This document provides a business analysis for a small-scale wood workshop business in Kerala, India. It discusses the business overview including the targeted products (residential and commercial furniture), manufacturing process, procurement of raw materials, sales and seasonality. It also examines the cost economics including expenses (raw materials, labor, rent, etc.), income sources and profit margins. Finally, it performs a SWOT analysis and discusses business continuity strategies.

1. BUSINESS ANALYSIS
Furniture
Abstract
This Business analysisisSpecificto Wood Workshops which arebeing run in small scale.Data
and other assumptions aremade in-linewith the discussion with industry specialists.

2. Table of Contents
Business Overview........................................................................................................................ 2
Small Business in Kerala............................................................................................................ 2
Legality ....................................................................................................................................2
Type of Products....................................................................................................................... 2
Manufacturing Process.............................................................................................................. 2
Procurement................................................................................................................................ 3
Raw Materials........................................................................................................................... 3
Sales............................................................................................................................................ 3
Targeted Audience Spread.........................................................................................................3
Seasonality............................................................................................................................... 4
Cost Economics ............................................................................................................................ 4
Income.....................................................................................................................................4
Expenses..................................................................................................................................4
Profit Margin............................................................................................................................ 5
Business Excellence ...................................................................................................................... 5
SWOT Analysis.......................................................................................................................... 5
Business Continuity & Disaster Recovery.................................................................................... 6

3. Business Overview
Small Business in Kerala
Furniture Business,alsocalledwoodworkorWoodworking Businessinvolvesmakingitemsfrom
wood.Beinga traditional businessindustryinKerala,itisone of the profitable business.
Legality
Whencomparedto the biggerfurniture manufacturesinTier1 Cities,Manufacturers/Businessesin
Tier2 & Tier 3 citiesface a huge challenge inprocuring alicense fromthe local
Municipality/Government.Whenfurtheranalyzed,asthe businesscreatespollutioninthe formof
Air& Noise makesthe processhardertoprocure a license.
The onlyway to overcome thishurdle istoprocure a GST Number & filingtaxesontime and
declaringTDSon time.Governmenthasexceptionsforbusinesswhichare performingoperations
and clearon dues& papers.
Type of Products
Due to the dedicatedinterventionsbythe Government,itisexpectedthatthere wouldbe asurge in
demandforthe belowsub-sectorsof furniture:
 Residential:Householdfurniture
 Commercial:Office,Hotel &Other
Manufacturing Process
The raw materialswouldbe procuredatthe Wood Depowithall the varietiesof wood:
1. Wood wouldbe carvedoutintodifferentpieces
2. Dirt & holeswouldbe removedoutof the woodtoensure the accurate design& smooth
finishing
3. Accordingto the Orderreceived,the woodwouldbe shapedasperthe design
4. All the pieceswouldbe assembledwiththe helpof custom-made glue withispreparedby
the manufacturerhimself
5. If any designorany otherwork isneeded,those wouldbe outsourcedtootherspecialistsin
the market
6. Polishing&Paintingwouldbe done asperthe design
7. Now the product isreadyto be shipped

4. Procurement
Raw Materials
Often,rawmaterialsare stockedforthe orderswhichare gettingfulfilledinthe Monsoon&Winter
seasons fromTiberDepotwhoare givingcompetitiverates.Inventorywill be checkedonce every
fortnighttofulfill orderswithnohassle. Inafew cases,Customerswouldbe givingthe raw material
by themselves.
Teakwouldbe purchasedinclasses.Frequently,1st
& 2nd
Classwouldbe used regularlyand 1st
Class
wouldbe costingaroundRs.300/- per 10 Inchesand2nd
Classwouldbe costingaroundRs.600/- per
10 Inches.Add-onmaterialssuchasNails&Wood terminatorsare alsousedperrequirement.
Wood Type Availability Usage
ForestTeak Rare 10%
CountryTeak Frequently 50%
Deciduous Rare 20%
Mahogany Frequently 10%
Plywood Rare 10%
Sales
Targeted Audience Spread
Majorly the targetedaudience wouldbe the businesswhoare the Furniture ShopsandWholesale
Traders/Exportswithwhomthe businesswill have aLong-termcontract. ~100% of the Target
Audience wouldbe BusinesstoBusiness whereinthere wouldbe few Customerordersalso.
10%
50%
20%
10%
10%
Usage of Wood
Forest Teak Country Teak Deciduous Mahogany Plywood

5. Seasonality
The ideal seasonforthisbusinessis Summer&Autumnsince raw materialsare quite difficulttoget
inMonsoon & Winterseasons.Often,raw materialsare stockedforthe orderswhichare getting
fulfilledinthe Monsoon& Winterseasons. Also,inamonthsuchas February& March because of
financial yearclosing.InApril,the businesswouldseeaspike insalesbecause of the festival business
and mostof the house waringfunctionswouldbe held.
Cost Economics
Income
Income isbasedon an upfront50% as an advance basedon the projectedvalue of the
workshop/manufacturerandthe restwouldbe paidbasedonthe Qualityof the product.Since every
customerisprovidedwithaGST Invoice all the paymentsare paidwhenthe productiscompleted
withutmostCustomerSatisfaction.
Expenses
All the expensesmentionedherein are basedonthe operatingexpenses whichare incurredevery
monthbased on the ordersreceived.Expense onraw material wouldbe fluctuatingbasedif any
demandraisesinthe marketforthe WoodType whichis beingrequired.
Expense Type Spread
Raw Materials 55%
Labour 21%
Rent 13%
Electricity 5%
Transport 5%
Taxes 1%
10%
90%
Furniture Type
Commercial Residential

6. Profit Margin
Business Excellence
SWOT Analysis
65%
35%
Expenses Vs Net Profit
Expenses Net Profit
W
O T
S
 Natural Calamity
 Transportation of Furnitures
 Pollution Complaints
 Unavailability/Competition in
gettingRaw Materials
 0 MarketingCost
 RegularCustomers/Orders
 Exports to other districts/states
 Availabilityof Skillset
 Controlling pollutionif the
business is in a residentialarea
 Licensing from local
Municipality/government
 Gettingissues relatedto
Taxationwhich leads to penalty
 Gettingwood from Authorized
Seller/Trader
 Creating anOnline
Profile/Portfolio
 RetailingFurniture andgetting
high profit margin
 Gettingbrokerage of creating
opportunitiesto others
 Direct Marketingto local retail
shops

7. Business Continuity & Disaster Recovery
 KeepingInsurance policiesforWorkshopandMachinerytobe in place forclaimingincase of
damagesrelateddue toNatural Calamity
 Also,tokeepa StrongOnline Portfolioinall eCommerce Marketplaceswouldmove the
goodsin a fast& rapidprocessinsuch situations
 SituationssuchasCOVID-19 will nothave a huge impactas the salesare monthlyandmost
of the businesseshave theirworkshopswithintheirhome premisesandwill notsee apause
intheirdailybusinessactivities too.