Tough Challenges On Teak Furniture Business
The classic, strong teak furniture has long been parts of residences across the nation. The furniture is said to be produced from a business which worth is hundreds millions. That appealing value does not come without business risk or general challenges.
A well-managed teak furniture business promises a long term benefit. However, there are not many people interested in working this business. First challenge comes from the limited information on the essentials of the business, such as where to sell the harvested teak. For those who have started running the business, challenges may come from internal factor like workers or external factor like government policy over woods raw material.
In certain areas, businessmen found out the decreasing interest of the locals to work on furniture industry. It is hard to find a generation who is willing to continue the business. This condition of lack of human resources is becoming a challenge over the continuity of furniture industry. Moreover, from the limited sources, the business has to sort out the qualified ones to run the industry.
Another essential supporting facilities that determines the continuity of the industry is the electric source. Insufficient electric provision is obviously hampering the production process. Therefore, the local government is expected to support this business by providing sufficient supporting facilities.
Meanwhile, government policy over the woods raw material will bring impact on the sufficiency for the production. Besides that, the policy over woods trade also determines good climate of this business. Teak furniture industry is well known for its economic value but still, the sector is now still seeking for serious support from both local and central government.
Internal factors and government policies are not the only challenges in running this business. Society’s growing awareness about environment may also be a distinctive challenge for teak furniture industry. For a long term continuity, make sure you are running all legal activities for the business.
Get raw material which are guaranteed for its legal logging. Deforestation has caused a serious environmental damage. Therefore, many nonprofit organizations and other institutions are fighting the practice of illegal logging. Make your business free from environmental issues by getting raw material from reliable party. There are certain local cooperative institutions that works to accommodate illegal logging eradication by giving job opportunities for the former illegal logger.
By now, most of the members own their own teak land. That is one of the government commitments to both eradicate illegal logging and support legal trade that provides supply of raw materials for the industries. It is important for you to be well informed of the provision process of raw materials to keep on the legal track form the beginning.
Another challenge is high competition. To survive from competitors, it is advised to join in a business community. It is a way to share knowledge and experience in order to keep being creative. Although not many people dare taking risk in running teak furniture business, competition is likely tighter than the previous days.
