How To Establish a Lucrative Furniture Business In Kenya In 2024

From TV stands and dining tables to sofas, the furniture market is facing high demand, growing rapidly. Hence, setting up a furniture business in Kenya that meets customers’ needs will earn you massive profits.

To start a furniture business in Kenya, you need around Kshs 100,000. However, if you plan to work from home with readily available materials, you need about Kshs 10,000.

Kenyans have embraced the need for furniture in their interior spaces, outdoors, and offices. As a result, there’s a spike in the demand for furniture products, making it one of the most profitable business ideas right now.

The good thing is that you can start working with readily available materials such as pallets at home before expanding into a furniture yard. 

In this post, I will cover the following:

  • The best profitable furniture business ideas
  • How to open a furniture business in Kenya step-by-step
  • Commonly asked questions 
Furniture business in Kenya

Let’s dive in!

5 Most Lucrative Furniture Business Ideas In Kenya

Before you set up your furniture shop, you should explore profitable ideas to optimize your returns and business growth.

Here are the 5 most profitable ideas right now:

A client visiting a furniture store

1. Secondhand Furniture Store

Everyone needs a chair, table, or bed, regardless of their financial abilities. With most Kenyans forming lower-class and middle-class groups, it’s clear that they can’t afford new expensive furniture pieces.

Setting up a second-hand furniture store meets these groups’ needs, fetching you high sales. Hence, you can earn up to 100% profit margins. 

All you need to do is evaluate the furniture before purchasing it to ensure it meets your customers’ needs. In addition, repair those with damages to attract your target market.

2. Home Furniture Business

The list of home furniture demands is long enough for you to focus on it and make massive returns. Thanks to social media platforms such as Glam My Home, they keep challenging and influencing people to buy more furniture pieces.

And the best part about this is that they will return to purchase even better sets for their upgrades and renovations in the future.

3. Office Furniture Business

The demand for office furniture has gone beyond the corporate world. As more and more people embrace remote working and freelancing, common people purchase office furniture at an increasing rate every day.

Hence, opening an office furniture business will attract massive sales from the corporate and individuals.

4. Interior Design Business

The interior design business is the least explored of all the 5 furniture ideas. Fortunately, there’s a high demand for interior designers who can create beautiful spaces, whether in commercial spaces or homes.

You can sell decor items such as plastic flowers, art, and bookshelves or venture into DIYing for your clients in their spaces.

5. Furniture Repair and Upholstering Business

There’s a new trend in the country, some homeowners no longer purchase new furniture pieces. Rather, they hire professionals to repair or revamp their sofas. 

You can specialize in this area and leverage the high demand to make high returns.

How To Start a Furniture Business In Kenya

Now that you know the most profitable furniture niches, you can prepare to start your furniture business. 

Before we go through the setup process, you must get carpentry training if you plan to make the furniture yourself. However, if you hire staff, you don’t have to be an expert in this field.

A carpenter making a bookshelf

So, how do you start a furniture business in Kenya?

Step 1. Conduct Market Research and Pick a Niche

The first step to a successful business journey is conducting market research. Reason?

Market research is your first informer, it helps you learn essential details about the market. 

Overlooking this step means you are entering the industry blindly. Hence, you might fall into one of these pitfalls:

  • Making and selling products that do not match customers’ needs, accruing losses.
  • Underestimating your initial capital budget.
  • Overstretching your resources, impacting your business negatively.
  • Choosing the wrong business location.

So, ensure you conduct thorough business research to identify your target market, their needs, the required capital, and the best business location for furniture businesses. 

Once, you have completed the research process, choose a niche that aligns with your passion and target market. Remember you must settle for a grey area since you need a fulfilling career and sales simultaneously.

Step 2. Write a Furniture Business Plan

Market research gives you a foundation to build your business plan. It provides basic information to help you strategize for the short-term and long-term in your business plan.

Your business plan should answer the following questions:

  • What are your short-term and long-term business goals?
  • What is your business growth strategy?
  • Which is the best business location for your furniture store?
  • What is your niche?
  • Which are the fast-moving items?
  • Does your budget match the available funds?

Step 3. Find a Reliable Timber Supplier

Except when dealing in second-hand or expatriate furniture, you must collaborate with a good supplier. Your business can only function with raw materials and any shortage of timber will mean limited or zero production, reducing your stock and sales consequently.

As a result, you should identify the best suppliers in your area and network with them. In addition, equip yourself with their offers to help you choose the most affordable and quality timber materials for your business.

Step 4. Apply For Legal Documents

Operating a business without government permits is a serious offense in Kenya that might rob you of money and time. As a result, you should apply for all the required documents before you open your furniture yard.

The primary requirements include business registration on eCitizen, a business permit, and an annual license. Additionally, you should visit your county offices to verify with them whether there are any recent updates.

Step 5. Choose a Suitable Business Spot

When choosing a business location for your furniture business, consider the following factors:

  • Visibility of Your Yard

Your furniture yard or shop should be easily visible even by passersby from afar. This will fetch you prospective clients whether residents or non-residents just passing through. 

  • Accessibility of Your Business

Choosing a business spot that’s difficult to get to due to geography or insecurity issues will scare customers away. Hence, you must get a business spot where prospective clients can walk or drive to and from easily.

  • The Population of Your Area

Setting up a furniture business in rural areas can frustrate you since there’s a low demand for furniture in these regions. However, urban areas have a high population hence, a high demand for furniture products. Thus, you should set up your business in a densely populated area.

  • Security 

You’ve witnessed or heard of businesspeople who lost everything to robbers. The horror stories of waking up to an empty store after investing your hard-earned money in it are frustrating and disheartening. 

As a result, you should choose a secure business location that will allow you to run your business seamlessly.

Step 6. Hire Qualified Staff

The furniture business is unique and requires adept skills. One time you’ll be designing a sofa the next you’ll get a new TV stand order. If you hire inexperienced staff, you’ll end up disappointing your clients, eventually losing them to an alternative furniture business that can meet their needs.

Again, this industry faces endless trends that require adaptability and people who can explore. Thus, you must find professionals who are ready to face the challenge and provide the best services to your client base.

Step 7. Launch Your Business

Now that you have a ready supply of timber, all government permits, a team of professionals, and a good business location launch your business.

Start running your business; make fine furniture products and display them at the front of your yard. 

Tips To Boost Your Furniture Business

A couch wrapped in plastic

Similar to other businesses, your furniture shop needs strategies to push its growth. Here are a few tips you should implement:

Tip 1. Market Your Business

Start by branding your business with a visible banner that shows people what you’re dealing in. Then, design a signboard that directs clients into your furniture yard. Now, remember to use appealing colors that will attract prospective clients.

Once, you have all branding elements in place, develop a marketing plan. Your marketing plan should target both physical and online platforms. 

You can use posters for the physical client base. And open social media accounts to post and share your products to location-specific Facebook groups.

Tip 2. Keep Up With The Trends

The furniture industry keeps encountering new items and designs every day. Not keeping up with these trends will leave you behind and unaware of the most in-demand product. Thus, you must watch out on social media and in your competitors’ shops to know what’s new. 

Always challenge your team to create these new designs to attract more clients. Take advantage of your clients’ Fear of Missing Out(FOMO) and sell new designs to get massive returns.

Tip 3. Sell Quality Furniture Pieces

Quality helps you surpass your competition. Anytime you’re making furniture pieces whether for heavy or light functions, ensure you offer the best quality to your clients. This will create a good impression of your business, making them repeat clients.

They’ll even refer their friends and relatives to purchase from you. Let your products sell themselves through quality.

Frequently Asked Questions

How Much Do You Need To Start a Furniture Business In Kenya?

To open a furniture business you will need the following:

1. Legal business documents – Kshs 8,000

2. Timber supplies – Kshs 10,000

3. Furniture yard rent – Kshs 10,000

4. Carpentry tools-  Kshs 50,000

5. Miscellaneous – Kshs 10,000

Note that these costs vary depending on your location and niche. For instance, a DIY professional doesn’t need a furniture yard, so ensure you consider such factors when budgeting for your business.

Is Furniture Business Profitable?

Yes, the furniture business is a lucrative venture. However, you must ensure you’re providing top-quality products and marketing effectively to meet your client’s needs.

The expected profit margin for the wholesale furniture business is 40%. The retail business has a lower profit range than the wholesale however it’s still lucrative. And if you’re pursuing a second-hand business, you can earn up to 100% profit margin.

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Opening a furniture business in Kenya that meets your client’s needs is a smart move that can mince you massive returns. However, you have to be strategic to enjoy these monetary benefits. 

You must set up your furniture yard in a suitable spot, hire adept carpenters, and provide the best products. This will help you beat your competition, fetching you massive sales.

Are you ready to start your furniture business?

The Cent Warrior team got you covered with expert financial guidance. 

Visit our store today for financial planning, debt payment, and goal-setting resources!

Written by Alex

Written by Alex

I have passion in helping people Make, Manage, Multiply & Protect Wealth.Download my Free Guide to Financial Freedom >>[ GET IT HERE]<<