Answers to Commonly Asked Questions on Opening an Unfinished Furniture Store
1) Where should I locate?
Find a location with high visibility, good traffic near other anchor stores that draw traffic. Strip malls and free-standing stores both
make good sites. Allow for ample parking space as well as convenient way to unload trucks. To allow for growth, locate in an area
where there are no other unfinished furniture stores, and choose a spot with a trading area of at least 100,000.
2) What size store do I need?
Allow between 3,000to 5,000 square feet for a selling area plus an additional 1,000 to 2,000 square feet for finishing and storage.
3) How much money do I need to start?
For an average size store, you will need approximately $100,000 for start up costs that include both inventory and operating expenses.
Inventory for a 4,000 square for store will cost about $45,000 to $65,000. It would be wise to have on hand enough money to pay six
months to a year's living expenses. It is also helpful to have a spouse or significant other with a separate income while operating the
business the first year.
5) How much should I charge for delivery?
Prices vary from store to store; some deliver free within a certain area. One idea is to take a city map and draw five mile circles
around your location; you might charge $15 within the first ten miles, $20 within the next five mile zone, and so on.
6) What's the best way to find Unfinished Furniture for my store?
Attend the annual trade show that is sponsored by the Unfinished Furniture Association (UFA) held each year in June. Most of the
unfinished furniture manufacturers from around the county exhibit their products at this show. Also, the UFA can put you in contact with sales representatives for your area.
7) What are some other ways to learn more about The Unfinished Furniture Business?
Visit and talk with other retailers who are in this business; many owners will share their knowledge of the business; many owners will share their knowledge of the business with you if you are planning to locate in a non-competing area. A very valuable resource is UFA's Guide to Opening an Unfinished Furniture Store as well as a subscription to "Unfinished Business", the trade magazine for the industry (both available through UFA). Purchase a copy of the latest (1998) Retailer Profile Survey which will help immensely in your cost projections and in determining standards for running this type of retail business (also available through UFA).
89) What other things can I do to prepare myself for opening a retail business?
If you are new at retailing, take a course at a local college on operating a small business; visit a library or bookstore for
information on setting up and running a retail business. Take the time to write a business plan that includes a one year, two year and three year projection of sales and expenses. Plan on attending Education Day at the annual trade show. As a UFA member, you can attend free seminars on topics such as advertising, customer relations, legal matters, how to increase your sales, finishing techniques, computerizing your store, etc. There will also be several round table discussions with other retailers from across the country in order to exchange ideas on what works for them.
9) Anything else I should know?
Of course, there are many other details to running a business. Generally, you should plan on spending 50 to 60 hours per week running this business during the first year. Plan on spending 6% of your annual sales on advertising, mostly on newspaper and yellow page ads as well as some radio and TV. In addition to you and your spouse (or partner) working the store, you may want to start with a part time finisher and part-time salesperson. Most retail unfinished furniture stores operate Monday through Saturday 10:00 A.M. to 6:00 P.M. and on Sunday from 12:00 P.M. to 5:00 P.M.
