HOW TO START A FURNITURE BUSINESS IN KENYA
The first thing that catches anyone’s attention after visiting any home is the furniture in it. The color, quality and make of the chairs, tables and wall units make the lounge beautiful. The comfort of the chairs can makes one feel relaxed.
The furniture making business is a lucrative business in Kenya that does not require a lot of startup capital. You only need to have the necessary skills and passion.
The quality and beauty of your furniture will attract customers. Therefore, it is important that you capitalize on that.
When Sammy Njau started Tangerine Furniture business he only had his daily fare to a furniture showroom that he worked for.
Having no capital to start a business has been the bane of many youths in Kenya. As a result countless brilliant ideas get lost along the way, and dreams go unrealized.
But this was never going to deter one determined Kenyan. He started from zero and, hardly a year down the line, his business has grown in into hundreds of thousands.
This is the story of Sammy Njau, a real estate graduate from the University of Nairobi and founder of Tangerine Furniture. He defied many obstacles to pursue his one passion: creating beautiful furniture.
Located in Ngara, on the outskirts of Nairobi city centre, Tangerine offers a variety of furniture from sofa sets, dining sets, coffee tables and even curtains. Here, customers make their unique orders and immediately the technicians swing into action. The company has a showroom and its own workshop.
Njau says when he started this modern furniture business he had no capital – just his day’s fare from his house to a furniture showroom that he worked for in at Ngara. “I was just a marketer in another furniture house with no money of my own. All I had was transport to take me from Thika Road to Ngara; but I had an idea, so I had to start with what I had.”
Like most graduates who opt for employment, Sammy too could not resist the temptation. “It was not a real job,” he says, as he supervises final touches to a sofa set. “Just internship, that’s the closest I came to employment and I did not even finish it. It just din`t work for me.”
So he turned himself into a broker. He would advertise his former employer’s furniture then earn commissions from any conversions. He marketed online largely, benefiting immensely from referrals accruing from the excellent services he had rendered to his clients. “You see you are not going to get referrals if yours is a shoddy work,” he asserts.
*Passion for the best*
Soon he started making his own and started the baby steps to creating Tangerine.
Njau loves seeing beautiful spaces that create impressions. So unlike most businesspeople, money is less motivation than producing excellent pieces of work. “To me making state-of-the-art furniture is my passion. I believe in quality as opposed to quantity – producing master pieces that satisfy my client.”
So what can he attribute his success to? “Honesty! Tangerine prides itself with being honest, and with passion we offer the best services,” he says.
Born or made, to him an entrepreneur should poses a certain set of character traits that include: consistency – to keep doing your work and stay put for period of time; flexibility – the ability to make some changes to accommodate new circumstances.
“Those two may sound paradoxical, but entrepreneurship is a war of its kind, you can’t keep applying the same tactics you used to win yesterday. This is because circumstances keep changing. You need to keep up with competition.
He advises up and coming entrepreneurs to make use of new technology, read all the books that you need to read, delegate when necessary, be persistent, adaptable and be flexible.
*Get Carpentry Training*
If you are the one who will be making furniture for your business, then you need to get training. There are many vocational institutions in Kenya where you can train in carpentry.
Remember that customers want quality and unique furniture. You need to be highly skilled and make and incorporate creativity in furniture making. Ensure that you are always updated with current furniture trends.
If you don’t have the skills to make furniture, you can employ a carpenter to be making furniture for your business. Alternatively, you can buy ready-made furniture for sale in your furniture business.
*Get a Reliable Timber Supplier*
If you are involved in the making of furniture, you need to find a reliable timber supplier. You can source timber from a logger or a timber yard. Make sure to use quality timber for your furniture products.
Low quality timber makes poor quality furniture and customers will not buy your products. It would be best if you can use hard wood since its products are high quality and fetch more money.
*Get a Suitable Furniture Business Location*
The other thing is to find a suitable business location for your furniture business. The location should be easily accessible and visible from a far by passersby. You also need to have adequate space to place your furniture for display.
Get a business location in a busy area like a town. The demand for furniture products is usually higher in towns compared to rural areas. It should also be in an area where it is easy to access timber.
*Acquire Business Permits*
It is a legal requirement for any business operating in Kenya to get a business permit. You can get a business permit from the county government offices or the county council offices. Business permit fees vary from one county to the other, but it is between Ksh.5,000 and Ksh.10,000 a year.
*Launch Your Furniture Business*
Once everything is set up, you can launch your furniture business. At first, you will not have many customers until customers trust your skills. Strive to meet customer expectations to build a good business reputation.
Some of the items you can be making include office furniture, school furniture and home furniture. They include sofa sets, tables, chairs, desks, beds, wall units, wardrobes and cabinets. You can target schools, offices and homes.
*Market Your Furniture Business*
You also need to market your business by displaying furniture or through a word mouth, or social media. With time, your business will start having frequent customers and become profitable.
You can visit schools and ask them if they would like someone to help them in making and repairing school desks. Many times, desks and lockers get broken in schools and need repairs. You can grab the opportunity to increase your revenues.
*How Much Does it Cost to Start a Furniture Business in Kenya?*
The cost of starting a furniture business depends on the nature of your business. For example, do you make furniture or do your buy ready-made furniture for resale?
It is cheaper if your business will be involved in the making furniture compared to buying ready-made furniture. It will also give you higher profits margins. The cost of starting a furniture making business in Kenya is around Ksh.100,000.
The following is startup capital breakdown.
*Business permit – Ksh.8,000
*Furniture yard rent – Ksh.10,000
*Timber supplies – Ksh.20,000
*Carpentry tools – Ksh.50,000
*Others – Ksh.10,000
*Carpentry Tools You Need to Start a Furniture Business*
You can start with the most basic tools before you can buy sophisticated tools. Some of the basic tools you would need include:
*Claw hammer
*Screwdrivers
*Hand plane
*Chisels
*Hand saw
*Tape measure
*Ruler
*Pencil
*Level
*Drill
*Is Furniture Business Profitable?*
Furniture business is a profitable business if you have the right skills and creativity in making furniture.
Customers want high quality and unique products. If you can deliver what customers are looking for, you will be getting lots of furniture orders.
Your business location can also affect your business profitability. You can set a 40% profit margin above the cost of making furniture to cater for labour and other overhead costs.
With the carpentry skills and creativity, you can build a big brand in furniture making business.
Stay updated with the current furniture trends and seek to meet customer expectations.
Written By
Justine Nyachieo
Business Man & Mentor
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