The shed industry, often overlooked, brims with potential. Whether it's a backyard tool storage or a trendy "she shed", these multipurpose structures have found a unique space in the market. The diversity of shed uses and customers offers a multitude of business opportunities.
In this article, we'll explore the array of shed businesses, each tailored to specific market niches and customer needs, giving you a comprehensive look into this promising sector.
Understanding the Shed Business Landscape
The shed industry is a versatile and dynamic market, often under the broader umbrella of the construction and home improvement sectors. Sheds come in various forms and sizes, catering to a wide array of requirements. From backyard storage spaces, garden sheds, and greenhouse sheds, to playhouses, hobby studios, or "she-sheds," there's a shed for nearly every need.
This versatility extends to the types of customers interested in these products. Homeowners may require a shed for storage or workspaces, while businesses may seek them for more functional needs. For instance, a landscape company may require a shed to store tools and equipment, while a retailer may use them as additional space for merchandise or as a pop-up store.
Additionally, the growth of remote work and home businesses has spurred the demand for home offices and personalized workspaces, with many turning to sheds as a cost-effective and flexible solution. These new trends are continuously shaping and redefining the shed business landscape.
In this dynamic market, there are four main types of shed businesses that an entrepreneur can consider: Manufacturers, Dealers, Rent-to-Own Providers, and Ancillary Service Providers. Each of these models comes with its unique aspects, opportunities, and challenges. Let's delve into each one to understand them better.
Types of Shed Businesses
A. Manufacturing Businesses
At the industry's heart, manufacturing businesses produce a wide range of sheds. They may vary from small, artisanal businesses crafting bespoke sheds, to large corporations churning out standard models.
- Small-scale Custom Manufacturers: Specializing in bespoke, personalized sheds, these businesses cater to customers who desire unique structures. Some might specialize in certain materials or styles.
- Large-scale Manufacturers: With some automated machinery and large production lines, these businesses mass-produce various shed types, catering to different needs and budgets.
B. Dealership Businesses
Dealership businesses form the vital connection between manufacturers and customers, selling a variety of sheds.
- Consignment Dealerships: These businesses specialize in selling a specific manufacturer's various shed models for a commission. These dealers partner with the manufacturer to market and sell in a local market.
- Independant or “Wholsale” Dealerships: These dealers buy a wide range of sheds from various manufacturers, these dealerships maintain strong relationships with their manufactures but they own all the inventory.