Crafting A Custom Cabinets Business Plan That Sets You Up For Success
A business that installs and refaces cabinetry is low-risk and high-reward, but to succeed, you must know how to craft a custom cabinets business plan.
Why Do You Need A Custom Cabinets Business Plan?
Every business needs a plan if it’s going to succeed. Sure, the outline of your business plan is pretty simple: customers hire you to install or reface their cabinets, you do, and they pay you. But that leaves out a lot of details. The details that are important to your business plan depend on you and your specific circumstances. This article looks at some questions you should ask yourself when crafting your custom cabinets business plan.
1. How Much Do You Want To Invest?
Apart from the strong demand for their services, cabinet-installation businesses are popular among entrepreneurs because they’re low-cost businesses. It doesn’t cost a lot of money to start up a business that customizes cabinetry. The low end of these start-up costs is under $100,000. In most contexts, that’s a lot of money, but in terms of a business, it’s a small investment.
You can reach more customers by having a showroom to demonstrate the cabinets you can offer, but you don’t need this, especially if you buy a franchise cabinets business with an established brand name. If you hire a large staff, you can work multiple jobs at once, but you don’t need a large staff. If you install all the cabinets yourself, maybe with the help of one or two employees, your overhead costs will be tiny. If you want to keep costs down, a cabinet business is great, but make sure you include all little things in your budget, such as gas/electricity and maintenance for your vehicle, tools, and insurance.
2. How Long Can You Go Before Turning A Profit?
Buying a franchise can enable you to reach more customers quicker thanks to your brand name. But even with a franchise, it’s reasonable to expect that you won’t turn a huge profit right away. It’s important to save up enough money to weather one or more unprofitable years. The great thing about a custom cabinets business, though, is that each job is typically quite profitable. A Kitchen Solvers franchise partner can reasonably expect a gross profit of about 40% from a $36,000 job, which is a fairly typical price.
3. How Much Will You Spend On Advertising?
Knowing how much to spend on advertising, and how and where to advertise, is tricky. Again, here’s where a franchisor can help. A Kitchen Solvers, we offer our franchise partners guidance on marketing, including a full marketing plan that outlines the marketing budget. In the Franchise Disclosure Document (FDD), you can also review what the recommended marketing spend is.
Contact Kitchen Solvers
To learn more about Kitchen Solvers business plans, please contact us.
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