How to Start a Furniture Business: A Step-by-Step Guide
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 30
- 3 min read
Starting a furniture business can be a rewarding venture, whether you're crafting custom pieces, restoring vintage finds, or selling commercial furnishings. From workshop setup to insurance coverage, this guide walks you through each step to launch your furniture business with confidence.
Wexford Insurance is here to help you protect your investment with tailored insurance solutions for furniture makers, retailers, and restoration shops.
Step 1: Choose Your Furniture Business Model
Decide what type of furniture business you want to start:
Custom furniture maker: Design and build bespoke pieces.
Upholstery shop: Repair and reupholster furniture.
Furniture retailer: Sell new or used furniture.
Furniture restoration: Refurbish antiques or damaged items.
Commercial supplier: Provide furniture to offices, hotels, or institutions.
Each model has unique startup needs, so tailor your plan accordingly.
Step 2: Write a Business Plan
Outline your goals, target market, pricing strategy, and financial projections. Include:
Startup costs
Equipment list
Marketing plan
Insurance needs
Step 3: Register Your Business and Get Permits
Choose a business structure (LLC, sole proprietorship, etc.) and register with your state. You may need:
A business license
Sales tax permit
Zoning approval for workshops or retail spaces
Refer to the U.S. Small Business Administration’s guide to registering your business for step-by-step instructions.
Step 4: Set Up Your Workshop or Storefront
Depending on your business type, you’ll need:
Workshop equipment: Saws, drills, sanders, clamps, upholstery tools
Retail setup: Display furniture, POS system, signage
Storage space: For raw materials and finished products
Explore woodworking tools and machinery at Woodcraft and Rockler Woodworking and Hardware.
Step 5: Estimate Startup Costs
Typical startup costs range from $5,000 to $50,000, depending on your scale. Budget for:
Equipment and tools
Rent and utilities
Inventory or materials
Marketing and website
Insurance premiums
Step 6: Get the Right Insurance Coverage
Furniture businesses face risks like property damage, customer injuries, and equipment loss. Wexford Insurance specializes in coverage for furniture makers, retailers, and workshops. Essential policies include:
General Liability: Protects against customer injuries and property damage.
Commercial Property: Covers your building, inventory, and tools.
Workers’ Compensation: Required if you have employees.
Commercial Auto: For delivery vehicles or mobile services.
Equipment Insurance: Covers breakdowns or theft of machinery.
Step 7: Market Your Furniture Business
Build your brand and attract customers through:
A professional website with SEO
Social media marketing
Local craft fairs or trade shows
Google Business Profile and online directories
Create a profile and showcase your work on Houzz’s marketing platform to reach design-savvy clients.
Need help growing your business?
Contractor Back Office offers website design, SEO, social media, bookkeeping, CRM, and estimates to help you attract more clients and stay organized.
Let us handle the backend—so you can focus on what you do best.
Step 8: Launch and Grow
Once you're insured, equipped, and registered, start selling! Offer promotions, ask for reviews, and build relationships with interior designers or commercial clients.
Final Thoughts
Starting a furniture business takes creativity, planning, and protection. Whether you're building custom pieces or selling commercial furnishings, having the right insurance coverage is essential to safeguard your investment and reputation. Wexford Insurance is here to help you navigate the risks and build a strong foundation for your business.
Let us help you protect what you build.
Contact us today.