The furniture industry in Nigeria is a highly profitable venture due to the strong demand from Nigerians who prioritize furnishing their homes and offices.
Nigerians desire modern furniture that enhances the appeal of their living spaces. It is uncommon to visit a Nigerian household and not find a center table or chairs, as these are considered essential items. Families without these furniture pieces have likely sold their old ones to acquire new ones.
Furthermore, offices recognize the importance of furniture as an essential tool. It serves multiple purposes such as storing documents, accommodating computers, providing comfort during work, and ensuring visitors feel at ease while waiting for appointments.
Even churches and mosques in Nigeria understand the significance of furniture. They make use of chairs and tables for congregants to sit and listen to sermons, as well as for ministers to place their bibles. The furniture in a standard Nigerian church can sometimes cost millions of naira, as churches now prioritize interior decoration.
The furniture business in Nigeria has evolved beyond using cheap wood and substandard materials. Nigerian buyers now possess refined tastes and can discern the value of a piece of furniture simply by examining it. They are willing to invest in quality furniture that meets their standards.
Furniture Business Overview
A furniture business encompasses companies or enterprises that specialize in the production, retail, or distribution of furniture. Furniture, in this context, refers to movable objects designed to facilitate various human activities such as sitting, sleeping, and storage.
Within the furniture industry, businesses may manufacture a diverse range of products, including sofas, chairs, tables, beds, cabinets, and shelves, among others. Moreover, these companies may also offer customized furniture designs to cater to the specific requirements of individual customers.
In addition to manufacturing furniture, a furniture business may engage in selling their products through different channels, such as physical stores, e-commerce platforms, or wholesale distribution.
Some furniture businesses may even provide supplementary services like furniture assembly and delivery, interior design consultations, or furniture repair and maintenance.
How Profitable is the Furniture Business in Nigeria?
The furniture business in Nigeria presents a highly lucrative opportunity due to its importance in the lives of all Nigerians. Furniture is a necessity in homes, companies, organizations, churches, and mosques throughout the country. It is virtually impossible to find a place in Nigeria without furniture.
This is precisely why the furniture industry thrives in Nigeria. Another contributing factor to its profitability is the Nigerian population's inclination towards purchasing expensive furniture to enhance the beauty and comfort of their surroundings. Nigerians are willing to invest in high-end furniture, such as TV shelves worth up to N100,000, to showcase their luxurious lifestyle. Furthermore, targeting wealthy individuals in Nigeria can lead to even greater profits.
Now, let us delve into the process of establishing a furniture business in Nigeria. We will explore how you can start small, generate profits, and gradually expand your enterprise into a thriving venture.
Steps to Start a Furniture Business in Nigeria
1. Select the Type of Furniture Business:
In Nigeria, there are primarily two types of furniture businesses: furniture manufacturing and buying/selling furniture. Before diving in, carefully consider your available capital, time, and other factors to decide which type suits you best.
It's worth noting that starting a buying and selling furniture business is generally easier and quicker compared to a furniture manufacturing business, as it involves fewer processes.
2. Acquire Furniture Making Skills:
If you decide to venture into a furniture manufacturing business, the next step is to learn how to make furniture. This entails apprenticing under a professional furniture maker for a period of 6 months to 1 year. After gaining sufficient knowledge and experience during this apprenticeship, you can venture out on your own.
During this stage, you will need to purchase your own furniture-making tools. The prices of these tools vary based on their quality and where you buy them. You can choose between second-hand tools and new ones, depending on your budget.
However, it's important to note that mastering all aspects of furniture making within this timeframe is unlikely. As the furniture industry is constantly evolving, you will need to continuously improve your skills and learn new techniques as you progress in the business.
3. Get the Required Capital:
Capital is a crucial aspect of any business, including the furniture industry. To start your furniture business, you will need a capital ranging from N200,000 to N1,000,000. However, it is important to note that the larger the capital you invest, the higher the potential profit.
Investing N1,000,000 or N5,000,000 in the furniture business will yield greater profits compared to investing only N200,000 or N500,000.
To determine the total capital required to start your business, you must carefully consider all the necessary expenses. This includes business registration, showroom space to display your furniture, workshop space, material costs, tool costs, and more. Make a comprehensive list of these expenses and their respective costs, then calculate the sum to determine your total capital requirement.
This total amount will represent the capital you need to secure.
4. Get a Space for your Workshop:
It is advisable to secure a workshop space near your showroom for convenient movement of furniture after completion.
Alternatively, you can opt for a larger space that accommodates both your workshop and showroom. This approach offers cost-saving benefits, as it allows you to address two needs with a single solution.
5. Selecting an Ideal Showroom Location:
Establishing a showroom for your furniture business holds utmost significance, arguably making it the most important aspect of your enterprise. It serves as the primary point where customers can physically engage with and purchase your furniture, requiring a location that is easily accessible to both existing and potential clientele.
My strongest recommendation is to secure a space in a populated area, one populated by a multitude of rich individuals daily. Choose a spot that allows for easy visibility and accessibility.
Enhance the appeal of your showroom by maintaining cleanliness and tastefully furnishing the space. Illuminate it with strategically placed showroom lights, and very importantly display a signboard bearing your brand name.
Ensure the uniqueness of your business identity by verifying that the chosen business name is not registered by any other furniture enterprise in Nigeria.
Registering your business name with the Corporate Affairs Commission (C.A.C) is a crucial step in this process, taking approximately four weeks for completion. Once this is accomplished, you will be well-prepared to commence operations.
6. Employ Highly Skilled Laborers:
In order to commence the production of your furniture items, it is important to employ highly skilled laborers, including carpenters, upholsterers, and finishers.
It is crucial to verify that they possess the essential expertise and extensive experience required to craft top-notch furniture products.
7. Elevate Sales through Strategic Branding:
Similar to how artworks are carefully branded, I've observed a growing trend among furniture companies incorporating branding into their products.
This involves imprinting their names and contact details onto all furniture items they produce. Achieved through the use of gold ink, this practice is designed to facilitate easy identification for potential customers. You can adopt this strategy for your furniture, imprinting your brand name and contact information to attract more customers to your showroom.
Additionally, consider enhancing your branding efforts by utilizing unique wood materials in the construction of your furniture. This distinctive approach not only adds character to your products but also serves as an effective means to differentiate your offerings in the market.
By incorporating these branding techniques, you can significantly increase the visibility of your furniture business and attract a broader customer base to your showroom.
8. Strategies for Boosting Profits in Your Furniture Business
To enhance sales and subsequently increase profits in your furniture business in Nigeria, consider the following effective strategies:
A. Connect with Wealthy Individuals
To facilitate the smooth sale of your furniture, target places populated by the wealthy, such as clubs or events. Introduce yourself and your business, expressing a willingness to offer substantial discounts on furniture purchases. Building relationships with the wealthy can significantly contribute to the success of your business.
B. Target Hotels and Motels
Explore the opportunity to secure contracts for supplying furniture to newly constructed hotels and motels in Nigeria. While obtaining such contracts may pose challenges, the potential returns can be substantial. Additionally, consider negotiating agreements with hotel owners to manage the maintenance of the furniture, creating an additional revenue stream for your business.
C. Expand Your Workforce
As your furniture business experiences growth and increased sales, consider expanding your workforce to manage the heightened demand effectively.
Avoid the common Nigerian practice of understaffing and overburdening employees. Instead, invest in an adequate workforce to ensure operational efficiency and sustained growth.
D. Implement Robust Accounting Practices
Neglecting accounting can lead to a lack of awareness regarding your business's financial health. Maintain detailed accounts to track daily, weekly, monthly, and yearly profits, as well as expenditures such as utility bills and employee salaries. Proper accounting not only provides insights into your business's performance but also facilitates tax payments and loan applications when necessary.
E. Pursue Government Contracts
Seeking government contracts can provide a significant boost to your furniture business. Establish connections with local government officials and gradually build relationships to increase your chances of securing lucrative contracts. Winning government contracts can pave the way for substantial financial gains.
F. Embrace Online Selling
Tap into the vast potential of online platforms by selling your furniture through the internet. Utilize visually appealing images to showcase your products on various online marketplaces. This strategy not only expands your customer reach but also allows you to generate income continuously, even while you sleep.
By incorporating these strategies into your furniture business, you can create a more diversified and profitable venture in the dynamic market of Nigeria.
Different Furniture Business Ideas in Nigeria
1. Office Furniture Sales:
In Nigeria, one lucrative furniture business idea is selling furniture exclusively to businesses, companies, and organizations. By targeting this market, you have the potential to earn substantial profits. If you manage to secure contracts with major companies like Shell or Chevron, you could even sell furniture worth millions.
2. Residential Furniture Sales:
The most common type of furniture business idea in Nigeria is selling furniture for homes and residential spaces. Approximately 80% of furniture businesses in the country focus on this market. Starting from scratch in this sector can still be profitable.
3. Furniture Sales to Religious Establishments:
Another furniture business idea in Nigeria is providing furnitures specifically to churches and mosques. If you have significant capital to invest, specializing in this niche can be highly rewarding. Winning just one contract can lead to a domino effect, with other religious institutions seeking your services.
4. Hospitality Furniture Sales:
Selling and maintaining furniture for hotels and motels in Nigeria is another viable business opportunity. While it may require some effort to secure contracts, once you do, you stand the chance to earn in millions. Providing quality furniture and reliable maintenance services can help you establish a strong presence in the hospitality industry.
Conclusion
In summary, embarking on a furniture business in Nigeria presents a promising opportunity for aspiring entrepreneurs with a genuine love for furniture design and a desire to thrive in a flourishing and lucrative industry.
By meticulously crafting a comprehensive business plan, sourcing top-notch materials, assembling a team of skilled artisans, and implementing impactful marketing tactics, you can establish a thriving furniture business that caters to the demands of Nigerian customers.
Ultimately, the journey of starting a furniture business in Nigeria can be very fulfilling if you possess a genuine passion for furniture design and a steadfast commitment to hard work.