Innovation & Entrepreneurship: Customised Furniture Business Plan

This report outlines a business plan for a Customised Furniture startup, focusing on selling personalized furniture based on customer specifications. It covers industry profiling, business model development, differentiation strategies, and challenges. The plan emphasizes targeting upper and upper-middle-class customers through online and offline channels, offering both trend-based and customized furniture lines. The report details a marketing plan focused on quality and social media promotion, competitor analysis, and funding sources. It addresses challenges like intense market competition and resource utilization, highlighting the importance of innovation and strategic choices for brand positioning and market success. The business aims to leverage business model innovation by catering to the increasing demand for customized furniture solutions.

INNOVATION AND
ENTREPRENEURSHIP
Table of Contents

INTRODUCTION.................................................................................................................................3
Assessment task.....................................................................................................................................3
Executive summary...........................................................................................................................3
Start up business idea........................................................................................................................3
Industry profile..................................................................................................................................4
The business model...........................................................................................................................4
Point of differentiation.......................................................................................................................5
Challenges of the business idea.........................................................................................................5
Prospective customers.......................................................................................................................6
Brief marketing plan..........................................................................................................................6
Competitor analysis...........................................................................................................................7
Sources of Funding............................................................................................................................8
Approaches to protect business idea..................................................................................................9
CONCLUSION.....................................................................................................................................9
REFERENCES....................................................................................................................................10

INTRODUCTION
Innovation is defined as searching for a new idea and concept that can allow the
company to achieve a healthy success under the respective business environment. Innovation
and Enterpreneurship are two fundamental concepts and ideas associated with the business
entity as both these aspects work simultaneously in order to achieve success in the respective
market (Jones, Comfort and Hillier, 2017). This report is based on the new business idea call
as Customised Furniture. Business idea will be presented in the initial part of the project.
Industry profile will be analysed based on the market, customer base and different other
factors associated with the business entity. Business model will also demonstrate to provide a
strategic overview to the business start up. Point of difference will further project in this
project. Furthermore, project will discuss about the challenges that company will face in the
respective market. Target customers will also clearly state in the report. Brief discussion
about the marketing plan that company will be consume will be a part of this project.
Competitor analysis, sources of funding, intellectual property and other like details will also
project under this project.
Assessment task
Executive summary
Customised furniture is a new business idea that will involve selling the personalised
furniture product developed based on the specification and requirements attached by the
customers at the time of placing the order. This project will discuss the ways to successfully
launch the business plan. Business idea will set up, industry profiling will be done, business
model suitable will also discuss and different other aspects that will allow the company to
successfully launch the new business set up (Stone and et.al., 2020). The business will ask the
customer what kind of the furniture product it wish to own and develop the same product
based on the needs and requirements of the target customer base.
Start up business idea
Customised Furniture is a furniture brand that will allow the customers to buy
the different furniture product on the basis of the choices, preferences, needs and
requirements of the potential customer associated with the market. Under this business idea
customer will get a chance to convey its entirerequirement at the time of placing the order.
The business idea allows the customers to buy the furniture of its own choice and to fulfil the

dream by buying the best quality of furniture. Company will sail the furniture over both the
platforms online with support of its own website and the offline with support of physical
stores of the company (Cappariello, 2017). The start up will focus over upper class economic
background customer base along with the upper middle class economic base customer as the
customised product always require extra cost in designing and also consume more time that
eventually add on the cost in the product. Company will sale both the product line the one
that it has developed with support of professionals based on the trends and fashion in the
market and the other one is customised line where customers can place all its requirements at
the time of buying the product. This will allow the customer to give all the details about what
type of product they seek that include design, colour, size, height and many other details that
can justify what product customers are looking for. This business idea is innovative and
unique in fashion as it deploys the customer vision while making the products.
Here the theory of business model innovation is being applied by Customized
Furniture. The reason underlying this fact is that this model is defined as art of enhancing the
advantage and creating value by product and services for both the company and consumers.
Hence, in the current competitive market there is high trend of customization within
furniture. Thus, with help of business model innovation the company got the business idea of
furniture customisation and hence the business was initiated. With the help of market analysis
it was identified that the latest trend among consumer is of furniture in accordance with their
requirement only. Hence, this innovation within the business model that is customisation of
furniture will definitely result in effective working of the new business.
Industry profile
Furniture market is very high profile market based on the sales turnover, profit margin
and the overall demand of the product in the respective industry. The recent statistics
demonstrate that the sector contain a total sales turnover of £12.2 billion. Currently the whole
sector of the United Kingdom is growing at the rate of 3.2% (Reis-Silva and Carrizo-Moreira,
2018). This clearly demonstrates about the scale of the industry. In the current time not many
companies are exploring the customised furniture range which allows the company to take
competitive advantage in the market. Also the United Kingdom is developed that clearly state
that the country hold a strong buying power of its customers that allow the company toeasily
convince the customers to buy the customised furniture product instead of the usual furniture
product. As the customised product require extra cost and time of producing the same product
as compare to the other normal product. The buying power of the customers allows the

company to attract more number of customers to make its sale. The profile is very highly
competitive and allows the CustomisedFurniture as a brand to achieve all its business
objectives.
The business model
Company will try to position its brand with support of different strategic choices. The
practices like social media, digital promotion and such other strategic choices will be used to
position the brand in the respective market. Company i current time at the initial or
introductory stage of the business life cycle but the industry is in current time at the growth
stage (Bessière and et.al., 2019). The business model company will follow is progressive
which will lead the company to continuously make changes as per the needs and
requirements of the target market. The business model will favour the company to focus more
over innovation and technical development of the business.
Point of differentiation
Point of differentiation is been defined as the basis on which the company is better in
comparison to other competitors. There is high and intense competition within the market and
it is very essential for Customized Furniture to ensure that they have some points of
differentiation which makes them better as compared to other competitors (Genadinik, 2019).
Hence, the success of the new business venture is dependent over the point of differentiation
only. For the new business of customised furniture the major point of differentiation is the
quality. Major point of differentiation which makes the company from other companies with
similar product because the quality offered by Customized Furniture is very high. This attract
majority of the consumers and this provides a competitive advantage over the other
competitors. In addition to this another major point of differentiation is thing facility of
customisation. The consumer can decide their furniture in accordance to the choice and
company will provide it in this facility is not much provided by other companies. For being
successful within the highly competitive market it is very essential for Customized Furniture
that they have some good points of differentiation as compared to the competitors.
Challenges of the business idea
When a new business is started at that time there are many challenges which the
business idea faces. This is pertaining to the fact that the new idea has some or the other thing
which is not relevant m with the recent trends going among the consumers. The major
challenge which Customized Furniture will be facing is the high and intense competition.

This is the major challenge which tea company is going to face at time of starting of the
business. This is pertaining to the fact that already within the external market there are many
different companies dealing in the furniture and customisation (Ibrahim and Harrison, 2020).
Customized Furniture is going to face hi difficulty of competition which might pose a
challenge for the company. Along with this another challenge which the company might be
placing is the optimum utilisation of resources. The reason underlying this fact is that already
the resources are very less and scared and the use of these resources a large number. Hence
there are possibilities that accompany my having issues in arranging for the resources and
optimum allocation and utilisation of those scarce resources.
Prospective customers
Before starting of the business it is very essential for the company that they identify
the prospective customers (Hatzijordanou, Bohn and Terzidis, 2019). This is essential
because of the reason that when company knows who are the target consumer then they can
effectively attract them to buy the product and services of the company. Henceforth this
business of Customized Furniture the prospective customers will be people who are looking
for home furnishing products. This is the major target of Customized Furniture because when
they will target the people who are interested buying of the furniture in accordance to the
wish and convenience then this will be beneficial for the business. In addition to this the
major target of Customized Furniture will be families belonging to high income class and
people who are interested and upgrading their furniture time to time.
Brief marketing plan
For the effective positioning of the product the major focus will be laid on quality of
the furniture. This is pertaining to the fact that when quality will be supreme then consumer
will definitely get attracted towards the product and services of Customized Furniture.
Marketing mix
Element Description
Product The product of Customized Furniture will
include all the features like bed sofa dining
etc. it will include customisation of the
furniture that is the consumer can provide
their choices that how they need the furniture

and company will provide that in the same
manner.
Price For the pricing of the company at initial level
penetration pricing will be used. This is
pertaining to the fact that at initial level the
company will try to attract market and then
will increase the prices (Thabit and Raewf,
2018).
Place For the place, the company will involve both
the physical stores and will also have the
option of online business. This is provided in
order to attract majority of the customers.
Promotion In order to promote the product and services
of Customized Furniture a major emphasise
will be laid over the social media marketing
and digital marketing. This is because of the
reason that this is the latest technique of
promoting which will attract large number of
customers.
Competitor analysis
Basis Customized
Furniture
Linley Lorfords Ochre
Price The price used
is penetration
pricing in order
to attract large
number of
consumers
The pricing
strategy used of
skimming
pricing method
Here the pricing
strategy used by
the company is
competitive pricing
method.
Ochre is using
the
differentiated
pricing method.
Place Both the option Here the A combination of Only the

of physical
stores and the
online facility is
available.
company
emphasis on
physical stores
but also
provide the
facility of
online stores as
well.
online and physical
stores is present.
physical stores
are present
(Blut, Teller and
Floh, 2018).
Promotion Use of social
media
marketing and a
special
emphasis over
the digital
marketing.
Here the
company
makes use of
both the
traditional and
modern
marketing
Lorfordsundertakes
both the
promotional
methods that is
traditional and
modern but has a
major focus over
the traditional
method of
marketing.
Here the
company
undertakes
marketing but
emphasis over
the sales
promotion
techniques like
discount,
referral
program, loyalty
schemes and
many others.
Sources of Funding
For a new idea or start up business, like here it is a start-up for bringing a new product that is
customised furniture, there is a need to invest personal funds or money or either borrowed it
from external sources meant for providing finance for such start-ups (Brown, Boon and Pitt,
2017). Here entrepreneur and management has decided to acquire fund for this start-up from
two major sources, which is Bank loan and business angels.
For obtaining loans, the arrangement has been made with financial institutions and banks
operating in UK and are mainly concerned with the provision of loans or small finances to
MSMEs in UK. So, economic development can be encouraged through such entrepreneurial
innovations and their respective start-ups. There are minimal rate of interest need to be paid

on such loans as the same is deliberately offered at lower rate in order to encourage
innovations and entrepreneurship in UK (Lenzer, 2019).
Another source from which capital or finance will be procured by the entrepreneur is from
business angels, who are actually considered as a wealthy individuals or companies who are
keen to invest in such start-ups after studying in detail the viability of a new idea. They are
generally meant for investing in early stages of such start-ups, thus due to taking much higher
risks they took part in companies management and sometimes even get a role of board of
director in the company. So, for this new start-up of customised furniture, entrepreneur will
seek funds from these two sources that is bank loan and business angels.
Approaches to protect business idea
It is very necessary to protect business or new product idea brought about through one’s
intellectual capability in order to ensure that the same should be copied by anyone else in the
market who can capture the whole target market with first mover advantage. This can be done
by entrepreneurs in many ways to ensure their rights attached with their innovations remains
unaffected and he shall not lost it in the hands of the competitors. In case of customised
furniture here so developed as new business idea, entrepreneur will be going to protect it in
the following manner (Yi and Naghavi, 2017).
By seeking patent rights for the unique designs of the furniture so produced, entrepreneur will
ensure that they will not get any kind of last minute shocks in future due to imitation of their
furniture design by someone else.
Entrepreneur has also decided to have a trademark for their brand in order to protect his
product and business name, so that it can be easily and uniquely identified by a layman.
Also, trade secrets can be utilized for the purpose of protecting unique designs or patterns that
are specifically developed by the entrepreneur and are not commonly available in the market,
in other words something which has not yet been explored by someone else (Nadirah, 2021).
So, by keeping it confidential that how it has been developed, entrepreneur will seek trade
secret rights their designs and patterns could not be get copied.
Furniture industry analysis in the context of UK

Figure 1: home decor market of UK
Figure 2: Furniture’s e-commerce market growth in UK
CONCLUSION
In the end it can be evaluated that innovation and entrepreneurship is very essential in the
current market scenario. This is pertaining to the fact that if new business will be initiated
then this will improve the condition of country. The present report evaluated the business
plan for the furniture store which provide the facility of customised furniture. The report
evaluated that applying the correct business model is very essential for the success of the
business plan. In addition to this it also evaluated that major challenge faced by business idea

is of competition. Along with this it analysed that prospective customer will be high income
group and marketing mix will also assistant taking effective decisions. In the end it was
evaluated that sources of funding are bank loans and business angels and intellectual property
right which can be used to protect the business are patents, trademarks and trade secrets.

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