How to Start a Local Furniture Business in Nigeria 2021 Updated Guide.
Start a Local Furniture Business in Nigeria: The furniture industry has come a long way in Nigeria. From just the roadside carpenter, it has grown that become a multimillionaire industry. The market for the furniture industry would always be available because everyone needs furniture for countless reasons. This article is a starter guide to the essential information and steps required to begin a Local Furniture business in Nigeria. Read on.
Reasons to Start a Furniture Business in Nigeria today.
- The cost of furniture in Nigeria is cheaper to produce and can be made available just for about anyone.
- The profit margin is high
- The demand for furniture is high in Nigeria
- It is a cheaper option to the expensive foreign-made furniture with good quality too
We all know foreign-made furniture is very expensive when compared to Nigerian-made furniture and it isn’t necessarily because the latter is of inferior quality when compared to the former.
One of the major reasons this is so is because of the foreign exchange rate and the weakening value of the naira against other foreign currency currencies. Also, the brand name and import duties and charges are one of the many reasons this is so.
The first criterion you need to start a furniture business is the zeal and passion for the business. Once you have the passion, you can will yourself and in a little time you would acquire the basic skills you seek.
- You don’t require furniture making skills to start a local furniture business
You can hire the services of skilled furniture- makers to help make furniture while you own the business, keep them on your payroll, and source for customers.
How to Start a Local Furniture Business in Nigeria
1. Learn Furniture-making skills
Of course, it’s the furniture business so it’d be wiser to know, at the very least, the basics of making furniture wouldn’t hurt and it’d be to your business advantage as the entrepreneur.
Enrolling in a furniture-making school or firm to acquire the skill. It’s certainly not as difficult as you’d think if you will yourself to do it.
2. Search Out and Hire the Services of a Competent Furniture-maker
This is, of course, important. Since you want your furniture business to be, you certainly have to put beautifully-made furniture in the showroom to attract and, consequently, only experienced and skilled furniture-makers would make those.
You cannot afford to employ just about anyone who terms himself or herself as a furniture-maker or carpenter. You also have to make sure the furniture-making professionals you would be employing don’t procrastinate and has a track record of delivering assigned jobs on or before the deadline which has been set.
3. Draw up a Well-structured Business Plan
Once you have sorted out the manpower to take care of creating furniture for your proposed furniture business, the next step would be to draft a proper business plan.
Your business plan would cover what type of furniture you intend to go into and which is suitable for your environment. It could be home furniture, office furniture, event hosting furniture and so much more.
In the course of drafting the business plan, you would have to make market surveys to see what is obtainable in the furniture market, what customers are looking out for, watch your competitors to build on their weaknesses and emulate their strengths to give your business an advantage.
The number of employees you would need, the job specifications and the likes.
4. Register your Furniture-Making Business with the CAC
To get legal cover, it is important that your furniture business gets registered legally. To register your business officially in Nigeria, the Cooperate Affairs Commission of Nigeria (CAC).
To get your business started, you can begin the Corporate Affairs online registration process via the official CAC website. Start with a name search and when you are done.
5. Partner with Established Furniture-making Companies and Brands
You certainly have to network. If you would be going into local furniture you have to link up with brands that have established brands.
If you would be sourcing your furniture from freelance furniture-makers, reach out to them. You might want to purchase furniture in bulk which might make you eligible for discounts and the likes.
6. Acquire a Furniture Showroom
When getting a furniture showroom to display the furniture to clients and customers, make certain that it is located beside a road for easier visibility.
Of course, not all of your clients would drive past your showroom randomly, something has to prompt them. That thing would be publicity.
You need to set up your showroom in an attractive way which most people would see them and be compelled to check them out and, consequently, buy them.
7. Make Sure you Situate your Furniture Showroom is an Area that is Upscale, Cosmopolitan, and Easily Accessible.
If for some reason, you can’t get a showroom, place the furniture in a presentable shed where there are protected from weather elements. You can even sell in an open place but make sure the furniture is moved away before it begins to rain and regularly cleaned.
8. Arrange for Means of Transportation of the Furniture to Clients.
When purchases or orders for the furniture are made by clients or customers, you certainly would have to transport the furniture, conveying them to the customer or client.
It is better if you get an average-sized van for this if you can’t get a full-on truck.
9. Cost of Running the Business
It would cost you a lot to set up a local furniture business in Nigeria. Yet while most sources would quote you needing a capital of #50 million, you could start with less.
Basically, you might even start with #2 million or whatever can take care of the logistics. You can postpone buying a conveying vehicle and rent them when needed until you can raise capital to buy the vehicle.
10. Follow the latest Trend in the Furniture Industry
You need to flow with what’s happening in the furniture industry and follow the trends. Check out what your competitors are doing and emulate them without losing your touch of uniqueness.
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