In this article:

Upholstered furniture occupies about 15% of the total furniture market, and its production is a fairly attractive niche, especially for small and medium-sized businesses.

What is the reason for this popularity?

First, the manufacture of upholstered furniture is gaining more and more custom production form. If it is difficult for private entrepreneurs to compete with large enterprises for the production of cabinet furniture and solid wood products, it is quite realistic to manufacture small batches of upholstered furniture (of course, in terms of profitability of the business, and not its volume, the factories are unrivaled here).

Secondly - most of the work is done manuallytherefore expensive equipment is not required.

Thirdly - small business adapts more flexibly to fashion trends  and customer taste changes. If a factory needs about three months to reconfigure a new model, a small business can reorient in a matter of days. Various wood materials, as well as upholstery, exotic colors, workshops of imitation of expensive fabrics - on such "bricks" of exclusivity an experienced entrepreneur can build a profitable business with the prospect of further expansion.

What is upholstered furniture?

In fact, such a term is not found in any standard or regulatory and technical documentation. There is furniture designed for sitting and lying, which include:

• sofa,
• armchair,
• chair,
• ottoman
• couch
• a bench,
• deck chair.

Many of the above types of furniture can be either with hard or soft seats (for example, the same sofa or chair), and all of them fall into the category of furniture for sitting and lying. But in the “unrecognized”, but well-known variety upholstered furniture  - only items with soft elements: springs, pillows, various fillers.

Upholstered furniture market analysis

An assessment of consumer demand shows that wealthy customers acquire new sofas and chairs at least every 3-4 years. But at the same time, 60% of the domestic upholstery market is occupied by mid-range products, and premium-class furniture is only 13%. This is due to the fact that buyers of expensive furniture prefer branded imported products.

The trends of today's upholstered furniture market are as follows:

1. Most entrepreneurs prefer individual work, production “on stream” is gradually becoming obsolete. The buyer is not interested in the product that can be found in every third furniture store - today, the originality of the design plays a leading role, which is sometimes inferior even to the operational properties (a typical example is white upholstered furniture or sofas with silk upholstery);
2. For successful production of upholstered furniture, fairly large working capital is needed (at a relatively low cost of production equipment). They are needed for the purchase and storage of a large assortment and quantity of fabrics, other upholstery material for quick execution of orders. This is because it is not always possible to withdraw money from circulation - funds can be frozen in the form of finished products for the period of furniture “out of season”;
3. According to the experience of existing manufacturers, sales through stores show the following result: of the 1000 units put up for sale, about 200-250 are sold.
4. You should count on the sale of goods in the region in which the production workshop is located - most of the upholstered furniture products (primarily sofas) cannot be transported disassembled. Delivery to remote regions will cost a lot, which will significantly affect the competitiveness and sale price of the product (which is why in Russia there are practically no imported furniture of low or medium price range - it is advantageous to supply only premium products).
5. Our compatriots traditionally prefer upholstered furniture with transforming mechanisms  (In the West the situation is the opposite - sofas for the living room do not fold out). The most popular transformer models: eurobook  and dolphin.

The technological process for the production of upholstered furniture

Consider the production of sofas

Consider, for example, the manufacture of the most popular and technologically sophisticated representative of the upholstered furniture category - couch. Unlike armchairs, chairs and other furniture, the use of a transforming mechanism, which turns a sofa into a bed, is assumed here.

So, all sofas have a common component structure:

• the frame is the main structural element on which the rest of the sofa is attached. It performs the main strength functions in the operation of furniture, is the basis for fastening the remaining parts when forming the appearance and giving softness;
• elements of "elasticity" (soft fillers and spring blocks);
• transformation mechanism;
• cover with upholstery fabric.

Manufacturing technology:

1) In the carpentry workshop, plywood and boards are cut into wooden blanks, which are also assembled here in the frame of future upholstered furniture.

Harvesting operations are carried out in the following stages:

• On the trimming machine, lumber (plywood) is cut in length;
• On a circular saw, plywood is cut in width;
• The resulting part is polished on a four-sided machine, after which the tenoning machine cuts spikes and eyes in it;
• Using a hand-held power tool, internal parts are cut out of plates (fiberboard, chipboard);
• The transformation mechanism is attached (for folding sofas);
• Going to base frame.

2) Finished frames go to the upholstery, where they are glued with foam and shelled with upholstery. To begin with, on a wooden base, a special non-woven material is glued - darnit. This helps to avoid knocks and creaks during the operation of the finished product.

3) Elements of softness are installed - spring blockswhich carry out orthopedic function. Blocks are fixed evenly around the entire perimeter and in the central part

4) The perimeter of the block foam rubber is glued, which eliminates the possibility of contact with a solid frame of the frame

5) On top of the spring block dense woven fabric, which prevents abrasion on the spring block an overlying layer of cushioning material.

6) As the cushioning material is most often used spangon, foam rubber  or coconut coir.

Spangon and foam rubber  (secondary foaming) is a cheaper option, but after a year or two of active use, such a sofa begins to “sink” and fail.

Coconut Coir  - More rigid and durable material that will last about 7-8 years.

7) After the cushioning material, there is another softness element - foam rubber with a height of 40 mm, density - 35-42. Between foam rubber and upholstery it is necessary to install a synthetic winterizer that will allow foam rubber to “breathe”

8) In the sewing workshop equipment is used to work with any kind of finish - from faux fur to genuine leather. Here, the upholstery fabric is opened for future sofas, which are “shot” to the multilayer base in the upholstery.

9) Here sew covers for certain elements of upholstered furniture  (pillows, backs, armrests, seats). They are “dressed” on the base frame with glued soft filler - foam rubber, synthetic winterizer.

10) After the control assembly and finishing, the product is packaged  with the help of polyethylene, cardboard and sent to the finished goods warehouse.

Business plan for opening an upholstered furniture enterprise

1) Legal form of the enterprise

To start the production of upholstered furniture ( for example - sofas) a decision was made to organize an enterprise with a legal form of ownership of an LLC on a common taxation system.

For the manufacture of upholstered furniture and its subsequent sale, the charter must specify the following activity codes for OKVED:

• 36.14 - Manufacture of other furniture
• 51.47.11 Wholesale of furniture,
• 52.44.1 Retail sale of furniture.

2) Certification and GOST

The production of upholstered furniture does not require a license, but for a product to receive a quality certificate, the manufacturing technology must comply with the following GOSTs:

• 19917-93 Furniture for seating and lying. Technical conditions
• 16371-93 Furniture. General specifications.
• 21640-91 Furniture for seating and lying. Soft elements. Method for determining softness.
• 19120-93 Furniture for seating and lying. Sofa beds, sofas, chair beds, lounge chairs, couches, ottomans, benches, banquets. Test methods.
• 13025.2-85 Household furniture. Functional sizes of furniture for sitting and lying.

3) The necessary equipment to start the production of upholstered furniture

For the operation of the production workshop, it is necessary to purchase the following equipment:

• Combined machine KSM 1A for wood processing - 20 000 rubles;
• Multisaw edging machine ЦДК-5 - 31 800 rub;
• Lathe - 8500 rubles;
• Tortsovochny machine (TsKB-40) - 21 000 rubles;
• Kruglopilny machine - 19 900 rubles;
• Grinding (four-sided) machine - 38 000 rubles;
• Milling machine with tenoning carriage - 14 800 rubles;
• Drying equipment - 11,000 rubles;
• Pneumatic torches - 4,500 rubles;
• Manual power tools (drills, perforators, screwdrivers) - 10,000 rubles;
• Cutting tables (2 pieces) - 8000 rubles;
• Sewing machine class 1022 - 5800 rubles;
• Sighting pistols: 2 pneumatic steppers for attaching fabric - 2500 rubles. and a pneumatic gun for attaching spring blocks - 1300 rubles;
• Cutting tool (scissors, knives) - 2000 rubles;
• Measuring and marking materials (rulers, goniometers, folding meters, etc.) - 500 rubles.

Total: 199,600 rubles.

It is planned to purchase auxiliary equipment for the office and warehouse:

• Office equipment (computer, laptop, printer, modeling program - “furniture designer”);
• Office furniture (tables, chairs, safe, exhibition stands);
• Furniture for the warehouse (tables, chairs, shelves, closed and open).

Total - 88,000 rubles.

Total fixed assets: 287,600 rubles.

4) The room for the production workshop

To host an upholstered furniture production company, it was decided to rent a production workshop with an area of \u200b\u200b450 m 2 at a price of 180 rubles / m 2. The basic requirements for the premises are standard for the workshop for the manufacture of any wooden furniture: three-phase electricity, humidity control, access roads, heating and other utilities.

The room will be divided in this way:

• warehouse of materials (with compartment for drying boards) - 50 m 2;
• carpentry shop - 80 m 2;
• sewing and upholstery workshop - 70 m 2;
• prefabricated and packaging workshop - 50 m 2;
• finished goods warehouse - 100 m 2;
• office - 30 m 2;
• exhibition hall - 70 m 2

Total: rental price per month: 450 m 2 * 180 rubles \u003d 81,000 rubles.

5) Staff for the upholstered furniture manufacturing enterprise

• director - 30,000 rubles;
• accountant - 15,000 rubles;
• designer-acceptor of orders - 15,000 rubles;
• sales manager - 15,000 rubles;
• production master - 20,000 rubles;
• 2 workers in the carpentry workshop (assemblers) - 30,000 rubles;
• seamstress-cutter - 10 000 rubles;
• a worker in the upholstery shop - 15,000 rubles;
• 2 auxiliary workers - 16,000 rubles.

Salary Fund: 166,000 rubles / month.

6) Production plan

At the initial stage, it is planned to manufacture 100 sofas per month. In the future, the number of products will increase in accordance with custom-made agreements, and the assortment range will be replenished with folding chairs and furniture sets (sofa + 2 chairs).

After examining the sale prices and types of sofas of similar designs in the shops of the region, it was decided to focus on the original tapestry fabric with multi-color embroidery, which is suitable for any interior.

7) Calculation of the consumption of materials and raw materials

Calculation of the consumption of materials and raw materials for the manufacture of a unit of production (soft sofa):

• plywood - 1 m 2 * 59 rubles \u003d 59 rubles;
• edged board - 0.08 m 3 * 600 rubles \u003d 48 rubles;
• Fiberboard - 2 sheets * 70 rubles \u003d 140 rubles;
• nails - 0.7 kg * 12 rubles \u003d 8.40 rubles;
• bolts - 0.5 kg * 20 rubles \u003d 10 rubles;
• screws - 0.2 kg * 20 rubles \u003d 4 rubles;
• tapestry - 8.4 lm * 220 rubles \u003d 1848 rubles;
• thread - 0.1b * 6 rubles \u003d 0.60 rubles;
• glue - 0.2 kg * 15 rubles \u003d 3 rubles;
• cardboard - 2 kg * 12 rubles \u003d 24 rubles;
• polyethylene - 13 m 2 * 9 \u003d 117 rubles;
• foam rubber - 0.3 kg * 45 rubles \u003d 13.50;
• batting - 4 pm * 28 rubles \u003d 112 rubles;
• accessories - 30 rubles;
• pillows - 6 pieces * 80 rubles \u003d 480 rubles;
• fabric 1 m * 90 rubles \u003d 90 rubles.

Total: 2,987.50 rub

8) Calculation of other material costs:

• advertising costs - 30,000 rubles;
• payment for water supply - 82.23 m3 * 5.3 rubles \u003d 440.00 rubles;
• electricity - 2191 kW / h * 0.25 rubles \u003d 547.75 rubles;
• production flow - 61.9 m 3 * 20 rubles \u003d 1238 rubles;
• heating - 4.099 Gcal * 102.47 rubles \u003d 420.02 rubles;
• payment for security and alarm systems - 1700 rubles;
• telephone and Internet - 3100 rubles;
• payroll taxes - 62,250 rubles;
• depreciation - 14 380 rubles.

Total: 114 075.77 rubles / month.

9) Cost and sale price

Calculation of the cost of 1 production \u003d (Material costs of 1 production + labor costs + other costs) / quantity of production

Cost of production \u003d (2,987.5 rubles * 100 units + 166,000 rubles + 114,075.77 rubles) / 100 units \u003d 5788,26 rubles.

Selling price \u003d cost of 1 production + profit margin (25%) \u003d 7,235.33 rubles

10) Calculation of projected net profit and payback term for upholstered furniture production

Monthly revenue - 100 pieces * 7,235.33 rubles \u003d 723,533 rubles;

Monthly costs (material + salary + other costs) \u003d 2,987.5 rubles * 100 units + 166,000 rubles + 114,075.77 rubles \u003d 578,825.77 rubles

Income taxes - (Revenue - Costs) * 20% \u003d 28 941.45 rubles.

Net profit (Revenue - Costs - Taxes) \u003d 115,765.78 rubles

Profitability of production - 25%

Return on Investment \u003d Net Profit / Capital Costs \u003d 4 months.

In order to organize your own successful furniture business from scratch, it is paramount that you need to make the right choice of its focus and format. Therefore, the entrepreneur must get acquainted with the peculiarities of furniture production in Russia, as well as study the supply and demand in the proposed functioning market. With proper organization, furniture will become for its owner a source of high profit and will not lose its relevance for many years.

[Hide]

Services and business formats provided

The list of basic services provided by the furniture company:

• mass production of furniture in accordance with the catalog;
• piece production of custom-made furniture, taking into account the individual wishes of each client;
• exclusive furniture design;
• sale of furniture;
• transportation and rise to the floor;
• furniture assembly;
• restoration / repair of old furniture.

Depending on what kind of furniture is produced, all enterprises are divided into universal and specialized.

Options for specialization of the furniture business:

• furniture for arranging the kitchen;
• upholstered furniture (sofas, armchairs);
• beds;
• furniture for a children's room;
• tables and chairs;
• office furniture;
• bar counters;
• trade equipment (showcases, shelving, reception, etc.);
• wooden furniture;
• glass furniture;
• wicker furniture;
• built-in furniture, etc.

In order for a novice businessman to gain a foothold in the market, he needs to choose the right market niche.

Recently, companies are increasingly appearing that produce non-standard furniture from:

• a tree;
• glass;
• plastic;
• Chipboard;
• MDF and others

Experts note that today the most promising for beginning entrepreneurs are areas related to the production of furniture for the kitchen and office.

The idea of \u200b\u200bcreating your own business in the furniture sector can be embodied in one of the following ways:

• a full-fledged furniture factory (for example, for the manufacture of upholstered furniture);
• furniture workshop;
• furniture repair / restoration salon;
• traditional furniture store;
• furniture online store;
• a company engaged in the delivery, assembly and installation of furniture.

The classic furniture company provides:

• furniture design and the formation of our own product catalog;
• manufacturing of components;
• furniture assembly (if necessary);
• sales of finished products through company outlets.

However, quite often there are small furniture shops involved in the assembly of furniture from finished components. For example, when buying MDF boards, they will be sawn right in the warehouse in accordance with the required dimensions. Facades, countertops and accessories can be ordered at furniture factories that are ready to custom-make elements with certain parameters. For the assembly of furniture, it remains only to drill the necessary holes for fasteners and to assemble all the parts. Such a business requires a minimum of investment.

Relevance

The reasons for the relevance of the furniture business:

1. High profitability and profitability. With the organization of a small furniture workshop, profitability of 60 percent or more can be achieved.
2. Prospects. There is always a demand for furniture, since few people can make interior items on their own. Furniture is a consumer goods with a wide target audience. Despite the high competition, the market is not saturated, any entrepreneur who is serious about his business can gain a foothold in it. The sales pace is consistently high and not seasonal.
3. Own furniture workshop can be opened with minimal investment. This business option is suitable for people on a budget. Having mastered the market, the entrepreneur, if necessary, will be able to expand the business to the format of the factory.
4. The furniture business can be organized by a person who has experience in this field of activity, as well as a novice. The latter does not need to undergo special training, he will be able to figure everything out on his own using the Internet and specialized literature.
5. The procedure for registering a business is not very complicated. It can be issued as an IP. For the successful functioning of the enterprise, it is required to comply with the sanitary and fire safety requirements of the supervisory services.
6. Many market segments, among which you can choose the closest, simplest, most understandable and promising. For example, the production of furniture for a children's room or sofas made of genuine leather.

Description and market analysis

Characteristics of the Russian furniture market:

• high competition, about three thousand medium and large furniture enterprises operate on the market, there are five thousand workshops / factories in total;
• according to marketers of large furniture manufacturers, in 2019 the share of domestic companies will reach 70 percent of the market capacity;
• the ten largest furniture enterprises in Russia occupy 30 percent of the total market capacity (the leader is IKEA, 22 percent);
• in the short term, an increase in the number of small and medium-sized enterprises is expected (their total share will be 70-75 percent);
• the maximum number of furniture manufacturers is concentrated in the Central Federal District and the Volga Federal District (about 25 percent of the total number of market participants);
• promising is the market sector where furniture for the kitchen is produced (in the past 10 years, the annual market growth has been about 20 percent);
• among entrepreneurs, the market sector is popular, where built-in furniture is made to order;
• the most promising segment is the economy-class interior, therefore, a reduction in the share of the premium segment and an increase in the standard / budget segment are forecasted;
• the furniture market stimulates an active increase in the pace of housing construction and its purchase, since any apartment / house needs interior items;
• an increase in the exchange rate leads to a reduction in the number of suppliers of furniture from abroad;
• it is more profitable for small furniture manufacturers to sell products in their region, thus reducing transaction costs;
• it is easier for market participants to sell products in settlements up to 500 thousand people, as network retailers are often absent here;
• according to statistics, today every fifth Russian orders furniture in an online store (in 2016, 12.5 percent of interior items were sold via the Internet);
• 50 percent of furniture manufacturers have their own website;
• new models / developments regularly appear on the furniture market, it is constantly on the move, and for successful operation it is necessary to monitor the latest trends.

Photo gallery

The dynamics of housing commissioning in the Russian Federation from 2000 to 2019 The dynamics of the capacity of the furniture market in the period from 2009 to 2016 The results of the answer of Russians to the question about the place of purchase of furniture Dynamics of the revenue of wholesale and retail trade in household and office furniture (2011-2015), thousand rubles

The target audience

Depending on the format of the business and its orientation, the target consumers may be:

• middle-income people;
• people with low incomes;
• people with high incomes;
• resellers (traditional and virtual furniture stores, hypermarkets, etc.);
• entrepreneurs (when buying commercial furniture, for example, a bar counter, cafe tables, shop windows, computer desks in an office, etc.).

Buyers can be both men and women, Internet users and not, large enterprises or small, wholesale and retail chains. The average age of the target audience is from 18 to 60 years.

Competitive advantages

In order for a furniture company to stand out against the backdrop of numerous competitors, it must have the following features:

• adequate price corresponding to the quality of the finished product;
• prompt and high-quality execution of work on the production of furniture;
• use only proven and quality materials;
• availability of agreements with suppliers of accessories, components and other materials;
• a well-thought-out product catalog, including a variety of furniture options for different tastes (providing for many variations of colors, textures, materials, fabrics, etc.);
• when designing furniture, a professional designer and / or engineer should be involved;
• a close-knit team of competent specialists;
• the use of modern equipment that allows you to get an exclusive and / or very high-quality product;
• successfully functioning online store;
• the ability to execute furniture according to the client’s order;
• the ability to design exclusive furniture in accordance with the wishes of the client;
• friendly customer service;
• organization of delivery and assembly of furniture;
• provision of a guarantee;
• replacement of goods or refund upon detection of a manufacturing defect.

The business idea of \u200b\u200ba furniture company will be successfully implemented when the entrepreneur correctly determines the specialization of the business and forms the necessary competitive advantages.

Sales channels

Methods of marketing the products of a furniture factory / workshop:

• own department in a furniture shopping center / hypermarket;
• own network of furniture stores;
• own store in a multidisciplinary shopping center;
• non-chain furniture stores;
• resellers;
• direct sales to corporate clients (for example, face-to-face meetings, telephone conversations and mailing directories);
• own online store.

Advertising campaign

In order to promote sales, the following activities should be carried out:

• installation of stands / boards with information about the company's products on the street in busy places, for example, near metro stations, public transport stops;
• creating your own high-quality website and online store;
• opening a company profile on social networks;
• website promotion of the enterprise on the Internet;
• development of catalogs, brochures, booklets, business cards, leaflets, etc., for distribution among potential customers and partners;
• establishing relationships with partner companies for mutual marketing, for example, with hardware stores and design studios;
• development of a program to increase customer loyalty (including promotions, discounts, bonus program, etc.);
• placement of advertisements in thematic print media;
• company participation in exhibitions and a fair dedicated to furniture topics.

In the furniture industry, it is very important not to lose a reputation. If the manufactured product is of poor quality, then no advertising will force buyers to purchase it. Therefore, the entrepreneur should pay special attention to working with the client, quality control of purchased materials and components, as well as the production process.

Step by step opening instruction

To open a furniture workshop and organize the production process, you will need:

1. To analyze the furniture market in the proposed region of the location of the enterprise and the sale of products.
2. Determine the direction of the business, its scale, production technology and solve other key issues.
3. Choose a place and a room for the workshop.
4. Calculate the performance indicators of a furniture manufacturing business project from scratch.
5. Register an enterprise in accordance with the legislation of the Russian Federation.
6. Conclude long-term lease agreements for the production premises or buy it.
7. Find equipment suppliers and purchase it.
8. Find suppliers of raw materials (boards, chipboard, MDF), materials (paints, glues, fabrics), accessories, etc., and also agree on their supply.
9. Choose the right qualifications.
10. Design furniture designs.
11. Perform work on the manufacture of parts, cutting material and their processing.
12. Perform assembly work on furniture.
13. Create a catalog of the company's products.
14. Identify product distribution channels.
15. Start implementing a marketing plan.

Documents

Key points of the furniture business registration process:

1. Optimal forms for registration of furniture production activities: IP, LLC. The choice in one direction or another is largely determined by the scale of the enterprise and the number of founders. When opening a small workshop by one entrepreneur, the option of creating an IP is more suitable.
2. When registering, the code for OKVED is indicated - 31 “Furniture Production”. In the case of manufacturing furniture for offices and trade enterprises, the code is selected on 31.01, and on the kitchen - 31.02. For the production of other types of furniture, paragraph 31.09 is suitable, which in turn may involve work on an individual order or not. In order to be able to sell products independently at retail, code 47.59 is indicated, and 47.91.2 via the Internet.
3. For the manufacture of interior items, a license is not required, but it is recommended to certify the products. This measure will confirm the quality of manufactured furniture. Products made on an individual project are not subject to certification. In this case, there must be documents confirming the quality of the materials used.
4. When determining the tax system, you should stop your choice on UTII or STS.

The main applicable norms and standards that must be observed at a furniture company planning to obtain quality certificates for manufactured products:

• GOST 16371 - 93 "Furniture. General TU ";
• GOST R 50051 - 92 "Furniture. Chairs";
• GOST 19917 - 93 "Furniture for seating, lying. General TU ";
• GOST R 54208 - 2010 "Protective and decorative coatings on furniture made of wood / wood materials";
• GOST 19194 - 73 "Furniture. A method for determining the fastening strength of decoy furniture legs ”;
• GOST 30255 - 95. "Furniture, wood and polymeric materials."

To obtain an opinion from the State Fire Supervision, the following papers are prepared:

• statement;
• certificate of company registration;
• bTI floor plan;
• fire alarm installation contract;
• premises insurance policy.

To obtain an opinion from Rospotrebnadzor, the following papers are prepared:

• statement;
• certificate of creation of the company and its registration in the IMNS;
• a contract for the lease of a production building or a document confirming the ownership of it;
• list of manufactured goods;
• sanitary passport of the room;
• contract for the removal of waste and garbage.

Room

Classical furniture production of medium size includes the following workshops and premises:

1. The office of the designer / engineer who are engaged in the design of furniture and the improvement of existing models.
2. Manufacturing facility. This is the place where the woodworking equipment is located. Here is the manufacture of parts for future furniture.
3. Assembly shop. This room is intended for the assembly of furniture from manufactured parts and purchased components.
4. Painting shop. Paintwork is carried out here.
5. Sewing factory. It is necessary in the manufacture of upholstered furniture and beds; it is used for cutting fabrics and sewing upholstery for interior items.
6. Dryer. This room allows you to save raw materials and prepare for further processing / use.
7. Warehouse of finished furniture, raw materials, consumables, accessories, etc.
8. Room for quality control of finished products.
9. Utility room for staff.
10. Bathroom equipped with shower.
11. Administrative building.

Requirements for the production room:

• the status of non-residential premises for industrial purposes (due to the high noise level);
• low rent or cost (upon purchase);
• location - on the first floor (maximum - second), it is possible on the outskirts of the city;
• the number of entrances - two entrances (one for production purposes, and the second for working with partners and clients, to the office);
• the presence of three-phase electricity (380 W), ventilation, water supply, heating;
• convenient access roads (for staff, suppliers of raw materials, buyers);
• site for loading and unloading of raw materials, finished products, etc .;
• moderate humidity and lack of dampness, since most of the materials used for furniture production are afraid of moisture;
• compliance with the requirements of SES and fire safety;
• the possibility of expanding production in the future.

The area of \u200b\u200bthe room is determined based on the fact that:

• it should fit all the equipment of the technological chain;
• it was possible to organize several separate workshops;
• placed the necessary supply of raw materials;
• the stock of finished goods was placed.

The minimum area for organizing a furniture workshop is 150-200 square meters.

If the business idea of \u200b\u200bfurniture production involves the organization of its own sales system, then the entrepreneur needs to find a room / premises for opening a store or a network of salons.

When choosing a suitable trading platform, the emphasis should be on:

• high passability of the target audience;
• minimum number of direct competitors;
• reasonable price.

Equipment and inventory

An approximate list of equipment for a small furniture workshop for the production of upholstered furniture:

The video tells about the machines used in furniture production. Taken by: Hao Zhang.

Photo gallery

Belt Sander Bench drill machine Planer and planer Miter saw Milling machine Wood lathe

Staff

The staffing of a small furniture workshop:

Requirements for the main staff of furniture production:

• the availability of professional knowledge and skills in the field of the position and functions performed;
• technical education;
• experience;
• ability to handle professional equipment;
• responsibility;
• lack of bad habits.

To motivate staff to work, their wages should be tied to the amount of work performed.

Financial plan

The profitability of the furniture business in each case is individual and depends on many factors underlying the implementation of the business project.

Further financial planning of the business idea of \u200b\u200borganizing furniture production is based on the following data:

How much does it cost to start furniture production?

Investments in opening a furniture workshop:

Regular costs

Regular expenses of a furniture workshop:

Income

The profitability of the furniture business was calculated on the basis of the following initial data:

Financial indicators of the project, allowing to estimate how much you can earn on furniture:

Calendar plan

Schedule for the implementation of the furniture production project:

Risks and payback

External risks of a furniture workshop business project:

1. Rising prices for materials, raw materials, components and their transportation, as well as rental of premises. In this situation, there is an increase in the cost of production. If the market situation does not allow to increase the cost of finished products, then the increase in costs will be offset by a part of the entrepreneur’s profit. Reducing this risk is possible by concluding a contract with the supplier, which will guarantee the invariability of prices over a certain period of time.
2. Low quality of raw materials and components. The entrepreneur must carefully select the reliable suppliers of the components from which the finished product is made.
3. High market competition. For the company to function in the market for many years, the manager needs to take care of creating competitive advantages. He must monitor the behavior of other representatives of the furniture business, customer needs, fashion trends, etc.
4. Decrease in demand. To increase sales, you need to conduct marketing activities and develop a loyalty program.
5. Force majeure circumstances. To prevent the onset of fire, a modern specialized alarm system must be installed in the premises of the furniture factory, as well as the established norms / rules. In addition, the risk of force majeure circumstances can be insured.
6. Refusal to extend the rental period. To avoid this, it is necessary to analyze the offer of suitable premises for the organization of production, choose the most suitable and conclude a long-term lease agreement.
7. Economic / financial crises. They lead to a decrease in the solvency of potential buyers. In such a situation, it would be logical to reorient the enterprise to the production of goods in the lower price segment.

Internal risks of a furniture workshop business project:

1. Underfulfillment of the sales plan. A competent marketing campaign will help in solving this problem. It is also worth paying attention to the catalog of products offered to the buyer, perhaps he is out of date, does not correspond to the latest fashion trends and customer needs.
2. Underfulfillment of the production plan. The reasons for this phenomenon can be: interruptions in the supply of raw materials, breakdown of equipment, low qualification of personnel, etc. For the smooth operation of the enterprise, the entrepreneur must establish supply chain logistics, organize monitoring of the condition of the equipment and its timely service, and carefully select personnel.
3. Staff turnover. To motivate employees to work, it is recommended to use a bonus tool (for example, a percentage of profits) and organize decent working conditions.
4. Marriage of finished products. The reputation depends on how high-quality furniture the enterprise produces. It is important to organize internal quality control of the manufactured furniture and to prevent the sale of goods with low performance.

The payback period of the project will be 6-7 months, since the monthly earnings of the workshop (minus expenses) in the first year are 265 thousand rubles.

Video

The key points of a business plan for furniture production are presented in the video. The presenter talks about how to open a profitable and profitable business in furniture. Filmed by the channel: "Business Support Center".

The furniture business is an excellent choice for starting a young entrepreneur. People always buy furniture, regardless of season or weather. Even a crisis will not change anything in your business, unless it reduces the class of furniture from luxury to classic. Therefore, open a furniture workshop – a good and promising idea that will surely bring you excellent profits.

Exploring the market

Furniture production can be divided into three main areas:

1. Production of classic office furniture (cabinets, partitions, cabinets, tables). The main emphasis is on functionality and severity of appearance.
2. Production of kitchens and headsets. The kitchen is the face of the home, it is here that people spend most of their free time, so it should be equipped with comfortable and high-quality furniture. Every year, the demand for kitchen sets is growing by an average of 15%.
3. Release of furniture to order. This is the most promising type of business. Furniture is created depending on customer requirements, according to individual sizes and drawings.

Starting a furniture business is not difficult - minimal investment is enough for this

Note: in megacities you will face serious competition, so this business is best to start either in small cities, or enter the market with an original and promising offer.

Be sure to find out if there are similar furniture workshops in your city, what services they offer, what are the actual terms of furniture manufacturing and your competitors' price range. Think about what you can do better to lure customers.

Space requirement

To organize a full-fledged factory, you need three full-sized premises. It:

1. Workshop for the production of furniture. Its area should be at least 100 m2.
2. Office. Managers will work here, concluding contracts for the purchase of raw materials and accessories, as well as for the sale of finished products. Often in the office there is a small exhibition stand with samples of materials and furniture, or even a small shop.
3. Warehouse. This room will be used to store material and finished products. It should be spacious (about 70-100 square meters) and dry.

These premises can be in the same building or be scattered around the city. For example, the workshop itself will be located on the outskirts, and the office with samples in the city center or in a convenient passage. This will significantly increase the number of potential customers. The warehouse can also be located on the outskirts near the factory. This will allow you to reduce rental prices several times and avoid complaints of residents about the constant noise from cutting material.

The room for the production of furniture should be spacious

Purchase of necessary equipment

Starting the production of upholstered furniture as a business should be having a sufficient amount for the purchase of appropriate equipment. You can, of course, cooperate with other workshops for cutting furniture sheets, but this will significantly increase the lead time and cost of finished products, which will nullify all your competitive advantages. Therefore, buying machines is definitely necessary. To save money, you can buy used equipment - its price can be 30-50% lower than the new one. But you need to be well versed in machines, so as not to buy already decommissioned.

Read also: Shoe Making Machine

For work you will need these types of machines:

1. Band Saws. Such equipment is used for precise cutting of wood, MDF or particleboard according to the ordered dimensions.
2. Drying. These machines are used if you plan to work with natural wood and it will need to be dried to a certain humidity.
3. Machines for decorating and fine processing of wood. Used for shaping a tree, processing edges, cutting various chamfers, other milling and drilling machines.
4. Devices for working with glass. This includes sandblasting machines, drilling, engraving, cutting, etc.
5. Devices for working with metal. This includes welding, drilling, cutting, polishing metal.
6. Sewing equipment for creating upholstery, covers and various upholstered furniture elements.
7. Tools. These include hand drills, screwdrivers, staplers, screwdrivers, planers, hammers, etc.

Also, for the production of furniture you will need a variety of sheets of fiberboard and particleboard, MDF boards, high-quality fittings and a large number of fasteners. From consumables: various varnishes, paints, glues, etc.

Staff

A lot in the furniture business depends on the staff. To build a furniture business from scratch, you need skillful and responsible workers who will accompany the product at all stages from design to sales and installation by customers. Without fail you will need:

1. The manager who will deal with the reception of orders, the execution of contracts for the supply of necessary accessories and materials, project support.
2. Director of operations. The duties of this person include control over each stage of furniture production. This is a master who monitors workers, organizes their work and accepts ready-made orders.
3. Workers 3-4 people are enough for a small workshop, up to 8 specialists may be needed for an average. Their responsibilities include the entire cycle of work on the production of furniture from raw materials.
4. Driver. This person will be engaged in the delivery of furniture to customers from the warehouse. Also provides the import of necessary materials.

Qualified staff is the foundation of your business

This is the smallest possible staff for a mini-factory manufacturing furniture. The role of manager and accountant in the first stages can be performed by you - there is nothing complicated in this. If you do not want to waste time, then you can hire people, but this will reduce the payback period due to salaries.

Marketing

You can start to draw up a marketing plan even when you have not opened. The objective of this plan is the proper organization of various events for the sale of the maximum possible amount of finished products. How to sell furniture?

1. Open an exhibition center or a mini-shop in the office.
2. Conclude an agreement with furniture stores and exhibit products for sale with them.
3. Start working with tenders created by budget organizations. Very often, schools, kindergartens, hospitals and various municipal institutions become regular customers, bringing serious money.
4. Interested in several large private clients. It can be banks that periodically open new branches, various offices, etc.
5. Create your own website, on which you need to lay out detailed information about furniture, phone numbers for communication and a detailed price list.
6. Create groups on social networks and support them.
7. Run classic ads: banners, flyers, banners, signs, billboards.
8. Media advertising: radio, television, newspapers, magazines.

How much money do you need to open

It is impossible to calculate exactly how much money is needed to start the production of furniture as a business from scratch without knowing the specifics of your region: it all depends on the level of rent, the chosen profile of work, the number of workers and equipment. We give the country's average prices, which will be fair in almost 80% of cases.

1. Buying a business premises will cost about 1 million rubles. If you rent a building, then you will spend about 50-70 thousand a month, that is, it is still more profitable to buy a building.
2. Purchase of equipment for the factory, its delivery and installation - 600,000.
3. Repair of the building, paperwork - 300,000.
4. Consumables - 250,000.

Never save on accessories and tools

Now let's calculate fixed costs. They will include:

1. Utility charges - 30,000.
2. Salary - 180,000.
3. Fixed costs for maintaining the site, social networks, advertising and marketing - 20,000.
4. Other expenses, including and taxes - 30,000.

The growth of exchange rates and import substitution favorably affected the Russian furniture market. The production of domestic furniture is growing, becoming a promising area for investment. Below is a business plan for furniture production with estimates for 2018-2019.

Short summary (calculation for Irkutsk)

Starting investment: 2043913 rubles. Of these, 1230000 rubles - attracted funds for the purchase, 813913.4 rubles - equity of the individual entrepreneur.

Payback period: 14 months

Market: kitchen furniture

Annual net profit: 1 301 464,64 rubles

Project Description

The main idea is the creation of kitchen furniture with a high-quality level with minimal costs for its production. Organizational form - IP.

Market niche

Given the high competition in this area, it is very important to display in the business plan of the furniture factory those features that will distinguish products from competitors' products.

In this case, the hallmark was the ability to select an individual design of finishing materials and the application of decorative stained-glass windows. Transparent and opaque smoked glass stained-glass windows not only decorate furniture, but also facilitate the design. The purchase of finished stained-glass windows also allows you to get away from the manufacture of facades, save on production and build a more flexible pricing policy.

The target audience: young families with a limited budget and older people who want to change the situation in the kitchen at a low cost.

Location: this business plan of the furniture workshop assumes that the industrial site is owned by IP. Consequently, the cost of renting the premises is not displayed in the plan.

The required area is about 180-200 square meters. meters. Non-residential premises are zoned to the workshop, bathroom, warehouse of materials and blanks, office. Requirements - two separate entrances, soundproofing, heating, water supply, one floor, access and loading platforms, voltage of 380 volts.

The site with the premises for the workshop must meet several requirements:

• convenient for buyers of finished products and equipment;
• has convenient access roads;
• located close to consumers;
• has a developed infrastructure;
• connected to electricity and water utilities.

Marketing strategy

At the start, it is important to include advertising campaigns in the furniture business business plan. Good marketing campaigns will allow you to quickly find a niche in a highly competitive market.

The main trading platform will be the showroom, as well as Istagram, Facebook, and other social networks.

In addition, outdoor advertising (streamers, boards, pillars in the city) is an effective marketing tool.

For example, rent a billboard of 18 square meters. meters will cost 3000 rubles per month. Distribution of printed leaflets, a catalog of works and materials - 5,000 rubles to construction stores, as well as advertising in the press will also help attract customers, as well as in collaboration with interior and design studios, participation in thematic exhibitions, fairs.

Production plan

Kitchen furniture is made from finished MDF, fiberboard, chipboard, chipboard sheets, cut out on the side to order.

Revenue planning

A business plan for furniture production is prepared taking into account the fact that the furniture workshop is a microenterprise. The annual revenue when the fixed and working capital of such an enterprise is fully loaded does not exceed 11 million rubles, and the number of employees is 8 people.

This meets the criteria of a microenterprise: an organization must have at the same time no more than 15 employees and no more than 120 million rubles of entrepreneurial income for the previous calendar year.

Organization of production

The kitchen furniture production workshop will operate in a single-shift mode, from 09.00 to 18.00, lunch break for production personnel from 12.00 to 13.00, for office personnel from 13.00 to 14.00 hours.

Weekends: Saturday, Sunday. Holidays: in accordance with 112 articles of the Labor Code of the Russian Federation. Type of accounting of working hours: personnel.

Necessary raw materials and equipment (forecast prices for the planning period 2018-2019)

The cost of purchased machines for the production of kitchen furniture is 1.23 million rubles.

Based on the fact that kitchen furniture belongs to the fourth group, the service life is 5-7 years. We take a life of five years. Annually 1/5 of the cost of equipment will be amortized, that is, 246 thousand rubles per year, or 20.5 thousand per month.

The costs of the technological organization of production and environmental protection.

Be sure to take into account in the business plan that furniture production is an area associated with high fire risks. In the first two months of work, it is supposed to allocate 205,000 rubles for labor protection and fire safety, including:

Organizational plan

The number of employees and labor costs

Social security contributions do not include personal income tax, the payment of this tax is made from accrued wages. Social security contributions include premiums for compulsory pension, social and health insurance, calculated according to basic tariffs, and reduce the tax base for income tax.

Financial plan

Fixed and variable costs for the production and marketing of furniture products are formed at the expense of the entrepreneur’s own funds.

Risk analysis

The main factors of rick at a furniture company include:

• price changes or interruptions in the supply of raw materials. In this case, this issue is being resolved using domestic raw materials and equipment. To eliminate possible interruptions in raw materials, it is recommended to conclude long-term contracts with several suppliers at once;
• high competition. It is solved by developing a USP, establishing a client base and a well-thought-out marketing policy;
• problems with the rental of premises, refusal to provide rental. The conclusion of a long-term contract with the landlord or the acquisition of production premises in the property will help to reduce the risk.
• fire, spoilage, theft, other force majeure. It is impossible to eliminate this factor, but it is possible to minimize the consequences with the help of insurance.

Three months of accounting, personnel records and legal support for FREE. Hurry, the offer is limited.

Demand for furniture products has been and remains quite high. A society of people is developing, new families are emerging, planning to create their own home, which is unthinkable without furniture. And families with experience periodically update it.

How to open an enterprise?

The furniture business is divided into two components: sale and production. Ideally, when the businessman first chooses the first option, then the accumulated experience in the study of demand motivates him to start manufacturing. Therefore, the first is better.

If you already have experience in sales and are only interested in production. To open a furniture manufacturing enterprise, to register it and become a full-fledged manufacturer under the law, it will be required documents:

• agreement on the establishment of an enterprise indicating the form ();
• statutory documentation containing information on the size of the authorized capital;
• copies of personal documents of the head of the company, chief accountant and other employees;
• bank details;
• receipt of payment of state duty for starting a business.

So, the whole package of documents has been compiled. The next step is going to tax office, where you should register the legal entity or individual entrepreneurship.

Next, you need to contact fire department  and sanitary service  for special permissions. They are issued if the premises of the future enterprise provide for safe working conditions with regard to sanitary standards and fire safety measures.

Final action - appeal to Rospotrebnadzor  for obtaining permission to engage in business.

The main principle of business

The very concept of production carries the mission of developing the economy as a whole for the country, which is proof of not only benefits, but also benefits to society. This objective factor covers global scales.

As for the direct effect for a particular enterprise, its success directly depends on competent planning, correct calculations and constant analysis of the results.

An important element in obtaining benefits is the release of quality products. The level of training of personnel involved in the production of furniture plays an important role here. This is the main principle of successful business development. Without a responsible attitude to the business, the most expensive advertisements will not help.

An example of this is the world-famous brands of manufacturers that have conquered the market solely due to high quality.

Before proceeding to planning, it is necessary to study the consumer market, work out issues such as the behavior of competitors, and determine the circle of suppliers.

Choice of premises

What should be the room? It can be owned or rented. There are basic building parameters recommended for opening a furniture business:

1. The room for the direct production of furniture should be spacious (an area of \u200b\u200bapproximately 550-650 sq. M). The production building is located on the ground floor. It is necessary to provide an access platform for loading raw materials and shipping finished furniture.
2. The customer room may be located in another place, preferably the most crowded. Its appearance and interior decoration should help attract buyers. It is also worth equipping a room where models of products will be presented.
3. The room must have an acceptable temperature regime, the presence of communications (water and sewage).
4. Conditions have been created for the prevention of fire (relevant documentation, evacuation plan, fire fighting equipment, treatment of the building with anti-flammable agents).

Such room requirements are justified in that they guarantee a normal atmosphere for productive work.

Assortment Definition

The volume of production of various types of furniture should be compared with the level of demand. Engaged in such analysis Association of Furniture and Woodworking Enterprises. According to them, the demand for furniture is as follows:

• cabinet furniture - 28-30%;
• upholstered furniture - 18-20%;
• kitchens - 20-22%;
• bedrooms - 12-15%;
• furniture for offices - 22-23%.

Based on these data, you can orient your business, pre-plan your own list of products and fix it in the business plan.

Customer base

It is necessary to outline the target consumer group or customer base and make an appropriate record, devoting a separate section to this issue. This group includes:

• retail consumers;
• wholesale customers;
• intermediary companies (furniture stores, design agencies, suppliers).

Organization of sales of furniture products

A separate chapter of the business plan is the problem of marketing products. It is necessary to outline the forms and methods of its solution:

1. Through own service. The manager carries out recommendatory conversations with visitors to the showroom, handles mailings, calls to potential customers.
2. Conclusion of cooperation agreements with a retail chain. In the near future, it is planned to go beyond the region, in the future - to the foreign market.
3. Cooperation with  private and public enterprises, hotels, catering establishments.

Advertising activity

One of the most effective forms of product promotion is advertising. The issue of its development is also worth highlighting in a separate section. Advertising activities include:

• opening your own website, its promotion, operational updating of the catalog;
• use of media for advertising;
• internet advertising.

Dissemination of information about their products must be carried out in all possible ways, including word of mouth.

Production plan

This is a significant part of the main plan, which provides for the main positions of the enterprise:

• production of prefabricated furniture;
• finished cabinet furniture;
• furniture for individual order;
• delivery of products to the consumer - finished furniture or with on-site assembly.

Necessary equipment

For furniture production, you will need special machines, tools, devices, the acquisition of which is fixed in the business plan:

• machine tools for modeling furniture with software control;
• milling and turning machines;
• electric and mechanical tools - rotary hammer, industrial hair dryer, electric saw, electric jigsaw, hand milling cutter, etc .;
• freight vehicles for transportation of materials and finished products.

The staff of the enterprise

A furniture company is specific and requires professionals in this area:

• wood processing specialists (6-8 people);
• a master with special education and work experience, whose duties include organizing the entire cycle of the production process;
• driver.

To conduct any business, in particular furniture, not only professional furniture makers are needed. You must also have a good economist, accountant and advertising agent in your team.

In addition, disputes may arise in working with clients or partners that only a professional lawyer can resolve. If it is not possible to keep such a specialist on staff, you can contact a law firm that provides services of this nature.

The selection of personnel must be approached responsibly, because the state of the business depends on their professional level.

Supply of raw materials

For the successful organization of the furniture business, it is necessary to carefully study the market for raw materials and establish contacts with suppliers. The sequence of this work is recorded in the business plan.

Arrangements are needed with suppliers in terms of deferred payments, obtaining materials on credit, various forms of payment.

To guarantee the receipt of quality materials, the supplier must have certificates.