Driven largely by rising residential remodeling activity, the demand for kitchen cabinetry is projected to grow by nearly 6% annually until 2021, where the industry will be valued at well over $17.1 billion, according to the Freedonia Group study.
That said, relying on a single source of income greatly increases your financial risk by effectively putting “all your eggs in one basket.” Accordingly, diversifying your income stream is one of the best things you can do to protect your family and business from the inevitable ups and downs of economic and industry cycles.
With that in mind, today’s post outlines 2 Cabinet Business Ideas to help you add new revenue streams and prosper in 2018.
Option #1: Diversifying your products
For cabinet businesses, diversifying your products boils down to offering a broader selection of cabinet materials.
When it comes to cabinet business ideas, this isn’t exactly cutting-edge. Cabinet makers have known since the dawn of this business that offering a greater range of products means your company will attract a greater range of homeowners. Nevertheless, this point is important enough to warrant a reminder.
If you want a piece of that $17.1-billion cabinet industry pie, you’ll need to diversifying your cabinet offerings. That’s because that Freedonia Group valuation included:
- Engineered wood
- Wood veneer
- Decorative laminates
- Other materials such as solid plastic and alternatives to engineered wood
If your company only deals in wood cabinets, for example, it means you’re only targeting a tiny niche. And regardless of whether you’re dominating that niche or not, nothing but good can come from diversification.
Of course, diversifying your materials isn’t as easy as going down to the hardware store and blindly buying up what’s in stock. This not only ties your reputation to the quality of big-box department store products, but also means burdening you with inventory that may or may not be used.
Moreover, modern homeowners have greater access to information than ever, and in today’s global market, can order rare finds from pretty much anywhere.
If you want to impress them, and keep your reputation in tact by ensuring your material quality is head-and-shoulders above the big box brand standard, you need to make connections with the right vendors and suppliers.
This usually takes time and effort at trade shows, conferences, cold calls, and project collaboration. But you can skip this networking and loyalty-building period and jump straight into insider relationships as a Kitchen Solvers franchisee, where you’ll enjoy access to exclusive materials and vendor discounts. Best of all, our business model requires no inventory, so you don’t have to buy storage and gamble on supply-and-demand; simply order the custom cabinet materials your client has chosen using the deposit they’ve provided.
Find out more about our vendor connections and other cabinet business ideas at http://www.kitchensolversfranchise.com.
Option #2: Diversifying your services
While diversifying your cabinet materials will open new revenue streams with eco-conscious homeowners and those working with different budgets, it’s still only going to get you so far. The best cabinet business ideas for increasing revenue in 2018 are all point towards the same solution: service diversification.
Consider this: While the cabinet sector is valued around $17-billion, the broader home improvement industry saw a whopping $361-billion in spending in 2016, and is projected to continue to grow by roughly 5% annually for the foreseeable future.
Which industry would you rather be involved in?
Fortunately, you don’t have to choose; “both” is a perfectly good answer. Cabinet makers’ skills transfer over quite readily other aspects of home remodeling, and Kitchen Solvers’ training program and support system has an outstanding track record for turning industry newcomers into successful business owners.
Joining up with Kitchen Solvers means expanding your cabinet business service suite to offer:
- Professional design
- Cabinet refacing
- Storage solutions
- Bathroom remodeling, and much more!
Diversifying your revenue streams in this way will ramp up your sales for 2018 and help you insulate yourself against any economic shifts. Find out more about our franchise opportunity, training, and services at https://www.kitchensolversfranchise.com