Furniture Flipping Business Plan [Sample Template]

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A furniture flipping business is a type of business that involves buying used or old furniture, refurbishing or upcycling it, and then selling it for a profit. The process of flipping furniture typically involves finding furniture pieces that are in need of some repair or updating, repairing or refinishing them, and then selling them either online or in a physical store.

The goal of a furniture flipping business is to find undervalued furniture that can be restored to its former glory with a bit of work and creativity.

The types of furniture that are commonly flipped include chairs, tables, dressers, and other household furnishings. Some furniture flippers focus on a specific niche or style of furniture, such as mid-century modern or vintage pieces, while others are more generalist and will flip any type of furniture they come across.

The furniture flipping business can be considered a part of the home furnishings industry. However, unlike traditional home furnishing businesses that manufacture or sell new furniture, furniture flipping businesses specialize in the restoration and resale of used furniture. Available data shows that the market size of the Home Furnishings Stores industry is $62.1bn in 2023.

Steps on How to Write a Furniture Flipping Business Plan

Executive Summary

John Richards® Furniture Flipping Company, Inc is a Las Vegas, Nevada-based furniture flipping business that specializes in the restoration and resale of high-quality, unique, and vintage furniture pieces. We are well-equipped to provide customers with affordable and stylish furniture options that are eco-friendly and sustainable.

To reach our target audience, we will be selling our furniture through online marketplaces, social media platforms, and local craft and antique shows. We will also offer custom furniture services, where customers can bring in their own furniture pieces to be restored and updated to their specific preferences.

Our competitive advantage lies in our unique style and design aesthetic, as well as our commitment to sustainability and eco-friendliness.

By providing high-quality, stylish furniture at affordable prices, we aim to become a go-to destination for customers who value both quality and affordability. John Richards is the founder and CEO of John Richards® Furniture Flipping Company, Inc.

Company Profile

a. Our Products and Services

John Richards® Furniture Flipping Company, Inc. will be purchasing used furniture from various sources, such as online marketplaces, thrift stores, and estate sales. Our team of experienced furniture restoration specialists will then restore and refurbish these pieces to their former glory, using environmentally friendly and sustainable practices wherever possible.

b. Nature of the Business

Our furniture flipping company will operate the business-to-business and business-to-consumer business model.

c. The Industry

John Richards® Furniture Flipping Company, Inc. will operate in the home furnishings industry.

d. Mission Statement

At John Richards® Furniture Flipping Company, Inc., our mission is to provide our customers with high-quality, sustainable, and stylish furniture options that are both affordable and eco-friendly. We are committed to finding unique and vintage furniture pieces, restoring them to their former glory, and offering them at a fair price.

We strive to make a positive impact on the environment by utilizing sustainable practices wherever possible and to become a go-to destination for customers who value both style and sustainability.

e. Vision Statement

Our vision at John Richards® Furniture Flipping Company, Inc. is to become a leading provider of sustainable and stylish furniture options in the furniture flipping industry. We aim to establish a reputation for quality, style, and affordability, while also making a positive impact on the environment.

f. Our Tagline (Slogan)

John Richards® Furniture Flipping Company, Inc. – The Furniture Flipping Company with a Magical Touch!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

John Richards® Furniture Flipping Company, 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.

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

John Richards (Owner and Chairman/Chief Executive Officer) 56 Percent Shares
Tom Derrick (Board Member) 14 Percent Shares
Gordon Wagner (Board Member) 10 Percent Shares
Sammie Hackwell (Board Member) 10 Percent Shares
Martha Justice (Board Member and Secretary) 10 Percent Shares.

SWOT Analysis

a. Strength

Unique and stylish furniture options
Sustainable practices
Customization options
Strong online presence.

b. Weakness

Since the business relies on finding and restoring used furniture pieces, there may be limitations on the amount and variety of inventory available.
The business may face challenges in consistently finding high-quality and unique furniture pieces from reliable sourcing channels.
As a new business, the company may face challenges in establishing brand recognition and competing with established players in the market.

c. Opportunities

The increasing awareness about environmental sustainability presents an opportunity for the business to tap into a growing customer base that values sustainable practices.
The business can explore expansion into new geographic markets or explore new customer segments to expand its customer base.
The business can explore collaboration opportunities with other complementary businesses such as interior designers, home decor stores, or vintage clothing shops to expand its reach.

i. How Big is the Industry?

The furniture flipping industry is a small industry but there are rooms for it to grow.

ii. Is the Industry Growing or Declining?

The furniture flipping industry is growing and this could be a result of the increasing awareness of sustainability and eco-friendliness. Many customers are looking for furniture that is not only stylish but also sustainable, and furniture-flipping 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 furniture flipping 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 furniture flipping 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 furniture-flipping business.

v. Can You Sell a Franchise of Your Business in the Future?

John Richards® Furniture Flipping Company, Inc. has plans to sell franchises in the nearest future and we will target larger cities all across the United States of America and Canada.

d. Threats

The furniture flipping industry is becoming increasingly competitive, with more players entering the market.
Economic downturns or recessions can impact consumer spending and affect the business’s revenue.
The availability and demand for used furniture pieces can fluctuate, which can affect the business’s inventory and revenue.

i. Who are the Major Competitors?

Flipping Vintage
Revive + Restore
Reclaimed DesignWorks
The Painted Hive
Rustic Trades Furniture
Knot Too Shabby
Urban Americana
Fabulous Finds
Salvage Sisters & Son
TRW Woodcrafts
The Shabby Attic
Reclaimed Wood Furnishings
The Green Room
Edgewater Studio
Vintage Market & Design
Refindings
Three Sparrows Design Studio
Salvaged Decor
Salvage Works
CORT Furniture.

ii. Is There a Franchise for Furniture Flipping Business?

No, there are no franchise opportunities for the furniture flipping business.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Furniture Flipping Business?

Yes, there may be policies, regulations, and zoning laws affecting furniture-flipping businesses in the United States. These can vary by state, county, and city, so it’s important for furniture-flipping businesses to research the regulations that apply to their specific location.

Furniture-flipping businesses may be required to obtain a business license and register with the state or local government.

This can include obtaining a sales tax permit and paying sales taxes on any items sold. Furniture-flipping businesses that use certain chemicals or materials in their refinishing or repair process may be subject to environmental regulations.

This can include regulations on the disposal of hazardous materials, such as paint or varnish. Furniture-flipping businesses may be subject to zoning laws that dictate where they can operate. Some areas may not allow commercial businesses to operate in residential neighborhoods, for example.

Furniture-flipping businesses must comply with consumer protection regulations, such as truth-in-advertising laws and warranty regulations.

Furniture-flipping businesses must comply with safety regulations, such as those related to handling and storing flammable materials or using power tools. Furniture-flipping businesses must be careful not to infringe on the intellectual property rights of others, such as by copying patented designs or using copyrighted images without permission.

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 we are targeting; everyone is welcome to do business with us.

iii. Income Level

Anyone who can make a purchase will be welcome to our furniture flipping company.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people we will welcome into our furniture flipping company.

v. Language

There is no restriction when it comes to the language spoken by the people we will welcome into our furniture flipping company.

vi. Geographical Location

Anybody from any geographical location will be received in our furniture flipping company.

vii. Lifestyle

John Richards® Furniture Flipping Company, Inc. will not restrict any customer from doing business with our furniture flipping company based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

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
Build Relationships with Other Businesses in Your Area

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

John Richards® Furniture Flipping Company, Inc. will adopt the following pricing strategies:

Cost-Plus Pricing
Value-Based Pricing
Competitive Pricing
Dynamic Pricing
Bundle 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.

Sales and Distribution Plan

a. Sales Channels

John Richards® Furniture Flipping Company, Inc. will use the following sales channels to sell our products:

Online Marketplace: We will sell our furniture on online marketplaces such as Etsy, eBay, Amazon, or Facebook Marketplace.
Social Media: We will leverage social media platforms such as Instagram, Facebook, Pinterest, and TikTok to showcase our furniture-flipping 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

John Richards® Furniture Flipping Company, Inc. will operate an inventory strategy that is based on a day-to-day methodology for ordering, maintaining, and processing items in our furniture flipping 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 John Richards® Furniture Flipping Company, Inc. will make available to her clients;

Bank Transfers
Credit or Debit Card
Cash
Checks
Electronic Payment Systems such as PayPal or Venmo.

d. Return Policy, Incentives, and Guarantees

John Richards® Furniture Flipping Company, Inc. will be offering a return policy, incentives, and guarantees to build trust and loyalty with our customers. We will make sure the policy is clearly communicated on our website and in-store signage, and provide instructions for customers to initiate a return.

Return Policy: We offer a return policy that allows customers to return furniture within a 30 days timeframe for a refund or exchange. Please note that we will inspect returned items to ensure they are in the same condition as when they were sold.

Incentives: We offer incentives to encourage customers to buy furniture from us. We offer a discount on the next purchase for customers who leave a review, refer a friend, or spend a certain amount of money. We also offer free delivery for purchases over a certain amount or bundle items together at a discounted price.

Guarantees: We guarantee that our furniture is free from defects and will last a year. We have a satisfaction guarantee that allows customers to return the item within a certain timeframe if they are not satisfied with the quality or condition.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent products and customer service to all our customers, it will help us to first understand their 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.

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 the 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 Furniture Flipping 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. So also, since the business sells online, our team will focus on packaging and shipping items, responding to customer inquiries, and managing orders.
Inventory management
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 John Richards® Furniture Flipping Company, Inc., our production process will be

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 even if it involves going the extra mile to give them premium and durable furniture.

d. The Supply Chain

John Richards® Furniture Flipping Company, 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

John Richards® Furniture Flipping Company, Inc. will make money by buying used or old furniture, refurbishing it, and then reselling it at a higher price to customers who are looking for unique and affordable furniture options.

Financial Plan

a. Amount Needed to Start Your Furniture Flipping Business?

John Richards® Furniture Flipping Company, Inc. would need an estimate of $180,000 to successfully set up our furniture flipping 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 Cost 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 – $40,000.
Other start-up expenses include commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($2,800).
Operational Cost (salaries of employees, payments of bills et al) – $40,000
start-up inventory – $35,000
Store Equipment (cash register, security, ventilation, signage) – $4,750
Furnishing and Equipping the Workshop and Showroom – $30,000
Website: $600
Opening party: $3,000
Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will It Cost?

John Richards® Furniture Flipping Company, Inc. will not build a new facility for our furniture flipping company.

d. What are the Ongoing Expenses for Running a Furniture Flipping 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 Furniture Flipping 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.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

The price of furniture sold by our furniture flipping 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): $380,000
Second Fiscal Year (FY2): $460,000
Third Fiscal Year (FY3): $580,000

c. Estimated Profit You Will Make a Year?

John Richards® Furniture Flipping Company, Inc. is projecting to make;

First Fiscal Year (FY1): 30%
Second Fiscal Year (FY2): 35%
Third Fiscal Year (FY3): 45%

d. Profit Margin of a Furniture flipping Company Business Product/Service

The profit margin of a furniture flipping company business is not fixed. It could range from 15 percent to 45 percent depending on some unique factors.

Growth Plan

a. How do you intend to grow and expand? By opening more retail outlets/offices or selling a franchise?

John Richards® Furniture Flipping Company, Inc. will grow our furniture flipping company by first opening other outlets in key cities in the United States of America, and Canada within the first seven years of establishing the business and then will start selling franchises from the tenth year.

b. Where do you intend to expand to and why?

John Richards® Furniture Flipping Company, Inc. plans to expand to

Atlanta, Georgia
Denver, Colorado
Tampa, Florida
Nashville, Tennessee
Charlotte, North Carolina
Phoenix, Arizona
Dallas, Texas
Portland, Oregon
Minneapolis, Minnesota
San Diego, California.

Internationally, we plan to expand to Canada.

The reason we intend to expand to these geographic locations is the fact that available statistics show that the cities listed above have a growing furniture market, making them potentially attractive markets for furniture-flipping businesses.

Exit Plan

John Richards® Furniture Flipping Company, Inc. intends to build a family business hence our exit plan will be family succession. For that reason, the founder John Richards is already grooming his son Sean Richards to take over from him. Sean Richards is at the moment being groomed to go through the company’s employment process without any bias.