Memphis, Tennessee, is a vast city with a diverse population and a thriving economy. It is an excellent location to start an outdoor furniture stores business due to its residents’ distribution and the presence of significant residential and commercial areas. In this article, we will explore the prospects of the outdoor furniture industry in Memphis, the approximate investment needed to open a store, and the expected return on investment. Additionally, we will list suitable locations for outdoor furniture stores, aiding entrepreneurs in their decisionmaking process.
1. The Outdoor Furniture Market in Memphis, TN:
The demand for outdoor furniture in Memphis is evergrowing. As a city with a warm climate and ample green spaces, residents and tourists alike enjoy spending time outdoors. From homeowners with gardens and patios to businesses with outdoor seating areas, the market for outdoor furniture is vast. By offering a variety of styles, materials, and price ranges, an outdoor furniture store can cater to the diverse needs of the Memphis population.
2. Investment and Expected Returns:
The capital investment required to start an outdoor furniture store in Memphis varies depending on the store’s size, inventory, and location. On average, an entrepreneur should expect to invest between $100,000 and $250,000. This includes costs such as lease deposits, initial inventory purchase, store renovations, marketing expenses, and employee salaries. However, the return on investment in the outdoor furniture industry can be significant in Memphis. With proper market research, strategic pricing, and effective marketing, an outdoor furniture store can generate annual profits ranging from 15% to 25% of the initial investment.
3. Suitable Locations for Outdoor Furniture Stores:
- Downtown Memphis: With its vibrant atmosphere and a high concentration of commercial and residential buildings, downtown Memphis is an ideal location for an outdoor furniture store. The proximity to attractions such as Beale Street and the Mississippi River ensures a steady flow of potential customers.
- East Memphis: This affluent area is known for its upscale residential neighborhoods and abundant shopping centers. Opening an outdoor furniture store in East Memphis would attract homeowners with larger outdoor spaces and disposable incomes.
- Midtown: With its mix of residential and commercial areas, Midtown Memphis offers a diverse customer base for an outdoor furniture store. The neighborhood’s proximity to Overton Park and the Memphis Zoo provides an opportunity to target both homeowners and visitors looking to enhance their outdoor experiences.
- Germantown: As one of Memphis’s most affluent suburbs, Germantown is an excellent choice for an outdoor furniture store. Its wellmaintained neighborhoods, expansive parks, and community events present a promising customer base.
While the outdoor furniture industry in Memphis, TN, holds great potential, entrepreneurs must carefully consider several factors before starting their venture. Conducting thorough market research, creating a comprehensive business plan, and selecting an appropriate location are crucial to success. With an estimated investment of $100,000 to $250,000, entrepreneurs can anticipate annual returns ranging from 15% to 25%. By choosing suitable locations such as downtown Memphis, East Memphis, Midtown, or Germantown, entrepreneurs can tap into the growing demand for outdoor furniture among the diverse population of Memphis.