How to Write an Upholstery Shop Business Plan
Strategic Planning an Important Part of Business Development
Sep 19, 2009
It is a really common misconception that writing a business plan is not important for small businesses. In reality it is just as important – if not more important – for a small business than it is for a large one. Effective small business planning is an important factor in the success – or failure – of any business venture. An effective business plan provides information needed to help the organization’s leaders prepare for the future.
How a Business Plan Helps an Upholstery Shop Succeed
Upholstery is a business that is highly susceptible to economic changes and competition. This makes the need for an industry specific business plan even more vital than it is for other businesses. All businesses face challenges at one time or another so looking ahead and careful planning can save a business during challenging times. Planning ahead and understanding the competition will increase the likelihood of receiving credit from both investors and suppliers.
Basic Parts of an Upholstery Business Plan
The executive summary should be written last but it should be presented first in the business plan. It should be brief but it should give insight about the potential of the business. The summary should cover what might be gone over in a five minute meeting. An executive summary for an upholstery business should include information about the experience the owner or owners bring to the business and why that will help the business be a success.
The products and services section of an industry specific upholstery business plan should offer in depth information about what type of upholstery the shop will be offering. The types of materials used and any unique talents the upholsterers have would be included to show the shop’s potential competitive advantage. Planned pricing should also be shown here. Both an hourly wage for custom work and any pre-set prices should be included.
Market research should include data about the overall size of the market. A shop specializing in automotive work would plug in information about the automotive aftermarket industry. An upholsterer specializing in furniture repair could include data about the antique market and the furniture industry. Trends and potential governmental changes should be addressed. Eco-friendly foam and disposal of old materials are expected to be an issue for upholstery shops in the future.
The SWOT analysis is especially important for an upholstery business plan due to the competitive nature of the industry. SWOT is short for strengths, weaknesses, opportunities, and threats. An effective SWOT analysis involves taking the time to look around at the competition. A business leader needs to know the strengths and weaknesses of their business so it can be improved. Understanding what the competition is doing right – or wrong – creates an opportunity to do better.
Using a Business Plan Template
Having a plan in place that shows the competitive advantage of the individual upholstery business needs to be included in business plans. Tell in the business development plan – how the upholstery will benefit customers, who they are, and who the competition is. An auto upholstery shop, for example, can list car dealers, car collectors, and any car owner as potential customers. Tell why a potential customer would come to this shop instead of the competition.
It is easy to find a free business plan template on the Internet. A simple search will produce a number of options. The important thing to remember - for someone creating an upholstery business plan – is to carefully consider each section. Not all sections of a template apply to every business and a plan that is written for planning purposes needs to be detailed enough to help the leaders make good decisions.
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