Business Plan for Built Custom: Manufacturing Custom Cabinets for Resorts, Small Residential and Commercial Markets

This business plan is focused on manufacturing custom cabinets for resorts, small residential and commercial markets in the United States. It covers all essential business aspects such as background, target market, feasibility analysis, and business model template.

Running head: BUSINESS PLAN
Built Custom
Entrepreneurship, Innovation, and Star-up
9/6/2018

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Table of Contents
Introduction................................................................................................................................2
Overview of Business idea.....................................................................................................2
Built Custom- Objective........................................................................................................3
Built Custom- Mission...........................................................................................................3
Start-up Summary..................................................................................................................3
Products..............................................................................................................................3
Industry Analysis...................................................................................................................3
Target Market of Built Custom..............................................................................................4
Competitor Analysis...............................................................................................................4
Hancock & Moore..............................................................................................................4
Bernhardt Furniture Company...........................................................................................5
Competition and buying patterns...........................................................................................5
Promotional Pitch for Built Customs.....................................................................................6
Market Analysis.....................................................................................................................6
Pestle Analysis of U.S Furniture Market...........................................................................6
SWOT analysis...................................................................................................................8
Feasibility analysis.................................................................................................................9
Financial Feasibility...........................................................................................................9
Technology feasibility......................................................................................................10
Legal Feasibility...............................................................................................................10
Business Canvas Model.......................................................................................................10
Sales Pitch for Built Custom................................................................................................11
Conclusion................................................................................................................................12
References................................................................................................................................13

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Introduction
A business plan is known as the written explanation of the future of the business. It is a
document that explains what has been planned to do and how will be executed (Ekanem,
2017). Business plans could support in performing various tasks for those who live to write
and read. The entrepreneurs who are in search of investment-seeking projects utilize these
business plans and transfer their vision to the prospective investors (Tiffany, Peterson &
Barrow, 2012). The companies that are putting their efforts to appeal main workforces, vision
for new business, and contract with suppliers or just to understand, how to handle their
business might also utilize them (Finch, 2013). The aim of this report is to frame a business
plan for an affordable as well as innovative idea that is Built Custom. This idea is majorly
focused towards manufacturing of custom cabinet for the resort, small residential and
commercial market in the United States market. This business plan will cover all the essential
business aspects such as background, target market, feasibility analysis, and business model
template.
Overview of Business idea
It is a business idea that will be based on manufacturing custom cabinets for resorts, small
residential and commercial markets. Mr. Daniel with less experience in the construction
industry has created this business pan. The name that has been decided of the business is
Built Custom. The business will have its physical office along with staff, low cost of
administration because of a small budget. As Mr. Daniel was the part of some construction
business, he identified the requirement of cabinet line with a broad selection like processing,
quality, and design. Build Custom will meet the needs of those customers. It could be
analyzed that the business plan will successfully make a good positing in the commercial,

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resort, and residential segment, the revenue of the plan will increase considerably in two to
three years. The owner has done a small amount of investment as a capital in the business.
Built Custom- Objective
The business objective of Built Custom is to become the top supplier and lead the market of
the cabinet to achieve a good position in the market to possess considerable growth in the
context of revenue and consumers. Besides this, the idea is focused towards comforting their
customers by offering them a required place to maintain their files and material.
Built Custom- Mission
The business Built Custom will provide reasonable and quality supplier market of cabinet to
meet the construction, challenging organizational and quality needs. Moreover, the business
is focused towards offering affordable and quality infrastructure to the small residential and
business areas.
Start-up Summary
Overall costs of the start-up will include tools, stationery, and other related expenses. There is
only one owner in the business that will focus on arranging the initial start-up cost.
Products
The business products are mostly designed of two key elements i.e. the boxes and shelves
would be delivered from single supplier in the form of kitset. Besides this, one of the local
suppliers will provide the delivery of doors, panel, and drawer. The company will hire two
designers competent in manufacturing custom finishes.
Industry Analysis
Build Customs Company will focus on the suppliers, owners, and designers of the local area
who are involved in the development of the residential, resort, and commercial segment. In

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the U.S, the manufacturing and retailing of the furniture are very important element of the
country's economy (IBIS World, 2018). The global industry of home goods comprises
retailing, manufacturing, and distribution of the commercial as well as residential furniture.
At the economic recession time, the entire furniture industry was negatively influenced by
this because consumers were cutting down their expenditures on the elements that were not
much essential, putting the development of commercial and residential part due to low
disposable income (IBIS World, 2018). In 2016, the stores of furniture have received sales of
approx. 106.78 billion U.S dollars (Statista, 2018).
Target Market of Built Custom
Built Custom will be focusing towards contacting with the contractors and architects who
majorly deals in the residential market. The company will work to increase its brand
recognition among these entities in order to create tough front-runners, along with this
receiving the personal recommendations to the owners of the home.
Competitor Analysis
The U.S industry of furniture is competitive, as it comprises key players in the same kind of
services that are Bernhardt Furniture and Hancock & Moore.
Hancock & Moore
Jimmy Moore established Hancock & Moore Company in 1981 with headquarter in Hickory
North Carolina (Hickory Park, 2018). It specializes in the furniture with contemporary,
custom-made, modern, and traditional design and offers low as well as a mid-price line of
material. The products of the company are handmade and offer its services in the United
States market (Boyles Brand, 2018). All the products of the company take approx. 80 hours
to get the finished look, and are accessible in different options such as wood, trim, fabric,

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leather. The company involves strict policies for the smooth operations of different activities
and these policies are called in-house environmental policies (Lexington Furniture, 2015).
Bernhardt Furniture Company
Bernhardt Furniture was established in 1889 with headquarter in the North Carolina
(Bernhardt, 2018). The company makes white oak furniture for the customers in the local
market. The company has very quickly increased its operations because of effective relations
with the distributors and merchants (Goods Home Furnishings, 2018). Besides this, the
company takes the support of rail mode of transport for the delivery of bedroom furniture,
chests, tables, and cabinets in the market of big cities across the country (Ryan, 2018). By
1958, the product line of the company was extended to involve furniture for the residency
area, along with the country’s showrooms and offices. Due to all these achievements and
operations of Bernhardt Furniture Company, it was known as the benchmark business in the
industry (Bloomberg, 2018).
The companies Hancock & Moore and Bernhardt Furniture Company are two of the strongest
business that is a big threat to small as well as big retailers in the market (Chrinian, 2017). It
reflects that Built Customs will experience huge competition from these two key players in
the market, so, to sustain and get a competitive advantage it has to make different strategies.
Competition and buying patterns
The domestic market for furniture involves numerous competitors. However, all of them
provide products that are of good quality. Some features that dominate the number of every
galley projects are services, scope, design, and product (Fung Global, 2018). Numerous
people imperfectly possess the thought that the size of the project and the big brands will
provide the best services. However, this perception is wrong because the design is the feature
that provides the maximum effect on the quality and value of the customer investment.

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Promotional Pitch for Built Customs
The company will attract customers by using the pitch "Come let's make your world more
beautiful." Here, the advertisement will focus on making a home or commercial area more
beautiful by equipping custom cabinets and furniture. The word ‘world' here signifies home
and office, which according to many people is their world.
Market Analysis
Pestle Analysis of U.S Furniture Market
Political
The democratic position of US ranks second across the world. US president is appointed for a
term of 4 years and for that, particular tenure the political aspect of the economy is
overlooked by the appointed president (Pestle Analysis, 2014). As the business of Built
customs is proposed to be operated in the United States, the company will have to duly
comply with all the regulatory laws and provisions that are in existence in the US and applies
to the furniture manufacturing industry. Various regulatory agencies regulate the industry to
which the proposed business belongs such as patent act, trademark act, environmental act etc.
US government encourages the US entrepreneurs to bring up innovative and unique ideas to
allow them positively contribute to the country’s growth as well as its development.
Economic
The economic condition of the United States is quite strong and it is the largest economy in
the world in terms of its per capita GDP. The leading corporations constitute US economy
such as Microsoft Google, Apple Inc., Mc. Donald's, Coca-Cola etc. These multi-national
corporations contribute significantly to the economic development of the country by
generating high revenues and employment opportunities for US nationals. However, after the
financial crisis of 2008, the economic condition of the country was severely affected but in

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the post-crisis, the economy has shown drastic changes in the areas of growth and
development (Pestle Analysis, 2014). Due to the firm economic state of the country, it would
be an opportunity for the company to operate its business in the United States.
Social
The United States ranks at the third position in the entire globe in terms of its population. It is
generally observed under various surveys that in every 8 seconds, a birth takes place. In the
country that is densely populated, it is quite evitable for the companies operating in such a
country, to emphasize on fulfilling its corporate social responsibilities in order to operate
smoothly and successfully (Pestle Analysis, 2014). Before commencing the business, it
would be necessary for Build Customs to understand its corporate social responsibilities. In
fact, the company has various laws and regulations relating to CSR and each company to
which such laws are applicable are required to comply with them. The compliance with such
laws will not only allow the company to avoid the legal interventions but will also gain the
trust of the business communities, societies, and customers of the company about the ethical
business practices. Various social practices firm can take up to promote the well-being of the
society such as sustainable development initiatives, promotion of employment opportunities,
etc.
Technological
In terms of technology, the US economy is the leader across the globe. The technological
development of the country has majorly contributed to the rapid growth of the country. By
far, the company has achieved high growth in the areas of artificial intelligence (Pestle
Analysis, 2014). In the countries like the US, it serves a great privilege to operate the
business as the business can function efficiently with advanced technology. The business of
furniture manufacturing will also be benefitted with the technological advancement of the
country.

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Environmental
As the business of furniture manufacturing involves high usage of tree woods, it is important
for the company to undertake only those business practices that are environmentally friendly
since plants and trees form the most important constituent of the eco-system (Pestle Analysis,
2014). It is necessary for the proposed company to obtain permits from the environmental
regulators, to use the woods from the trees. In addition, the manufacturing process of the
furniture must be eco-friendly and must not harm the health of any constituents of the
environment.
SWOT analysis
Strength
Built Customers have different strengths that are necessary to conduct the business in the big
market such as the United States. The business idea i.e. Built Customs of making cabinets for
the resort, commercial, and residencies is very effective because it provides affordable and
reasonable cost. The market comprises different businesses that provide a similar type of
products but at a high price. On the other side, Built Customs will provide all the products
with good quality at a reasonable price.
Weaknesses
Built Customs has worked on every aspect that needs to be perfect in such a competitive
environment but it possesses one weaknesses i.e. lack of capital that is also a threat to the
business to compete in the market. Moreover, it has few of the skilled, experienced and
skilled workforce that work to contribute towards the development of the business.
Opportunity
The market of the United States possesses different opportunities for every type of
businesses. The Built Customs can initiate a partnership or joint venture with large companies

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and can provide its new and innovative ideas so that people can get access to affordable as
well as quality services.
Threat
Built Customs will initiate its operations in the United States market that is comprised of
huge competition, which is one of the threats for the company. Besides this, because of a lack
of capital, it could experience barriers to the long-term survival in the market. Hence, Built
Customs should create strategies that could help it in avoiding these barriers as well as
threats.
Feasibility analysis
A feasibility analysis is a study that is used to measure the capability and probability to finish
a project effectively comprising all relevant factors. It should be comprised of the factors that
influence it like technological, financial, and legal, etc. (Havard, 2013)
Financial Feasibility
Although, Built Customs is a low budget business idea but the owner of the business that is
Mr. Daniel is very much familiar in this manufacturing sector of furniture, which reflects that
he is capable enough to arrange all the funds for the business that will be required in the
future. The company could arrange funds in the future from different sources such as
financial institutions, banks, equity shares, etc. Financial competency is very important for
every business in the market hence; Built Customs needs to manage all the funds and its
position in the market.
Technology feasibility
Technology in today’s environment is very essential for the growth as well as productivity of
the business. Technology helps in reducing the cost and time to manufacture a product or
service (O'Loughlin, 2013). Built Customs will offer its quality furniture at low cost because

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it has planned to invest most of the amount to buy the advanced technology, which will
eventually reduce the price as well as time consumed in manufacturing the furniture.
Legal Feasibility
A thorough legal analysis is performed to ensure that all predictable legal necessities, which
are necessary for the project development, are fulfilled or not. Built Customs is the company
that deals in the manufacturing of furniture, which comprises the use of wood in it. Extraction
of wood by cutting down the trees adversely affects the environment and animal life.
Therefore, Built Customs Company will ensure that all the legal requirements such as
Companies law, Clean Air Act, and Resource Conversation and Recovery Act are fulfilled
and followed effectively (Carnegie Mellon University, 2003).
Business Canvas Model
Key Partners
 Designers,
 Furniture
Stores,
 Decorators,
 Brands,
 Interior
Key Activities
 Manufacturi
ng of quality
furniture at
low cost
 Managing
the demand
of the
customers
 Effectively
dealing with
designers,
suppliers,
employees,
and
customers
Value
Proposition
Customers
We offer quality
standard furniture
at a very
reasonable price.
Customer
Relationship
Get
Word of mouth,
paid search,
referrals from
decorators and
merchants
Keep
We allow
consumers to
exchange their type
of furniture and
fulfill their
changing
requirements when
they move from
one place to
another.
Grow
Cross-sell and up-
sell of other
products when the
company will grow
Customer
Segments
Customer Profile
Families
Residencies
Commercial areas
or infrastructure
Resorts
Key Resources Channels

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 List of
Customers
 Refurbishing
Center
 Shipping
Material
 Website
 Brick and
mortar
 Stores
 Social Media
Cost Structure
Buy furniture
at low cost on
demand,
refurbishment,
pick up cost,
and,
warehouse
Revenue Streams
 Home
delivery of the
product at
affordable
prices
Sales Pitch for Built Custom
The basic idea behind keeping the prices of Build Customs is to grab wide customer base in
the furniture manufacturing industry. As the business is entirely new but the industry to
which it belongs is in existence since long years, it is quite obvious that the people in US are
quite familiar with the furniture products and quality and utility of different sort of furniture
items. As wooden cabinet is a common type of furniture products, the demand for such
product prevails in both commercial and domestic market. Hence, it is aimed to grab a large
market place by adopting penetration-pricing policies and by the manufacturing of different
types of cabinets. As the basic motive behind keeping the lower prices is to achieve
competitive advantage over other existing furniture manufacturers, the quality of the wooden
product must also be given highest priority. If both prices and quality are maintained as per
the customer centric approach, it would become easy for the company to enter into the market
more smoothly and to gain large customer-base.

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Conclusion
From the above analysis, it could be said that Built Customs business idea will be proved as
one of the successful start-ups in the coming future because the demand for custom made
cabinets in the commercial, resort, as well as residential sectors is increasing. Moreover, the
company will offer all its services at low cost with good quality. The analysis reflects that the
company could operate in the United States market because presently it is growing very
rapidly, which reflects that it will provide good profit margins to the businesses.

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References
Bernhardt. (2018). About Bernhardt. Retrieved from https://www.bernhardt.com/
Bloomberg. (2018). Company Overview of Bernhardt Furniture Company, Inc. Retrieved
from https://www.bloomberg.com/research/stocks/private/snapshot.asp?
privcapId=4273138
Boyles Brand. (2018). Hancock & Moore. Retrieved from http://www.boyles.com/hancock-
moore
Carnegie Mellon University. (2003). Main US Environmental Laws. Retrieved from
http://environ.andrew.cmu.edu/m3/s7/us_laws.shtml
Chrinian, E. (2017). The Furniture Industry Is Now More Competitive Than Ever. Retrieved
from https://eugenechrinian.wordpress.com/2017/06/20/the-furniture-industry-is-now-
more-competitive-than-ever/
Ekanem, I. (2017). Writing a Business Plan: A Practical Guide 1st ed. U.K: Taylor & Francis.
Finch, B. (2013). How to Write a Business Plan 4th ed. U.K: Kogan Page Publishers.
Fung Global. (2018). Deep Dive: US Furniture Market 2017—Stores Face Softer Growth and
E-Commerce Competition. Retrieved from
https://www.fungglobalretailtech.com/research/deep-dive-us-furniture-market-2017-
stores-face-softer-growth-e-commerce-competition/
Goods Home Furnishings. (2018). Bernhardt Furniture. Retrieved from
https://www.goodshomefurnishings.com/bernhardtfurniture/

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Havard, T. (2013). Financial Feasibility Studies for Property Development: Theory and
Practice 1st ed. U.S: Routledge.
Hickory Park. (2018). Hancock & Moore Furniture Store and Showroom in Hickory NC.
Retrieved from https://www.hickorypark.com/hancockandmoorefurniture/?
gclid=CjwKCAjwoMPcBRAWEiwAiAqZh51MEpDBhGe3xT2cLPzV5VVb-
344DYhSxGoNFmPuN3sQXSaqBnpZnxoC2SgQAvD_BwE
IBIS World. (2018). Furniture Stores - US Market Research Report. Retrieved from
https://www.ibisworld.com/industry-trends/market-research-reports/retail-trade/
furniture-home-furnishings-stores/furniture-stores.html
IBIS World. (2018). Household Furniture Manufacturing - US Market Research Report.
Retrieved from https://www.ibisworld.com/industry-trends/market-research-reports/
manufacturing/furniture-related-product/household-furniture-manufacturing.html
Lexington Furniture. (2015). Hancock & Moore. Retrieved from
http://lexfurniture.com/furniture/brand/hancock-moore
O'Loughlin, J. (2013). The Importance of Technology to the Transcendental Future 1st ed.
U.S: Centretruths Digital Media.
Pestle Analysis. (2014). PEST Analysis of the USA, the Largest Economy of the World.
Retrieved from http://pestleanalysis.com/pest-analysis-of-usa/
Ryan, M. (2018). Bernhardt - A 125-Year Family Legacy. Retrieved from
https://www.bernhardt.com/news/press-releases/bernhardt-125-year-family-legacy
Statista. (2018). U.S. Furniture Retail Market/Industry - Statistics & Facts. Retrieved from
https://www.statista.com/topics/1136/us-furniture-retail/

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Tiffany, P., Peterson, S.D., & Barrow, C. (2012). Business Plans For Dummies 3rd ed. U.S:
John Wiley & Sons.