Blacksmithing: forge business plan. Necessary equipment and calculation of costs for the start. How to open a blacksmith shop and make money on it
- Monthly profit (from): 700 $
- Payback period (from): 10 months
- Starting capital (from): 6750 $
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Business relevance
For many people, a blacksmith is a profession from the past. Indeed, there are few real specialists in their field, but the demand for wrought metal products remains quite large.
To open your own smithy, it is not necessary to graduate from the Stroganov Academy of Applied Arts. The main thing is desire and physical strength. It is much more profitable to open your own forge, since in most cases craftsmen do not receive more than 20% of the total profit while working for other companies. The threshold for entering this business is approximately 5-30 thousand dollars.
Blacksmithing is a specific segment that is not devoid of risks and disadvantages. But with the competent drawing up of a business plan, building a development strategy and analyzing the market, you can create a profitable business that will quickly recoup the initial investment.
Types of forging
The degree of material heating divides the forging process into two types - hot and cold.
- Hot is used for small products, in places where refined and delicate work is needed, artistic forging. This view works are highly prized. Such a laborious process allows you to get refined details and ornaments. Repeating the same detail twice will not work - there will still be differences. But the main disadvantage of hot forging is the high costs for forging furnaces.
- Cold forging replaces casting or stamping. The process itself is a deformation of the broom without preheating it. This is a less labor-intensive option for a blacksmith and cheaper for a customer.
Building a strategy
Any business is consumer-oriented - assess the level of demand for Forged Products... Are there cottage settlements nearby, private sectors, are orders from the municipality possible? Then evaluate the competing organizations. These are not only colleagues in the shop - private forges, but also:
- highly specialized departments of large metal enterprises;
- sale of forged items from Turkish and European manufacturers;
- Chinese products.
Before opening the forge, describe the following points:
- the number of workshops with a similar focus;
- demand level;
- possible sales markets for products;
- the approximate number of customers;
- the seasonality of the business - is it possible to find buyers during the cold season;
- popular forged products, which will be in demand;
- acceptable pricing policy;
- selection and organization of premises for a smithy;
- purchase of equipment;
- hiring staff;
- advertising.
Only by finding a definition for all of the above points can you move on.
Financial plan
To open a small forge you need:
- preparation of the premises - 100 thousand rubles;
- purchase of equipment - 300 thousand rubles;
- paperwork - 5 thousand rubles.
Monthly costs:
- rent - 20 thousand rubles;
- tax, utilities and transport payments - 20 thousand rubles.
Let's calculate the cost of manufacturing 1 m² of the lattice:
- purchase of metal - 500 rubles;
- treatment with an anti-corrosion mixture - 15 rubles;
- electrodes - 50 rubles;
- utility costs - 100 rubles;
- other costs - 400 rubles.
As can be seen from the calculations, the prime cost of 1 m² of the lattice will be 1,065 rubles. You can sell it for an average of 3000 rubles.
If about 40-50 m² of products are sold per month, the revenue will amount to 80-100 thousand rubles.
You can pay off the project on average in a year.
Required documents
For efficient and uninterrupted operation of the forge, the following package of documents must be prepared:
- work permit from the city administration;
- registration as an individual entrepreneur or formation of a legal entity;
- work permit from the authorities of the sanitary and epidemiological station;
- work permit from the fire inspection.
Requirements for the premises
For a small scale, it is quite possible to start production of forged products in a personal garage. But keep in mind, even on a small scale, you need a place to store the material and finished products... You also need to provide access roads, a place for loading / unloading, devices that help this process. Therefore, even at the start, experts in this field do not recommend starting from the garage.
Also note that the forge is not a quiet sewing workshop, so residents in the selected area may be unhappy with the noise. That is why many endure production room out of town or in a neighboring village.
If you are going to practice this type professionally, you need to meet the following requirements:
- ceiling height - from 3 meters;
- area - from 80 m²;
- power supply;
- availability of water supply and sewerage;
- convenient access roads;
- compliance with fire safety standards;
- ventilation system.
It is convenient and inexpensive to rent former production workshops or forges.
Raw material base
To get started, you need to purchase:
- steel blanks (it is recommended to choose a low-carbon metal);
- profile - corners, squares, sheets;
- consumable material for processing finished products - primer and anti-corrosion mixture, paints, etc.
All consumables can be bought in one specialized store. For effective work it's better to buy everything on wholesale bases, for larger scale production, you can find a permanent supplier.
Video - Manufacturing Machine art products metal:
Manufacturing of products
A beginner forge usually offers standard items:
- railings;
- wrought iron gates and other fences;
- lattices for windows;
- braziers;
- garden products - gazebos, benches, lanterns, etc.
In the future, you can offer more wide range of products.
Equipment
The most expensive part of the plan is purchasing the equipment. You shouldn't save money and choose cheap Chinese equipment. Remember - good tools will last longer, affect the quality of work. Estimated costs for forging equipment for cold forging of metal plus hot:
- electric hammer - 180-200 thousand rubles (second-hand - 60-90 thousand rubles);
- forge - 70-100 thousand rubles;
- anvil - 10-12 thousand rubles;
- vice - 10-30 thousand rubles;
- Bulgarian - 4-8 thousand rubles. (it is better to buy several);
- assembly table - 20-26 thousand rubles;
- drilling machine - 15-20 thousand rubles;
- drill (hand or electric) - 4-10 thousand rubles;
- blacksmith pincers - 5-30 thousand rubles per set;
- cold forging machines – 10-20 thousand rubles;
- hammers - 1.5 - 4 thousand rubles.
Customer service system
Work with customers is carried out according to the following scheme:
- meeting with a client, review and analysis of the object;
- preliminary sketches;
- approval of sketches with the client;
- registration of working drawings;
- forging of blanks;
- collection of finished structures;
- transportation;
- installation.
You can pre-take payment after agreeing on sketches in the amount of 30-50%, the rest - after installation.
Staff
This business has its own seasonal features that should be taken into account when working with personnel - in summer time products of cold forging are in demand - gratings, fences. In winter, artistic metal forging, interior items according to an individual project becomes relevant.
The staff of the forge consists of:
- blacksmiths of hot, cold forging;
- welder for joining parts.
Large enterprises in the main state have a painter, designer, loader, driver, customer service manager.
Many entrepreneurs who managed to sharpen their business in the blacksmith production call the search for personnel one of the most difficult stages. You need to find a professional and responsible master, since the prestige of the company depends on his work. Another pressing problem is that a blacksmith who has worked for some time may try to organize production on his own, enticing customers.
- Kind of activity: manufacture of forged products
- Capital investments from 230 320 rub.
- Average monthly revenue from 429,000 rubles. per month.
- Net profit from 109 800 rub. per month.
- Payback from 2 months.
Over the past two years, the demand for forged products has grown significantly in Russia. Every month on the Internet more than 300,000 people are interested in the elements of artistic blacksmithing, and this figure is growing by an average of 7%. The trend is explained by the fact that in the regions there is an active improvement of megalopolises and the construction of suburban settlements.
As a result, there is a high demand for all types of metal structures: from small decor to garden plot to massive barriers to the cottage. In the next six months, the dynamics will be even more indicative. The blacksmith workshop, opened during the "peak" spring-summer period, is an ideal option for starting and quick payback.
Who is this business for?
Today the blacksmith business is available to aspiring entrepreneurs. It does not require large investments, is easy to organize and manufacture. The whole process is automated and carried out on modern machines. Manufacturers are happy to provide assistance in training and business organization. For the purchase of equipment that even one person is able to operate, just over 200 thousand rubles is enough.
At the same time, you do not need to undergo licensing or certification, and production can be established in any technical room, up to the garage. Manufacturing of forged products is a great opportunity to expand an existing business. In Russia, construction and finishing companies, interior design studios, craftsmen open their own blacksmith workshops. furnace structures.
Market competition
This niche is simply free. Unlike other low-entry business models, there is little competition here. In cities, the number of blacksmith shops is in the tens, while "popular startups" - trade enterprises, car washes, catering, tire fitting, number in the thousands.
Where to look for clients?
The first step in this direction is to create a website. To do this, you can turn to professionals or do the work yourself. Today there are many free editors that can help you create it without coding knowledge. The site will attract the first customers within a month, and you can increase their flow with the help of contextual advertising. It is easily customizable and will allow you to attract the target audience even when minimum budgets.
The second opportunity is cooperation with trade and service companies. Hardware stores, utility services, funeral service agencies, interior design studios - these and other organizations actively use forged products in their work.
Word of mouth is another effective method attracting customers. Finished projects- the best advertisement for the workshop, which means that beautifully executed work will attract new customers.
Additional channels for finding customers can also be the placement of information on sites with ads (Avito, "From hand to hand", etc.), the placement of an open workshop on the streets, or the opening of your own store of finished products in shopping malls.
What a blacksmith's workshop can earn:
- Fences
- Gates
- Chimneys
- Fences (garden, balcony)
- Bars on windows
- Braziers
- Interior items, furniture (tables, stands for flowers, hangers in
hallway, etc.) - Other metal structures
- Welding works
Business plan "ECONOM"
Suitable for those who wish to open a blacksmith shop with a minimum investment. With one universal forging machine "AZHUR-1M", you can set up production of: window bars, forged fences, gates, gazebos, forged furniture, canopies, stair railings and much more.
Specifications machine "AZHUR-1M".
The cost of the machine is 217 670 rubles. To expand the range of products, we recommend purchasing a set of rollers that allows you to make forged products from shaped pipe for 12 650 rubles. From additional equipment need to purchase welding machine and a grinder.
Calculating the monthly profit of the blacksmith shop. "ECONOMY" option.
Products and services | Production cost (per sq. m. rub.) | Market price of products (per sq. m. rub.) | Sales per month | Profit, RUB |
---|---|---|---|---|
Window grilles | ||||
In brackets the prices of products from solid metal products.
Subtract the costs of maintaining the workshop from the profits: rent, advertising, electricity, transportation costs, taxes.
Business plan "OPTIMAL"
Suitable for those who want to organize a large-scale production of forged products. To maximize profits, production is organized using a set of machine tools. Some machines will give workpieces an exquisite, expensive look, while others will create forged elements from machined workpieces. The resulting products will look expensive and sell faster.
Workshop equipment:
- Machine "Azhur - 1M". Complete set No. 2, costing 307,160 rubles. Additional equipment for the amount of 28810 rubles. In this configuration, the machine allows you to produce a full range of forged products. For more detailed information please contact our specialists.
- Machine "Azhur-2" for 262,400 rubles. Additional equipment for the amount of 51,700 rubles. Covers the workshop needs for metal cladding.
- Hydraulic press "Azhur - 3M" for 335,000 rubles. A set of molds for the amount of 29,900 rubles. allows to produce forged products in large editions.
- Machine "Azhur-4" for 392,000 rubles. makes a decorative twisted pipe.
- Cutting machine "OS - 7" for 71,000 rubles. designed to prepare blanks for production.
Total: investments in equipment will amount to 1,477,970 rubles.
Calculating the monthly profit of the blacksmith shop. Option "Optimal".
Products and services | Production cost (per sq. m. rub.) | Market price of products (per sq. m. rub.) | Sales per month | Profit, RUB |
---|---|---|---|---|
Stair railings | ||||
Window grilles | ||||
Benches and swings | ||||
Blacksmithing is a very ancient craft. Now forges bring a lot of income to their owners. This is due to the increased demand for blacksmithing products - forged decorative elements. To open a forge, you need to choose a room. Perfect option workshop at the enterprise or part of it 10-15 m2. Since its designs meet all fire safety standards, etc. Otherwise, you will be dragged to the authorities and you will spend a lot of time and money on signatures. The next question will be the selection of equipment and tools. In the smithy, a distinction is made between supporting, percussion, laid on, punching and paired instruments. Anvils belong to the support. Large and small. Them just like the other blacksmith tool, you can buy used ear. They should be free of dents and perfectly flat. What is a percussion instrument is clear from the name. These are all kinds of sledgehammers and hammers. An overhead and applied tool is used for cutting or notching metal. Paired tools include all kinds of clamps and potholders. Now about the heart of the forge. As you may have guessed, this is a bugle. There are a lot of furnace designs. Basically, they differ in the type of fuel. There are furnaces on solid fuels - these are coal and charcoal, coke, in extreme cases, you can use simple firewood. There are ovens for liquid and gas fuel, but they are mainly applied to large production... True, at present the English company EFM has established the production of small stationary and portable blacksmith forges working on liquefied propane. There should be containers for slag, coal (if your furnace is coal), oil and water near the furnace. It is also necessary to allocate a place for welding work. You need to find a good smithy from the staff. The first time you can work helping him. This will help you get involved in this business. Then you can hire an assistant. It would also be nice to establish cooperation with the artist. He can not be accepted into the state, but simply buy his ideas from him. Artistic forging is highly valued. If you have sufficient funds, you can automate almost any process in the forge. There is a lot of literature on this issue on the Internet. The business idea of blacksmithing is very profitable. This niche has not yet been filled sufficiently. In addition to starting your own business, you can buy a ready-made business.
Moiseev Vladimir Ivanovich, was born in 1952 in the Poltava region. Graduated from the All-Union Correspondence Polytechnic Institute with a degree in Mechanical Engineer road transport". Since 1995 - general manager LLC "Horn". - Vladimir Ivanovich, entrepreneurs often complain that it is much more difficult to engage in production activities than in trade. You have been managing a rather complex production for over ten years now. Have you, like many, had a desire to give up everything and go into trade? - No, I didn't have such a desire. Perhaps because our production, despite the existing difficulties, is developing very successfully. Or maybe because my entire previous, so to speak, pre-entrepreneurial work path was somehow connected with production. Judge for yourself. Immediately after graduation high school worked as a turner at the Kalugapribor plant. After serving in the army, while studying at the Tyumen Industrial Institute, he worked as a driver. After moving to Moscow and continuing his studies at the All-Union Correspondence Polytechnic Institute, he worked at the Mosvodokanal emergency base. There I was first the head of the column, then the head of the repair shops. In 1992, when state enterprises began to fall apart, he organized Avtostroyservis LLC. We were engaged in both transportation and wholesale. But the business of the company was not very successful. Apparently, because service and trade are still not my vocation. A chance helped to open production. There was a free smithy at the motor depot of the mechanization department, with which we then collaborated. We rented it and started doing blacksmithing, which turned out to be very exciting and highly demanded. So, in 1995, having liquidated their previous enterprise, they opened a new one, calling it "Horn". Soon the rented smithy was not enough for us. And we arranged our own production workshops. - In your premises? - Well, what are you! We rented for a long time now one room, then another, then a third First - on 4th Magistralnaya Street, then in Tsaritsyno. From Tsaritsyno our production moved to the Entuziastov highway, then to the Pyatnitskoe highway. In parallel with these memorable addresses for me, they located part of their production either in Elektrostal or on Dmitrovskoe highway. Why did they move so often? Yes, because we were either denied a lease, or the price was raised so much that we were forced to look for new areas, willy-nilly. All this our migration across Moscow and the region created serious difficulties for us. After all, each time we had to transport not tables, but machines and other production equipment. In addition, every next move had a negative impact on the composition of the team. Many employees quit just because it became uncomfortable for them to travel to a new place of work. But five years ago we were, one might say, lucky. Our production has settled in earnest and, I hope, for a long time in the village of Yurlovo, Solnechnogorsk District, Moscow Region. - Do you have your own production facilities there? - Part of the space is now our property, since we bought them out. We continue to rent a part. As for the office, it is still located in Moscow, in the premises rented from the city. Here, in particular, our highly professional artists work, who constantly come up with something new. In many ways, it is thanks to them that the work of our company is approved, and often admirable, even by the most demanding customers. - What is the system used to work with clients? - First, preliminary sketches are made. After their approval by the customer, working drawings are created based on them. They, in turn, go to our production. There, blacksmiths forge blanks, and assemblers and welders assemble forged structures. Finished products are sent for painting, and then for installation. In order for the ideas of the artists to find their adequate embodiment in the material, every Monday we definitely arrange meetings at the production site. We release the railing flights of stairs, visors, lattices, fences, interior items, etc. - Probably, like in any enterprise whose activities are related to creativity, you have a portfolio of your work - Of course. We definitely demonstrate it to our customers. - May I have a look? - Yes please. - And you so prosaically call this indescribable beauty railings, bars and interior items? After all, these are real works of art, made in classic style, and in baroque and modern styles, constructivism! - Well, for us the design and manufacture of all this, as you said, indescribable beauty is already a familiar thing. And we produce really very interesting, and what is important, exclusive products. As a rule, we create something new for each customer. Whether it is a spiral staircase for a residential building or a fence for a cottage village, chandeliers or candlesticks, pieces of furniture or fireplace sets, unusual benches or lamps for lots country houses... By the way, this carriage that interests you so much is nothing but a gazebo stylized as an old carriage. It was ordered for one of the cottages near Moscow. The artistic effect of our forged products is often achieved by the fact that in many of them metal is organically combined with glass, majolica, wood, stone and even textiles. - Are there any problems at your enterprise? - As in any production, we have our own difficulties. In particular, with personnel. Workers of practically any profession, as they say, cannot be found in the daytime with fire. Nobody just wants to work with their hands. And we need qualified welders, painters, assemblers, fitters. Of course, not without effort, but a team of workers (and we have about 50 of them) managed to form. And in order to keep them, we take them every day on our buses from Moscow to Yurlovo (production, as I have already said, is located there) and back. One bus carries our workers from the Tushinskaya metro station, the other from Zelenograd. Novice blacksmiths learn from our experienced craftsmen comprehending the secrets of the profession in practice. As for the artists, there are, of course, a lot of them in Moscow. But they also had to look for those who also knew all the features of the metal. In general, we have formed a good team, but this did not happen immediately. - One of my acquaintances, an entrepreneur engaged in the manufacture of designer porcelain, told me a story about how an employee who worked for her suddenly took and organized her own similar company. And besides, she also stole a solid customer from her former boss. Have you ever had such cases? - Were. Two artists, a production manager and my deputy, organized four independent firms. In general, in the image and likeness of ours. Moreover, one of the listed comrades (he worked for us as an artist) also "stole" a rather large order from us. How did this business end? Yes, nothing. As far as I know, having become an entrepreneur, this artist took an advance payment from the customer, but he could not start production and fulfill the order. After all, it only seems from the outside that everything is easy and simple. As a result, both the firm of this artist and three other firms organized by our former employees, simply fell apart. - But do you have any competitors? - Let's just say: there are firms that are also engaged in artistic metal forging. But our paths practically do not cross. We always have work. This means that none of the competitors bothers us. - And ideas do not steal? - It happens. Once, one of our employees, who leads a group of artists, was working to identify plagiarism on the Internet. And what do you think? I found several companies that have photographs of our products on their websites. One company even managed to place a gate of our production on its website. Right along with our brand name! What do we do in such cases? We call, trying to reason. It usually helps. - We have our own website. From time to time we advertise in specialized printed publications that are read by architects, designers and builders. We also use our flyers. Along with new ones, our regular customers, who, having completed the construction of one object, begin work on another. - I wonder if you go on vacation every year? - I haven't had a rest for 15 years. However, this year I am still going to take a vacation. It was just that earlier it was somehow not up to it. And, frankly speaking, I am not very good at rest. But I'm used to working and I love it. Conversation ledMarina Maslyaeva We live in an age of actively developing technology. And gradually folk trades and crafts are being ousted from our life. And, perhaps, forging is almost the only craft that not only has not disappeared in the course of technical progress, but on the contrary, has recently become more and more popular. What is the reason? In demand. Now forging is firmly connected with the design of residential premises and offices, with garden and park design. With an increase in the number of suburban and suburban settlements, which are difficult to imagine without wrought-iron gates and gazebos. Forging is still in demand in the funeral business. Forging is not only large street products, but also items that decorate interiors of different styles. Forging is a synthesis of craft and art that makes every thing unique. And therefore, the business of manufacturing forged products is very promising now. Which to choose: cold and hot forging?Hot forging is an ancient blacksmith's craft. Since ancient times, in forges throughout Russia, iron was heated on fire, and then the craftsmen gave the softened metal the desired shape. Such forging takes a lot of time and effort, but the products forged in this way are truly unique. Today there are more modern version metal processing - cold forging. Basically here, when creating a product, ready-made forged elements are used. This is a less labor-intensive method for the master and cheaper for the customer. Don't just compare the two types of forging. Hot forging - uniqueness and grace, cold - durability and reliability. Imagine a situation: you decided to start a forged goods business. The first question: what kind of forging to do? Hot forging requires, above all, skill and skill. And this takes time. Therefore, having really looked at things, we first turn to cold forging and start creating a business step by step. Sales market and competitionAny production is consumer-oriented. Therefore, first you need to study the demand for forged products in your area. Are there cottage settlements nearby, individual construction, are orders from the municipality possible? Get to know competitors, real and possible. These are not only business colleagues, but the production of this direction, which is located nearby. Blacksmith shops, which are now being opened by large metallurgical enterprises; imported forged Turkish products, which are very cheap compared to custom-made ones made in a small workshop; products from Europe, which are more expensive than Turkish ones, but also in demand. Even a funeral agency with its own small workshop producing monuments and fences will also compete.
We start production of productsExists standard product list which all blacksmiths start with:
Over time, you can switch to the production of exclusive products. This requires experience and individual orders. For example:
Video: do-it-yourself metal forging as an art
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