Things to Consider Before You Open a Furniture Store
If you are considering opening a furniture store, there are several things that you should consider. Among these are your Business entity, permits and licenses, and refund and insurance policies. Once you have all of these in place, you can focus on your products. After all, you’ll be spending a lot of time in the store.
Business entity for a furniture store
Before you start your own furniture store, you should consider the type of customer you want to attract. If you plan to cater to baby boomers, your store will need to have a different ambiance, pricing, and product offerings than a store aimed at millennials. Also, the way you market to customers can make or break your business. Therefore, it’s important to break down your target market into segments by age, socioeconomic status, and psychographic profile. You can find this information by conducting a demographic analysis on government websites.
If you’re planning to sell furniture, it’s crucial to form a legal business entity. This will protect you from personal liability. If you don’t form an LLC, you run the risk of being sued for damages caused to customers, trademark infringement, or slandering another company. Using a business entity will help you avoid these issues, as well as save you money on legal fees.
Your business plan should include a detailed financial forecast as well as supporting documents such as lease agreements and blueprints of your store. In addition to these, you should also create a marketing plan for your furniture store. Having a solid business plan will also help you secure investors.
Permits and licenses required
When planning to start a furniture store, it’s important to understand the various licenses and permits you’ll need. While the processes may vary depending on your location, you can generally complete the process in no time. There are also a number of services available to help you with this process, including consulting with a business licensing attorney.
You’ll need a business license, reseller’s license, and a tax number in order to operate legally. Additionally, you’ll have to comply with state and local employment tax regulations. If you plan to hire employees, you’ll need an IRS EIN and register with your state’s employment tax department. If you’re planning on opening a furniture store, you might also want to incorporate as a corporation or a limited liability company.
In addition to a business license, you’ll need a state-issued employer identification number (EIN). This is the business equivalent of a social security number and helps the Internal Revenue Service identify your business.
Refund policies for furniture stores vary from one retailer to another. Some stores offer full refunds for furniture returned within 10 days of delivery, while others are more strict. Bob’s Discount Furniture, for instance, offers refunds if furniture is returned within three days of delivery. However, customers must ship back the item using a designated delivery service. On the other hand, the least generous return policy is found at Furniture Row, which only offers exchanges.
Online retailers generally have similar return policies to walk-in stores. However, most online retailers require you to pay for the return shipping. Generally, the process is simple. However, it may be difficult to return large furniture, which requires repackaging and dropping it off at the shipment facility. Fortunately, most stores will provide a return label, making the process a lot easier for customers.
If you are interested in purchasing a piece of furniture and then you find it unsatisfactory, consider purchasing a furniture protection plan. These plans may come with hidden fees and exclusions. Additionally, some of these plans may apply chemicals to your furniture, which may cause health problems. If you decide to purchase furniture, make sure to keep a receipt as it will prove that you paid the item. A receipt shows the date of purchase, the business’s name, and the make and model of the furniture.
Commercial property insurance is essential for a furniture store because your inventory serves as the backbone of your business. Loss or damage to your inventory can be incredibly difficult to replace. However, it is possible to replace your commercial property and inventory through insurance. Additionally, you can also get other types of coverage to ensure that you have adequate coverage for unexpected circumstances.
Furniture store insurance will cover you in the event of customer lawsuits, injury to employees, and damage to business property. It also pays for legal defense costs and attorneys’ fees. The policy will also cover the costs of administrative, investigatory, and defense expenses. Insurance for furniture stores usually provides coverage of between $1 million and $2 million per claim, although some carriers allow you to buy as much as $5 million in coverage.
Insurance for furniture stores may also include business income insurance to cover lost income if your business has to close. Another good option is workers compensation insurance. This coverage is mandatory in most states, and it protects your workers if they get injured on the job.