How To Start A Furniture Business In India

If you love making stuff from wood, starting a furniture business could be fantastic. The furniture industry in India is growing and is expected to hit $61 billion by 2023. People are into better homes and stylish interiors, creating a demand for cool furniture. If you’re good at making it, consider opening your furniture-making place.

How do I kick off a furniture business? We’ve covered you with simple steps, cost estimates, and tips. It’ll help you plan things and get your furniture-making gig up and running. So, let’s get started and know how you can start a furniture business in India!

Furniture Business In India

1. Research the market

First, check out how the furniture market is doing in India—it’s growing. But don’t forget to look at your local scene. Research the market where you plan to start your furniture business. Learn about the needs and people in your area. This step is crucial to understand your local customers and make your furniture business a good fit for them.

Now, focus your research on your specific business idea. People’s preferences differ, so figure out what your local customers like. This info will help you kick off and expand your furniture business correctly for your area.

2. Identifying the target market

Identify your target audience by aiming for a bullseye instead of shooting in the dark. A clear plan beats relying on luck. Having a specific target for your furniture business is crucial. It sets the course for a solid business plan. With a defined audience, your marketing efforts get focused, and you can adjust based on feedback. This way, you know where to aim your shot for the best results.

3. Gauge your potential

After researching the market, it’s crucial to find your niche. For your furniture manufacturing business to thrive, define what you’re offering. Will your plant make office furniture or home decor? Are you targeting a specific customer group, or is it for everyone? Decide on your aesthetics.

These choices lay the groundwork for your business plan, giving you a clear vision as you start your furniture business. It helps you estimate your potential accurately and sets the path for success.

4. Machinery Investment

Once you’ve considered raw materials, focus on machinery for your furniture manufacturing plant. Starting a furniture company involves investing in these machines. For a small-scale business, the investment is less, but for a large-scale operation, machinery costs become significant. You’ll need stationary machines, processing equipment, and automatic packing machinery, among others, to kick off your furniture business.

5. License and Permit

Before setting sail with your business, ensure you have the essential licenses and permits. GST papers, factory laws, MSME registration, trade licenses, NOCs, and NDAs are crucial documents for starting your furniture manufacturing plant. It’s also vital to have insurance for your business.

Before starting your furniture business, seek legal advice to ensure all necessary policies and documents are in order. Secure trademarks, patents, and copyrights beforehand. These documents play a key role in avoiding potential obstacles down the road.

6. Hire your workforce

Starting your furniture business takes effort and hard work. Hiring a team is crucial to turn your hard work into smart work, especially for a furniture manufacturing plant. A skilled workforce is essential to operate the machines you’ve invested in. Divide your team into skilled and unskilled labor. Create teams and leaders to train each other in business and manufacturing functions. This collaborative effort ensures the smooth functioning of your furniture business.

7. Raw Materials Sourcing

For your furniture business, sourcing raw materials is crucial. Build good relationships with vendors for quality materials. Depending on your furniture type, choose the right wood. Additionally, your manufacturing business will need metal, steel, fasteners, screws, tools, plastic, and packing materials. Knowing your raw material needs saves storage space and reduces sourcing costs, ensuring a smooth start for your furniture business.

8. Define your business identity.

Defining your business identity is key—it makes you stand out. This includes your business name, values, mission, and vision. Creating a brand for your furniture company is crucial for effective communication with your target customers. A strong brand builds trust and loyalty, securing a lasting relationship with your customers. A relevant and robust identity for your furniture manufacturing business ensures successful leads and a loyal customer base.

9. Hire a marketing professional.

Consider hiring a marketing professional to define your business identity and craft a strong strategy for your furniture business. They handle reaching the right clients, targeting the market effectively, and employing creative ideas to promote your brand. Their expertise directs your marketing and branding efforts, giving your furniture manufacturing business a competitive edge.


Starting a furniture business demands extensive preparation and an awareness of entrepreneurship challenges. Success may take years, requiring dedication and long hours. Despite inevitable ups and downs, the owner’s commitment is crucial. Ensuring a friendly customer experience contributes to overall business success.

Sumit Kumar Yadav has experience analyzing business and finance of big to small companies. Loan, Insurance, Investment data analysis are his key areas.