Is Owning a Furniture Business Profitable?
- Nate Jones, CPCU, ARM, CLCS, AU
- Oct 30
- 2 min read
If you're considering starting a furniture business—whether as a custom furniture maker, retailer, restoration shop, or commercial supplier—you're likely wondering: is it profitable? The short answer is yes, but profitability depends on your business model, cost control, marketing strategy, and insurance protection.
In this guide, we’ll break down the profit potential, average margins, startup costs, and key factors that influence success in the furniture industry. Plus, we’ll show you how Wexford Insurance helps protect your investment so you can focus on growth.
Profit Potential by Furniture Business Type
Custom Furniture Makers
Custom furniture businesses often enjoy gross margins of 50–60% due to premium pricing and craftsmanship. These businesses thrive on uniqueness, quality, and personalization.
Furniture Retailers
Retail furniture stores typically earn gross margins of 35–45%, with net margins between 3–6% after expenses like rent, shipping, and staffing. Profitability improves with smart inventory management and branding.
Restoration & Upholstery Shops
These businesses have lower overhead and steady demand. Profit margins can reach 40% or more, especially when targeting vintage or high-end markets.
Commercial Furniture Suppliers
Bulk orders and long-term contracts make this model highly profitable. Margins vary but can be substantial with efficient logistics and insurance coverage.
Average Revenue and ROI
According to Starter Story, furniture businesses generate an average of $2.48 million per year, with many recovering their initial investment within 13 months. Solo entrepreneurs can earn $7,000/month, while larger operations may exceed $150,000/month.
Startup Costs to Consider
Startup costs vary widely depending on your scale and specialization. Here’s a breakdown from BusinessDojo:
Essential Equipment: $5,000–$15,000
Workshop Space: $12,000–$36,000/year
Initial Inventory: $10,000–$50,000
Marketing & Branding: $2,500–$12,000
Insurance: $1,200–$5,000/year
Working Capital Reserve: $30,000–$100,000
Key Factors That Influence Profitability
Location: High-traffic areas boost sales but increase rent.
Product Mix: Offering trendy, customizable, or eco-friendly furniture improves margins.
Inventory Turnover: Faster turnover means better cash flow.
Insurance Protection: Avoid costly disruptions with comprehensive coverage.
Why Insurance Matters for Profitability
Furniture businesses face risks like fire, theft, customer injury, and equipment breakdown. Without insurance, a single incident can wipe out months of profit. That’s why Wexford Insurance offers tailored coverage for furniture businesses, including:
We specialize in protecting small manufacturers, retailers, and workshops—so you can focus on building and selling beautiful furniture.
Final Thoughts
Owning a furniture business can be highly profitable when you combine craftsmanship with smart planning and protection. Whether you're restoring vintage pieces or supplying commercial clients, the key to long-term success is managing costs, marketing effectively, and securing the right insurance.
Let Wexford Insurance help you protect what you build.
Get a tailored quote today.
Contact us today.