Subscribe to keep reading
Get new posts and unlock the full article.
You can unsubscribe anytime.Furniture Refinishing Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- The initial capital expenditure (CAPEX) required to launch the furniture refinishing business is estimated at $86,500, heavily weighted toward equipment and vehicle acquisition.
- The business model projects reaching the break-even point after 14 months of operation, specifically by February 2027.
- A significant working capital buffer, covering a projected monthly fixed burn rate of approximately $14,700, is crucial to sustain operations until revenue stabilizes.
- Major startup costs are driven by the $35,000 delivery van and $12,000 spray booth, though the business is expected to achieve a positive EBITDA of $55,000 by Year 2.
Startup Cost 1 : Workshop Setup & Rent Deposit
Workshop Cash Needs
Securing your physical space requires upfront cash for build-out and lease guarantees. Plan to allocate about $21,250 immediately to cover initial renovations and deposit requirements before you can start refinishing furniture. This isn't just rent; it’s setting up the production floor.
Estimating Build-Out Costs
You need firm quotes for the workshop build-out, which we estimate at $15,000 for necessary renovations. Then, factor in 2 to 3 months of rent at $2,500 per month for the deposit and first payment. This money secures the location needed for your specialized equipment.
- Renovation estimate: $15,000.
- Rent deposit: 2.5 months average.
- Total cash needed: ~$21,250.
Controlling Initial Spend
Don't overspend on aesthetics during the initial build-out. Focus renovations strictly on functionality—ventilation, lighting, and safety compliance. Negotiate a one-month security deposit instead of three if the landlord allows it; that frees up $5,000 immediately for consumables.
- Prioritize essential infrastructure only.
- Seek shorter lease deposit terms.
- Avoid non-essential cosmetic upgrades now.
Actionable Deposit Target
If you secure a 2-month deposit, your cash requirement drops to $20,000 ($15k build + $5k rent). If onboarding takes 14+ days, churn risk rises, so finalize the lease quickly once the location is approved. This capital is locked up early.
Startup Cost 2 : Specialized Equipment & Systems
Core Production Spend
You need $22,000 set aside specifically for essential finishing infrastructure right away. This covers the $10,000 sanding and dust collection system and the $12,000 professional spray booth. This infrastructure directly impacts final quality and compliance, so don't skimp here.
Infrastructure Budgeting
This $22,000 capital expenditure (CAPEX) is for production readiness. It ensures safe operation by managing airborne particulates from sanding and proper paint application in the booth. This cost is fixed infrastructure, separate from initial consumables like paints, which are budgeted at $5,000.
- Sanding system: $10,000
- Spray booth: $12,000
Booth Cost Control
Getting a professional booth is key, but look at used industrial equipment listings first. You might save 20% to 30% on the spray booth if you can find a certified used unit. Avoid cheap, non-compliant dust collectors; fines defintely negate any initial savings. Always check local air quality rules.
Quality Threshold
Do not substitute the professional spray booth for a DIY setup. The finish quality on heirloom pieces demands controlled airflow and temperature, which cheap alternatives can't provide. This expense is non-negotiable for achieving the premium pricing your value proposition requires.
Startup Cost 3 : Delivery Vehicle Acquisition
Van CAPEX Priority
The delivery van is the single largest capital expenditure, needing a firm budget of $35,000 for reliable transport of large furniture items. This vehicle is non-negotiable for fulfilling refinishing jobs involving substantial pieces like dining tables or dressers. You must secure this financing before operations start.
Van Cost Inputs
This $35,000 estimate covers acquiring a van capable of handling large furniture, which is essential for service delivery. What this estimate hides is the immediate cost of commercial insurance and registration upfront, which you must fund separately. Honestly, you need to secure financing or cash for this asset now.
- Cost: $35,000 purchase price.
- Purpose: Reliable transport of large goods.
- Input: Quotes for used, commercial-grade transport.
Optimizing Vehicle Spend
Avoid buying brand new; focus on certified pre-owned vans that meet capacity needs without the immediate depreciation hit. Leasing is usually a bad play for essential, long-life assets like this, as you want ownership for tax depreciation later. Don't overspend on aesthetics.
- Benchmark used van prices carefully.
- Avoid unnecessary premium features.
- Factor in immediate insurance costs.
Operational Link
Remember vehicle costs extend beyond the sticker price; budget for commercial auto insurance and initial maintenance immediately after acquisition. This asset directly impacts your ability to hit projected job completion rates, so don't skimp on reliability or capacity for large items.
Startup Cost 4 : Initial Inventory & Consumables
Initial Stock Budget
Your initial material stock requires a $9,000 allocation to cover premium finishes and necessary operational tools. This covers $5,000 for eco paints and stains and $4,000 for essential hand tools and consumables to start production immediately.
Material Inputs
This $9,000 covers the supplies needed before the first customer job is finished. You need $5,000 specifically for the eco-friendly paints, stains, and finishes to align with your unique value proposition. The remaining $4,000 buys the sandpaper, brushes, safety gear, and sundry items needed for daily work.
- Paints, stains, and finishes: $5,000
- Hand tools and consumables: $4,000
Controlling Spend
Since you are sourcing premium, eco-friendly products, focus on minimizing waste, not cutting quality. Start by buying consumables in bulk once usage patterns stabilize after the first 10 jobs. Avoid overstocking specialized finishes until design consultation confirms client demand for specific colors or sheens.
- Minimize waste during stripping.
- Buy bulk consumables later.
- Confirm finish needs early.
Procurement Timing
Be aware that specialized, eco-grade finishes often have longer lead times than standard supplies. If your supplier quotes 10+ days for a specific stain, you must order it during the workshop setup phase, not when the project is booked, or you risk project delays.
Startup Cost 5 : Pre-Opening Labor Costs
Pre-Revenue Payroll
You've got to budget for one to two months of payroll before the first refinishing project generates cash. This covers the Owner/Artisan and the first Skilled Artisan while you finalize the workshop setup and secure initial materials.
Labor Burn Calculation
This startup cost covers salaries paid before revenue starts. Calculate it by summing the $5,000 Owner/Artisan wage and the $4,000 Skilled Artisan 1 wage, totaling $9,000 monthly payroll burn. You must fund this for 1 or 2 months upfront.
- Owner/Artisan Salary: $5,000
- Skilled Artisan 1 Salary: $4,000
- Total Monthly Pre-Revenue Burn: $9,000
Staggering Artisan Hiring
To keep startup cash tight, consider delaying the Skilled Artisan 1 hire until month two. You could defer that $4,000 artisan salary if setup tasks are owner-led, saving cash. Don't pay artisans until they are actively refinishing, not just training.
- Defer Artisan 1 salary if possible.
- Owner handles setup tasks initially.
- This saves $4,000 in month one burn.
Linking to Working Capital
If you only budget for one month of this $9,000 payroll, you must ensure your Working Capital Buffer covers the remaining $14,708 monthly burn rate for at least three months. Running out of payroll cash before revenue stabilizes is a defintely fatal error.
Startup Cost 6 : Software and Branding
Digital Foundation Budget
You must allocate $5,500 immediately for your digital setup and necessary office IT infrastructure. This ensures your furniture refinishing business presents professionally online and operates smoothly from day one, which is defintely non-negotiable for premium service perception.
Website Build Cost
The $2,500 website budget covers your initial digital storefront, essential for showcasing high-quality refinishing portfolios. This covers basic design, domain setup, and initial hosting, not ongoing customer acquisition campaigns. You need quotes based on 5-7 core pages showing before-and-after transformations.
- Website development: $2,500
- Initial hosting setup
- Design consultation fee
IT Hardware Savings
Don't overspend the $3,000 IT budget on top-tier workstations; you need reliable basics for quoting and scheduling. Focus spend on secure point-of-sale (POS) integration and reliable shop internet access first. A good refurbished desktop can save you $700 versus new.
- Prioritize reliable internet connection
- Use refurbished office PCs
- Budget for secure payment processing
Branding and Perception
A polished website directly supports your premium pricing model in the artisan space. If your digital presence looks cheap or broken, clients will assume the quality of your finish restoration is equally low, regardless of your actual craftsmanship.
Startup Cost 7 : Working Capital Buffer
Cover Monthly Burn
You must fund 3 to 6 months of your operating deficit to survive the initial sales lag. This means setting aside enough cash to cover the $14,708 monthly burn rate until customer projects stabilize your cash flow. That’s your runway.
Estimate Your Runway Need
This reserve pays for operational costs before revenue hits. Fixed operating expenses are $4,250 monthly, and required wages stand at $10,458 monthly. The total burn is $14,708. You need $44,124 for 3 months, or $88,248 for 6 months of coverage. It's defintely critical to secure this.
- Fixed overhead: $4,250/month
- Wages: $10,458/month
- Total burn: $14,708
Shrink the Monthly Deficit
Lowering the $14,708 burn directly reduces your working capital requirement. Try deferring the full Skilled Artisan 1 salary or negotiating rent down from the $2,500 deposit rate. Every dollar cut here buys you extra time.
- Defer non-essential hiring
- Negotiate variable rent terms
- Reduce initial owner draw
Plan for Slow Start
Do not assume positive cash flow starts before month four. If your first major client project takes 60 days to complete and pay, you’ll burn through cash fast. Fund the full 6 months if you anticipate slow client onboarding.
Furniture Refinishing Investment Pitch Deck
- Professional, Consistent Formatting
- 100% Editable
- Investor-Approved Valuation Models
- Ready to Impress Investors
- Instant Download
Related Blogs
- How to Launch a Furniture Refinishing Business: 7 Steps to Profitability
- How to Write a Furniture Refinishing Business Plan in 7 Steps
- 7 Critical KPIs to Track for Furniture Refinishing Success
- How Much Does It Cost To Run A Furniture Refinishing Business?
- How Much Do Furniture Refinishing Owners Typically Make?
- Increase Furniture Refinishing Profitability with 7 Strategies
Frequently Asked Questions
First-year revenue (2026) is projected at $245,500, based on refinishing 150 dressers, 40 dining sets, 250 chairs, 100 coffee tables, and 30 wardrobes;