposing services for clients who want to transform their existing furniture to better suit their needs and style.
We believe in providing personalized and high-quality services to our customers, ensuring that every piece of furniture we repurpose is unique and tailored to their preferences.
b. Nature of the Business
Our repurposed furniture company will operate the business-to-consumer business model.
c. The Industry
Laurent Jefferson® Repurposed Furnitures, Inc. will operate in the home furnishings industry.
d. Mission Statement
Our mission is to provide our customers with high-quality, eco-friendly furniture solutions that are both functional and beautiful. We are committed to reducing waste and promoting sustainable living through our repurposed furniture and custom services.
e. Vision Statement
Our vision is to become a leading repurposed furniture business that promotes sustainability and creativity. We aim to inspire people to rethink their relationship with furniture and encourage them to see the potential in old, discarded items.
f. Our Tagline (Slogan)
Laurent Jefferson® Repurposed Furnitures, Inc. – The Leading Repurposed Furniture Company!
g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)
Laurent Jefferson® Repurposed Furnitures, Inc. will be formed as a Limited Liability Company (LLC). The reason why we are forming an LLC is to protect our personal assets by limiting the liability to the resources of the business itself. The LLC will protect our CEO’s personal assets from claims against the business, including lawsuits.
h. Our Organizational Structure
- Chief Operating Officer (Owner)
- Workshop Manager
- Bookkeeper/Accountant
- Furniture Restoration Specialist
- Sales and Marketing Officer
- Customer Service Officer (Receptionist)
i. Ownership / Shareholder Structure and Board Members
- Laurent Jefferson (Owner and Chairman/Chief Executive Officer) 51 Percent Shares
- Terry Adams (Board Member) 19 Percent Shares
- Bob Fanucci (Board Member) 10 Percent Shares
- Joe Dexter (Board Member) 10 Percent Shares
- Linda Victor (Board Member and Secretary) 10 Percent Shares.
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SWOT Analysis
a. Strength
- We boast of a strong environmental focus, which can be a significant strength in a society increasingly concerned about climate change and sustainability.
- Repurposed furniture is often one-of-a-kind, making it appealing to customers who want something unique and personalized.
- Low overhead costs
- Repurposed furniture businesses can be flexible in terms of the products they create and the services they offer.
b. Weakness
- Depending on the availability of secondhand furniture, repurposed furniture businesses may have limited inventory, making it challenging to meet customer demands.
- Lack of consistency
- Production time.
c. Opportunities
- As more people become concerned about environmental sustainability, the market for repurposed furniture is likely to grow.
- Offering custom repurposing services can be an opportunity to meet specific customer needs and increase revenue.
- Repurposed furniture businesses can take advantage of e-commerce to reach a broader audience and increase sales.
i. How Big is the Industry?
The repurposed furniture industry is a small industry and there are few players in this line of business.
ii. Is the Industry Growing or Declining?
The repurposed furniture industry is growing and this could be a result of the increasing awareness of sustainability and eco-friendliness of repurposed and upcycled furniture. Many customers are looking for furniture that is not only stylish but also sustainable and repurposed furniture businesses are well-positioned to offer this type of product.
iii. What are the Future Trends in the Industry
As consumers become more aware of the environmental impact of furniture production and disposal, there is likely to be an increased focus on sustainability in the repurposed furniture industry. This may involve using eco-friendly materials and processes, as well as finding innovative ways to reduce waste.
The use of technology in the repurposed furniture industry is likely to increase in the future. This may involve the use of 3D printing to create custom parts or designs, as well as the use of virtual and augmented reality tools to help customers visualize how a piece of furniture will look in their home.
iv. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the repurposed furniture business.
v. Can You Sell a Franchise of Your Business in the Future?
Laurent Jefferson® Repurposed Furnitures, Inc. has plans to sell franchises in the nearest future and we will target larger cities all across the United States of America and other parts of the world.
d. Threats
- Repurposed furniture businesses may face competition from other sustainable furniture companies or traditional furniture retailers who offer eco-friendly options.
- Repurposed furniture businesses may be vulnerable to economic downturns, as customers may be less likely to spend money on non-essential items.
- Depending on the materials used to repurpose the furniture, the cost of materials may fluctuate and impact the profitability of the business.
i. Who are the Major Competitors?
- Chairish
- Rejuvenation
- Jayson Home
- West Elm
- Anthropologie
- Furniture Pipeline
- The Refinishing Touch
- Unruh Furniture
- Overstock
- The Dump Luxe Furniture Outlet
- Urban Wood Goods
- Nadeau
- Patina Vie
- Vintage Mill Werks
- Ballard Designs
- Viva Terra
- Rethink Design Studio
- Classic Home
- Four Hands
- Lost and Found Decor.
ii. Is There a Franchise for Repurposed Furniture Business?
Yes, there are franchise opportunities for repurposed furniture business and they are:
- Rustic Home
- Painted Furniture Company
- The Rustic Mile
- Furniture Medic
- Reclaimed Resale & Design
- The Junkluggers
- The Furniture Refinishing Company
- The Reclaimed Room
- The Rustic Room
- The Upcyclist
- The Refinishing Shop
- The Repurposed Collection
- The Painted Home
- The Reclaimed & Repurposed
- The Rustic Emporium
- The Chalked Up Furniture
- The Shabby Chic
- The Industrial Home
- The Salvaged Boutique.
iii. Are There Policies, Regulations, or Zoning Laws Affecting Repurposed Furniture Business?
Yes, there are policies, regulations, and zoning laws affecting repurposed furniture businesses in the United States. These laws vary depending on the state and local municipality where the business is located. One significant regulation affecting repurposed furniture businesses is environmental protection laws.
Repurposed furniture businesses may need to comply with federal and state regulations regarding waste disposal, hazardous materials, and air quality. For instance, some repurposed furniture businesses may need to have a permit for using certain chemicals or materials for refinishing furniture.
Another regulation that can impact repurposed furniture businesses is consumer protection laws. Repurposed furniture businesses may need to comply with state and federal regulations related to advertising, warranties, and product safety.
Zoning laws can also impact the location of repurposed furniture businesses. For example, some municipalities may have zoning laws that prohibit businesses from operating in residential areas or restrict certain types of commercial activities. Additionally, some areas may have restrictions on signage or the display of products on the storefront.
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Marketing Plan
a. Who Is Your Target Audience?
i. Age Range
The age range of people who we look forward to doing business with is between 18 years and above.
ii. Level of Educational
We don’t have any basic educational qualifications for those who we are targeting; everyone will be welcome to do business with our repurposed furniture company.
iii. Income Level
Anyone who can afford furniture will be welcome to our repurposed furniture company.
iv. Ethnicity
There is no restriction when it comes to the ethnicity of the people that will purchase furniture from our repurposed furniture company.
v. Language
There is no restriction when it comes to the language spoken by the people that will purchase furniture from our repurposed furniture company.
vi. Geographical Location
Anybody from any geographical location will be received in our repurposed furniture company.
vii. Lifestyle
Laurent Jefferson® Repurposed Furnitures, Inc. will not restrict any customer from doing business with our repurposed furniture company based on their lifestyle, culture, or race.
b. Advertising and Promotion Strategies
- Build Relationships with Other Businesses in our Target Location
- Use FOMO to Run Photo Promotions.
- Share Your Events in Local Groups and Pages.
- Turn Your Social Media Channels into a Resource
- Host Themed Events That Catch Attention.
- Tap Into Text Marketing.
- Develop Your Business Directory Profiles
i. Traditional Marketing Strategies
- Broadcast Marketing -Television & Radio Channels.
- Marketing through Direct Mail.
- Print Media Marketing – Newspapers & Magazines.
- Out-of-Home” marketing (OOH marketing) – Public Transits like Buses and Trains, Billboards, Street Furniture, and Cabs.
- Including direct sales, direct mail (postcards, brochures, letters, fliers), tradeshows, print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.
ii. Digital Marketing Strategies
- Social Media Marketing Platforms.
- Influencer Marketing.
- Email Marketing.
- Content Marketing.
- Search Engine Optimization (SEO) Marketing.
- Pay-per-click (PPC).
- Affiliate Marketing
- Mobile Marketing.
iii. Social Media Marketing Plan
- Create a personalized experience for our customers.
- Create an efficient content marketing strategy.
- Create a community for our audience.
- Start using chatbots.
- Gear up our profiles with a diverse content strategy.
- Use brand advocates.
- Create profiles on relevant social media channels.
- Run cross-channel campaigns.
c. Pricing Strategy
Laurent Jefferson® Repurposed Furnitures, Inc. will adopt the following pricing strategies:
- Bundle Pricing
- Cost-Plus Pricing
- Competitive Pricing
- Dynamic Pricing
- Value-Based Pricing
Please note that our pricing strategy is based on a careful analysis of the costs and profitability of the business, as well as the needs and preferences of the target customer base.
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Sales and Distribution Plan
a. Sales Channels
Laurent Jefferson® Repurposed Furnitures, Inc. will use the following sales channels to sell our products:
- Online Marketplace: We will sell our furniture on online marketplaces like Etsy, eBay, Amazon, or Facebook Marketplace.
- Social Media: We will leverage social media platforms such as Instagram, Facebook, Pinterest, and TikTok to showcase our repurposed furniture projects and attract potential customers.
- Local Flea Markets or Craft Fairs: We will sell furniture at local flea markets or craft fairs.
- Consignment Stores: We will partner with local consignment stores
- Direct Sales: We will sell furniture directly to customers by setting up appointments for them to come to the workshop or showroom to view and purchase the furniture.
- Wholesale: We will sell furniture wholesale to other businesses, such as interior designers or furniture retailers, who can then sell the furniture to their own customers.
Please note that we adopted these sales channels so that we can reach a wide range of customers and increase sales volume.
b. Inventory Strategy
Laurent Jefferson® Repurposed Furnitures, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our repurposed furniture facility and warehouse. We will develop our strategy with the same thoroughness and attention to detail as we would if we were creating an overall strategy for the business.
c. Payment Options for Customers
Here are the payment options that Laurent Jefferson® Repurposed Furnitures, Inc. will make available to her clients;
- Cash
- Checks
- Electronic Payment Systems such as PayPal or Venmo Bank Transfers
- Credit or Debit Card.
d. Return Policy, Incentives, and Guarantees
Return Policy:
As a repurposed furniture business, our return policy would depend on the nature of the products we sell. If we sell pre-made items, we will choose to offer a standard return policy similar to other furniture stores. However, if we offer custom-made or personalized items, we will need to have a more limited return policy due to the unique nature of the items.
We will offer refunds or exchanges for items that are damaged during shipping or have a manufacturing defect, but we would not offer returns for items that were customized to a customer’s specific preferences.
Incentives:
We will offer several incentives to attract and retain customers, such as loyalty programs, referral bonuses, and discounts for repeat customers. We will also offer free shipping for orders over a certain amount, or a discount for customers who purchase multiple items.
Another incentive we could offer is a trade-in program where customers can bring in their old furniture in exchange for a discount on their purchase.
Guarantees:
We will provide our customers with a guarantee of quality and durability. We will guarantee that all our repurposed furniture is made from high-quality materials and is structurally sound. Additionally, we will offer a warranty on any custom-made items, which would cover any manufacturing defects or damage that occurs within a certain period after the purchase.
We will also provide a satisfaction guarantee, allowing customers to return items if they are not satisfied with their purchase for any reason.
e. Customer Support Strategy
Our customer support strategy will involve seeking customer feedback. It will help us understand our customers’ needs, experiences, and pain points.
We will work with effective CRM software to be able to achieve this. On a regular basis, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.
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Operational Plan
Our operational plan will provide a roadmap for managing the various stages of the business, from sourcing and refurbishing to sales and marketing. We will regularly review and update our plan to ensure it remains relevant and effective as our business grows and evolves.
Overall, we plan to expand our revenue by 40 percent in the second year and the plan will include a marketing, sales, and operations component.
The operations component of the plan would include organizing regular outdoor furniture sales at local and state levels and attracting customers. These strategies will enable the firm to boost our service offerings and support revenue growth.
a. What Happens During a Typical Day at a Repurposed Furniture Business?
- The business is open for the day’s work
- Sourcing old furniture from various suppliers, visiting thrift stores, estate sales, or online marketplaces to find items that meet our criteria.
- Refurbishing furniture (cleaning, repairing, and painting or reupholstering the item, sanding, staining, and painting furniture, as well as reupholstering or replacing hardware)
- Our team will also spend time on marketing activities such as updating our website, creating social media content, responding to customer inquiries, and working on advertising campaigns.
- Since the business has a physical store, the team will spend time setting up the showroom, arranging furniture displays, and working with customers who visit the store.
- Inventory management (Our team might spend time organizing and cataloging inventory, updating the inventory management system, and analyzing sales data to inform future purchasing decisions)
- Administrative tasks, such as responding to emails, scheduling appointments, managing finances, and reviewing business performance.
- The business is closed for the day.
b. Production Process
At Laurent Jefferson® Repurposed Furnitures, Inc., our production process will be done via;
- Sourcing Furniture
- Cleaning and Prepping
- Designing and Planning
- Repairs and Restoration
- Finishing Touches
- Pricing and Marketing
- Delivery and Customer Service.
c. Service Procedure
We will attend to individual customers based on their preferences and even if it involves going the extra mile to give them premium and durable furniture.
d. The Supply Chain
Laurent Jefferson® Repurposed Furnitures, Inc. will rely on trusted agents to help us attract customers in our city and we have been able to establish business relationships with dealers in different furniture merchandise and antiques et al.
e. Sources of Income
Laurent Jefferson® Repurposed Furnitures, Inc. will make money by selling repurposed or upcycled furniture.
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Financial Plan
a. Amount Needed to Start Your Repurposed Furniture Business?
Laurent Jefferson® Repurposed Furnitures, Inc. would need an estimate of $120,000 to successfully launch our repurposed furniture company in the United States of America. Please note that this amount includes the salaries of all the staff for the first month of operation.
b. What are the Costs Involved?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $2,300.
- Marketing, Branding, and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $2,400.
- Rent/Lease – $30,000.
- Operational Cost (salaries of employees, payments of bills et al) – $40,000
- start-up inventory – $25,000
- Store Equipment (cash register, security, ventilation, signage) – $4,750
- Furnishing and Equipping the Workshop and Showroom – $25,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. Do You Need to Build a Facility? If YES, How Much Will it Cost?
Laurent Jefferson® Repurposed Furnitures, Inc. will not build a new facility for our repurposed furniture company. We will operate from a leased facility (workshop and showroom).
d. What are the Ongoing Expenses for Running a Repurposed Furniture Business?
- Supplies and Materials such as sandpaper, paint, stain, upholstery fabric, and hardware.
- Tools and Equipment such as sanders, drills, saws, and paint sprayers.
- Rent or Workspace Costs
- Marketing and Advertising
- Insurance and Legal Fees
- Transportation and Delivery.
e. What is the Average Salary of Your Staff?
- Chief Operating Officer (Owner) – $55,000 Per Year
- Facility Manager – $40,000 Per Year
- Workshop Manager – $38,000 Per Year
- Bookkeeper/Accountant – $35,000 Per Year
- Furniture Restoration Specialist – $35,000 Per Year
- Sales and Marketing Officer – $25,000 Per Year
- Customer Service Officer (Receptionist) – $24,100 Per Year
f. How Do You Get Funding to Start a Repurposed Furniture Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Pitching your business idea and applying for business grants and seed funding from the government, donor organizations, and angel investors
- Source for soft loans from your family members and friends.
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Financial Projection
a. How Much Should You Charge for Your Product/Service?
The price of furniture sold by our repurposed furniture company will vary depending on several factors, including the cost of acquiring the furniture, the cost of refurbishing and restoring the piece, and the market demand for the finished product.
b. Sales Forecast?
- First Fiscal Year (FY1): $375,000
- Second Fiscal Year (FY2): $435,000
- Third Fiscal Year (FY3): $545,000
c. Estimated Profit You Will Make a Year?
Laurent Jefferson® Repurposed Furnitures, Inc. is projecting to make;
- First Fiscal Year (FY1): (25% of revenue generated)
- Second Fiscal Year (FY2): (35% of revenue generated)
- Third Fiscal Year (FY3): (40% of revenue generated)
d. Profit Margin of a Repurposed Furniture Business
The profit margin of a repurposed furniture business can vary depending on various factors, such as the cost of sourcing materials, labor costs, marketing expenses, and pricing strategies. Generally, the profit margin of a repurposed furniture business can range from 20% to 50%.
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Growth Plan
a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?
Laurent Jefferson® Repurposed Furnitures, Inc. will grow our repurposed furniture company by first opening other outlets in key cities in the United States of America, and other parts of the world within the first ten years of establishing the business and then will start selling franchises from the fifteenth year.
b. Where do you intend to expand to and why?
Laurent Jefferson® Repurposed Furnitures, Inc. plans to expand to
- Tulsa, Oklahoma
- Little Rock, Arkansas
- San Francisco, California
- New Orleans, Louisiana
- Woodbury, Minnesota
- Portland, Oregon
- Jackson, Mississippi
- Los Angeles, California
- Santa Rosa, California
- Franklin, Tennessee
The reason we intend to expand to these locations is the fact that available statistics show that the cities listed above have a growing furniture market, making them potentially attractive markets for repurposed furniture businesses.
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Exit Plan
Laurent Jefferson® Repurposed Furnitures, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder Laurent Jefferson is already grooming his son Perry Jefferson to take over from him. Perry Jefferson is at the moment being groomed to go through the company’s employment process without any bias.