How to start a Woodworking Custom Furniture Business in UK USA (Business Plan)

Custom Furniture Small Business Ideas

Do you have these questions in your mind?

  • What is a custom furniture business?
  • How much can we earn from the furniture business?
  • Is furniture making a business profitable?
  • What type of furniture is in demand?

In this article, you will find answers to all your questions. So please grab a cup of coffee, and let’s get started.

Table of Contents

What is Wood Working Business?

Woodworking business refers to creating, manufacturing, and selling products made of wood or timber, using different woodworking techniques and tools. A woodworking business can be a small-scale operation, such as a one-person shop, or a large-scale operation with multiple employees, manufacturing facilities, and distribution channels.


Woodworking businesses can offer various products, including furniture, cabinetry, decorative wood items, custom carpentry, wooden toys, musical instruments, and more. They can also provide services such as repair and restoration, finishing and refinishing, and custom design and fabrication.


Woodworking businesses can operate both online and offline. An online woodworking business can sell products through e-commerce websites, social media platforms, or online marketplaces. Offline corporations can sell products through physical stores, trade shows, and craft fairs.


Starting a woodworking business requires skills in woodworking techniques, knowledge of woodworking tools and materials, and business management skills such as budgeting, marketing, and customer service. In addition, having a business plan and sufficient resources is essential to start and operate a woodworking business successfully.


What is Custom Furniture Business?

A custom furniture business is a company that specializes in designing and producing unique, one-of-a-kind furniture pieces that are tailored to a client’s specific needs and preferences.

This type of business typically offers personalized services to their customers, allowing them to work closely with the furniture makers to create a custom piece that fits their desired style, size, and functionality.


The custom furniture business can range from small local shops that create handmade furniture pieces to larger companies that have a team of designers, craftsmen, and sales professionals.

These businesses may offer a wide range of products, including dining tables, chairs, cabinets, beds, sofas, and other types of furniture.


Custom furniture businesses may operate online, through a showroom, store, or a combination. They may also collaborate with interior designers, architects, and contractors to create unique pieces for their client’s homes or commercial spaces.


The cost of custom furniture can vary depending on the complexity of the design, the materials used, and the level of customization required.

Custom Furniture Small Business Ideas

Types of Custom Furniture in Demand

Custom furniture can refer to a wide range of types made to order according to the customer’s specific requirements. Here are some common types of custom furniture:


1. Custom Tables:
Custom tables can be designed and built to fit the exact dimensions of a space, as well as the style preferences of the customer. This can include dining tables, coffee tables, side tables, and console tables.

2. Custom Cabinets:
Custom cabinets can be designed to fit the customer’s needs, whether for storage, display, or a combination. This can include kitchen cabinets, bathroom cabinets, and entertainment centers.

3. Custom Seating:
Custom seating can be designed to fit the customer’s needs, including size, shape, and comfort. This can include sofas, chairs, benches, and ottomans.

4. Custom Beds:
Custom beds can be designed to fit a room’s specific dimensions and the customer’s style preferences. This can include platform beds, canopy beds, and bunk beds.

5. Custom Desks:
Custom desks can be designed to fit the customer’s needs, including size, storage, and style preferences. This can include home office desks, reception desks, and workstations.

6. Custom Built-Ins:
Custom built-ins are furniture pieces that are built directly into the structure of a room, such as shelving, bookcases, and window seats. These pieces can be designed to fit the customer’s specific needs and style preferences.

  • Custom-made sofas
  • Custom-made beds
  • Custom-made dining tables
  • Custom-made bookcases
  • Custom-made cabinets
  • Custom-made desks
  • Custom-made coffee tables
  • Custom-made wardrobes
  • Custom-made chairs
  • Custom entertainment centers or sideboards (depending on preference)


Overall, custom furniture can include any furniture made to order according to the specific needs and preferences of the customer. This can include everything from tables and cabinets to seating and built-ins.

Custom furniture is designed and created according to the specifications of a particular customer. This type of furniture is typically made by skilled craftsmen with the expertise and experience to create unique pieces that perfectly match a customer's vision.

Pros and Cons of a Custom Furniture Business

Here are some pros and cons to consider when starting a custom furniture business:


  • Creative Freedom
  • High Demand
  • High-Profit Margin
  • Personal Satisfaction


  • High Startup Costs
  • Time-Intensive
  • Limited Reach
  • Competition


Starting a custom furniture business can be rewarding and profitable but requires significant time, money, and skill.

Wood Working Custom Furniture Business Investment

The investment required to start a custom furniture business can vary widely depending on the size and scope of the company and the location and equipment needed.


Here are some everyday expenses to consider when estimating one-time setup costs:

1. Workshop Space:
Dedicated workshop space is essential for custom furniture; the cost will depend on size and location. For example, renting a commercial space can range from a few hundred dollars to several thousand dollars per month, while purchasing a property can cost hundreds or more.


2. Tools and Equipment:
Power tools and equipment such as saws, sanders, and drills can be a significant investment, ranging from a few hundred dollars to thousands per piece.


3. Materials:
The cost of materials such as wood, fabric, and hardware will depend on the type and quality chosen and the quantity needed for each project.


4. Marketing and Advertising:
To promote the business, marketing, and advertising costs may include creating a website, business cards, brochures, and paid advertising on social media or other platforms.


5. Legal and Licensing Fees:
Setting up the business may require legal and licensing fees such as registering the business, obtaining insurance, and obtaining any necessary permits.


Overall, the one-time setup cost for a custom furniture business can range from several thousand dollars to tens of thousands of dollars or more, depending on the size and complexity of the operation.

Custom Furniture Small Business Ideas

How much will you earn?

The profit margin in a custom furniture business can vary depending on several factors, such as the cost of materials, labor costs, overhead expenses, and the business’s pricing strategy.

Generally, the profit margin for custom furniture businesses is higher than for mass-produced furniture because of the customization and higher quality of the products. The profit margin for custom furniture businesses typically ranges between 20% to 50%, depending on the pricing strategy and efficiency of the company.

However, it is essential to note that starting and running a custom furniture business can be capital-intensive, and it may take some time to build up a client base and establish the company as a reputable brand.

Therefore, conducting proper market research and developing a sound business plan is crucial to ensure the business is profitable and sustainable in the long run.

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Custom Furniture Small Business Ideas

Checklist of Equipment Needed for Custom Furniture Business

Here is a checklist of some essential equipment required to start a custom furniture business:


1. Power Tools: 

Power tools are a must-have for any custom furniture business. Standard power tools include a table saw, drill press, jointer, planer, router, and power sanders.


2. Hand Tools: 

Hand tools, including hammers, screwdrivers, chisels, hand saws, clamps, and measuring instruments such as tape measures and squares, are also essential.


3. Woodworking Machines: 

This includes band saws, wood lathes, dust collectors, and spray booths.


4. Safety Equipment: 

Safety should always be a top priority in any custom furniture business. Safety equipment such as eye protection, ear protection, respirators, and gloves should be worn when appropriate.


5. Materials and Supplies: 

You will need a good supply of wood and other materials such as screws, nails, glue, and finishing supplies like paint, stain, and varnish.


6. Office Equipment: 

This includes a computer, printer, and phone.


7. Transportation: 

You may also need a truck or van to transport materials and finished products. The specific equipment needs for a custom furniture business may vary depending on the work type and company size. 


It is essential to research the equipment needs of your specific business and budget accordingly.

Custom Furniture Small Business Ideas

Trends & Challenges in the Custom Furniture Business

Here are some current trends and challenges in the custom furniture industry:

1. Sustainability
2. Minimalism
3. Multi-functional Furniture
4. Customization

1. Competition
2. Rising Costs
3. Shipping Challenges
4. Limited Reach

Custom Furniture Small Business Ideas

List of Wood Working Services

  • Custom furniture design and fabrication
  • Woodworking repairs and restoration
  • Cabinet making and installation
  • Carpentry services (framing, trim work, etc.)
  • Wood carving and sculpture
  • Woodturning and lathe work
  • CNC routing and milling services
  • Millwork and moulding production
  • Wood finishing and refinishing
  • Deck and outdoor furniture building
  • Custom woodworking for interior design
  • Antique furniture restoration and repair
  • Wooden toy and game production
  • Wooden kitchenware production (cutting boards, utensils, etc.)
  • Wooden instrument production and repair (guitars, violins, etc.)
  • Timber framing and construction
  • Woodworking education and classes
  • Custom wooden signage and displays
  • Woodworking tool and machinery sales and repair
  • Woodworking consultation and design services


List of Custom Furniture Services


1. Custom Furniture Design:
This is the primary service offered by a custom furniture business, where the company works with clients to design and build custom furniture to meet their specific needs.

2. Bespoke Cabinets and Shelving:
In addition to furniture design, many custom furniture businesses offer bespoke cabinet and shelving design and construction.

3. Repurposed Furniture:
Some custom furniture businesses specialize in repurposing old furniture, giving it a new lease on life and a new purpose.

4. Restoration and Repair:
Furniture restoration and repair services are another standard offering, where the business repairs and restores old or damaged furniture.

5. Upholstery:
Some custom furniture businesses also offer upholstery services, where they can recover chairs and sofas or create custom upholstery for new furniture.

6. Consultation Services:
Some custom furniture businesses also offer consultation services to help clients design their furniture or improve their home interior design.

The specific products and services offered by a custom furniture business may vary depending on the business’s size, capabilities, and customer demand.


The business must evaluate its strengths and customer needs to determine which products and services to focus on.

Custom Furniture Small Business Ideas

Licenses in a Custom Furniture Business 

The specific licenses and permits required for a custom furniture business can vary depending on the location and nature of the business. Here are some of the licenses and permits that may be needed in the UK and the US:

1. Business license:

Most local councils require businesses to register for a general business license to operate legally.

2. Environmental permits:
If the business uses hazardous materials or generates waste, it may be required to obtain environmental permits to ensure compliance with local and federal regulations.

3. Waste Carrier License:
If the business is transporting waste materials to a recycling or waste facility, they need to register as a waste carrier.

4. Planning Permission:
If the business operates out of a commercial building, it may be required to obtain planning permission for renovations or construction work.

5. Employer Liability Insurance:
If the business has employees, employers’ liability insurance must be in place.


6. Sales tax permit:
If the business sells products directly to customers, obtaining a sales tax permit to collect and remit sales tax to the state may be required.

7. Building permits:
If the business operates out of a commercial building, it may be required to obtain building permits for renovations or construction work.

8. Occupational license:
Some states require specialized occupational licenses for businesses that provide skilled services, such as custom furniture making.


It is essential to research the specific licensing and permit requirements for a custom furniture business in the local area and obtain all necessary licenses and permits before beginning operations.

This can help ensure the business operates legally and avoid potential fines or legal issues.

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Custom Furniture Small Business Ideas

Health and Safety Measures in the Custom Furniture Business

Health and safety should be a top priority for any business, including a custom furniture business. 


Here are some essential health and safety considerations to keep in mind:


  • Proper use of tools and machinery
  • Protective gear
  • Fire safety
  • Proper storage and disposal
  • Ergonomics


By taking these health and safety measures seriously, a custom furniture business can provide a safe and healthy work environment for its employees and customers.

Custom Furniture Small Business Ideas

List of few Good Wood Working Companies

Here are some top wood working custom furniture franchises that have a strong reputation, brand recognition, and success:


  1. Woodcraft
  2. Rockler Woodworking and Hardware
  3. Wood-Mizer
  4. Grizzly Industrial
  5. Festool USA



  1. Axminster Tools & Machinery
  2. The Carpentry Store
  3. Rutlands
  4. Machine Mart
  5. Workshop Heaven


It’s important to note that this list is not comprehensive, and other may be successful in their respective markets.


Custom furniture businesses offer a unique opportunity for entrepreneurs to turn their passion for woodworking and design into a profitable venture. With the demand for custom furniture on the rise, the industry is poised for growth and innovation.


While starting a custom furniture business requires hard work, dedication, and a significant investment of time and money, it can be a rewarding career that allows you to create beautiful, unique pieces that bring your customers joy.


By following the steps outlined in this article and utilizing the available resources and tools, you can start your own custom furniture business and build a successful career in this exciting industry.

Want to Save Time in your Business Launch?

  • How to Create a Business Plan
  • What is Market Research, USP, Niche & Positioning
  • How to find a suitable name for your business
  • How to create your brand image (Logo + Branding)
  • How to Register Your Business
  • How to Register for Taxes
  • How to get Licenses / Permits
  • How to Open a Business Bank Account
  • How to Get Business Insurance
  • Which Payment Processing Terminal (POS) to buy
  • How to get Funds for your Business
  • How to do Sales & Marketing – Offline & Online
  • Why have a Website / Blog / Social Media
  • How to build & train your Dream Team
  • How to provide Excellent Customer Service
  • Buying an Old Business Vs Franchisee Vs Own Brand from Scratch

Handpicked inspirational Youtube videos for you

How I Built a Booming Custom Furniture Business Online – YT Channel ‘Chagrin Valley Custom Furniture’

How To Make Money Selling Custom Furniture – YT Channel ‘Zach Vaught’

A. Starting a custom furniture business requires a certain level of experience and skills in furniture design, woodworking, and craftsmanship. While a degree in furniture design or woodworking may be beneficial, it’s not always necessary to start a custom furniture business. However, having a solid understanding of furniture design principles, woodworking techniques, and the ability to read and interpret technical drawings is essential. It’s also helpful to have experience working with different types of wood, as well as knowledge of various furniture styles.

A. The amount you should budget for equipment and materials will depend on the size of your business and the types of products you plan to offer. Some of the essential equipment you will need to start a custom furniture business include saws, sanders, drills, routers, and other woodworking tools. You will also need to purchase a variety of materials such as wood, hardware, adhesives, finishes, and other supplies. The cost of equipment and materials can range from a few thousand dollars to tens of thousands of dollars, depending on the scope of your business and the quality of equipment and materials you choose.

A. Having a strong sense of style and design is critical to the success of a custom furniture business. Customers who seek custom furniture usually have specific design ideas and are looking for unique pieces that reflect their personal style. As a custom furniture business owner, you must be able to work closely with clients to understand their needs and create designs that meet their expectations. A good eye for design, an understanding of different furniture styles and trends, and the ability to create custom designs that are both functional and aesthetically pleasing are all important skills for a custom furniture business.

A. Running a successful custom furniture business requires a range of business skills, including financial management, marketing, and customer service. You will need to develop a solid business plan that outlines your goals, target market, and pricing strategy. You will also need to manage your finances carefully, including tracking expenses, setting prices, and managing cash flow. Marketing is also critical to the success of your business, so you will need to develop a strong online presence, network with potential clients, and create a marketing plan that includes advertising, social media, and other promotional strategies.

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