Furniture makes a house look elegant and makes it look complete. Wooden furniture like Sofa, tables, drawer, bed, chair, etc. form the basics of furniture which can be extended to other items like the complete makeover of your kitchen with wooden furniture, laying of wooden sheet on your floor, etc. Commonly, most of us use furniture for our basic needs that include the bed, dining table, sofa table, sofa, chair, study table, drawer and almirah.
Most of these furniture can be commonly seen in any household and thus remains in constant demand. People who tend to buy a house or settle in a new house usually go for purchase of these items. Some of them can afford to buy all of them and some cannot. While there are many who don’t find any big reason to purchase all of these furniture at expensive cost.
The best option for such people is renting these furniture for use and when they are done with these furniture then they can return them back by paying monthly rent along with the fixed security amount. People who mostly live on a rented room or whose job requires them to shift in quick intervals choose this option of renting furniture. It has some great advantage as it is cost effective and it also fulfills the needs of the person so renting.
Furniture Rental Business:
For every need that this world has seen there has also been quick solutions in hand. The need for renting furniture raised when globalization was at peak and thousands of people shifted from their place for jobs in cities. They opted rooms at rent and also rented all the common required necessary items for living.
This led to the rise of renting culture where even cooking utensils started to be rented. Furniture rental business at present has become a very promising business venture which has a market of million dollars. Furniture rental is not only limited for home furniture but also for office usage. Furniture at this present time is costly and if you want to have standard and elegant furniture you will have to pay expensive prices. Furniture rental has paved the way for standard furniture of choice at an affordable price till you require them.
How to Start a Furniture Rental Business?
Not everyone who wishes to invest in home or office aims to rent furniture. There are only selected type of people who aim to rent furniture and that is why your business target should aim at those who are your potential customers. Places that have recently been inhabited or places where migrants stay have higher chances of having potential customers. There are basically two types of potential customers you will get.
- People who have settled at a new place for job purpose and are most likely to shift at some other places because of job.
- New offices who have started at small investment.
Both these two types of customers will be inclined to go for furniture rental as they would most likely to avoid spending their money on expensive furniture with the trouble of further locating it to the next place of their stay.
Your next step should be to engage these customers. This requires target marketing where you advertise closely with your potential customers. Mark those key places where the above two types of customers can easily been located and advertise generously. It is mostly possible that you would be able to get few customers at ease.
Policy of Renting Furniture:
The market you tend to enter is highly competitive. For this you need to draw out strategies while engaging with your new clients. This requires a thorough research of the furniture rental market and how it operates. The research should focus on the following:
- Furniture items people most likely tend to rent
- Prices of each furniture that people are willing to pay
- Average rental cost for different furniture products
- Schemes prevalent in the furniture rental market
- Your key competitors and their market strategy
- Investment required in the business and return on investment
The research on the following points will yield a blueprint for your future business. Each of the above points needs to be discussed in brief.
Furniture Items People most likely tend to rent: What are the common furniture people tend to rent? This is the basic question which can have sub questions which can be location based, income based, profession based, usage based, etc. A person with the aim of settling his home will aim to rent dining furniture, sofa, table and chairs while a person with aim of establishing an office will go for desk, chairs, conference furniture, computer table, etc.
Prices of each furniture that people are willing to pay: Not everyone aims to rent a dining set of a branded company which is expensive in nature. The purpose for which they use also matters. For domestic use people may tend to rent cheap furniture while for professional use they may choose expensive ones. All depends upon the need and their budget for renting.
Average rental cost for different furniture products: Before you decide at what cost you will rent furniture it is necessary to know the average rental cost of different types of furniture products. Since you are in a competitive business it is necessary that you check the average price prevalent in market before deciding your own. Your pricing should always be with respect to the market.
Schemes prevalent in the furniture rental market: In order to boost the market and encourage new customers to invest many rental houses have come up with some schemes that give discount on renting certain furniture products. These products are so marked to benefit both the customer and the rental house. By going through the schemes you will get an idea how you can also attract new customers by offering such schemes.
Your Key Competitors and their Strategy: Before you enter the market it is necessary for you to know the market and the people with whom you are going to compete. A detailed study about your competitors will help you understand the market well. Their strategy may not work for you but will make you understand how they succeed and how you can succeed more than them.
Capital Investment required and Return on Investment: Your detailed research will give you a proper idea of the capital investment required for your business and the probable return you will get from the business.
Step by Step Guide on Implementing the Business Plan on Ground:
1. Networking and Consulting with the People in the Business
Meeting and consulting with people who are already in the business will give you clarity about the market and will also cement you confidence. You can’t run a successful business if you don’t have that confidence. Confidence will develop once you network with the experts in the business who will guide and mentor you. Sort out what is relevant for you and work on it.
2. Teaming up with your Furniture Suppliers
Meet people who are into this business and those who supply furniture. Based on your budget decide the supply you will need. The kind of product you wish to rent and at what cost. Order variety of furniture that is prevalent in the market and is in demand along with complimentary furniture which you may encourage your customers to go for. Fix a deal that is convenient for both you and your supplier. Aim to provide quality and attractive items at affordable prices. You can create a stock of items that you will store in your warehouse.
3. Your Business Shop and Warehouse
There would be few furniture items that will be stocked at your shop while the rest would be lying in your warehouse. You need two spaces to store your furniture you wish to offer to your customers. Keep the necessary items you wish to showcase to your customers in your shop while send the rest to your warehouse. You warehouse should be at a distance not far from your shop. You should have a spacious warehouse if possible. If not then you can directly furnish the rented products from your supplier to the house of your customer.
4. Shipment Vehicle to Carry Furniture Items
You would require at least two such truck carriers which will carry the furniture items from your warehouse to the shop and from your shop to the location of your customer. Since purchasing two such vehicles can be costly in nature you can lease or rent these vehicles and when you have enough capital you can purchase it. While purchasing the carrier ensure the size of the carrier so that all kinds of furniture can be placed on it smoothly.
5. Carpenter, Artisan and Manpower
Since you are dealing with furniture work it is obvious that you will require the assistance of carpenter, artisan and manpower. There are mostly two categories of furniture which most of the furniture rentals rent. The first category is that of branded furniture which are much more sophisticated and expensive while the second one is handmade furniture carved by carpenter and artisan at your own level.
The second option may be time consuming and somewhere messy in nature but if you are producing furniture at good volume you will end up earning good returns. Domestic furniture can also be sold first hand at cheaper price and can be the first choice of many.
You will also require these men when your customer returns the furniture after usage. It is obvious that used furniture will definitely have some wear and tear. The best way is to take assistance from artisan and carpenters who will polish the damaged part and make it fit for use. Manpower is required for carrying the furniture from one place to another. For driving the shipment to your customer’s location.
Capital Investment and Return on Investment:
You can use your own home or location if you have enough space for warehouse. For office you can lease a proper space where you feel that it can attract new customers. Warehouse though is important but can be avoided if you cannot manage to get one. The best option would be to directly supply the furniture from your supplier to your customer. Still leasing a warehouse should be your priority.
It is obvious that you will have to purchase at least few sets of furniture in starting. You can also purchase them at second hand price. One best option for you is to contact with companies who have many defective pieces that are sold at half prices or even less. Buy such articles at lower cost and amend them to be picture perfect. You should have articles from all price range. In order to fulfil initial demands you can hire a carpenter to manufacture some basic furniture items.
Adding the cost of leasing or owning office, warehouse, vehicles, wooden products, machine, polish and other such equipment you will be spending a good sum. Other additional costs like manpower, servicing and other expenses should also be added. Your feasibility analysis report would give you a probable idea about the investment required.
Rent is mostly charged for renting furniture in the following ways:
- Security amount
- Monthly rent
- Initial Rental Charge taken for once
- Damage Charges, if any
- Shipment Charge
- Installation Charge
- Servicing Charge, etc.
Charge the rate based on your business plan which suits the market, competition and your profit.
Service rendering is one of the most important part of this business. Installing the furniture properly with proper finishing and polishing. Repairing the damaged furniture promptly is the key for a successful business. Ensure your employees designated for servicing are well trained both as carpenter as well as human being. Ensure that you give prompt response to the calls you receive for servicing work. These steps are the ones that ensure success for your business.
The above mentioned steps are the basic and fundamental steps to start your furniture rental business. As you start and grow you will be well experienced in this business. Work on what you feel will enhance the growth of your rental business and most importantly always remember to ensure that your customer is satisfied.
Depending on where your business is located, you may need to register for a business license and/or secure any required local or state permits. You will also need to register for federal and state taxes, such as an Employer Identification Number, or EIN.
The amount of money needed to start a furniture rental business can vary greatly depending on the size of your business and the type of furniture you’re offering. Generally, a start-up budget of at least $10,000 would give you enough money to buy furniture and other necessities.
There are a variety of places you can purchase inventory for your furniture rental business. Popular places to purchase inventory include furniture stores, thrift stores, and wholesalers. You can also look into classified ads, eBay, and Craigslist for furniture and accessories.
You can market your furniture rental business in a variety of ways. Advertising in print, radio, and television are great options, as well as distributing flyers, business cards, and postcards. Social media marketing is another great way to reach potential customers.
Most furniture rental businesses will need to obtain the appropriate liability insurance to protect their assets. Depending on the size of your business, you may also need workers’ compensation insurance to cover any employees you may have.
Using a tracking software can help streamline the process of managing a furniture rental business. Popular software to consider includes rental software and point-of-sale systems.
Good customer service practices are essential for any furniture rental business. Examples of good customer service practices include responding promptly to inquiries, showcasing customer reviews, and offering a customer satisfaction guarantee.
There are many services you can offer with your furniture rental business. These include party rentals, event planning and design, staging for real estate showings, and emergency furniture replacement.
To make sure your furniture rental business stands out from the competition, you can offer unique services or packages that they do not offer. You can also focus on providing a personalized customer experience, and make sure the furniture you offer is of the highest quality.
Some important tips to keep in mind when running a furniture rental business include keeping accurate records, pricing your services competitively, and offering effective promotions. It’s also important to invest in quality customer service and make sure your policies are clearly defined.