How Much Does It Cost to Start a Furniture Business?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 30
- 2 min read
Starting a furniture business—whether you're crafting custom wood pieces, restoring vintage finds, or launching a retail showroom—requires careful financial planning. From equipment and inventory to insurance and branding, your startup costs will vary based on your business model and scale.
In this guide, we’ll break down typical startup costs, explore cost-saving strategies, and explain the insurance coverage you’ll need to protect your investment.
Average Startup Costs by Business Type
According to BusinessDojo and DC Business Toolkit, startup costs can range widely:
Online furniture store: $20,000 – $100,000
Physical retail showroom: $50,000 – $500,000
Custom workshop studio: $20,000 – $200,000
Manufacturing facility: $200,000 – $1,000,000+
Core Startup Expenses in Detail
Equipment and Tools
Essential for furniture makers and manufacturers. Includes saws, routers, CNC machines, planers, sanders, and upholstery tools.
Estimated cost: $5,000 – $75,000+
Workshop or Retail Space
Costs vary based on location, size, and whether you lease or buy.
Lease (1,000–2,500 sq ft): $12,000 – $36,000/year
Purchase: $120,000 – $400,000+
Learn more at LatestCost
Initial Inventory
Includes wood, hardware, fabrics, finishes, and packaging materials.
Estimated cost: $10,000 – $50,000
See inventory breakdown at ReadyBizPlans
Marketing and Branding
Covers logo design, website development, signage, and advertising.
Basic branding: $2,500 – $5,000
Full packages: $10,000 – $30,000+
Need help with marketing and SEO? Visit Contractor Back Office for website and marketing support.
Licenses and Permits
Includes business registration, zoning approval, resale certificates, and signage permits.
Estimated cost: $500 – $5,000
Licensing checklist at Asherfield
Skilled Labor and Payroll
Hiring experienced craftsmen, designers, and sales staff is essential.
Annual payroll for 1–2 employees: $37,000 – $120,000
Labor cost insights from FinModelsLab
Technology
Includes POS systems, inventory software, design tools, and e-commerce platforms.
POS systems: $495 (RetailEdge) to $150/month (Shopify, Lightspeed)
Design software: $500 – $2,000/year
Compare options at Software Advice
Insurance Costs for Furniture Businesses
Insurance protects your business from property damage, customer injuries, equipment breakdowns, and employee accidents. Based on data from Insureon and Forbes Advisor, here are average monthly costs:
General Liability: $57/month
Workers’ Compensation: $140/month
Commercial Auto: $202/month
Commercial Property Insurance: $50–$150/month standalone
Equipment Breakdown: Varies by coverage
Total Annual Insurance Estimate: $2,500 – $5,000 depending on business size and location.
At Wexford Insurance, we specialize in helping furniture businesses find tailored coverage that fits their operations and budget. Whether you're a solo craftsman or managing a retail team, we’ll help you protect what you build.
Cost-Saving Tips
Start with a small showroom and expand as demand grows
Lease equipment instead of buying upfront
Use sample pieces and ship direct from vendors
Negotiate vendor terms and explore SBA loans or grants
Bundle insurance policies to save on premiums
Final Thoughts
Launching a furniture business requires a significant investment—but with smart planning and the right insurance, it can be a profitable and sustainable venture. Whether you're building custom pieces or selling commercial furnishings, Wexford Insurance is here to help you protect your business from day one.
Let us help you protect what you build.
Contact us today.
