Business Category: Design, Home Furniture & Furnishings, and Retailing Businesses
City/Region: Kent County
Cash Flow: $116,200
Equipment Value: $10,000
This profitable company is a locally-owned furniture and interior design center located in West Michigan. Established in 2005, the Company has an excellent reputation and rapport with clients, independent designers, vendors, and representatives alike. The Company has strong cash flow and benefits from multiple revenue streams, including furniture sales, design consultation, and furniture rentals.
With over fifteen years in operation, the Company’s mission is to create a unique, refreshing furniture and design shopping experience, providing that perfect mix of quality products and great style at affordable prices.
While the owners have greatly enjoyed running the Company, they have been in the furniture industry for their entire lives, and as they approach retirement age, they would like to pursue other interests.
Opportunities For Growth:
(1) Additional Location: The Company’s location is highly strategic, allowing the Company to draw approximately 20% of their clients from the lakeshore area. However, the current Owners feel that either moving into another space or adding a second location further east would allow growth in other lucrative areas around the state.
(2) Broader Marketing Strategy / Online Presence: The Company has incredibly strong customer loyalty, but has struggled with finding a marketing plan that is more robust at drawing new customers. The current Owners have identified a few areas in particular which could be improved; namely, expansion of the Company’s online presence, as well as a more aggressive marketing of the Company’s furniture rental program.
(3) Increase Work with Independent Designers: The Company’s collaboration with independent designers currently accounts for approximately 20% of their revenue. An excellent opportunity for growth with very little added investment of resources or time would be to increase this independent designer work.
(1) Multiple Revenue Streams: The Company has a unique business model which fosters revenue from furniture sales, in-home design consultation, and furniture rentals.
(2) Exceptional Staff: The Company has a team of exceptional staff, including salespeople and degreed designers. Both the sales and support staff together make up an experienced team with very low turnover. Most of the staff, including the design experts, are cross-trained on all store responsibilities.
(3) Highly Rated: The Company has many glowing reviews from pleased clients.
(4) Longstanding Reputation: The Company also has excellent relationships with its clients, independent designers, suppliers, and representatives. The Company boasts a well-rounded and solid reputation in the West Michigan community.
(5) Resilient Industry: The Furniture industry has survived the COVID economy very well. In fact, as more people are staying at home, the remodeling industry is experiencing significant growth, as many people want to optimize their living space for comfort, convenience, and versatility.
Real Estate Available: Leased
Reason For Sale: The owners are approaching retirement age.
Number of Employees: 8