Start-up Business Plan for Furniture Industry in UK

INNOVATION AND
ENTREPRENEURSHIP

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................3
Executive Summary.........................................................................................................................3
Start-up business idea..................................................................................................................3
Industry profile............................................................................................................................4
Business model............................................................................................................................4
Point of differentiation.................................................................................................................4
Challenges to the business idea...................................................................................................5
Prospective customers.................................................................................................................5
Brief Marketing Plan...................................................................................................................6
Competitor analysis.....................................................................................................................7
Sources of funding.......................................................................................................................8
Intellectual property.....................................................................................................................9
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................12

INTRODUCTION
The study discusses the start up of a business and various factors which influence the business to
take decisions. The industry being taken in study is of furniture industry and the country as UK.
Executive Summary
The file is about business plan of setting up an enterprise of wooden craft and furnishing. The
file discusses about the idea of start up business and gives a description of the product and
service. The report lays emphasis on industry profile with emphasis on current industry demand
and statistics of the product in the market. The business model is talked for about the method of
profit generation and the business cycle. The report highlights on the point of differentiation of
own company from other companies in the same line. The challenges to the business have been
discussed. The prospective customers have been discussed for the business. The marketing plan
has been discussed and positioning in the market has been talked about and the four Ps have been
talked about. Competitor analysis has been done for the business talking about its competitors in
the market, the report talks about the two sources of funding for the business. Intellectual
property has been discussed about the protection of the business idea. Thus, a comprehensive
analysis of various factors associated with the business have been discussed.
Start-up business idea
The product which the business will be based on is furniture. The business will be catering to
the needs of the people residing nearby in town as well as people living in the London city. The
furniture will be related to household use as its main focus such as doors, windows, house
furniture, dressing tables etc. However, it is planned as the business grows it will cater to
schools, hospitals and hospitality functions in the nearby area as well as the city (Mariani,
Bartoloni and Morelli, 2019). The product range will also be broadened then to meet the needs of
these functions and the production capacity too.
Industry profile
As of now, as the town is developing and coming close to the standards of the city, more and
more households are developing in the city. As people come in more numbers, thus the need

arises for furniture required in homes, that is where the business plan of furniture production and
showroom set in. There is currently a great surge in demand for furniture and the business can
rightly fulfil the place. Statistics show that there has been a rise in demand of wooden furniture
over the past five years. This has been seen growing at a significant rate which is motivating for
starting a new business. There has been an increase in house constructions with a 6.8% increase
from 2009 to 2019 and thus market of furniture has been registering growth due to it.
Business model
The business model firstly lists the vision of the company presently in start up stage of business
life cycle as to become a top furniture company in another five years. The customer segment is
defined of the households and pricing according to market factors and cost of production
analysis. The investments will be done through owner capital and financing from financial
institutions which can provide a growth opportunity for the company for further expansion. The
idea is that the local suppliers of wooden furniture will be contacted for raw material, tender
which is reasonable and provides quality product would be accepted (Mariani, Bartoloni and
Morelli, 2019). The raw material would be sent to the factory for processing and finished goods
will be brought up in the showroom. Also, orders will be separately taken up for the goods to be
produced for home furniture. The furniture will be displayed in a showroom of middle size
which can look suitable for common gentry to visit and buy or place orders.
Entrepreneurship theory which can be described here are:
John Schumpeter theory: The effective function of entrepreneur is for starting innovation in
venture according to theory (Anderson, Wennberg and McMullen, 2019). The theory says that
entrepreneurs emerge because of individuals in possession of psychological elements: will
power, self-intuition, tolerance capacity. The innovation according to theory should include:
A) Introduction of new goods
B) Introduction of new methods of production
C) Opening of new market
D) Discovering new source of raw materials
E) Carrying out an organisation’s new source.

Discovery theory: It means when an individual identifies the opportunities existing in
surrounding market and launches own business to take use of opportunity and fill the gap for
products and services (Bylund and McCaffrey, 2017). The furniture business is one example of
that. The three assumptions of theory are:
A) Opportunities have objective component and the existence doesn’t depend on whether
individual has identified the opportunities or not.
B) Every individual is different from each other.
C) Risk bearing is important part of entrepreneurial process.
Point of differentiation
The quality of wooden furniture will be the difference among the business and the competitors
as the local suppliers who are providing the traditional best quality of the place would be
contacted and also suppliers who are dealing for wood of foreign material. The amalgamation of
the two choices would provide customer option to choose from and thus company will be able to
set its niche among people (Saura, Palos-Sanchez and Grilo, 2019). Also, taking the business
online would be the second differentiable quality which other competitors in the location have
not done so. This will increase the viewership of products. Thirdly, customers would be given
the best after sales service and can also register online if they find problem in the furniture and
their complaint will be dealt in a short period of time. The creative idea in differentiation can be
using wood of host nation as well as imported material to make furniture items like wooden
luxury chairs, sofa sets etc.
Challenges to the business idea
The business is new and thus faces challenges like any other business. It has to create awareness
for its product among customers, the product differentiation has to be present for attracting the
customer. The quality of service has to be of finest quality when customer visits the showroom.
Pricing strategy has to be done with cost analysis of the production as well as market factors in
the industry (Klante and Thiex, 2020). The operational costs are also a challenging factor to
control for business to operate well. The business online forum has to see if it can expand with
the right specifications of product and technique.

Prospective customers
The prospective customers of the business are the households in the residential area and later on,
it can move to schools, hospitality functions in the area and the London city as the business
develops. The ideal customers can become the households as they are the first ones who would
be needing the services of the business for their homely requirements. Later on, as the business
becomes famous for its quality service, then prospective customers can become the education
and hospitality industry which would be requiring furniture for their set up. Schools would be
requiring furniture in the form of benches, tables, chairs etc. Thus, a large quantity order can be
received from them. If the business responds to the order in timely manner and provides quality,
it can form a long-term relation with the prospective customer (Saura, Palos-Sanchez and Grilo,
2019). Similarly, hospitality and retail functions nearby also have requirements for furniture for
customers like sofas, tables, desks etc. and retail stores for keeping and displaying their
merchandise on them. As the business will be in contact with suppliers for best quality and
foreign material, it can very well turn these prospective clients into ideal clients.
Brief Marketing Plan
Aim: To set a furniture business in a residential locality.
Objectives: Specific: To establish furniture business in growing residential area.
Measurable: Parameters for measuring success will be the revenue earned by joining of
customers.
Achievable: Task is achievable as others have done so in the past.
Reliable: Demand for furniture in developing town area proves reliability factor for success of
business.
Time scale: Business shall be set up in a timeline of one year.
Budget: The budget has been kept of 200,000 GBP.
STP Analysis
Segmentation: Segment of customers is done on basis of geographical, behavioural, social,
psychological and demographic factors. The area where business will be set up is residential and
thus the main customer market will be of the residents first (Chernev, 2020). Study of social