How to Start a Mattress Business Out of the Home

Mattress Business
How to Start a Mattress Business Out of the Home

Any business owner will tell you that starting a business is not easy. Building a mattress brand takes time, work, and, most importantly, passion. If you want to work in this field, it would be great if you had a good name.

We’ve made a guide that walks you through every step of how to start a mattress business, from making important financial decisions to getting your business up and running and advertising.

Skills for How to Start a Mattress Business

As a mattress company, knowing your most important skills and traits is essential before starting your business.

Let’s take a closer look at each of these skills so you can see what you need to do well in your day-to-day operational processes or how to start a mattress business:

1. Design Skills

A focus on design is essential if you want to start a mattress brand, whether creating the product or making the decisions about it. What does this look like?

  • Creative Thinking- the ability to come up with different ideas or products
  • Visualization- being able to picture or imagine how the finished product will look
  • Articulation- the ability to describe how the concept will appear and how it will carry out
  • Detail-oriented- paying close consideration to all the small details when designing or executing a task
  • Some technical skills- Know how to use the design software to make the product or create prototypes.

When starting a mattress brand, it may also be helpful to have digital marketing skills, experience with branding, and essential business awareness.

2. Write a Business Plan

For your mattress brand to do well, you must start by writing a business plan for how to start a mattress business.

Because doing so helps you plan your activities, organizational structure, and ultimate goals.

For many people who want to start a business, writing a business plan helps them figure out if their idea is good and if they should go ahead and start the business.

You might want to add more to the following parts of your business plan:

  • Executive Summary- Summarize your business’s key offerings, existing market, and potential for expansion.
  • Overviews and Objectives- A synopsis of your company, its ideal clientele, and the resources it needs to function as intended.
  • Products and Services- Information on your company’s products and services.
  • Market Opportunities- Consider your target audience, their purchasing habits, and the need for your brand.
  • Marketing- Information on your marketing approach, such as how you plan to differentiate yourself from the competitors.
  • Competitive Research- Take a look at your competitors’ strengths and weaknesses.
  • Operations- The organization’s hierarchy and the resources necessary for day-to-day operations.
  • Leadership Team- Specifying each manager’s roles and responsibilities based on their skills.
  • Financial Analysis Understand all costs, budgets for running the business, and plans for the future.

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3. Determine Bank Account

There are a lot of banks, and it can be hard to figure out which is best for your business. Here are a few things you might want to think about for how to start a mattress business:

  • Location- Can you readily get to your bank to deposit or withdraw money?
  • Online Banking Services- Make sure your online portal is easy to use and that you can easily find everything you need.
  • Low Fees- Ensure you know the costs of opening and maintaining your bank account. Request a list. Banks use small print to try to conceal this information.
  • Make sure everything you need is accessible and user-friendly in your online banking interface.
  • Line of Credit- What are your choices? You may one day need this.

To find the best bank for your requirements and ideals, consider each institution’s unique selling proposition.

4. Setting Up Your Mattress Brand

You may have to make confident fiscal and legal choices while establishing your company.

Choosing between a limited liability company (LLC), a stock corporation (S Corp), and a corporation (C Corp) is the first step.

When forming a small firm, these three choices appear most often since they offer asset protection, tax advantages, and limited liability.

  • LLC- The LLC’s tax filing details all corporate profits and expenditures.
  • S Corp- Owners pay a wage and receive a cut of the company’s profits.
  • C Corp- Separate tax returns must be filed for C corporations (Form 1120). Income tax is not paid at the company level; the owner covers any required tax.
  • Depending on where your business is located, you may also need to get the proper permits, licenses, and liability insurance.

How Can a Small Business Owner Pay Himself?

Most people start a business because they want to do something they love, but they still have to pay their bills at the end of the day.

But it would help if you found a happy medium; paying yourself too much can be bad for business. As a business owner, you can often pay yourself in two ways:

1. Owner’s Draw

The owner’s draw is a way for many business owners to pay themselves. This means that from the IRS’s point of view, you are technically “self-employed” and don’t get regular paychecks.

It’s important to remember that taxes aren’t deducted from your draw winnings until you file your tax return, so save up accordingly.

Anyone who qualifies as a draw owner is entitled to withdraw as much of their equity as they like.

This kind of payment works for sole proprietorships, LLCs, and partnerships. You can take a salary and a draw as compensation if you run your business as an S Corp.

2. Salary

A salary is a predetermined, regular payment to an individual. Both federal and state taxes will be applied to this.

The truth is that setting your salary can be very hard, so here are some things to think about:

  • Take out an amount that lets you live comfortably and gives your business a chance to do well.
  • Think about how many hours you work each week and what kind of work you do.
  • Base your salary on the industry standard, where you work, and how much money you make (or projected profits)
  • Look at your profit and loss (P&L) statement. Take your payout of that number. This is important so that you can first pay for essential business expenses and then pay yourself with the rest.
  • Choose a schedule for paying employees and stick to it. Most people in the United States get paid twice monthly.

How to Price your Mattress

Setting a price for your mattress is one of the most challenging parts of launching a new mattress brand.

When a company sells its product at an unfairly low price, it can suffer severe financial and public relations losses.

Businesses underprice their items to boost demand and volume, but you don’t want buyers to consider them as “cheap.” The damage to your reputation may also make recruiting the same consumer quality challenging. However, overcharging can be just as harmful to a company.

Consumers will likely research and compare prices to find the best purchasing value. That’s why you must analyze the market and your competitors thoroughly.

Here are some things to think about when setting the price of your product:

1. Understand your Customer

First and foremost, you must determine your ideal consumer and the price point at which they are willing to purchase your product or service. Customer surveys are an excellent tool for this.

Here are a few essential things you should remember:

  • Consumer characteristics such as age, gender, and region.
  • Your customer’s buying habits: what they buy and when they buy it
  • How much your customer cares about the price

For each of these groups, you may learn more about your target market and how to set prices that appeal to them.

2. Understand your Costs

When setting the price of your mattress, it’s essential first to figure out all your costs and then mark it up so you can make a profit.

The total price of your mattress might include the following:

  • The actual cost of producing the goods, including the manufacturer, raw materials, and supplies.
  • Shipping and related expenses
  • Rent
  • Operating expenses for your business
  • You might wish to create a spreadsheet that includes a breakdown of all the expenses related to owning and operating your company. This will assist you in pricing your goods profitably. It will also give you an idea of what you need to sell to at least break even.

3. Create Revenue Goals

To set the right price for your mattress, you should first establish your sales and profit targets for the mattress line.

This is easier to do than you might think for how to start a mattress business:

  • Consider your breakeven price.
  • Set a sales goal based on what it will take to break even.
  • Figure out how many items you want to sell at a specific time.
  • Divide your sales goal by how many things you want to sell.
  • Using this figure, you may calculate the optimal selling price for your products.

4. Evaluate your competition

Lastly, research what your opponents are charging for similar mattresses.

Finding competing companies that sell equivalent goods is the most efficient strategy. Then you’ll be able to check the prices at several stores and see where your mattress stands about the competition.

You need to consider each of these aspects carefully when setting the price of your mattress to arrive at a number that will allow you to start on the right foot.

What is the Price to Launch a Mattress Brand?

Costs are low if you want to start a brand of mattresses. Naturally, this depends on whether you hire a large crew and spend more money at the beginning of the business or launch it with little expenses.

We’ve laid out two typical “pre-opening” cost scenarios for launching a mattress business, along with an estimate of

what you may anticipate paying:

  • The estimated least amount to start is $62.
  • The maximum starting price is estimated to be $58,311.

FAQs- How to Start a Mattress Business

Is it worth running a mattress business?

Mattresses have one of the highest profit margins in the retail industry. On the other hand, Mattresses have a markup of 40–50%, while grocery stores may see a profit margin of 5%. One study found that the production costs of a $3,000 mattress were likely closer to $300. This represents a markup of $2,500.

How frequently do individuals shop for mattresses?

Normal wear and tear mean replacing the mattress every 6-8 years. This is only a broad suggestion and not a foolproof method. Mattress replacement timing depends on several things.

In which month do most mattresses are bought?

The newest models of mattresses often debut in June of each year. Beds are at their peak prices between June and September because that is when most people buy them.

How much does it cost to make a mattress?

Consumer Reports reported that local mattress businesses were marking up mattresses by as much as 900%, with some charging as much as $3,000 for a bed that only cost the manufacturer $300 to produce.

How do I begin to sell a mattress?

You can get the word out about your business selling mattresses by posting on and Kijiji, starting a promotional blog or website, and hanging coupons, business cards, or fliers in stores like home decor shops and cleaning services that serve the same customers.

Why does a mattress cost so much?

Mattresses cost a lot because they are durable and might have a lot of pricey components, including latex, memory foam, or pocket springs. Extra features, like border trims, can also increase the price.

Can the mattress be transformed?

You can get a mattress with a shape, size, thickness, and other features based on how you sleep. People with arthritis or back problems are often told to get a mattress with a sure consistency that is hard to find in a regular store.


The best mattress advisor talks about all the steps of how to start a mattress business. Most households will require the purchase of a mattress at some point, whether it is to accommodate a growing child or to replace an old, lumpy one.

More people are shopping at independent mattress stores instead of more expensive furniture stores. In the retail industry, selling mattresses presents a one-of-a-kind opportunity with high-profit potential and multiple avenues for success.

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