How to Create a Furniture Flipping Business Plan

Starting your furniture flipping business? It’s important to have a roadmap for your business if you want to take it seriously.

Your business plan should be a document that describes your furniture flipping business’s goals, logistics for moving furniture, marketing strategies for sold furniture, strategy for selecting your furniture to purchase, investments, and more. It’s essentially a guide to running your business.

In this post, you will discover how to put together a furniture-flipping business plan.

Why you should have a business plan

A business plan is essentially a roadmap for growing your furniture-flipping business. With a business plan, you can map out how to strategically acquire furniture, refinish furniture, sell furniture, and reinvest the profits to effectively scale your business.

Creating a business plan before you start flipping furniture is a valuable exercise for thinking through all the key elements of your business. As you grow your business, you can continuously update your business plan to reflect new strategies and approaches.

Want to become a furniture flipping pro? Learn from our guide to flipping furniture. 

How to write a furniture flipping business plan

There are a few common formats for business plans.

There is the traditional business plan, which is generally a highly detailed, multi-page plan. Often, this type of business plan is created not only as a roadmap for the business owners but also to formally convey the details of your business to lenders and investors to get funding for your business.

On the other hand, the lean startup business plan format is generally a high-level, quick-and-dirty overview of your business that just contains the key elements of running your business.

Although there isn’t necessarily a wrong way to create a business plan, the lean startup format for a business makes the most sense. If you are a one or two-person business (like most furniture flippers) it doesn’t make sense to spend days or weeks creating a 50-page, highly detailed business plan for the sake of getting funding for your business. For most furniture flippers, it’s good to spend a few hours detailing the big beats of running your business.

Below you can discover the main sections that should be included in your written plan.

Executive summary (optional)

An executive summary is an overview of the rest of your business plan. Think of it as an introduction to your business plan that highlights the main sections of your plan.

Business description

A business description for a furniture flipping business plan should cover the following:

Type of business: There are many business structures including LLCs, Corporations, S Corporations, and more. If you are a one-person show like many furniture flippers, you would assume a sole proprietor business structure. There is no need to officially register yourself as a sole proprietorship.

If you are working with a partner to flip furniture consider forming a partnership.

Background: Traditionally, the business description provides some detail on the background of the founder(s) of the business, their credentials, and motivations for starting their business. If you are the only one who will be referring to the business plan, don’t worry about this section.

Business objectives: Establish a goal for your first year of furniture flipping. The goal should be quantifiable and should pertain to either the total number of pieces of furniture sold or the total revenue you would like to generate. Here’s an example:

“In the first 12 months of flipping furniture, I would like to generate 10,000 dollars in revenue.”

Business name: You don’t necessarily need to give your business a name, especially if it will just be a small side hustle for you. However, if you want to take it seriously, consider establishing a furniture-flipping business name.

Team: Detail who exactly will be involved in your business.

Will you be working completely by yourself? If so, you might be limited in what furniture you can pick up to resell. Having a partner is key for transporting large pieces of furniture like dressers that you otherwise wouldn’t be able to lift and move yourself.

If you have a partner, discuss the distribution of responsibilities. After some discussion, outline exactly what responsibilities you and your partner will take ownership of.

Market analysis

The market analysis section should be a review of the furniture flipping economy in your local area.

Filling out this section is a great way to educate yourself on the local market in which you will be operating.

To do so, it can be helpful to create a SWOT analysis. SWOT stands for strengths, weaknesses, opportunities, and threats.

An example of how this SWOT analysis could look for a furniture flipper goes as follows:

Strengths:

  • I am incredibly handy and enjoy working on woodworking and painting projects
  • I have an artistic touch and can paint furniture tastefully
  • I am a great negotiator, and can often buy used items for less than the original selling price

Weaknesses:

  • I don’t have a partner, which will make acquiring large pieces of furniture challenging
  • The winter months of the year will make it difficult to paint furniture outside.

Opportunities:

  • I live in a major metropolitan area where there are plenty of people giving away furniture that I can acquire
  • I have a connection with a junk removal company that could potentially sell me used furniture for cheap

Threats:

  • Free furniture on Facebook marketplace goes quickly. I need to be very attentive to acquire furniture quickly.
  • Parking in the city to acquire furniture may be challenging

Products and services

Detail the products and services you will be selling.

However, you should be specific. For products, don’t just say “furniture”. List out exactly what types of furniture you will seek out. Some furniture is more profitable to flip than others, so think critically about the furniture you would like to find.

Additionally, you should outline exactly how you will be refinishing furniture.

  • Will you be primarily prepping and painting furniture?
  • Will you be staining furniture?
  • Do you anticipate stripping old paint or finish from furniture?
  • Will you be repairing furniture? If so, what is the extent of the repairs you plan to complete? Will you simply be using wood glue to fill scratches or do you plan to do woodworking to fix broken parts of your furniture?

As for the services part of this section, consider the following:

  • When someone comes to pick up the furniture, will you help to load it into the buyer’s vehicle?
  • Will you allow people to stop by your house or garage to view furniture (regardless of whether they plan to purchase furniture that very day)
  • Will you offer furniture delivery service?

Customer analysis

Customer analysis is the process of describing the typical customer you expect to serve.

It’s important to understand the type of customer that your furniture-flipping business will cater to. By having a deep understanding of your target audience, you can promote your flipped furniture to your target audience in a way that will resonate with them.

For creating a lean furniture-flipping business plan, you can simply create a bulleted list of characteristics that define your typical customer. Include key details like age, income, and interests. An example of this section could look like this:

  • Woman or man
  • 30-55 years old
  • Interested in home decor and interior design
  • University level degree
  • $70,000 average annual salary

Marketing plan

It is important to outline how you will market the furniture you’ll flip and your business.

First, determine the platforms you will use to promote your finished furniture pieces. Facebook marketplace is one of the most effective ways to sell flipped furniture. Facebook has a massive user base, and Facebook marketplace is an extremely popular medium for buying used products such as flipped furniture. Other platforms you can experiment with include Craigslist, Etsy, and apps for selling used products such as 5miles.

Additionally, you can outline other ways you can grow your brand in the future. Consider the following strategies:

  • Building an ecommerce site to showcase your upcycled furniture and facilitate sales
  • Capture leads from your website and promote flipped furniture pieces with a newsletter
  • Utilize social media such as Instagram to showcase your flipped furniture pieces
  • Use business cards to promote your brand. You can even put a business card in the drawers of the furniture you sell.

Operations and logistics plan

Document exactly where you will look to acquire furniture. Some of the best ways to acquire furniture include:

  • Facebook Marketplace
  • Fleamarkets
  • Thrift stores like Goodwill
  • Yard sales

Additionally, it’s important to determine how you will pick up used furniture. If you don’t have a car, you will have to depend on a friend or business partner who does have a car.

If you do have a car, consider the size of the vehicle. If you have a small sedan, you probably won’t be able to transport much more than a nightstand. If you have a truck, you can likely transport furniture of any size at all.

Furthermore, consider how far you would be willing to drive to pick up furniture. If you are using Facebook Marketplace to pick up furniture, adjust your search radius accordingly.

Finance plan

As far as finances go, it’s important to document the following:

Additionally, consider the highest price you would be willing to pay for furniture. The more you pay for your furniture, the smaller your profit will be for that piece. Set a limit for yourself that’s not so low that you will miss out on good opportunities, but not so high that you won’t make much profit on each piece of furniture you flip. A $30 – $60 limit is reasonable.

Not only that, but you should consider the typical selling price for the furniture once you have refinished it. Consider how to price your flipped furniture strategically

It’s also important to use a spreadsheet to track revenue and expenses. Aside from your business plan, you should create a spreadsheet to track the cost of each piece of furniture, the cost of materials, and the selling price. Doing so will allow you to easily determine the profit for each piece of furniture.

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