Starting a Custom Closet Business: What to Know from Startup to Profitability
The custom closet industry shows no signs of slowing down, and there's real opportunity for entrepreneurs who want to be part of it and capitalize on its potential. Find out how you can build a rewarding, profitable closet business and how a franchise can help you succeed in this industry.
Impact of Clutter
Clutter can leave homeowners feeling overwhelmed and frustrated.
- Half of Americans have one room in their home that is “unsalvageable” with clutter.
- Clutter and disorganization can raise stress levels, and studies indicate people with cluttered homes generally feel less satisfied with their lives. Clutter can also make it difficult to concentrate and can be detrimental to memory.
- More than 12% of American households pay to rent additional storage for overflow space.
To manage (or banish) clutter, improve organization and reduce storage costs, homeowners are turning to custom closets and home organization systems to create multifunctional spaces to enhance home utility and expand limited space. Strong demand is projected to drive the custom closet market to $38.7 billion by 2027, making it an industry with strong profit potential.
6 Key Elements of a Profitable Closet Business
To understand the high profit potential of a home organizing franchise like The Tailored Closet, let’s explore the key elements this type of venture needs.
- Customer knowledge: The Tailored Closet equips franchise owners with the tools, technology, and supplier relationships needed to deliver an exceptional customer experience while operating an efficient business. Our non-manufacturing business model helps optimize operational costs and support profitability, while strategic partnerships with industry-leading vendors provide access to premium products customers trust. Plus, our innovative 3D design software allows franchisees to create customized designs and realistic renderings during in-home consultations, helping customers visualize their transformed spaces and setting The Tailored Closet apart from much of the competition.
- Affordable startup costs: The total investment ranges is between $177,130-$270,650, including an initial franchise fee of $74,950. To help entrepreneurs gain a foothold in the home organization industry, The Tailored Closet offers $44,000 of in-house financing to qualified candidates to assist with start-up costs. The Tailored Closet also offers a 15% discount off the franchise fees for qualified veterans to make their transition into business ownership more achievable.
- Multiple revenue streams: From stunning custom closets, to efficient home offices, to well-organized pantries, to wall beds, The Tailored Closet franchise owners design and install custom organization and storage solutions throughout the home. Our franchise owners can also help small businesses maximize and beautify their spaces as well. Having multiple revenue streams helps owners provide scalable growth opportunities and mitigate risk.
- Initial training: Our franchise owners receive a combination of five days of extensive in-person and virtual pre- and post training to ensure they are prepared for opening day. Our regional operations managers and design team provide ongoing support. We host regular webinars, regional meetings, and an annual convention to provide you with resources, continuing education, and networking opportunities.
- Marketing support: As a franchise owner, you'll receive dedicated local marketing support and marketing resources from our Home Office team, giving you access to proven strategies, best-in-class marketing platforms, preferred pricing, and expert guidance designed to help you grow your business. We also provide a comprehensive suite of local marketing programs, including access to carefully vetted Google Premier Partners, so you can generate leads, build brand awareness, and maximize your marketing investment with confidence.
- Innovative technology: We i provide 3D design software and a CRM system to help you efficiently and effectively run your business. The 3D design software helps paint a picture of the final product for your client and enables them to get actively involved in the process from the comfort of their living room or kitchen table. Our integrated CRM system helps you manage every stage of the customer journey—from capturing leads and scheduling appointments to tracking projects, communicating with customers, and measuring business performance. By streamlining daily operations and keeping important customer information in one place, you'll have more time to focus on delivering an exceptional customer experience and growing your business.
Financial Benefits of Franchise Ownership with The Tailored Closet
You don't need an eye for design or organization to become a successful The Tailored Closet franchise owner. In fact, we don’t require you have any prior industry experience for starting a custom closet business. . With the Tailored Closet you invest in a franchise with a true management-focused business model that is designed for entrepreneurial individuals who are motivated to build and grow a successful business rather than perform the day-to-day installations themselves.
With approximately 150 locations across North America, The Tailored Closet is a leading home organization franchise specializing in custom storage solutions that enhance the way people live every day. Our design consultants take the time to understand each client's needs, lifestyle, and goals to create personalized solutions for closets, home offices, wall beds, pantries, entryways, mudrooms, and more. Franchise owners benefit from exclusive product offerings, comprehensive marketing and sales support, and a non-manufacturing business model that outsources production to trusted vendor partners, helping reduce operational complexity and overhead while allowing owners to focus on growing their business.
Learn More About The Tailored Closet
Inquire now to learn more about starting a custom closet and organization franchise with The Tailored Closet today.