Fire Safety Encyclopedia

Business plan for furniture production with financial calculations. Own business: opening a furniture store Business plan cabinet furniture order

Dmitry Kuprienko, an experienced entrepreneur in the field of furniture production, shares practical advice on how to start and organize a business in the production of furniture, what you need to organize your first workshop, how to get up from scratch and where to start in this business.

Many companies that started their business with the manufacture of cabinet furniture in small workshops several years ago have become quite successful and have expanded their business. Today, some of these organizations, in addition to the production of kitchens, wardrobes and other interior items, provide the population with a number of other services. Usually it is sawing laminated chipboard and making facades from MDF according to customers' sizes, pasting the ends of PVC parts and melamine edging, assembling doors from aluminum profiles and selling furniture fittings with accessories.

With some experience and initial knowledge in this area, you can organize your own small business, which has every chance of success. Moreover, you will not need any serious capital investments and the presence of large production areas at the initial stage. With a skillful approach, rational use of earned money and a certain amount of luck, you can literally have a decent income in 1-2 years.

How to start a furniture manufacturing business?

Dmitry Kuprienko(author of the material) - for more than ten years engaged in the production of custom-made cabinet furniture:

"The presence of a huge number of players in this market segment should not stop you. In any business, as elsewhere, the evolutionary process never stops - someone goes bankrupt, and a more agile entrepreneur takes his place."
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Since, as already noted, starting a small business for the production of cabinet furniture does not imply large cash costs, there can be no talk of any expensive advertising campaigns and other promotions. Finding your clients can be much easier and cheaper. It is enough to order business cards and distribute them to everyone you can, or publish a few ads in special newspapers.

Also try to negotiate cooperation with small hardware stores, since the chances of finding a customer in such a place are quite high. Renovators often plan to purchase new furniture as well. If you can convince the owners of these outlets that they will benefit from a certain percentage of your orders, then customers will soon appear.

In addition to traditional methods, you need to start preparing your website or blog, since every year more and more orders, especially in large and medium-sized cities, are received by masters via the Internet. Of course, promoting such your own virtual store will require financial and material costs from you, but not everything is done at once. Gradually developing the main production, at the same time, be engaged in the development of an Internet resource, which, with a successful coincidence of circumstances, will provide you with many orders - the dream of all entrepreneurs without exception.

How to choose the right supplier of materials?

Sufficiently high competition in this sector forces firms providing this kind of services to pursue approximately the same policy in relation to finance. Therefore, choosing an organization based only on prices would be fundamentally wrong. Some may sell some products cheaper than competitors, while others - more expensive, as a result, the average cost of components for furniture production will be approximately the same everywhere. Naturally, we are talking about the same level of quality, since materials and accessories from different manufacturers have different prices.

The maximum possible range of goods and services offered by the organization to its customers. In such a place, you should be able to buy almost everything you need, without spending extra time and money on trips to other stores for some little thing. Moreover, it is highly desirable that the components are sold in different price categories, since customers have different income levels, and not everyone will be able to pay for expensive elite materials, and some only need such materials. Therefore, you must have the freedom of choice in one place.

The timing of the execution of your orders and the discounts that are provided to regular customers are no less important. Duplicate information received from company employees with experienced clients. It is from them that you can learn important nuances.

The location of the organization plays a significant role; it is better to start working with a company that is located as close as possible to your workshop. Voyages across the city, with the current traffic congestion in the daytime, take up a lot of precious time.

The territory should have convenient entrances to the workshops and properly equipped areas for loading parts into your vehicles. It's good when in such places there are sheds that guarantee the safety of parts in any bad weather.

Search for premises and purchase of equipment

For the manufacture of cabinet furniture at the initial stage, you will need a room with an area of ​​about 20-25 square meters, it will be good if it turns out to be one large room. Please note that there will be a small warehouse here for both recently delivered blanks and finished products. In the same room, you will need to drill and process parts, as well as assemble furniture, so it is not recommended to choose a room less than 20 squares.

In addition, pay attention to the possibility of maintaining the temperature in it at the level of 10-15 degrees in the autumn-winter period. Calculate immediately how much it will cost you. Sometimes cheap rentals are completely offset by expensive heating. There was no need to remind that the room should be dry at all, since this is one of the main conditions, and neglecting it, you risk a lot.

It is also important to be confident in the safety of all property, because over time, if the business develops successfully, the workshop may simultaneously contain components and equipment worth several thousand dollars. Do not forget here about ensuring convenient loading of finished furniture and unloading of the brought parts with fittings.

When buying equipment, many cannot decide on the class of handheld power tools. Opinions on this matter are very opposite: some prefer to purchase inexpensive goods and change as needed, others work only with expensive products of world famous brands.

There is also a tool located in the middle price range, so it is probably worth stopping your choice on it at the very beginning. In addition to production needs, it is always useful for other things. In order for you not to have any problems during the execution of orders, you must have in your arsenal:

  • Electric drill - 2000 rubles;
  • Cordless screwdriver - 2500 rubles;
  • Mains-powered screwdriver - 2,000 rubles;
  • Jigsaw - 2200 rubles;
  • Manual milling cutter - 2500 rubles;
  • Grinding machine - 2500 rubles;
  • Electric end saw - 7,000 rubles;
  • Industrial hair dryer - 1600 rubles;
  • Perforator - 2200 rubles.
  • A set of cutting tools: drills, cutters, knives and crowns - 3000 rubles;
  • A standard set of hand tools for a home craftsman - 1000 rubles;
  • Clamps - 1000 rubles;
  • Miter box - 800 rubles.

Over time, having gained more experience and accumulated money for the development of production, you will acquire more sophisticated equipment that provides a higher level of production. In the meantime, it is quite possible to do with what is listed in this section, since this is quite enough to produce cabinet furniture from ready-made parts. Your costs when purchasing the mentioned instrument will amount to about 30 thousand rubles, and prices may deviate in both directions by about 20%.

Software

No, we are not talking about expensive CNC machines, but just two programs that can significantly facilitate your work at the stages of furniture design and when ordering cutting laminated chipboard. One way or another, but you will have to do it anyway, until well-going business allows you to hire an employee for this purpose. Without the use of software, this whole process will take a lot of time and effort, and errors in calculations are also possible. Therefore, you should pay attention to very simple and useful programs:

PRO 100- a program created for the design, as well as the construction of furniture. With its help, you can easily carry out both the visualization of the object and the calculation of the parts required for assembly. Today there are several versions of PRO 100, as the program is constantly being improved. The latest development allows you to create fairly realistic 3D images.

Cutting- a program, the purpose of which is to assist in drawing up the optimal option for cutting sheets of laminated chipboard and MDF. Using it, you will quickly find out how much material is needed to make a particular product, and you will also be able to minimize unnecessary waste. Cutting saves both time and money.

Besides, it is advisable to have a laptop. Your future work is associated with frequent visits to homes, offices and other objects where measurements will be made. Almost all clients in this case are childishly impatient, they want to immediately see how their furniture looks. With a laptop and PRO 100, you can render in 45-70 minutes. By the way, this greatly increases your chances of getting an order.

Prospects for the development of the furniture business

Following our recommendations and putting aside some of the money you earned for business development, you will be able to reach a new quality level within 2-3 years. In the process of fulfilling orders, acquaintances are made with construction teams, since repairmen and furniture makers, in fact, are inseparable. Connections such as the Internet project will allow you to increase the number of clients and increase your income.

An important factor that guarantees success of undertakings, is the constant expansion of the production base both in terms of increasing areas and purchasing new equipment.

From the first days of work, you will dream of panel saw and edge banding machines... They provide independence, quick on-site fixes and cost savings.

But you can't rush to buy them, many craftsmen, turning ahead of time to the bank or to individuals for a loan to purchase them, incorrectly assessed their capabilities and subsequently suffered losses. Therefore, it is better to make such serious purchases for your own money or borrow a small amount.

Expensive machines only justify themselves with the appropriate amount of material to be processed, only then are they effective.

Their cost is approximately:

  • Panel saw (made in China) - about 200,000 rubles.
  • Curved edge banding machine (made in Russia, China) - about 50,000 rubles.

There is equipment that is both slightly cheaper and much more expensive than the quoted prices. But even familiarization with the average cost of machines, which are usually purchased for small workshops, is enough to avoid making impulsive decisions. Without a carefully calibrated business plan, which is confirmed by an increase in the number of orders, it is not worth starting this event. The delay in such a purchase can be just as undesirable for effective development. You will simply be wasting money and time.

Making furniture has always been considered a promising occupation, especially in our country, since a huge percentage of the population still uses old headsets and dreams of new ones. People who bought a kitchen, wardrobe or hallway about 5-8 years ago are already starting to think about replacing them, so furniture makers will always be with work. You just need to organize it correctly.

New business idea: Production of fences and fences for private households under the FenceLego franchise "(novelty, lack of competition, great demand even in the current market conditions).

Hello friends! Today I will tell you a small but interesting story. 15 years ago I came from a small regional center to a city with a million population. In order to get a job and get on your feet.

In the same place, in order to receive a salary, it was necessary to write an application addressed to the director. Prescribe the required amount and correctly argue why you need this money. 🙂


Initiation

At that time, the furniture business was on the rise. There was a huge demand for furniture of absolutely any quality. The city had two large enterprises and many small workshops.

My older brother already worked in one of the factories. And I just received an offer for a higher-paying job. But in order to take advantage of the offer, it was necessary to find a person in his old place.

And so my place of work was determined. I lived with my aunt like Christ's in the bosom, for which I am still grateful to her. True, far from work, I had to spend 2 hours on the road.

When I received 3,000 in cash in the first week, I was simply stunned by such happiness. I was not afraid of unnecessary loads and took on additional responsibilities. Accordingly, my salary increased.

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In three years

My life has changed dramatically. I have mastered almost all the factory stages of furniture production. And when all the workers went home, I switched to another machine and worked until 8-9 hours. I liked my job, I didn’t get tired, I was interested.

At the same time, the older brother, together with his friend, opened his own production and periodically invited me to go to him for hiring. To which, after a short persuasion, I agreed and got good experience in team management.

The worst thing was that there was no order. The prepayment from the salon was taken by the one of the chiefs who was the first to have time. And I took the rap for the delay. Until lunchtime, my hand did not drop below the shoulder, I constantly had to calm customers down. I was gaining experience with people.

Money in the shop appeared only a day or two before the end of the order execution period, and at a frantic pace I managed to organize the delivery of material, sawing, assembly and installation of furniture. My nerves were stretched like strings, I was tired. This could no longer continue.

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After eight years

A bro shared the business with a friend and we started working together. We perfectly complemented each other - he is a born salesman, and I am a pedant in the production and installation of furniture. Our income has been growing.

Because my brother did not particularly like to measure correctly, and this is one of the most important stages in the production of custom-made furniture, I had to sweat a lot during installations. Before 22 hours, I did not return from the installation. Moreover, I thought that this was the result of my inexperience.

When it dawned on me that the reason was in measurements and calculations, I began to perform these operations on my own, taking into account all the nuances. And with each new order, I received the necessary skills to produce high-quality and beautiful furniture.

We survived the first crisis without any problems. The furniture makers were out of work, and we continued to work. But in 2013, sales dropped and my brother offered to fire a great employee to get me a job. And after consulting, we decided to leave the guy, and I will find myself orders myself.

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The present

I got up off my knees and stand well on my feet. I constantly analyze the furniture market, set the right goals for myself and achieve them, I get a real thrill! I never stop learning and upgrade my skills to a professional level.

At the moment, I don't think about where to get orders. My customers are queuing up to receive my product. I defeated my competitors only with my perseverance and hard work, but I do not stop there.

I understand that there is no state of stagnation in nature. Either you develop or degrade, there is no other way. I am constantly learning from leading experts in the field of interest. I have no doubt that new skills will help me reach a new level of development of my business.

I have always enjoyed teaching and helping people, the result is especially inspiring. I have already taught two guys offline how to make money on Custom Furniture. We often see each other and I see that I wasted my time. The guys work and enjoy life.

Future

That is why, I set a new goal for myself to help people who have a great desire to build a furniture business to rise from their knees. I know for sure that it is better to learn from a person who is a couple of steps above you. Because, those who have risen high no longer remember all the steps.

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With good thoughts of you, furniture expert

Dmitry Rekun.

A person who is thinking about starting his own business goes through hundreds of options for a variety of business ideas. However, not all of them are easily embodied in reality - for the implementation of some, special skills and abilities are required, for others - a large start-up capital, and still others are technically difficult to implement. There are versatile types of businesses that are suitable even for a budding entrepreneur. The furniture business belongs to this type.

The specifics of the furniture business

The secret of the uniqueness of this idea lies in the fact that you yourself define specific business tasks.

When the main activity is chosen as the production of furniture as a business, this implies work in different directions. Define them based on your capabilities, both production, technological and financial.

Provided the correct organization of the technological process and the successful sale of commercial products, the furniture business can pay off in 2-3 years. With the right combination of circumstances and the skillful management of the manufacturing company, the payback can happen much earlier.

Success secrets

Business textbooks recommend preparing a detailed business plan before starting a furniture business. It will help you correctly calculate the required amount of finance and determine the sequence of actions. The presence of such a document is required to obtain a bank loan for business development.

However, the realities of today are such that it is much easier to produce a finished product than to sell it. The furniture market in developed countries is oversaturated. Much more furniture is being manufactured than is required. It is actively exported and occupies certain niches in the furniture business in other countries. Italian-made furniture is especially popular. It occupies a leading position in terms of sales worldwide.

In countries with a transitional type of economy, which have not ensured high social standards of living for most of their population, the main issue rests on the cost of products.

Before starting a furniture manufacturing business, decide how and to whom exactly you will sell it, that is, determine the sales area. Your further actions will depend on this.

An excellent example for understanding this point of the article can be the activities of the well-known Swedish company "IKEA". Initially, it was conceived as a small business project for the production of budget furniture. The bet for the consumer audience was made on students and young families living in rented apartments. The main task is the production of high-quality, inexpensive furniture of universal design. As a result, the products are so fond of the broad masses of the population of Europe that there are many hypermarkets in almost every country in the Old World.

Starting a furniture business from scratch, with a minimum investment, find your first wholesale customer. Convince him to take some risk and trust you as an entrepreneur. On the money deposit received from him, develop the design and drawings of the necessary furniture. Try to most accurately embody the wishes of the customer. If you do not have a subtle aesthetic taste and do not know the latest trends in the field of furniture production, it is better to turn to an experienced designer.

You should not immediately invest a large amount of money in expensive equipment and rent premises for a production workshop and warehouse. At first, it is much more convenient to contact existing furniture companies. There they will quickly and efficiently cut wood-based panels according to your drawings and process the edges of the parts.

The last stage remains - assembly. If you are unsure of your technical skills and do not have the necessary tools, contact a specialist. In a few hours, a finished product, carefully and efficiently assembled, will flaunt in front of you.

If you have correctly grasped the customer's wishes regarding the style, color, configuration and dimensions of the ordered furniture and have foreseen the image that he imagined, be sure that he will immediately make the next bulk order.

At a time when your furniture business is just picking up steam, don't expect quick financial rewards. Build a client base, prove yourself, first of all, as an astute psychologist and talented organizer of the work process. Use the services of bona fide contractors and talented designers. Make useful connections in this area. Be punctual and obligatory.

Try to sign contracts for the manufacture of wholesale lots of furniture. To begin with, it would be ideal to cooperate with kindergartens, schools, shopping and exhibition centers. Educational institutions can be offered the replacement of lockers for clothes, cots, tables, desks, chairs, benches, boards. Such furniture is easy to manufacture and does not require specialized fittings. In addition, it wears out quickly enough. You can monopolize this niche of the furniture business in your locality and provide yourself with constant orders for a long time.

When making furniture, try to make it unique, put your soul into the design and decoration of the products. Get creative with the manufacturing process. Make your products unique, exclusive, extraordinary. Use different methods of wood finishing - varnishing, staining, staining, patinating, aging.

Create collections of furniture in trendy, trendy directions. Let's say the style of Provence, American and Mediterranean country, shabby chic is very popular now. Decorate your furniture with details inherent in these stylistic trends - floral painting or decoupage, carved details, stained glass fragments, decorative handles, hinges, locks. Complement the furniture with textile details - draperies, curtains behind glass sideboards, silk tassels that adorn the handles of the dresser. Revive the furniture, make it spiritual. Do not limit your production to banal stamping of primitive furniture in the form of patterned faceless wooden parallelepipeds.

Realization of finished products

The process of selling finished furniture can be carried out in several ways.

Renting a retail space in furniture hypermarkets is profitable with a small rent, a large area for displaying finished products and a large number of potential buyers.

The opening of branded boutique stores will make it possible to present your own brand in a winning light, to emphasize its elite and exclusivity. You will need a room with an area of ​​at least 100 square meters with a good repair. The presence of wide display windows is obligatory. It is advisable that your store is located in a place with high traffic of people or located along a busy road. This option of equipping a retail space will require additional costs for the security of the premises, the services of a janitor. In addition, premises on the so-called "red line" have a higher rental price compared to hypermarkets.

Furniture trade in the market and in small shops that sell a variety of household goods is good for low-price items.

You can hand over the goods for sale, sell to wholesale trading firms, form a dealer network.

Manufacturing of furniture to order is actual, based on the presented samples or according to the catalog. To do this, you will need to equip a small showcase or stand in the premises of the shopping center.

The modern way of selling is provided by the Internet. You can create a website that presents your products, tells about their uniqueness and contains a catalog with high-quality photographs of furniture from different angles.

Staff recruitment

In the process of organizing the furniture business, pay special attention to the selection of qualified and competent working personnel. These should be highly qualified specialists who can be entrusted with the implementation of certain stages of production. You will need workers in such specialties as an assembler, cabinetmaker, painter, glazier, designer, administrator.

Guided by these recommendations, you will be able to create a profitable business doing an interesting and rewarding business. The fun process of creating furniture will help you realize your creativity, build a strong competitive firm and gain a solid position in the industry.


Premises.

Staff.
Director.
Working staff.
Designer.
Sales Manager.

Marketing.
Advertising.
Types of advertising.
Sales of products.

Financial plan.
Investments.
Payback.

Production options.

Manufacturing of furniture according to customer's sizes.
Business development prospects.

Despite the fact that you will not surprise anyone with the production of furniture for a long time, the demand for this product is not falling. There is no surplus of offers on the territory of Russia, but production facilities operate in conditions of fierce competition.

Not everyone can withstand the competition, someone works for a long time and fruitfully, constantly delighting customers with new models and design solutions. Someone is unable to keep the business in a strong flow and crashes, not having time to really find their place in the market.

Starting a furniture business is a big deal. Requires mandatory legal registration, clear calculations of investments and plans for the sale of finished products. And in order for the business not to go down in history, it is imperative to observe all the points and make every effort to implement them.

When registering a business, it is best to assign it the status of an LLC. The status itself already speaks of the seriousness of intentions and will help attract investors from outside or as founders. The amount of planned investments is not small and it is unlikely that it will be possible to do without additional investments. The status of an LLC makes it possible to generate additional income through the register of additional activities and expand the business in the future.

Also, this legal status gives the prospects for participation in profitable tenders and cooperation with serious chains of furniture supermarkets, which has a positive effect on the reputation and income of the company.

Premises.

After all the design steps, it is necessary to organize the premises where the workshop will be located. The industrial area of ​​the city is best suited. The room you need is not small - about 300 m2. Hangar structures are perfect.

The problem of finding a suitable room is quite urgent, so you need to start doing this in advance. It is best to seek help from companies that specialize in exactly this. They already have ready-made proposals. They know for what purpose, which room is suitable, which technical parameters must be met and which standards must be met.

When concluding a lease, be sure to pay attention and negotiate the lease terms. You need a long-term lease agreement in order to avoid troubles with moving and re-registering the production address in the future. Sometimes premises are rented with some equipment already available there. If you have such an option, that's great.

The lease of production equipment is added to the lease - and you have less costs, and the owner has less headache, where to put it and what to do with it.

Equipment for the production of furniture.

To start production, you will need special machines. Buying them is not a problem.

Edgebanding machines are required for processing synthetic (melamine, PVC, ABS) and natural materials (veneer, paper).

The edge banding process takes place after the process of cutting the material on a format saw. Let's talk about it a little below. It is imperative that the equipment for edge banding must be selected depending on what kind of furniture you intend to make.

For a better understanding, here is a brief description of the process of the machine:
- Glue, heated to the required temperature, is applied to the surface manually or by means of an automatic module.
- The machine applies an edge to the dimensions of the workpiece. Cutting of the edge with a technological margin is possible.
- Further, with the help of the machine, the edging material is pressed against the surface to be processed.
- After the work of the machine, finishing of the applied edge is carried out - removal of excess glue, processing of the edge, grinding and polishing of lines and corners.

It is not superfluous to repeat that the configuration of the machine must be selected according to the type of furniture being manufactured.


They are produced in various formats - both for small-scale production and for batches of industrial volume. Direct purpose - cutting of furniture parts from sheet materials (plywood, chipboard, fiberboard).

In order for the work to be carried out without chips, two cutting units are used - the main one and the undercutting one. Perfectly cuts laminated material with high precision thanks to the body of the saw unit set at an angle. The presence of a scoring saw in the machine ensures absolutely clean cutting, without chips and chipping.

The machines are produced in several types, each of them has its own characteristics and special purpose. Your task is to choose from a wide range of offers exactly the one that is ideal for production. The main difference is the way the workpiece is positioned - horizontally or vertically, that is, with a cross or longitudinal cut. And one more difference is the type of the carriage. The machines are produced either with a ball or roller carriage.

Regardless of what equipment you choose, pay attention to the presence of additional tables. They are irreplaceable when cutting full sheets of material. An important point is the clamping upper beam and the upper pneumatic clamp. They provide reliable fixation of small workpieces, which is necessary in the production of exclusive design furniture with small details.


The main purpose of the equipment is a more thorough preparation of the part. The machine saws the material to the required thickness.

The workpiece is positioned flat on the work table with a pre-machined base surface. The workpiece is fed to the rotating knives automatically. Main technical characteristics:
Rated supply voltage - 220 W;
Rated power consumption of the collector motor - from 1500 W;
Rotation frequency of the planer shaft with planing knives - 8000 rpm (idle);
The average height of the workpiece processed on the machine is 15 cm, the width of the working table is from 25 to 50 cm with the corresponding workpiece width up to 45 cm.
the average speed of automatic feed of the workpiece is 8 meters per minute.
The average planing depth is 2.5 mm. Depends on the width and properties of the workpiece.

Distinguish thicknessing machines for one-sided and double-sided. One-sided ones have one knife shaft located at the top, above the work table. For double-sided, respectively, there are two cutter shafts. The second is built into the work table and performs the function of processing the lower part of the part. The working table itself is movable, with the help of it the required height is set for processing the material to the required thickness. The machines are also distinguished by the power and maximum lifting of the working table, its width and planing depth.

A fairly wide price bracket is convenient for choosing the necessary equipment depending on the buyer's budget. The price depends on the country of origin and technical parameters.
When choosing a thicknessing machine, pay attention to the safety features. The structure must be protected against overloads by a power interruption unit. If an overload occurs, the thermal relay should trip and the power supply to the machine should be interrupted.

Choose machines with quiet operation, which can be provided by a belt drive. It also protects the machine engine from overloads.

For additional safety of the work of machines, network on / off switches are often used. In addition to direct functions, they are equipped with a protective function against unauthorized activation at the time of the operator's absence.


In the production of furniture, wood or any other material goes through many technological processes, and a four-sided machine is the basic equipment for many of them.

The main function is profiling molded products, cutting boards into lamellas for furniture boards. For a furniture production workshop, a sufficiently powerful equipment with a large throughput is required. When choosing a four-sided machine, first of all, you need to pay attention to its dimensions. For example, in order to process a workpiece with a size of 40 cm, you need a milling cutter of the appropriate parameters (about 80 mm.). In order for the equipment to cope with the processing of large materials, a boost function is required. The work table must be robust and wear-tested for stable operation under constant load conditions.

The best strength is shown by machines with cast iron tables. The function of increasing the feeding and receiving tables is very convenient and often necessary. For this, the machine characteristic must indicate the presence of a manual or automatic control function. If you are planning a serious production, then your four-sided machining machine must have a high feed rate - up to 30 meters of linear machining per second.

Some manufacturers produce universal four-sided machining machines. That is, with the possibility of resizing and profiling functions. By simply moving the planer knives in the desired direction, the work function can be easily changed. Such a machine will help to significantly save money on start-up investments. But for the full-fledged work of the workshop with maximum output, you still have to pay separate attention to each process - this will increase the quantitative indicators, which is important.

To fully support the furniture manufacturing workshop, there is a fairly large number of various machine tools, but the four most important and mandatory are described above. The purchase of such a kit will cost approximately $ 40 thousand.

Staff.
The enterprise in the status of LLC has a mandatory staffing obligation.

Director.
Appointed by the meeting of founders. A candidate can be one of them, or an outsider who meets the requirements of the position held.
A full-time accountant. Person with material responsibility. He can easily perform the functions of an employee of the personnel department. Must be familiar with the articles of the Labor Code. Maintain personnel records and related reporting.

Working staff.
Operators are needed to maintain production equipment. One for each machine. Workers are also needed to assemble the furniture. This is 3 more employees. In general, for a complete staffing of the working staff, you need seven people - this is quite enough for a full-fledged process of the workshop. Workers performing assembly functions can go to the customer's home to install ready-made orders.

Designer.
Such a specialist is definitely necessary for the enterprise, but he does not have to be full-time at all. The design may well fulfill the function of "coming". Cooperation is formalized by means of a contract with a stipulation of the number of working hours per week or month and the corresponding wages. A designer can cooperate with several companies at once, have several projects and easily implement them. It will not be superfluous to prescribe in the cooperation agreement a clause not to disclose plans and the concept of the enterprise's work in order to withstand fair competition and without violating your interests.

Sales Manager.
Do not be skeptical of such necessary staff. In the early stages of starting production, an employee who will be responsible for sales is more than necessary. Try not to skimp and look for an experienced manager with a client base and a good track record. This will be of great help in promoting your business. Moreover, the manager also performs the function of an advertising medium. And you need advertising like air.
There are several algorithms for calculating wages for an employee of the sales department:
Fixed amount (rate).

As a rule, the flat rate is quite rare and is usually accompanied by the formalization of employment. Often the stake is equal to the statutory minimum wage. This option suits someone, we wish them good luck.

Rate +% of sales;
This payroll algorithm is very common among companies. It is actually very convenient for both the owner and the employee. The rate, again, is minimal and the% is small because the volume of sales per month (or the planned volume) can be very large. With such volumes, the salary is not higher than 0.5% of this amount, but mainly 0.2-0.3%. The rate, as in the previous paragraph, is the minimum or below the minimum. There are companies that offer a $ 100 bet. and add to this money% slightly higher than usual.

Rate +% of the receipt of funds for the current month;
In this case, the guaranteed payout amount may be different. Number% - no more than 1. But, pay your attention to one "BUT" - the manager earns his hard-earned% of the amount of money received in the company, that is, from the amount that the accounting department sees on the account at the end of the current month. Many newcomers are confused or, simply, do not pay attention to this condition when applying for a job. Naturally, then problems begin.

% of sales;
One of the most common algorithms. The most profitable% of sales is calculated. Depends on the amount of planned sales for the reporting period. The larger the amount, the lower the%. Furniture is an expensive commodity, so the maximum salary for a manager is 3%.

% of the receipt of money for the company for the current month.
Accrual according to the same principle as in point # 3, only without a guaranteed rate. In this case,% depends on the planned sales volume - the higher it is, the lower the%. Not the worst algorithm in the event that the manager came to an already accumulated client base, that is, there were already sales in the previous period and money for the sold product will come in the current month. This is important because the bulk of customers work with a deferred payment, especially for large retail outlets - there the deferral can reach up to 3 months.

Basically, according to this algorithm, a sales agent begins to receive a salary not earlier than the third month of work. Do not be surprised if you agreed to such an algorithm - accept it as it is, nothing can be done about it. Until the money for sales begins to flow to the company, you can offer a fixed rate, but it will be minimal or increased - this algorithm is described in paragraph 2.

% of profit;
This algorithm is probably the most difficult for the employee to perceive, but very beneficial for the owner.

The bottom line is to pay a commission of 10% of the received net profit from sales. It is important to pay attention to the fact that the profit is calculated from the price at which the products entered the commercial department, and not from the cost price.

The salary of employees is determined by the average salaries of employees of the corresponding categories and the profile of the region in which it is planned to start production.

Marketing.

Advertising.
Advertising is the most important process in the promotion of furniture production. It is important that the potential client knows about you before the finished product goes to market. There is a lot of competition in this type of business and if you want to declare yourself, you need to do it in advance.
If you are seriously thinking about fruitful and long-term work, forget about "black" and "gray" production. Develop and register your own TM with Rospatent of the Russian Federation. The registered trademark of the brand being promoted is heavily protected from counterfeiting and, in which case, you can always defend your rights.

To do this, you must submit an application and pass the similarity check of the designation. The plus from registration is obvious - the right to use the TM for 10 years (after it is successfully renewed), has a positive effect on the company's image and, accordingly, on the reputation and degree of trust on the part of a potential client. For illegal use of your TM brand, you can demand compensation for material damage through the court.

If you do not have time to do this, there are companies that will take on all administrative duties for a fee and register the TK as soon as possible. The cost of such services is about $ 500.

After entering the TM in the general register of the State Patent, immediately start advertising the company and its products.

The very first thing to do is to clearly define the market segment and clearly imagine who will be your customers. Who do you want to see in your customer base.
An advertising company is an expensive business, but it makes no sense to save money on it. It is necessary to direct it as accurately as possible to the segment that you identified as potential in the first place.

In order for advertising to be of high quality and to work correctly, it is imperative to study the market and your competitors. Carefully analyze the pros and cons of their work and products. Analyze the pros and cons of your production. Why is this necessary?
First of all, such an analysis will allow you to clearly define the benefits that you will use in the development of advertising campaigns. It can be high-quality materials, natural wood of valuable species, good-quality fittings, qualified staff, the latest equipment and production technologies. Be sure to point out the work of the designer in the development. Often this very fact is able to quickly and permanently form a client base. There are many connoisseurs of design work among potential clients. Moreover, who, if not a designer, constantly monitors the latest global trends in the furniture industry.

In addition to the "black" and "gray" manufacturers, your competitors are Chinese manufacturers of furniture and components. This is another serious niche in the furniture industry and occupies a significant place in the market. You shouldn't underestimate and ignore such a competitor.

Companies representing a Chinese manufacturer are distinguished by fairly cheap offers, but not always high quality. In your advertising campaigns aimed at similar customers, you can use the advantages in form, quality, the possibility of an individual order according to the sizes specified by the customer.

What are the options:
Manufacture of cabinet furniture;
Children's furniture;
Soft furniture;
Office furniture;
Bathroom furniture;

With any variant of the direction of production, advertising should meet the needs of a potential client as much as possible and attract his attention.

Types of advertising.
In the first place in terms of the percentage of memorability is advertising on billboards. It is expensive, but at the beginning of the production path, business definitely needs it. Place information about yourself in several places, or at least one, but the most effective one. Advertisers own the intricacies of placements. Don't be afraid to trust them. It is in their best interest to make your advertising effective.

The next step in promoting your business should be creating a company website or professional ledding. This is a prerequisite. As Bill Gates said: "If your business is not on the Internet, then it is not at all."

Actively promote the site and ledding on the network - this will add enough clients to the company.
It costs about $ 500 to create a good website. Create an accessible interface and make it understandable even for inexperienced users. Without fail, the site must contain information about the company, its data, contacts. Create a colorful eye-catching catalog and order button. Describe all the advantages of the offers and customers will not be long in coming. Create a wide variety of forms of payment.

Use printing services. Colorful booklets, flyers, business cards. These are the must-have advertising attributes for starting any business.

You can post information about the new company in the media. It is better if these are specialized publications. Don't skimp on the best spots - this is the first and last spread of the magazine. It is expensive, but justified by the result.

Build a beautiful catalog. It will be useful for the manager and in several other sales options.

Sales of products.

As mentioned above, the sales manager will be in charge of product marketing. It can be one or several. But the owner must be directly involved in developing the action plan.

You've already implemented ads that attract a potential customer to you. You can, of course, stop there and fulfill the orders that come to you from these sources.
But if possible, do not miss the opportunity to increase sales.

One of the best options is opening your own store. Better yet, a small network. If the production is located in a metropolis, then several districts of the city can be used for the functioning of stores. If the production workshop is located in the region, the regional center is perfect. It can be a very small room with an area of ​​20 square meters. You can place several types of products there and work according to the catalog.

Cooperation with furniture supermarkets can be called a very profitable type of sales. This option is ideal for young companies. Because supermarkets fully ensure the work of the shop according to the entire price list provided by the production.

Undoubtedly, such cooperation has not only pluses, but also minuses. The main disadvantage is the clause in the agreement on the exclusive rights to be represented in the regions where the supermarkets are located. That is, you will not be able to sell your products in parallel with them. The second negative is the price. All chains try to bargain for the lowest prices from the supplier and, by the way, they are not bad at it.
In principle, if you cooperate with them on the basis of exclusive sales, then this is not a big deal. They will not be a competitor for you in terms of territory. And in the price list, you can enter any price that you agree. A significant disadvantage of cooperation with networks is the payment by installments. This is a prerequisite for cooperation. If it is unacceptable for you - refuse and do not offer yourself as a supplier at all. The installment plan in different networks sometimes reaches six months. But mostly three months.
Despite the disadvantages of working with such networks, they are justified by the big advantages. A serious and undeniable positive point is its wide representation in many regions. As a rule, the chains are very developed or rapidly developing and open their stores wherever possible.

Another important positive point is advertising through representation. Super- and hypermarket chains publish their catalogs of seasonal offers. The catalogs are distributed free of charge. Thousands of potential customers will know about you. Another plus of cooperation can be viewed from the logistics side. Customer demand will keep your production on track. You will always be aware of new trends and bring new ideas to technology and design solutions.

Dealers.

These are the companies that will sell your products in their regions. This is a great way to promote and reach the widest possible area. The dealer search process is similar to general sales. It is imperative to draw up a beautiful commercial offer that is accessible for viewing. Describe the advantages, offered terms of cooperation and send it to all specialized companies. A sales manager can do a great job with this.

The two methods described above are possible only if the status of your company is not lower than LLC. Because the status speaks about the seriousness of your intentions. Rarely when dealers agree to cooperate with companies with a lower status. In this case, there is no need to talk about networks. They do not even consider such proposals.

Tenders.

Regardless of what kind of furniture you make, there will always be customers who are potentially interested in your products. For example, if the production operates in a resort area, these are sanatoriums, recreation centers.

If you are simultaneously producing a line of children's furniture, these are kindergartens, various kinds of children's institutions that need constant furniture renewal. Do not be afraid to declare yourself, participate in tenders. There are sites that specialize in collecting complete information about all commercial tenders held separately for each region. Subscribe to the newsletter of such a site, connect industry and regional settings and you will constantly receive all the information regarding this issue by e-mail. The information is constantly updated.

You will always be aware of the current events in this direction. The newsletter is absolutely free.

You can unsubscribe from her at any time if she is not needed. Of course, it's up to you to make the decision, but you shouldn't give up such opportunities. Again, the status of LLC will be able to significantly help you with this. In addition, if you have a need for high-quality consumables for production, you can place your tender. Conditions for participation and placement of tenders in the public domain. Don't miss any opportunity to make your business even more profitable.

Financial plan.

Investments.

It's time to carefully calculate the required investment.
Registration of LLC ________________________________________ 110 $;
Registration of TM in Rospatent ______________________________ $ 500;
Premises rental _______________________________________ 1000 $ / month;
Purchase of equipment ____________________________________ $ 40,000
Consumables ____________________________________ $ 40,000;
Advertising ________________________________________________ $ 10,000;
Office equipment ______________________________________________ 1000 $;
Taxes, salary _________________________________________ 30% of profit;
Total at the start ___________________________________________ $ 100,000.
The total investment in the launch of a production workshop is about $ 100,000.

Payback.

The payback time of such an enterprise directly depends on the profit that you will receive as a result of the sale of finished products.

Even if we assume that the difference between the cost and the price of finished products is 100%, it will take more than one month and year to recoup the investment. At least three months will pass for the production of the first batch of furniture, starting from the development and ending with the date of receipt of funds from the sale.
Summing up the monthly expenses and minus them from the profit received, it is clear that for the payback of only consumables, at least two full-fledged sales of all products made from the entire batch of consumables will be needed.

Ideally, with a full workload of the workshop and full-fledged sale of finished products, taking into account the installment plan of payment for the supplied products to the buyer, it will take at least 8 months to recoup the consumables. And besides this amount, there is still the remaining $ 60,000 of invested money. If $ 40,000 was paid off in 8 months, then the rest will be paid back in proportion to 2 more years.

It can be concluded that the full payback of the invested $ 100,000 will occur no earlier than in 2.8 years or 32 months.

Production options.
There are several options for the production of furniture at your disposal, and each of them is worthy of attention.

A very common type of business in the Russian Federation and not only. This includes the manufacture of dressing rooms, wardrobes, wardrobes (a type that is very popular for its characteristics), children's rooms, hallways, etc.
The equipment used is already described above. Therefore, it is not worth dwelling on this point separately. You can supplement this list with an ultra-modern line of serigraphy. The equipment is designed for drawing pictures on PVC films. It is used as a decoration in the manufacture of wardrobes, furniture for the kitchen, hallways, pedestals and many others.

Materials - laminated chipboard (laminated chipboard), covered with a decorative protective layer. It is used in the manufacture of furniture facades and hulls.
PVC edging - PVC-based finishing edging. The material has increased wear resistance, bears a protective function of the ends of parts made of chipboard from various kinds of damage. Perfectly blocks the ingress of moisture on the exposed material during operation.

PVC film - a film based on polyvinyl chloride. They are used for vacuum membrane pressing on facades. Advantages - heat resistance, withstands everyday scratches well, retains the original color well (does not fade). There are film materials with the provided antibacterial and antifungal treatment.

MDF is a specialized ecological material made of fine dried wood fibers. Processed with binders. It has a fine-dispersed structure along the entire section and is easy to machine, shape milling and various types of finishing.

The production process is in many ways similar to the manufacture of cabinet furniture. That is, children's furniture is also mainly cabinet furniture. The same equipment and many similar materials are used.
A feature of furniture for children should be the use in the production of natural materials. You can use solid wood, MDF, veneer, chipboard or tamburat. Metal, glass or plastic - from these materials you can also often find furniture for children. Without a doubt, the most suitable material for such furniture is solid wood. It is natural, environmentally friendly, durable. Wood is very difficult to process, so products made from it are quite expensive, but it allows you to make the most real masterpieces of designer fantasy.

Children are subject to rapid growth. Therefore, the production of children's furniture is often profitable due to the increased demand for it due to frequent replacement. If you manage to secure even a few clients, this can be a good start for the further development of children's furniture lines.

It is also worth adding that materials should be used that are easily amenable to hygienic processing of the finished product. The reasons are clear - the child's health is the top priority!

This is a separate category of furniture. The peculiarities of such production lie in the widest range of finishing materials and design possibilities. Sofas and sofas, poufs and ottomans. A wide variety of chairs. In such a production, design skills will be able to manifest themselves in all their diversity.

According to GOST, the definition of "upholstered" furniture includes structural elements with flooring materials with a thickness of at least 20 mm.
base materials - boxes, boards and frames made of wood, plywood and fiberboard. The main element that makes the product soft are the springs. The springs "snake", bands made of rubber and rubber fabrics, bands twisted from rubber threads in cotton wrapping are used.

If the production of expensive upholstered furniture is planned, then for the frame there is an elastic timber made of wood. If not, then there is no need to invent a bicycle - such materials as plywood and chipboard are perfect. They are cheaper and easier to process. They are durable enough and no complaints about low quality were noticed.

Foam rubber or polyurethane foam is used to create soft elements. What exactly to use is up to you. They differ in production technology and density.
The upholstery uses both woven materials (natural and artificial fibers) and leather, leatherette. For the production of inexpensive upholstered furniture, it is impractical to use leather as upholstery. Use fabric - it is cheaper, more practical and easier to process.

Nothing new can be added to the production moments. The process almost completely duplicates the described item "cabinet furniture".

The only thing that you can pay attention to is the simplicity of the manufacturing process. It's not easier. Decor elements are almost completely absent. Strict appearance. Classic colors of materials, a high level of comfort and practicality - these are the main criteria for office furniture.

Only high-quality materials should be used in the manufacture. Mainly used chipboard, MDF, decorative plastic, glass and some others. But the use of metal is unacceptable. In conditions of high humidity, it will quickly begin to rust, regardless of any processing and preparation. The use of wood is also not desirable - it practically does not tolerate constant temperature fluctuations and high humidity in the room.

In such conditions, wooden furniture quickly exfoliates and warps. In MDF and chipboard, special coatings are used, which guarantee long-term operation. With the help of MDF, you can make furniture of almost any shape. This can even be called an advantage, because such furniture, in comparison with office furniture, is more suitable for design and experimentation.

Another material that is used on a daily basis in the manufacture of bathroom furniture is plastic. He's not expensive. Likewise, it is convenient to reproduce various forms. But its difference from the MFD in a wide color gamut makes it a favorite both in production and in operation.
There are also some fashion trends in furniture design, especially when it comes to glass products. This is arttoning and sandblasting. All this is done using special equipment. For tinting glass elements, a vinyl tint film is used.

Sandblasting patterns are applied to the glass using a stencil. Most often, the material for the stencil is used orakl. For the application of such decorative elements, sandblasting machines are used. You can apply drawings not only to glass, but also to mirrors and any other glass surface. There are entire catalogs of drawings for sandblasting on the Internet for free access. There are so many of them that you can draw new ideas from there and not be afraid to be not original.

Such furniture is also for the most part related to cabinet furniture. But production is easier due to the fact that the needs of a summer residence differ from a full-fledged residential building in their simplicity. Basically, various tables, chairs, shelves are produced. Sliding walls, built-in and external, are very popular.

Popular due to their practicality in use. Easy to install from a niche. At the peak of popularity, such models in which you can mount a sleeping bed. For a day, it folds, becomes almost invisible and frees up a lot of space for household chores. And there are quite a few such examples. In principle, such a business will always be relevant, but it may alert its seasonality.

Manufacturing of furniture according to customer's sizes.

As an additional service and increasing the interest of a potential client, the company needs such a service as the manufacture of furniture according to the size of the customer. A very relevant service for the simple reason that residential and commercial construction has long gone from the standards of planning, sizes and shapes of premises. If you want more interest from customers, be sure to include this service in the general register of offers.

Business development prospects.

In the future, when you fully recoup your investment, you can think about expanding your business. What could it be? For example, you can set up the production of consumables and furniture fittings (hinges, screws, screws, nails, handles, films, laminate and everything else that production cannot do without. Of course, these are additional investments, but they will significantly reduce the cost of furniture. will directly proportionally increase the income and profit of the enterprise.

We wish you success and prosperity in this challenging but creative business!





* Calculations are based on average data for Russia

1,132,000 rubles

Minimum start-up 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 wood furniture products in a city with a population of 500-800 thousand people.

To implement the business idea of ​​the furniture manufacturing enterprise, production premises are rented in the industrial area of ​​the city. The total area of ​​the premises is 350 m2, where the production workshops and the 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.

The main advantages of the furniture manufacturing business:

    relatively small amount of capital investment;

    manufactured furniture is a general consumer product, which provides a wide target audience;

    the profitability of a furniture manufacturing business can be as high as 300%.

The initial investment in furniture production is 1,132,000 rubles. Investment costs are directed to the renovation of the premises, the purchase of equipment, the arrangement of the office, the initial purchase of raw materials and the formation of working capital. Own funds will be used to implement the project.

The financial calculations cover a three-year period of the furniture production project. It is planned that after this period, the institution will need to expand its production and range of products.

The net monthly profit of the furniture production project upon reaching the planned sales volume will amount to 519,560 rubles. The 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 work. Integral indicators of the project's effectiveness are presented in Table 1.

Table 1. Key performance indicators of the projectfor the production of furniture

Profitability of furniture production

The active growth in housing construction and the number of purchase and sale transactions in the residential real estate market resulted in an increase in demand for furniture. Buying a new home is always associated with the need to buy 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 in 2014, followed by a decrease in both indicators, 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 is increasing. The sharp drop in volumes in 2015 was due to two trends at once: first, a decrease in effective demand; and secondly, by a sharp fluctuation in the exchange rate, which contributed to the ousting of foreign suppliers from the market.

As of 2014, the share of furniture from abroad was about 65% of the total sales. At the end of 2015 alone, furniture imports decreased by 45.8%. According to the estimates of the 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 up prospects for business development in this segment.

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For example, at the end of 2016, the real volume of the furniture production market 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% - this is 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 due to the optimization of companies' costs in difficult times. The second trend is based on the fact that bedroom furniture is the least necessary in home furnishings. The least effect of the crisis is observed in the segment of furniture for kitchens and living rooms, as well as upholstered furniture. Consequently, the most promising segment of the furniture market is the economy class, which even in a crisis feels more confident.

The furniture market is one of the least consolidated retail segments. The top 10 furniture retailers account for 1/3 of the entire market, and the growth rates of the leaders' revenue in 2015 exceeded the growth of the market as a whole. The constant leader in the Russian furniture market is the IKEA company, which occupies 22% of the entire market. The annual growth rate of revenue 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 a high level of 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 noted in the Central and Volga federal districts - about ¼ of the total number of manufacturers are concentrated there. In the rest of the regions, the volume of retail sales 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 800 thousand people, various large retailers are represented, and it is very difficult to compete with them. 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, one in five residents ordered furniture from an online store. In the first half of 2016, online sales grew by almost 47% and reached 974 million rubles, 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 selling function. Every year, the popularity of online furniture stores is increasing, as this allows sellers to reduce the cost of renting large trading floors and reduce the price, and online shopping is a more convenient option for buyers.

Ready-made ideas for your business

By combining the trends of the Russian furniture production market, it is possible to 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 in a few years will reach 75-80%. The key task of such manufacturers is to occupy their niche in the market. For example, manufacturers of wicker furniture 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 increasing - the exclusivity of the offer and the variability of production are important parameters when the consumer chooses furniture. 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 correspond to the design project.

The most rational way out of the situation is the production of custom-made furniture, which is carried out by small furniture workshops. This market segment is represented mainly in the middle and expensive segment, while the economy class is practically free.
The simplest option for organizing furniture production is to open a furniture shop.

The advantages of this format of furniture production:

  • does not require large investment costs;
  • large premises are not needed to locate production facilities;
  • savings on equipment;
  • small price of finished products;
  • production flexibility.
The disadvantages of furniture manufacturing include:
  • innovation and imagination are the basis for business success;
  • handmade furniture is time consuming;
  • independent search for clients.
This format fits into the image of a modern furniture manufacturer. The implementation of this project involves the opening of a furniture shop.

Despite the obvious problems in the industry and fluctuations in demand for furniture products, this segment remains attractive to investors. The advantages of the furniture business include:

  • relatively small investment in furniture production;
  • promising direction, interest in which will never disappear;
  • furniture is a general consumer product that provides a wide target audience;
  • business profitability can reach 300%.
The main disadvantage of the furniture manufacturing business is the fierce competition in the market. However, with a competent construction of production, you can occupy your own niche, in which competition will be minimal.

Thus, the prospects for furniture production, forecasts of growth in demand for this type of product and the advantages of furniture production allow us to speak about the investment attractiveness of such a business.

Determining the assortment 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 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 enterprise are favorably distinguished on the market by the following indicators: low prices, custom-made work, a wide selection of equipment and upholstery, colors and materials of products, the possibility of online shopping.

The products intended for production are:

    Dining table, made of solid pine, painted with imitation of aging, dimensions: 110 * 70cm, tabletop thickness 4 cm;

    Chair, made of solid pine, painted with imitation of aging, 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 polyurethane foam, niche for linen. Additional design (carriage coupler, upholstery and color options, various models - 3-seater, 2-seater, corner, with and without folding mechanism)

    Armchair, the frame is made of laminated chipboard, plywood, coniferous beams; 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 brace, upholstery and color options).

Table 2 shows the competitors' prices for similar products on the market and the projected selling price.

Table 2. Comparison of prices for the products of CJSC "Dion" and similar goods


In addition to the production of furniture, the workshop provides for a furniture hauling service. The cost of the service is 1000 rubles for 1 meter of fabric work.

Marketing and sales of a furniture manufacturing enterprise

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 of a furniture manufacturing enterprise is quite extensive, therefore, in order to develop an effective marketing strategy, it is necessary to divide the target group into subgroups of consumers:

    Successful clients are consumers of furniture in the middle price segment. The main criteria when choosing furniture: uniqueness of the offer, high-quality materials, production of furniture according to sketches to order, the possibility of delivery and assembly of furniture;

    Low-income customers occupy the largest share of consumers. The main criteria when choosing furniture: price / quality ratio, custom-made furniture in the budget category, the provision of furniture hauling services.

The goal of the furniture manufacturing company is to satisfy the needs of all customer groups. At the stage of formation of a furniture company, the prospective consumers will be active Internet users - the audience attracted to the company's website by various marketing tools.

Ready-made ideas for your business

Since the workshop for the production of furniture focuses specifically on online sales, the main way of advertising is to create your own website, profiles on 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 times, examples of work and current discounts. The development of a full-fledged website with the necessary functionality will be about 50,000 rubles.

A more budgetary option is to create social media profiles and promote them. In addition to the assortment of products in the profile, you can post photos and customer reviews, a list of services provided by a furniture workshop, useful information about various materials, information about furniture care, design solutions that fit your products, information about promotions and bonuses.

Also, for a furniture manufacturing business, 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 the services and portfolio of a furniture company in hardware stores. The cost of such placement depends on the conditions of the hardware store and is negotiated individually. You can offer cooperation to a hardware store and a joint promotion, which implies the issuance of discount coupons in a furniture workshop with a fixed purchase amount. It is planned to spend 10,000 rubles on this method of advertising.

Ready-made ideas for your business

Also, an effective option for promoting a furniture manufacturing 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 showrooms. 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 all kinds of exhibitions and fairs, distribution of advertising materials, the availability of additional services and after-sales services: free shipping, assembly, one-year warranty for repair or replacement of the product in case of defects, etc.

One of the main tasks of marketing is the formation of public opinion and loyalty of consumers to the company. 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, to take into account the requirements of consumers for products.

The use of this or that tool depends on the target audience of the institution and the project budget.

    Creation and active promotion of a profile on VKontakte and Instagram social networks. 10,000 rubles should be allocated to promote your profile on social networks;

    Creation of a personal website with a portfolio, price list, contacts and an order calculator function. The costs will be 30,000 rubles;

    Participation in furniture exhibitions and fairs.

Thus, 50,000 rubles are allocated 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 products of a furniture workshop. Average order value may vary depending on order details.

It is planned to receive a corporate order for the manufacture of furniture. Therefore, you should 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 workshop salesfor the production of furnitureby product type


Thus, the planned amount of revenue for the first year of the workshop will be on average 19,068,700 rubles.

Furniture production plan

The opening of a workshop for the production of furniture and the organization of production involves the following stages:

1) Selection of premises for production. Since it is planned to open a full-cycle furniture production, the area of ​​the premises must accommodate large-sized equipment. This will require a room with a total area of ​​300-350 m2, which will accommodate:

    production workshop - the place where woodworking machines and other equipment are located

    assembly shop - a place where furniture is assembled from pre-fabricated parts;

    paint shop - a room for paint and varnish works;

    dryer - a place for storing and preparing raw materials before production;

    warehouse for finished products and warehouse for raw materials;

    production staff room;

    bathroom with shower;

    administrative staff premises, office premises.

In addition to the area for the production of furniture, 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 locate the production on the ground floor. Separate entrances are made for the shop and sales office;

    three-phase electricity 380 W, since some equipment requires high power to operate;

    availability of water supply, ventilation, fire safety systems, convenient access to the building, availability of a platform for unloading raw materials;

    lack of dampness 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 leased. 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:

    planing machine - 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 - 80,000 rubles

    painting equipment - 130,000 rubles;

    panel saw with manual feed of materials - 140,000;

    screwdriver and hammer drill - 15,000 rubles;

    other auxiliary equipment and tools - 50,000 rubles.

Thus, the total cost of equipment for the production of furniture will be about 825,000 rubles. With all this equipment, expect a simultaneous monthly production of 400 pieces of furniture.

3) Furniture production technology and organization of supply. Furniture production technology includes the following main stages:

    preparation of a product project;

    work on material cutting and parts manufacturing;

    material processing works;

    assembly of finished furniture.

For full-cycle furniture manufacturing enterprises, edged solid boards are the main raw materials. At the first stage of production, they are transformed into panels and after that furniture parts are made. The most popular types of wood are: oak, birch, larch, pine. The most budgetary option for the array is pine. It is this material that will be predominantly used in production. So chipboard and MDF boards are required.

To organize the production of furniture, suppliers of wood, paints, coatings, adhesives, accessories, fabrics, etc. will be required. The main requirements for suppliers are a well-known, proven company, the availability of all the necessary certificates, the possibility of delivery. It is preferable to cooperate on a long-term basis with companies that conduct quality control, provide bulk discounts and the possibility of deferred payment.

4) Staff recruitment. Furniture production requires certain professional knowledge and skills, therefore, before starting production, it is necessary to select qualified employees. The main requirement for personnel is experience in working with specialized equipment. The staff must include: workshop specialists - 3 people, a production foreman with material responsibility for raw materials and equipment, a sales manager, a designer-technologist, a forwarding driver, a manager, an accountant.

5) Service form. 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 hands it over to the designer-technologist, who helps the client to determine the design of the product, materials and develops an individual project.

    cost calculation, ordering: after agreeing on the project with the customer, the designer-technologist calculates the cost of the work. After that, the manager coordinates 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 deadline for the execution of the order is indicated 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 for orders over 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 the registration of the business with government agencies. To conduct business, an individual entrepreneur is registered with a simplified taxation system (15% “income minus expenses”). Activities according to OKVED-2:

09/31/2 - Manufacturing of other furniture and individual furniture parts, not included in other groups, according to the individual order of the population;

47.59 - Retail trade in furniture, lighting fixtures and other household products in specialized stores;

47.91.2 - Retail trade carried out directly using the information and communication network Internet;

31.01 - Manufacture of furniture for offices and trade enterprises;

31.02 - Manufacture of kitchen furniture.

A license to carry out these types of activities is not required, however, it recommends certification of all manufactured furniture to confirm the quality of the products. This requires compliance with 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. Determination of sustainability ";

GOST 19194-73 “Furniture. Method for determining the strength of fastening of furniture stool legs ";

GOST 13715-78 “Joinery Plates. Technical conditions ";

GOST R 54208-2010 “Protective and decorative coatings on furniture made of wood and wood materials. Classification and designations ".

GOST 30255-95. Furniture, wood and polymer materials.

The furniture shop is open from 8:00 to 17:00 (Mon-Fri). The sales office is open from 9:00 to 19:00 (Mon-Sun). Based on this, the staffing table is formed.

Table 4. Staffing table and payroll

Position

Salary, rub .

Number, people

Administrative

Supervisor

Accountant

Industrial

Shop specialist

Production Master

Designer-technologist

Trade

Manager

Auxiliary

Forwarding driver

Cleaning lady (part-time)

Total:

210 000.00 ₽

Social Security contributions:

63 000.00 ₽

Total with deductions:

273 000.00 ₽


Specialists of the workshop - they 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, accepts materials and draws up the appropriate documentation, is a materially responsible person, monitors the observance of safety measures at work, carries out stage-by-stage control over the manufacture of products. Education - higher, experience in this area - 5 years.

Manager - implements the marketing policy of the enterprise, negotiates with potential customers, places orders and accepts payment, is a financially responsible person, deals with advertising and product promotion, is responsible for filling the site and profiles on social networks. Higher education.

Designer-technologist - develops models and designs of furniture, carries out author's control over the conformity of the manufactured furniture to the developed models. Higher education.

Accountant - is a materially responsible person, maintains all financial documentation, maintains accounting records, monitors compliance with the law when spending money and material resources. Higher education, experience in this field - 3 years.

Forwarding driver - carries out the timely delivery of the order to customers. Requirements: own car, work experience from 1 year, driving license of category B, C.

The manager is a materially responsible person, represents the interests of the enterprise, concludes contracts for economic activities, issues orders and orders, recruits and dismisses employees, selects suppliers and searches for sales channels. Education - higher, experience in this area - 3 years.

Cleaning lady - cleans the sales office.

Financial plan for the production of furniture

The financial plan takes into account all the 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 range of products.

To launch a project, you need to calculate the amount of investment. To do this, you need to decide on the costs of repairing the office space, purchasing equipment, the initial purchase of raw materials and the formation of working capital, due to which losses of the initial periods will be covered. The specificity of running a furniture business is the need for a large amount of working capital.

Table 5. Investment costs

Variable costs for the production of furniture consist of the costs of materials that are used in the production of furniture, as well as payments for the capacities consumed in the production process (water, gas, electricity, sewage). To simplify financial calculations, variable costs are calculated based on the amount of the average check for each type of product and a fixed trade margin of 300%.

Fixed costs of manufacturing furniture consist of rent, utility bills, payroll, advertising costs, taxes and depreciation charges. The amount of depreciation deductions is determined on a straight-line basis, based on the useful life of fixed assets of 5 years. Fixed costs also include tax deductions, which are not presented in this table, since their amount is not fixed, but depends on the volume of revenue.

Table 6. Fixed costs of furniture production

Thus, fixed monthly costs were determined in the amount of 375,000 rubles.

Evaluation of the efficiency of furniture production

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 volume will be 519,560 rubles. The return on sales in the first year of operation will be 25%.

Potential 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, sales markets. To internal - the effectiveness of the organization's management.

The specificity of the furniture manufacturing establishment determines the following external risks:

    increase in prices for raw materials, interruption in the supply of raw materials. In the first case, there is a risk of increased 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 the necessary conditions that provide for the supplier's material liability in case of their violation;

    high competition in the market. Since the furniture market is quite saturated and competition is high, the behavior of competitors can have a strong influence on the demand for your products. To reduce this risk, it is necessary to form a systematic approach to business organization and establish processes within the enterprise. This will allow you to achieve competitive advantages and form a customer base;

    lack or decrease in demand. Lack of demand usually occurs when potential customers do not know about the existence of the company - in this case, it is necessary to conduct an active advertising campaign. In the second case, the emergence of risk is associated with the economic situation or the loss of market share. It is possible to reduce this risk when building your client base, concluding large contracts, production flexibility;

    fire, theft and other force majeure circumstances. The risk of such events, entailing damage to property, is quite low. However, when they occur, the damage can be quite large. To minimize this risk, it is necessary to install a fire alarm in the workshop, introduce regular monitoring of compliance with safety measures. You can also insure the risk with an insurance company;

  • refusal to lease premises or increase in the cost of rent. To mitigate this risk, it is necessary to enter into a long-term lease agreement and carefully choose a landlord.

Internal risks include:

    non-fulfillment of the planned sales volume. It is possible to reduce this risk with an effective advertising campaign and a competent marketing policy, which involves various promotions and bonuses;

    equipment breakdown and production downtime. The risk will be minimized by regular maintenance of the equipment in order to maintain its operability;

    problems with personnel, which mean low qualifications, staff turnover, lack of employee motivation. The easiest way to mitigate this risk is at the recruitment stage, by hiring employees who meet all the stated requirements. It is recommended to use a bonus tool, for example, pay employees a fixed percentage of net profit based on the results of annual work;

    defective products. In case of minor defects, the products can be sold at a discounted price, and in case of serious violations, they can be sent for processing. The main thing is to identify product defects before the order is handed over to the client. It is possible to reduce this risk by selecting qualified personnel, purchasing good equipment and quality materials;

    decrease in the reputation of the institution among the target audience in case of mistakes in management or a decrease in product quality. It is possible to mitigate the risk with constant monitoring of product quality, receiving feedback from the company's customers and taking corrective measures.




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