As we head into the fourth quarter of 2024, how are you feeling about your business? Now is the time to take a solid assessment of where you are in order to plan for next year. There is no better way to gauge if what you are experiencing is unique or if it is in line with the expectations of other wood flooring professionals than by reading the National Wood Flooring Association (NWFA) and Hardwood Floors magazine’s 2025 Industry Outlook.
It seems many NWFA members are thinking positively about 2025. More than 60 percent of respondents to the survey expect sales to increase next year. Other good news is more than 82 percent of NWFA members report they have been able to position real wood as a premium flooring option that demands a higher price. Read the full article about what the wood flooring industry is forecasting here.
If what others are predicting for next year doesn’t align perfectly with how you think things are going to go, you are not alone. Some survey respondents noted that they currently are seeing a slight softening in the market, though I think everything feels like a slowdown after the major boom we all experienced in the last few years. As I write this, the National Association of Home Builders’ Remodeling Market Index states that activity remains in positive territory. And the most recent Leading Indicator of Remodeling Activity shows that homeowner expenditures for improvements and repairs are expected to trend up through the first half of 2025.
Now, I am not an economist, but adjusting your personal outlook on things can be helpful, especially if you have concerns about how next year may go. This goes beyond thinking positively. Personally, I believe in having a solid business plan and revisiting it to make adjustments regularly. A business plan is not just a stack of paper; it is a guide for your business strategy to help reach your goals.
In the 2025 Industry Outlook, distributors, manufacturers, and retailers all included “improvements to operations” in their top three opportunities. Making that happen calls for a plan. If you have never written a business plan, don’t let it overwhelm you. There is more than one way to do it, and the plan does not have to be 100 pages long. The most important part is to get your blueprint down in writing.
As I’ve mentioned in my column before, there will be a session focused on this type of planning during the NWFA’s Real Answers Small Business Workshop on October 11, 2024, in St. Louis. Anyone who is not able to join us for that should go listen to the series of NWFA Real Answers podcasts that Michael Martin and Chris Zizza have recorded leading up to the event, which include advice from experts on not only creating a business plan, but how to grow your business and increase profits, too.
The Small Business Administration (SBA) is hosting training sessions on a variety of business topics during the workshop, and they have plenty of resources you can use outside of that. For example, the SBA’s website has an online learning center with a business planning tool explaining each section of a business plan and templates to get you started. Local assistance is even available through business mentors or counselors at a Small Business Development Center near you.
Seize the opportunity to pinpoint how you can ensure your business starts off strong in January.
Keep an optimistic outlook and together our industry can work toward exceeding expectations for 2025.
