Cabinet furniture business. How to open a furniture business from scratch: step by step instructions and development plan
Furniture production: analysis of 9 concepts + detailed business plan furniture production: 4 steps to building your own business.
Furniture manufacture good business idea.
Expensive, difficult and a lot of competition? Yes, to get into furniture production, you need to have a clear plan of action that will lead you to success.
“Why this particular idea? I can get into making British hats: less competition, you can easily become a leader.
Yes, one cannot but agree with this statement. The furniture business is a tough, competitive environment.
But here's what you get in return for the money spent and effort in the organization own production for furniture:
You can earn much more on the production of furniture than on fur hats.
It is not only about the manufacture of goods: selling, assembling, dealership activities all bring real income.
Regular customers.
Wholesale purchases and long-term cooperation are the basis of the work of furniture factories.
Sustainable profitability of production.
Quality furniture is always on sale. Every year the demand for domestically produced goods of the middle price category is growing.
Opportunity to expand your business.
The percentage of Russian products on the market has grown to 55-70%. Demand creates supply.
The formation of regional production units will allow competing in the battle for a monopoly in the furniture market.
How to open your own furniture manufacturing business without huge investments? Here is the main question of the article.
Is it real? Yes, no doubt, without large investments it is quite possible.
When you read this article to the end, you will have no doubts about the veracity of this statement.
First step: decide on the concept of furniture production
Why do you think the demand for furniture has remained stable over the years?
Diversity is the key to the success of this industry. The versatility of the market allows each manufacturer to find their "island" of responsibility.
Let's list the areas of life where various modifications of the same furniture can be used:
- educational institutions;
- shops (hypermarkets, trading floors);
- official representations;
- business centers;
- residential buildings;
- apartments;
- , cafes, public canteens;
- entertainment centers.
Each of these establishments has a certain style of interior, which means that the furniture must have a unique design. Variety is the basis for special product offerings.
The market is divided into a dozen sections, each of which differs from the rest in production materials, furniture design, and pricing policy.
Deciding on the concept of your product is the first step to the success of production.
Let's evaluate together the main sections of furniture production in Russia.
1) Manufacture of wooden furniture.
The basic version for production is the most accurate description of this direction. Wood is considered the so-called warm material.
Wooden furniture is used in residential premises, educational institutions, hotels, any service centers where the emphasis is on the client.
What are the advantages of manufacturing wooden furniture?
- durability;
- reliability;
- ease of processing;
- sufficient amount of raw materials for production + moderate cost;
- variety of furniture designs.
Also, one should not forget about other important features of wood: it perfectly retains heat + has a low density (the weight of the material is relatively small).
Is it worth it to manufacture wooden structures or is it better to find analog materials?
Nothing beats wood for a beginner carpenter.
2) Manufacture of metal furniture.
Production of metal furniture: what is it intended for?
- Warehouses requiring practical furniture that can withstand heavy loads.
- Chemical industry, metallurgy and other industries involving the use of specific materials.
For the storage of drugs, as well as maintaining safety, metal structures are better suited than others.
Food industry.
Working with some products (meat, fish, quick-frozen products) requires the use of stable and easy-care structures.
banking industry.
The main purpose of using metal furniture is maximum safety.
Working with metal is very different from trimming and shaping wood structures. Without special skills and abilities, you should not take on welding and metalworking machines.
3) Manufacture of solid wood furniture.
Readers may have a question: “What is the production of solid wood furniture?”
Solid wood is solid materials, i.e. boards, wooden shields that did not lend themselves to any processing. The principle of mining an array is sawing solid wood.
Solid products have unique look, and working with them requires special knowledge and many years of experience working with wood.
The cost of raw materials for such furniture is high, so you can use this expensive and fragile material only if you are completely confident in your skills.
Is this the best idea for a start-up business? Definitely not! Only the most experienced entrepreneurs take the risk of taking on the production of luxury solid wood furniture.
Too much big chance burn out, especially considering the fact that serious customers turn only to experienced market players who have managed to strengthen their reputation with deed and time.
4) Manufacture of upholstered furniture.
Upholstered furniture is an indispensable attribute of a cozy home interior of an apartment, a private house.
The trend of the 21st century is office equipment with all the amenities for employees, so the scope of this concept is only growing.
The design of upholstered furniture sometimes impresses with its functionality and thoughtfulness of details.
But, it is necessary to understand that the client's demand is always focused on simple and understandable forms, comfort and low price.
What problems will you face if you choose the production of upholstered furniture?
The need for hand upholstery.
Automated upholstery equipment costs a lot of money, so it will be cheaper to use the services of a professional upholsterer.
The manufacture of the frame + upholstery of the cover takes up to several days.
The impossibility of full automation can adversely affect overall productivity.
Cost of materials.
The price of upholstery materials for furniture may exceed the cost of a frame assembled from fiberboard and chipboard.
Upholstered furniture is not a panacea for a novice entrepreneur. The cost and labor intensity of production require serious capital investments.
5) Manufacture of cabinet furniture.
Simple cabinet furniture made of chipboard is used in all spheres of human life. A bench for a classroom, a kitchen corner, a simple book table - all these are case products.
The technological process of its production can be either 90% automated or manual, depending on the complexity of the design.
Why the production of cabinet furniture great idea for a small business?
Simplicity of design.
You do not need to use expensive designer services. Simplicity of design is the key to success in this sector of furniture production.
Easy assembly.
The process can be automated, but in-home furniture collection services can also be provided.
This will serve as another marketing advantage for your business.
High profitability.
There will always be clients.
With a little effort, you can establish contact with business centers, or educational institutions.
It is necessary to choose the direction for permanent cooperation, this will ensure the stability of orders + the uniformity of work.
6) Manufacture of office furniture.
The production of office furniture is a narrow specialization of the "cabinet" direction. Often, the production of cabinet furniture for the office differs from the production of household furniture.
The most obvious sign is the rigor of design + discreet shades.
The best format for selling your services is to place orders for complete office furnishing.
What are the features of design in the production of office furniture?
- The designer must develop a general concept of the room, i.e. each piece of furniture in the office should match the overall atmosphere.
- Clear product lines: nevertheless, the rigor of the workflow must be displayed in every detail.
- Materials: using the same type of materials for production allows you to invest minimum amounts for manufacturing.
Manufacture of cabinet furniture for office? Yes, but only if you initially take the right position in the market.
Make furniture in a moderate price category, focusing on small offices. Then success among buyers is guaranteed.
7) Manufacture of furniture to order.
Custom furniture manufacturing is a separate business sector. Also perfect for your own business.
The main goal of such an entrepreneurship is to get one order, fulfill it with high quality, and only then take on the second one.
If you individual entrepreneur, which has a garage with a minimum set of equipment, this is your gold mine. Of course, you need to have experience working with wood and be a high-level specialist to organize such a production.
Customers order the services of an individual master carpenter only if there is a need to produce exclusive furniture.
The professionalism of the entrepreneur and his team is of paramount importance in business development.
8) Manufacture of children's furniture.
The production of furniture for children should be accompanied by constant control. It is important to remember who you are creating the product for.
The basic quality standards that the production of children's furniture has:
Environmental friendliness of materials.
Particular attention should be paid to the use of polymers.
Any open contact of a child's skin with industrial chemicals can lead to irritation and other unpleasant consequences.
Design practicality.
Furniture should be stable and practical, this will ensure the safety of the child.
Interesting design.
Young children perceive the world differently. For them, not only practicality is important, but also the visual component.
If you are just starting your entrepreneurial journey, leave the production of children's furniture to other market players.
Any slip in the production of an inexperienced businessman can put an end to all expectations.
9) Manufacture of kitchen furniture.
Kitchen furniture, for the most part, is cabinet furniture, assembled from finished sections of fiberboard and chipboard.
An important indicator of quality is practicality. Work in the kitchen is associated with the constant use of each element of the interior.
Kitchen furniture should be simple and understandable even for a child: no extra shelves and decorative elements.
What are the advantages of manufacturing kitchen furniture for a budding entrepreneur?
- The simple design simplifies the work of production, allows for greater automation of the process.
It is not necessary to have a furniture workshop or factory.
It is enough to be a good designer to correctly describe the wishes of the customer.
Those. you have to assemble a design layout, and then simply order the necessary sections and assemble them together already in the client's house.
Cheap materials.
If you disassemble 90% of modern structures, inside you will see a mixture of fiberboard, chipboard, glue and varnish.
All financial transactions related to the acquisition of IP income must be carried out using a current account.
Decide on the accounting format.
Now everything is ready for the official start of the project. The only thing left to do is to think over the format of your production.
STEP 2: Determine the base for the supply of materials. Equipment for the production of furniture.
Think about the question: where to get the materials needed for production?
The best option is to approve an agreement with a woodworking shop on bulk purchases of chipboard, fiberboard and other consumables.
The advantage of such cooperation is the ability to order cutting material according to the dimensions you specify. This eliminates the need for expensive woodworking machines.
List of materials for the production of cabinet furniture
Material name | Unit | Price, rub.) |
|---|---|---|
| Chipboard 12 mm | sq. m. | 95 |
| Chipboard 16 mm | sq. m. | 90 |
| Fiberboard 3.2 mm | sq. m. | 25 |
| Edge material | p.m. | 2 |
| Packing (cardboard) | sq. m. | 2 |
| accessories | set | 160 |
| Cutting tool | set | 7 800 |
| fasteners | set | 60 |
Getting materials is not a problem. It is much more difficult to make a high-quality cut to the requirements of the design.
Do not want to pay for the services of a woodworking shop? Rent equipment for the production of furniture for a certain time.
To do this, you need to contact the administration of the nearest furniture factory and agree on the use of machines after hours. The management of furniture production is interested in the constant operation of machines, because every minute of downtime costs them a lot of money.
Main machines for furniture production
| Machine | Purpose |
|---|---|
panel saw  | It is used for sawing boards fiberboard, chipboard. It is fundamental in the work of a carpenter with cabinet furniture. The cost starts from 100,000 rubles. Depending on the manufacturer and type of material supply, it can reach 300,000 rubles. |
edge banding machine  | Allows you to close the edges of fiberboard and chipboard boards by means of high-temperature action on the roll facing material. The cost is from 100,000 to 200,000 rubles. |
| Drilling and filler machine | Used for drilling through and blind holes in chipboard and fiberboard boards. The cost is 100,000-150,000 rubles. |
Renting machines will allow you to create your own desired shape cut.
But if your level of professionalism does not allow for perfectly accurate work, trust the specialists of the woodworking shop.
STEP 3: "Where do I store the finished furniture and how do I deliver it to the customer?"
There are no problems with storing materials, if you work with a woodworking industry - use the area of \u200b\u200btheir warehouse.
The cost of rent will be minimal. It is enough for you to have an area of 10-15 square meters. m., the price is 5,000-8,000 rubles. per month.
Delivery of components to the customer will also not be a problem. If you do not have your own car, use the services of a transport company.
Cabinet furniture has a distinctive quality: it is divided into convenient sections, which simplifies transportation.
STEP 4: Furniture installation and payment.
When you have delivered the product sections to the customer at the site, there is one step left - assemble the structure and get your money.
To do this, you need to have the simplest tools with you: a screwdriver, a puncher and the necessary fasteners.
The greater the level of professionalism you show in the assembly process, the best review leave the client about the work done.
“How much will I earn on each completed project?” Here is the most important question that worries the entrepreneur.
There is no single answer. Consider a specific example and evaluate the prospect of earning yourself:
- The cost of material for assembling a kitchen corner is 10,000 rubles.
- The cost of a finished corner in a hypermarket is from 40,000 rubles.
- Unique design solution at the request of the client + 2,000
- The final price for the execution of the order by you is 37,000 rubles.
Conclusion: having spent 10,000-15,000 rubles on materials + sawing work, you receive a reward of 37,000 rubles.
Such a price is lower than the average market, which will allow you to win the competition + you personally receive from 20,000 rubles.
Profitable enough? The answer is obviously yes.
Furniture manufacture great idea for an entrepreneur. If you don't have initial capital, but you know how to work with your hands and head, welcome to business.
Determine your sector of the furniture business and carefully consider the basic principles of work.
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* Calculations use average data for Russia
1 132 000₽
Minimum starting capital
40%
Profitability
8 months
Payback
519 560 ₽
Net profit
The goal of the project is to create a furniture production for the sale of wooden furniture products in a city with a population of 500-800 thousand people.
To implement the project, industrial premises are rented in the industrial area of the city. The total area of the premises is 350 m2, where production workshops and a sales office are located.
The target audience is middle-income families who renew their furniture every 3 years and prefer unique, high-quality furniture made from natural materials. The price segment is medium.
Key business benefits:
The initial investment is 1,132,000 rubles. Investment costs are aimed at repairing the premises, purchasing equipment, equipping the office, the initial purchase of raw materials and the formation working capital. For the implementation of the project will be used own funds.
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Financial calculations cover a three-year period of project operation. It is planned that after this period the institution will need to expand its production and product range.
The net monthly profit of the project upon reaching the planned sales volumes will be 519,560 rubles. Return on sales in the first year of operation will be 25%. Upon reaching these indicators, the initial investment will pay off in the eighth month of operation. Integral indicators project performance are presented in table 1.
Table 1. Key performance indicators of the project
Profitability of furniture production
The active growth of housing construction and the number of purchase and sale transactions in the residential real estate market led to an increase in demand for furniture. The purchase of a new home is always associated with the need to purchase furniture. It is possible to notice these trends by comparing the dynamics of housing commissioning and the volume of the furniture market - the peak falls on 2014, after which a decrease in both indicators followed, which is associated with the crisis. By monitoring the performance of the construction market, it is possible to predict the situation in the furniture industry.
The active stage of development of the furniture market falls on 2011-2014 - it is during this period that the volume of the furniture market increases. The sharp drop in volumes in 2015 was due to two trends at once: first, a decrease in effective demand; and secondly, a sharp fluctuation in the exchange rate, which contributed to the displacement of foreign suppliers from the market.
As of 2014, the share of furniture from abroad was about 65% of the total sales. According to the results of 2015 alone, furniture imports decreased by 45.8%. According to marketers of the largest furniture retailers, IKEA and Hoff, by the beginning of 2018 the share of the domestic manufacturer in the furniture market will reach 70%. This forecast opens the prospect for business development in this segment.
At the end of 2016, the real market volume continues to decline, but in nominal terms it remains at the same level, which is due to an increase in furniture prices. According to statistics, furniture prices increased by 19.14% - the highest growth rate in the last 7 years. Thus, there is a decrease in the qualitative growth of the furniture market.
The crisis also affected the structure of the furniture market. The most significant changes affected the segment of office furniture and bedroom furniture. The first trend is explained by the cost optimization of companies in difficult times. The second trend is justified by the fact that bedroom furniture is the least needed in a home setting. The smallest effect of the crisis is observed in the segment of kitchen and living room furniture, as well as upholstered furniture. Consequently, the most promising segment of the furniture market is the economy class, which feels more confident even in times of crisis.
The furniture market is one of the least consolidated segments retail. The top 10 furniture retailers account for 1/3 of the entire market, and the leaders' revenue growth rates in 2015 exceeded the growth of the market as a whole. The permanent leader in the Russian furniture market is IKEA, which occupies 22% of the entire market. The annual revenue growth rate was 14.7%. Experts predict a further increase in the share of large retailers, which will reach 40%.
At the same time, the Russian furniture market is characterized by high level competition. As of 2017, the Furniture of Russia catalog includes more than 14,000 companies, 5,000 of which are direct manufacturers.
The highest density of furniture production is observed in the Central and Volga Federal Districts - about ¼ of the total number of manufacturers is concentrated there. In other regions, the volume retail significantly exceeds the volume of its own production. At the same time, it is more profitable for furniture manufacturers to sell their products within the region, which reduces transaction costs.
In cities with a population of more than 800 thousand people, various large retailers are represented, which is very difficult to compete with. In cities with a population of less than 500 thousand people, there are no network players and delivery in many online stores, which narrows the choice of the buyer and reduces the level of competition.
Another parameter of the furniture market is the trade format. According to surveys conducted at the end of 2016, every fifth resident ordered furniture from an online store. In the first half of 2016, online sales increased by almost 47% and reached RUB 974 million, which is 12.5% of total market sales. Almost half of the furniture chains have their own websites, but not all of them have an online sale function. Every year, the popularity of online furniture stores is growing, as it allows sellers to reduce the cost of renting large trading floors and reduce the price, and for buyers, online trading is a more convenient purchasing option.
Ready-made ideas for your business
Combining the trends of the Russian furniture market, you can form the image of a successful furniture company: an economy-class furniture manufacturer operating in a city with a population of 500-800 thousand people and selling products through an online store. These parameters will ensure constant demand, practically independent of the economic situation, reduce competition, reduce costs, which will reduce product prices.
Experts predict that the share of small and medium-sized enterprises in the furniture business will continue to grow and reach 75-80% in a few years. The key task of such manufacturers is to occupy their niche in the market. For example, wicker furniture manufacturers have almost no competitors in the market, and custom-made furniture is gaining popularity every year.
Recently, the demand for the products of furniture workshops has been growing - the exclusivity of the offer and the variability of production are important parameters when choosing furniture for the consumer. This trend is supported not only by the taste preferences of consumers, but also by the development of the design services market, which almost doubled in 2014. With all the variety of choices presented on the furniture market, the consumer cannot always find suitable furniture that would match the design project.
The most rational way out of the situation is custom-made furniture, which is carried out by small furniture workshops. This segment of the market is represented mainly in the middle and expensive segment, while the economy class is practically free.
The easiest way to organize furniture production is to open a furniture workshop.
The advantages of this format of production:
- does not require large investment costs;
- to accommodate production capacity do not need a large room;
- savings on equipment;
- small price finished products;
- production flexibility.
- innovation and imagination are the basis of business success;
- furniture self made requires a lot of time;
- independent search for clients.
Despite the obvious problems in the industry and fluctuations in demand for furniture products, this segment remains attractive for investors. The advantages of the furniture business include:
- relatively small amount of capital investments;
- a promising direction, interest in which will never disappear;
- furniture refers to a general consumer product, which provides a wide target audience;
- business profitability can reach 300%.
Thus, the prospects for the furniture industry, forecasts of growth in demand for this species products and the advantages of furniture production allow us to talk about the investment attractiveness of such a business.
Determining the range of furniture production
The furniture company is engaged in the production and sale of wooden furniture - dining groups, as well as upholstered furniture - sofas and armchairs. The newly created furniture company positions itself as a "furniture workshop", specializing in manual assembly of products and the production of non-standard furniture for individual orders. The products of this company are favorably distinguished in the market by the following indicators: low prices, work to order, a wide selection of equipment and upholstery, colors and materials of products, the possibility of online purchases.
The products intended for production are:
Dining table, made of solid pine, painted with aging imitation, dimensions: 110*70cm, tabletop thickness 4 cm;
Chair, made of solid pine, painted with aging imitation, dimensions: chair height 105 cm, chair back height 60 cm, chair back width 50 cm, seat width 52 cm, seat depth - 45 cm;
Three-seater sofa, wooden armrests, folding mechanism - book, jacquard upholstery, dimensions: length - 240 cm, depth - 96 cm, height of the seat of the sofa - 40 cm, 2 decorative pillows, filler - spring block synthetic winterizer polyurethane foam, niche for linen. Additional design (carriage tie, upholstery and color options, various models– 3 local, 2 local, corner, with folding mechanism and without)
Armchair, frame made of laminated chipboard, plywood, coniferous timber; the seat is made of polyurethane foam and a block of flat springs. Dimensions: length - 750 mm, depth - 870 mm, height - 890 mm. Additional design (carriage tie, upholstery and color options).
Table 2 shows competitors' prices for similar products on the market and the planned selling price.
Table 2. Comparison of prices for the products of CJSC "Dion" and similar products
In addition to the manufacture of furniture in the workshop, a furniture upholstery service is provided. The cost of the service is 1000 rubles per 1 meter of fabric work.
Marketing and sales of a furniture company
The target audience of the furniture company is middle-income families who renew their furniture every 3 years and prefer unique, high-quality furniture made from natural materials. The target audience is quite extensive, therefore, in order to develop an effective marketing strategy need to share target group for subgroups of consumers:
Successful customers are consumers of furniture in the middle price segment. The main criteria for choosing furniture: the uniqueness of the offer, high-quality materials, the manufacture of furniture according to sketches to order, the possibility of delivery and assembly of furniture;
Low-income clients occupy the most specific gravity within the consumers. The main criteria for choosing furniture are: price / quality ratio, custom-made furniture in the budget category, provision of furniture upholstery services.
The goal of the furniture company is to meet the needs of all customer groups. At the stage of formation of a furniture company, the intended consumers will be active Internet users - an audience attracted to the company's website by various marketing tools.
Ready-made ideas for your business
Since the furniture workshop focuses specifically on online sales, the main way of advertising is to create your own website, profiles in in social networks and their active promotion. The first stage is a professional landing page, in which it is necessary to indicate the range of products, production time, examples of work and current discounts. The development of a full-fledged website with the necessary functionality will cost about 50,000 rubles.
A more budget option is to create profiles on social networks and promote them. In addition to the range of products in the profile, you can post photos and customer reviews, a list of services provided by the furniture workshop, useful information about various materials, information about caring for furniture, design solutions that your products fit into, information about promotions and bonuses.
Also, for the furniture industry, the most effective way of advertising is the placement of information about products on billboards. It is recommended to choose a billboard in the immediate vicinity of hardware stores, on the outskirts of the city. The average cost of renting one billboard 3*6 m for 1 month is about 23,000 rubles/month.
Another effective advertising tool will be the placement of booklets with a list of all services and a portfolio of a furniture company in hardware stores. The cost of such accommodation depends on the conditions of the hardware store and is negotiated individually. You can offer cooperation to a hardware store and jointly hold a promotion, which involves issuing discount coupons in a furniture workshop for a fixed purchase amount. It is planned to spend 10,000 rubles on this method of advertising.
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Also, an effective option for promoting a furniture workshop can be the printing of advertising blocks in a specialized press. The cost of this type of advertising will be about 10,000 rubles.
Do not forget about such promotion channels as cooperation with private interior designers, design studios, furniture stores. The search for intermediaries must be carried out independently and offer them a percentage of the order amount in the amount of 10-20%.
Effective ways to attract the attention of the consumer are participation in various exhibitions and fairs, distribution of promotional materials, availability additional services and after-sales service: free shipping, assembly, one-year warranty to repair or replace the product in case of defects, etc.
One of the main tasks of marketing is the formation public opinion and loyalty of consumers to the enterprise. Therefore, it is worth considering options for conducting a survey among customers, the results of which will make it possible to make the necessary adjustments to production, take into account consumer requirements for products.
The use of one or another tool depends on the target audience of the institution and the budget of the project.
Creation and active promotion of a profile in social networks VKontakte and Instagram. 10,000 rubles should be allocated to promote the profile in social networks;
Creation of a personal website with a portfolio, price list, contacts and an order calculator function. The costs will amount to 30,000 rubles;
Participation in furniture exhibitions and fairs.
Thus, expenses in the amount of 50,000 rubles are laid down for the promotion of a furniture workshop.
The most important part of marketing is sales forecasting. Table 2 presents a plan for the sale of furniture workshop products. The average cost of an order may vary depending on the details of the order.
It is planned to receive a corporate order for the manufacture of furniture. Therefore, you should also search for clients among the corporate segment - these can be cafes, offices, beauty salons, etc. It is also worth considering the option of cooperation with a furniture salon, which will be ready to purchase part of the products for sale.
Table 3. Planned sales volume by types of products
Thus, the planned amount of revenue for the first year of the workshop will be an average of 19,068,700 rubles.
Furniture production plan
Opening a furniture workshop and organizing production involves the following steps:
1) Selection of premises for production. Since it is planned to open a full-cycle furniture production, the area of \u200b\u200bthe premises should accommodate large-sized equipment. This will require space with total area 300-350 m2, on which will be placed:
production workshop - a place where woodworking machines and other equipment are located
assembly shop - a place where furniture is assembled from prefabricated parts;
paint shop - a room for paintwork;
dryer - a place for storing and preparing raw materials before production;
a warehouse for finished products and a warehouse for raw materials;
room production staff;
bathroom with shower;
administrative staff, office space.
In addition to the area, the following requirements are imposed on the production premises:
non-residential premises for industrial purposes, since the work of the workshop is associated with a high level of noise;
first floor, two entrances. Since the unloading and loading of bulky materials is carried out, it is necessary to place the production on the ground floor. Separate entrances are made for the workshop and sales office;
three-phase electricity 380 watts, since some equipment requires high power to operate;
availability of water supply, ventilation, systems fire safety, convenience of access to the building, availability of a platform for unloading raw materials;
lack of moisture and high humidity. The materials used in the production of furniture are afraid of moisture and dampness.
Finished products should also not be stored in such conditions, since upholstered furniture tends to absorb moisture and odors.
- a heated room, which is also necessary to maintain the ideal quality of raw materials and finished products.
For the implementation of the project, a production facility is rented. Total area - 300 m2, cost - 50,000 rubles / month
2) Purchase of equipment. To ensure the production of a full cycle, it is necessary to purchase a set of equipment:
planer - 70,000 rubles;
thicknessing machine - 120,000 rubles;
milling machine- 70,000 rubles;
drilling and grooving machine - 50,000 rubles;
copying lathe and milling machine - 150,000 rubles;
grinding machine– 80000 rubles
painting equipment - 130,000 rubles;
panel saw with manual feed of materials - 140000;
screwdriver and puncher - 15,000 rubles;
other auxiliary equipment and tools - 50,000 rubles.
Thus, total amount equipment costs will be about 825,000 rubles. With all this equipment, expect a simultaneous monthly output of 400 pieces of furniture.
3) Production technology and organization of supply. Furniture production technology includes the following main steps:
product design preparation;
work on cutting material and manufacturing parts;
material processing work;
assembly of finished furniture.
For enterprises of complete production cycle Edged solid boards are used as the main raw material. At the first stage of production, they are converted into panels and then parts for furniture are made. The most popular types of wood are: oak, birch, larch, pine. The most budgetary version of the array is pine. It is this material that will be mainly used in production. So you need chipboard and MDF boards.
The organization of furniture production will require suppliers of wood, paints, coatings, adhesives, fittings, fabrics, etc. The main requirements for suppliers are a well-known, proven company, the availability of all necessary certificates, and the possibility of delivery. It is preferable to cooperate on a long-term basis with companies that carry out quality control, provide bulk discounts and the possibility of deferred payment.
4) Recruitment. Making furniture requires certain professional knowledge and skills, so before starting production, it is necessary to select qualified employees. The main requirement for personnel is experience with specialized equipment. The staff must include: shop specialists - 3 people, a production foreman with financial responsibility for raw materials and equipment, a sales manager, a designer-technologist, a forwarding driver, a manager, an accountant.
5) Form of service. Working with a client consists of several stages:
the client's appeal to the company: the client contacts the manager and stipulates all the conditions of the order. The manager receives the order and passes it to the designer-technologist, who helps the client decide on the design of the product, materials and develops an individual project.
cost calculation, ordering: after the project is agreed with the customer, the designer-technologist calculates the cost of the work. After that, the manager agrees on the cost of the order with the client, draws up the relevant documents and takes an advance payment of 30% of the order amount. The term of execution of the order is specified in the contract and is 30 working days.
production and delivery of the order: upon the production of furniture, a delivery schedule is formed. To do this, the manager contacts the customer and approves the delivery time. The remaining amount of the order is paid upon delivery. The delivery service costs 300 rubles, and when ordering from 20,000 rubles it is provided free of charge.
Organizational plan for the production of a furniture workshop
The initial stage of opening a furniture workshop is registering a business in government bodies. For reference commercial activities an individual entrepreneur is registered with a simplified taxation system (15% “income minus expenses”). Types of activities according to OKVED-2:
31.09.2 - Manufacture of other furniture and individual furniture parts not included in other groups, according to the individual order of the population;
47.59 - Retail sale of furniture, lighting fixtures and other household articles in specialized stores;
47.91.2 - Retail trade carried out directly with the help of the Internet information and communication network;
31.01 - Manufacture of furniture for offices and trade enterprises;
31.02 - Production of kitchen furniture.
Licenses are not required to carry out these activities, however, it is recommended that all furniture produced be certified to confirm the quality of the products. For this, it is necessary to comply with the norms and standards:
GOST 16371-93 “Furniture. General technical conditions”;
GOST 19917-93 “Furniture for sitting and lying. General technical conditions”;
GOST R 50051-92 “Furniture. Chairs. Definition of sustainability”;
GOST 19194-73 “Furniture. Method for determining the strength of fastening of decoy legs of furniture”;
GOST 13715-78 “Joinery plates. Specifications";
GOST R 54208-2010 “Protective and decorative coatings for furniture made of wood and wood-based materials. Classification and designations.
GOST 30255-95. Furniture, wood and polymeric materials.
The work schedule of the furniture shop is from 8:00 to 17:00 (Mon-Fri). The opening hours of the sales office are from 9:00 to 19:00 (Mon-Sun). Based on this, the staffing table is formed.
Table 4 staffing and payroll
| № |
Job title |
Salary, rub . |
Quantity, pers. |
|
|---|---|---|---|---|
|
Administrative |
||||
|
Supervisor |
||||
|
Accountant |
||||
|
Industrial |
||||
|
Shop Specialist |
||||
|
Production master |
||||
|
Designer-technologist |
||||
|
Trade |
||||
|
Manager |
||||
|
Auxiliary |
||||
|
Delivery driver |
||||
|
Cleaning lady (part time) |
||||
|
Total: |
210 000.00 RUB |
|||
|
Social Security contributions: |
63 000.00 RUB |
|||
|
Total with deductions: |
273 000.00 RUB |
|||
Workshop specialists - serve all stages of the production of furniture products, combine the functions of a furniture assembler. Education - secondary technical, work experience in a similar position.
Production foreman - organizes the workflow, receives materials and draws up the relevant documentation, is a materially responsible person, monitors compliance with safety regulations in production, and performs phased control of the manufacture of products. Education - higher, work experience in this field - 5 years.
Manager - implements the marketing policy of the enterprise, negotiates with potential customers, places orders and accepts payments, is a financially responsible person, deals with advertising and product promotion, is responsible for filling the website and profiles in social networks. Higher education.
Designer-technologist - develops models and designs of furniture, carries out author's control over the compliance of the produced furniture with the developed models. Higher education.
Accountant - is a materially responsible person, maintains all financial documentation, carries out accounting, controls compliance with the law when spending Money and material resources. Higher education, work experience in this field - 3 years.
Driver-forwarding agent - carries out timely delivery of the order to customers. Requirements: own car, work experience from 1 year, driver's license category B, C.
The head is a financially responsible person, represents the interests of the enterprise, concludes contracts for economic activities, issues orders and instructions, hires and dismisses employees, selects suppliers and searches for distribution channels. Education - higher, work experience in this field - 3 years.
Cleaning lady - cleans the sales office.
Financial plan for the production of furniture
The financial plan takes into account all income and expenses of the project, the planning horizon is 3 years. It is planned that after this period the institution will need to expand its production and product range.
To launch the project, it is necessary to calculate the amount of investment. To do this, you need to determine the cost of repairing the office space, purchasing equipment, the initial purchase of raw materials and the formation of working capital, which will cover the losses of the initial periods. The specifics of the furniture business is the need for a large amount of working capital.
Table 5. Investment costs
Variable costs consist of the cost of materials that are used in the production of furniture, as well as the payment for the capacities consumed in the production process (water, gas, electricity, sewerage). To simplify financial calculations, variable costs are calculated based on the sum of the average bill for each type of product and a fixed trade margin of 300%.
Fixed expenses consist of rent, utility bills, fund wages, advertising expenses, taxes and depreciation charges. The amount of depreciation is determined by the straight-line method, based on the useful life of fixed assets in 5 years. TO fixed costs also includes tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the amount of revenue.
Table 6. Fixed costs
Thus, the constants were determined monthly expenses in the amount of 375,000 rubles.
Evaluation of the effectiveness of the furniture workshop
The payback period of the project with an initial investment of 1,132,000 rubles is 8-9 months. The net monthly profit of the project upon reaching the planned sales volumes will be 519,560 rubles. Return on sales in the first year of operation will be 25%.
Possible risks of furniture production
To assess the risk component of the project, it is necessary to analyze the external and internal factors. External factors include threats related to the economic situation in the country, markets. To internal - the effectiveness of the management of the organization.
The specifics of the institution determines the following external risks:
increase in prices for raw materials, failure in the supply of raw materials. In the first case, there is a risk of increasing costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in production. It is possible to reduce the likelihood of these threats with a competent choice of suppliers and the inclusion in the contract of all necessary conditions which provide liability supplier in case of their violation;
high competition in the market. Since the furniture market is quite saturated and the competition is high, the behavior of competitors can have a strong impact on the demand for your products. To reduce this risk, it is necessary to form systems approach to the organization of business and to establish processes within the enterprise. This will achieve competitive advantage and build a client base
Although every city has a large number of furniture stores, there are times when people come to these enterprises and cannot find what they really need. When funds allow, I want to make an exclusive renovation in the apartment and furnish it with expensive, refined and practical furniture. In some cases, these can even be individual orders with their own sketches. That is why it makes sense to open a furniture production workshop.
It is worth noting that (like any other) you need to start only if you have a plan of specific actions. Therefore, in order to open a furniture workshop, it is necessary to draw up a business plan that will help resolve all issues related to the production and supply of cabinet and other types of furniture.
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What does it take to start a furniture business?
The furniture workshop implies the opening of an enterprise that will accept orders for the production of cabinet and other types of furniture from local stores.
It is worth knowing that the degree of success of this project can be assessed as high. This can be justified by the fact that the demand for furniture has been actively growing since 2000, by 15-20% per year.
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In what form should a company be registered?
It should be said that the organizational and legal form that is necessary for running this type of business is an individual entrepreneur (individual entrepreneur). This is due to the fact that consumers of the services provided will be private individuals. However, in the event that there is a possibility of having customers among legal entities, it makes sense to open an LLC (a company with limited liability).
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Performing market analysis in your city
The first thing to do is to analyze the furniture production market in your city, consider the level of competition, find shortcomings and shortcomings in neighboring furniture workshops in order to avoid them in your business.
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Selection of the necessary premises for the production of furniture
The next thing to take care of is finding a suitable room for a furniture workshop. It is worth knowing that at least two rooms are required. Of these, one will need to be allocated for the office, which will accept all orders from potential customers for the production of furniture, and the other - directly for the workshop in which the supplied products will be manufactured.
Tangent office - it is worth understanding that it should be located in good location where a large number of people will see it every day. A workshop can also be opened outside the city if this helps to reduce costs. However the best option will open two rooms side by side. You can often see that some companies have an office, a workshop, and a store selling finished furniture nearby.
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The choice of equipment and software that you need to start production
To date, the market for the sale of equipment for the production of furniture presents the products of a large number of different manufacturers (both domestic and foreign), while all machines can be easily integrated with the most common computer software for the production and modeling of furniture. The best of them are KZ-Mebel, Astra Cutting, Astra Furniture Designer and many others.
The minimum set of equipment that will be needed to start the production of furniture:
- jigsaw;
- milling machine;
- lathe;
- format cutting machine.
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What kind of employees are needed for the functioning of the furniture workshop
An important step is the selection of personnel for the future enterprise. It will be necessary to put a person who is well versed in computer programs for the manufacture and modeling of furniture in the office (point of acceptance of orders). At the same time, he must be sociable in order to be able to find mutual language with any potential clients.
In the furniture production workshop, you will need to hire several workers who have experience with the main types of machines and materials. An important condition is that employees must be teetotal so as not to slow down the process of making and delivering furniture.
The main materials that employees should be able to work with are chipboard (chipboard) and MDF (medium density fiberboard).
If you plan to open a store selling finished products, you will need to hire another employee - a sales assistant.
Respectively, common list workers needed to start production:
- driver - 1 person;
- seller in the store - 1 person (if necessary);
- workers in the workshop - 2-7 people (depending on the size of the furniture production);
- designer-receiver of orders - 1 person.
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Question about the supply of manufactured products
The following distribution channels are possible:
- individual customers;
- furniture stores;
- own shop or showroom.
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Expenses that will go into the creation of this business
- rent of premises for a workshop - 300,000 rubles per year;
- office space (order point) - 100,000 rubles per year;
- premises for a shop or showroom - 200,000 rubles per year;
- purchase necessary equipment- 200,000-1,500,000 rubles (depending on the chosen manufacturer);
- Consumables(300,000 rubles per year);
- payment for the work performed by the staff (at least 1,200,000 rubles per year).
Total: the total costs that will be needed to start furniture production are approximately 2,300,000-3,600,000 rubles. It is important to note that all calculations were made based on the pricing policy of Perm.
In the manufacture of furniture, complex machines and units are used.
Today, no one can imagine a cozy, comfortable home without furniture. Everything that is connected in our life with home comfort and luxury, first of all, is associated with solid and high-quality pieces of furniture. Kitchen, living room, bedroom, children's room - how can we imagine them without wardrobes, sofas and beds?
Business in the furniture industry involves two ways - to sell someone already made furniture or to produce your own. Often, businessmen who have worked in furniture sales for several years decide to open their own production, knowing the needs and specifics of their customers' requests.
To open such a line of activity, you need to calculate a business plan for furniture production.
Project Summary
The calculation will be made for a furniture workshop that produces cabinet furniture in the middle price segment. These are office furniture, kitchens, cabinets, etc. The enterprise will be organized on the principle of an incomplete cycle, that is, suppliers will prepare raw materials, the enterprise will produce ready-made panels for assembly according to the developed drawings. To launch the project, own funds will be used, which will give an additional advantage in the formation pricing policy and more short term payback.
Furniture business: how to build a furniture manufacturing business.
Project marketing
Market Review
A business plan for the production of furniture requires a thorough study of the market - suppliers, competitors, consumers.
According to the Association of Furniture and Woodworking Industry Enterprises, the volume of furniture production in Russia is distributed as follows:
- Cabinet furniture (hallways, sets, sets) - 25%;
- Office furniture - 23%;
- Kitchens - 22%;
- Upholstered furniture - 17%;
- Bedrooms - 13%.
If you list the entire domestic furniture range presented on Russian market, conditionally it can be divided into the following groups according to the following parameters:
- By function: cabinet furniture for storage - cabinets, chests of drawers, cabinets, shelves; for sitting or lying down - chairs, armchairs, sofas, beds, deck chairs, etc.; for eating and working - dining tables, writing tables, magazine tables, etc.
- By constructivity: universal-team - which can be repeatedly assembled and disassembled; sectional; non-separable; built-in; transformable; bent; wicker.
- Based on materials: made of wood and wood materials; from metal; from plastics.
Planned assortment
A preliminary list of the range of manufactured products (with further study of demand, these data will change):
- Kitchens, facades for kitchens;
- Cabinets, cabinets, shelves, drawers, dining tables, chairs, stools;
- Office furniture - computer tables, shelves, filing cabinets.
Target group
- End consumers (retail) - active business people with an average income, who update the furniture every 2-3 years;
- End consumers (wholesale) - large state enterprises, hotels, restaurants, office centers, etc.
- Intermediaries - specialized furniture stores, interior items, design studios.
The production of frameless furniture is a profitable business.
How and to whom the sale is organized
We will sell our products in several ways:
- Through his office, which is also a showroom.
- Through a network of stores where partnership agreements are concluded, including in other regions, including deliveries to the CIS countries.
- Direct sales , public institutions, large private companies. To do this, an office worker - an order taker makes mailings and calls through the database of potential customers.
Read also: Confectionery business plan
Advertising
- Creation and promotion of your website on the Internet - this will allow you to geographically expand the circle of consumers, with weekly updating of the catalog and newsletters to regular subscribers.
- Placement of advertising blocks in the specialized press - in furniture magazines, design and interior publications, etc.
- Placement of advertising banners on Internet resources on similar topics.
Required documents
Register better enterprise as a limited liability company. In this case, this is the optimal form of ownership and taxation, which makes it possible to work with legal entities(suppliers and large consumers), and other enterprises. In order to register an LLC, you will need the following documents:
- Information about the name of the company - it is better to immediately think over the name of the company associated with the main activity;
- Agreement on the establishment of LLC, decision on opening;
- Statutory documents, a list of activities, the size of the authorized capital - at least 10,000 rubles, which can be contributed in money or property, for example, office equipment, office furniture, etc.
- Information about the director and chief accountant (copy of passport, identification number, address, contact phone number);
- Details of the bank where the company opens its current account;
- State duty payment documents.
To drafting production plan must be taken very responsibly, tk. this is one of the most important parts of a business plan
Production plan
Production will be built on the principle of an incomplete cycle. Will be produced running models prefabricated cabinets, cabinets, tables and kitchens and other custom-made cabinet furniture according to the required dimensions and configuration. The production will process purchased ready-made wood chipboards and MDF boards for the specified patterns with the installation of appropriate fittings with delivery to the consumer and assembly on site.
Requirements for the premises
You will need two premises: for production and for receiving customers. It's good if they are nearby. According to the requirements, they differ from each other, because. designed for different functions:
- Industrial premises - an area of at least 500-600 m2. Requirements - a spacious heated room on the ground floor, with the possibility of organizing storage space and installing equipment. We also need an equipped entrance and a platform for unloading raw materials and materials, and shipping finished products.
- Office - should be located in a place accessible to customers - preferably in the center of business and trade activity. It would be optimal to equip a showroom in the office, where product samples will be displayed. Area - 50-60 m2, preferably on the ground floor. Mandatory requirements- the presence of communications, cosmetic repairs.
Equipment
For the production of cabinet furniture parts, you need to purchase the following equipment:
- Machine tools that are integrated with computer programs furniture design and manufacturing. These are Astra-Cutting, Astra-Furniture Designer.
- Electric jigsaw;
- Milling machine;
- Lathe.
- Other small tools
This business plan for the production of upholstered furniture will enable entrepreneurs to create and competently organize the work of a small workshop. The increased demand for high-quality and inexpensive upholstered furniture is one of the main reasons for the emergence of a significant number of new manufacturers on the Russian market, which today account for over 70% of all products sold. And upholstered furniture occupies about 15% of the entire furniture market, its production is an attractive niche, especially for small and medium-sized businesses, and does not require significant initial investments.
General concept of the project
The popularity of upholstered furniture is explained by several factors.
First, its production is increasingly oriented towards "make-to-order". Small businesses dealing mass production large batches of cabinet furniture and solid wood products, it is difficult to compete in the market, while the production of small batches of upholstered furniture can provide quite acceptable profitability.
Secondly, in small private workshops engaged in the manufacture of custom-made upholstered furniture, a significant part of the work is done manually, which does not require the purchase of high-performance and expensive production and technological equipment.
Third, furniture manufacturing at small enterprises, it is easily and quickly reorganized to produce new products due to changes in consumer tastes and fashion trends.
Fourth, starting a small furniture manufacturing business is a great experience for building a large-scale profitable business in the future.
Fifthly, in the Russian market, the niche of custom-made furniture is in small towns and rural settlements practically free, so here the prospects for successful work for small furniture workshops are greatest.
Description of the object
Our business plan for the production of upholstered furniture with calculations is designed to assist in the creation and launch of a small workshop that will manufacture products to order. The most productive use of the document is the organization of production in small towns. The enterprise must provide a full technological cycle for the manufacture of upholstered furniture and its sale to consumers.
Main product range:
- sofas.
- Banquets.
- Ottomans.
- Armchairs.
- Sun loungers.
- Chairs.
Surprisingly, but in the regulatory and technological documentation there is no definition of "upholstered furniture". In the current standards, concepts such as “seating furniture” and “lying furniture” are used. Moreover, these products can be made with both soft and hard elements. Therefore, in the generally accepted sense, upholstered furniture refers to products in the design of which there are traditional elements of "softness": pillows, springs, various fillers, and so on.
Market analysis of upholstered furniture
As statistics show, a middle-income Russian changes a sofa or chair about once every 3-4 years. Most of today's upholstered furniture market in the country is a product of the middle price range. They occupy 60% of the market. The share of premium upholstered furniture is relatively small and amounts to about 13%. This is primarily due to the high cost of such products. In addition, in this price range, consumers are more likely to choose branded products from foreign manufacturers.
Today, the domestic furniture market is characterized by a decrease in the number of production facilities operating "on stream". An increasing number of enterprises are moving to the production of products to order.
It often happens that consumers, following fashion, order furniture, which, in terms of performance, is significantly inferior to "in-line" products. An example of this is the production of original soft corners with silk or white upholstery. It goes without saying that such furniture is extremely impractical and that, when ordering it, the consumer expects to change the “decoration” in one, maximum two years.
This trend is also supported by the financial factor: in the activities of enterprises with mass production significant investment is required. These resources are directed not only to start-up needs related to the acquisition of equipment, but also to current ones, due to the need to purchase large quantities of material, components, upholstery fabrics, etc. In this case, it is very difficult to withdraw money from the business, if necessary, because the funds remain "frozen" in the form of loans, finished products, debts to suppliers of components and materials.
As practice shows, a great influence on this business has seasonal factor. For example, during a period of decline in demand, out of 1000 items put up for sale, no more than 200-250 pieces are actually sold. To ensure the profitability of the enterprise, it is necessary to focus on the sale of finished products in the region where it is located. This will not only reduce transportation costs, but also respond more sensitively to changes in the preferences of the main consumers of products, thereby optimizing the overall production costs. For long distances, it will be profitable to supply only premium-class furniture.
Description of the object
The most popular types of upholstered furniture in our country are transformer models. The new enterprise will provide a full technological cycle of their manufacture, which includes the following stages.
- Cutting lumber in the carpentry shop. Here, operations are performed on sawing boards and plywood into blanks and assembling wooden furniture frames.
- Frame upholstery. This process step is carried out in the upholstery section of the production facility. During it, the frame is pasted over with dornite, then with foam rubber, on top of which the upholstery is fixed.
- Installation of softness elements. The main such element in most types of upholstered furniture are springs. They perform an orthopedic function, and are mounted on products in the form of blocks that are installed in the center and perimeter of the product. Then the spring blocks are pasted over with foam rubber.
- Pasting with protective materials. On top of the spring block, a dense woven material and a spunbond are successively fixed in an adhesive way, which protect the upholstery from abrasion against the springs.
- Laying foam rubber or synthetic winterizer. On top of the pads is placed another element of softness about 40 mm high. The presence of a synthetic winterizer in it will allow the foam rubber to “breathe”.
- Cutting upholstery materials in sewing shop. Here on special equipment operations are performed with various types upholstery: from ordinary fabrics to genuine leather. After cutting the upholstery according to the dimensions of the product design, it is “targeted” to the multilayer base.
- Manufacture and fastening of covers. Covers are made in strict accordance with the dimensions of the product. They are worn over a frame with a fixed base.
- Control Assembly finished product. This operation is carried out in order to check the operability of all elements of the product design and subsequent correction of the detected shortcomings.
- Product packaging in polyethylene and cardboard.
These technological operations differ little in the manufacture of sofas or armchairs. These products use only different transforming mechanisms (if they are provided for by the design).
It is expected to launch an enterprise implementing the technology described above in full within two months from the start of the project. To do this, you must perform the following activities:
- To study the state of affairs in this industry and analyze the regional market for furniture production.
- Get advice from representatives of this business, if necessary.
- Draw up a detailed business plan with calculations for your business organization option.
- Conclude an investment agreement and get a loan.
- Register a business.
- Conclude contracts for the purchase of materials, furniture fittings and other components for the manufacture of upholstered furniture.
- Find what you need production room and sign a lease.
- Buy technological equipment, to make its installation and adjustment.
- Select and, if necessary, train company personnel.
- Establish markets for products.
- Organize an active advertising and marketing campaign.
These activities are scheduled to be completed within the following timeframes:
| Stage/month, decade | 1st month | 2nd month | ||||
| Dec 1 | Dec 2 | Dec 3 | Dec 1 | Dec 2 | Dec 3 | |
| Registration of a company, opening a current account | + | + | + | |||
| Signing a lease | + | + | ||||
| Acquisition of process and auxiliary equipment | + | + | + | |||
| Premises renovation | + | + | + | |||
| Issuance of permits and approvals | + | + | ||||
| Installation, adjustment and testing of production equipment | + | + | + | |||
| Preparation of documents for the range of products | + | + | ||||
| Selection of specialists | + | + | + | |||
| Conclusion of contracts with consumers of products and suppliers of materials and components | + | + | + | + | ||
| Enterprise launch | + | |||||
The terms are indicative and depend on the specific conditions of the organization of production.
Organizational and legal form, taxation system and registration of an enterprise
The enterprise is created within the framework of the organizational and legal form of LLC (limited liability company). This choice is due to the advantages that this form of business provides: first of all, the ability to work with legal entities and more opportunities for the sale of finished products.
The workshop for the production of upholstered furniture will work according to common system taxation, which provides for the payment of the following taxes:
| Tax | Applicable base for taxation | Periodicity | Bet amount |
| For the amount of profit | The amount of profit received | M-ts | 20% |
| VAT | The amount of VAT charged | M-ts | 18% |
| For property | The value of the acquired property | According to the schedule | 2,2% |
| Income | FOT | M-ts | 13% |
| Social payments | FOT | M-ts | 34% |
Registration of a business entity is carried out in the following areas of activity:
- Manufacture of other furniture - OKVED 36.14.
- Retail sale of furniture - OKVED 52.44.1.
- Wholesale of furniture - OKVED 51.47.11.
The production of upholstered furniture does not require a license. Certification of products is carried out at the request of the manufacturer in order to increase the competitiveness of manufactured products.
Room selection
Production for the production of upholstered furniture is located in a rented premises with a total area of at least 440-450 square meters. m. It will contain:
- carpentry (80 sq. m.);
- sewing (35 sq. m.);
- upholstery (70 sq. m.);
- prefabricated (25 sq. m);
- packaging (25 sq. m).
Warehouse and retail premises:
- Warehouse for components and raw materials (50 sq. m).
- Warehouse for finished products (100 sqm)
- Trade and exhibition hall (70 sq. m).
- Company office space (30 sq. m).
The expected amount of rent will be 81,000 rubles per month (with an average price per 1 sq. m - 180 rubles).
Enterprise equipment
To ensure the normal operation of the workshop for the production of upholstered furniture, the following equipment is purchased:
| Type of equipment | Quantity | Price (in rubles) |
| Circular saw | 1 | 19 900 |
| Combined machine KSM 1A | 1 | 20 000 |
| Drying unit | 1 | 11 000 |
| Multi-saw edger TsDK-5 | 1 | 32 000 |
| lathe | 1 | 8 500 |
| Tenoning milling machine | 1 | 15 000 |
| Trimming machine (TsKB-40) | 1 | 21 000 |
| grinding machine | 1 | 38 000 |
| Set of pneumatic clamps | 1 | 4 500 |
| Sighting pistols | 2 | 3 800 |
| Sewing machine | 1 | 5 800 |
| Set of hand power tools | Drills, perforators, screwdrivers | 10 000 |
| Cutting tables | 2 | 8 000 |
| Cutting tool | Scissors, knives | 2 000 |
| Measuring and marking tools and fixtures | Rulers, goniometers, meters | 500 |
| Total | 200 000 | |
In addition, the company acquires a computer, software for furniture designer work, office furniture and supplies, consumables. Thus, the initial cost of equipping the workshop will be 300,000 rubles (excluding the cost of renting premises).
Recruitment
To work in the workshop for the production of upholstered furniture, the following specialists are required:
| Job title | Number of full-time employees | Salary (in rubles) | Payroll expenses for personnel per month (in rubles) | The annual volume of the wage fund (in rubles) |
| Director | 1 | 30 000 | 30 000 | 360 000 |
| Accountant | 1 | 15 000 | 15 000 | 180 000 |
| Acceptance designer | 1 | 15 000 | 15 000 | 180 000 |
| Sales manager | 1 | 15 000 | 15 000 | 180 000 |
| Production master | 1 | 20 000 | 20 000 | 240 000 |
| Assembly joiners | 2 | 15 000 | 30 000 | 360 000 |
| seamstress | 1 | 10 000 | 10 000 | 120 000 |
| Ancillary workers | 2 | 8 000 | 16 000 | 192 000 |
| Furniture upholstery | 1 | 15 000 | 15 000 | 180 000 |
| Total | 166 000 | 1 992 000 |
For the main production specialties (designer, upholsterer, carpenter, craftsman), the recruitment is made according to the criteria professional suitability accepted in the industry.
Marketing and Advertising
The marketing policy of the enterprise is aimed at shaping the opinion among consumers that the produced upholstered furniture has excellent operational characteristics, has a lower cost than its main competitors, and that the company is ready to consider any options for long-term cooperation with the provision of significant price preferences.
To this end, the following promotional activities are planned:
- Preparation and publication of messages about the enterprise in local media.
- Development of a targeted advertising scheme by sending letters to specialized stores and companies.
- Development of the company's own website with the possibility of online ordering products.
- Activating consumer demand by developing attractive commercial offers and holding actions.
The main marketing resource of the enterprise is the high quality of its products, which can be purchased directly from the manufacturer.
Financial plan
At the initial stage of the enterprise's activity, it is supposed to accept up to 100 orders for the manufacture of furniture per month. In this case, the maximum cost of the product (sofa) will be:
| Name of materials | Consumed amount of material | Price (per unit) | Cost, rub. |
| Edged board | 0.08 cu. m | 600 | 48 |
| Plywood | 1 sq. m | 59 | 59 |
| fiberboard | 2 sheets | 70 | 140 |
| Tapestry | 8.4 l.m | 220 | 1 848 |
| Textile | 1m | 90 | 90 |
| Batting | 4 p.m | 28 | 112 |
| Nails | 0.7 kg | 12 | 8,40 |
| Foam rubber | 0.3 kg | 45 | 13,50 |
| screws | 0.2 kg | 20 | 4 |
| Threads | 0.1b | 6 | 0,6 |
| bolts | 0.5 kg | 20 | 10 |
| accessories | 30 | ||
| Glue | 0.2 kg | 15 | 3 |
| Pillows | 6 pcs. | 28 | 480 |
| Cardboard | 2 kg | 12 | 24 |
| Polyethylene | 13 sq. m | 9 | 117 |
| Total | RUB 2,987.50 | ||
The current expenses of the enterprise will be:
Taking into account the calculations performed, the total cost of products manufactured in 1 month will be 5788.26 rubles. With a profit margin of 25%, average cost products during the sale will reach 7235.33 rubles.
Taking into account the payment of taxes, the workshop will receive a profit for the 1st month of work in the amount of 115,765.78 rubles. The profitability of the enterprise will be 25%, which will make it possible to recoup the costs of opening it no later than four months from the start of work.
Conclusion
The opening of a workshop for the production of custom-made upholstered furniture is profitable business with an average level of potential risks. With proper planning, low costs and a favorable situation in the consumer market, the founder will have the opportunity to receive a stable profit from a steadily functioning enterprise with the prospect of expanding it.
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