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Business plan for a furniture company. How to open a furniture business from scratch: step-by-step instructions and development plan |
Despite the fact that in every city there are a large number of furniture stores, there are times when people come to these enterprises and cannot find what they really need. When the means allow, I want to make an exclusive repair in the apartment and furnish it with expensive, refined and practical furniture. In some cases, it can even be individual orders with their own sketches. That is why it makes sense to open a furniture production workshop. It is worth noting that (like any other) you need to start only with a concrete plan of action. Therefore, in order to open a furniture workshop, it is necessary to draw up a business plan that will help solve all issues related to the production and supply of cabinet and other types of furniture. Back to the table of contents What is necessary in order to create a furniture businessThe furniture workshop involves the opening of an enterprise that will accept orders for the production of cabinet and other types of furniture from local stores.
Back to the table of contents In what form do you need to register the companyIt should be said that the legal form that is necessary to conduct this type of business is an individual entrepreneur. This is due to the fact that consumers of the services provided will be private individuals. However, in the event that it is possible to have customers among legal entities, it makes sense to open an LLC (limited liability company). Back to the table of contents Performing market analysis in your cityThe first thing to do is to perform an analysis of the furniture manufacturing market in your city, consider the level of competition, find the shortcomings and shortcomings in the neighboring furniture shops to avoid them in your business. Back to the table of contents Selection of the necessary premises for furniture productionThe next thing to take care of is finding a suitable room for the furniture workshop. It is worth knowing that at least two rooms are required. One of them will need to be allocated for the office, which will accept all orders from potential customers for furniture production, and the other directly under the workshop in which the delivered products will be manufactured. Tangent office - it should be understood that it should be in a good place, where every day a large number of people will see it. The workshop can be opened outside the city if this helps to reduce costs. However, the best option would be to open two rooms nearby. You can often see that some companies have nearby an office, a workshop, and a shop selling finished furniture. Back to the table of contents Choosing the hardware and software you need to start productionToday, the market for the sale of equipment for the production of furniture presents products of a large number of different manufacturers (both domestic and foreign), while all the machines can easily be integrated with the most common computer software for the production and modeling of furniture. The best of them are KZ-Mebel, Astra Raskroy, Astra Furniture Designer and many others. The minimum set of equipment that will be needed to start the production of furniture:
Back to the table of contents What employees are needed for the functioning of the furniture workshopAn important step is the selection of personnel for the future enterprise. It will be necessary to put a person who is well versed in computer programs for the manufacture and modeling of furniture in the office (the point of reception of orders). At the same time, he must be sociable in order to manage to find a common language with any potential customers. In the workshop for the production of furniture, you will need to hire several workers who have experience working with the main types of machines and materials. An important condition is that employees must be non-drinkers so as not to slow down the process of manufacturing and supplying furniture. The main materials that employees should be able to work with are: chipboard (particle board) and MDF (medium density fiber board). If you plan to open a store selling finished products, you will need to hire another employee - a sales assistant. Accordingly, the general list of workers who will be needed to start production:
Back to the table of contents Question about the supply of manufactured productsThe following distribution channels are possible:
Back to the table of contents The costs that will be spent on creating this business
Total: the total costs that will be needed to start furniture production are approximately 2300000-3600000 rubles. It is important to note that all the calculations were made based on the pricing policy of Perm. At the moment, all areas of small business are very actively developing. Especially productive and profitable is a business associated with the production of furniture. In order to be aware of all the intricacies of this production, you do not need to undergo special training. For successful business management it is necessary to have basic knowledge, concepts and little experience in this field. Luck and patience are not the last components of your success in this business. Furniture business todayNot only mass production, but also piece production of furniture has become a simple affair, accessible to everyone. Assembly processes are sometimes called adult constructor. If you have elementary concepts of what and how to do, then assembling modern furniture that is sold in expensive stores will not be difficult for you. In fairness, it is worth noting the fact that the furniture market in Russia today is in great competition. About three thousand large medium-sized enterprises are actively fighting for their potential customers. Are there any slightest chances for small business to occupy its niche in this market segment? In this article we will try to consider issues related to this topic. If the company is not very large, it should pay great attention to the development of the production base, otherwise it may lose its competitiveness and go bankrupt. In big cities, people are picky and very demanding about the quality of furniture. They are not satisfied with the poor quality product. Consumers are increasingly complaining about poorly made furniture. He looks not only at the appearance of the product, but also wonders how long the furniture will last. It is very difficult for small manufacturers to compete with large companies, which have significantly more opportunities to produce products of better quality and in a wider range. Many experts are inclined to think that the share of small and medium enterprises in the furniture business will increase every year. This trend is understandable and predictable. In a few years, the share of small enterprises is expected to increase to 75 - 80%. One of the most promising areas is the manufacture of kitchen and office furniture. In this industry, there is a real stir. Over the past 10 years, profits in this sector have increased by 20% each year. Small businesses are increasingly turning their eyes to built-in furniture - it is a sales leader. Inexpensive, high-quality furniture, which is almost half cheaper than similar furniture made abroad, is in great demand among the population of our country. It is worth knowing that investors are happy to invest their money in this type of business, as they know that with a successful investment, you can count on 40% of the profit. For the small and medium furniture business, the main task is to occupy a certain niche. This means producing specialized products. Increasingly, companies appear on the market that produce unusual furniture made of glass, plastic, and rare wood. Do not forget that lately it has become very fashionable to make furniture to order, which will have non-standard shapes, colors and designs. Wicker furniture manufacturers have virtually no competition. Their goods are bought up with pleasure.
Furniture business from scratch: we purchase equipmentIt is possible to organize the production of furniture of various types and purposes. This may be a business for the production of built-in furniture, cabinet, upholstered, kitchen, office, garden and specialized. The choice of premises and the purchase of the necessary equipment for furniture production is one of the most important components of the whole process. At the beginning of your career, an inexpensive tool will be enough for you. An approximate list of what you can not do without:
After the production moves to a new, high level, it will be possible to take care of buying a better and more expensive tool. The cost of buying a tool can range from 40 thousand rubles and above. Professional machines are expensive, and you need to buy them only when the sales volume and the number of orders have reached an economically reasonable level. How to promote the furniture business?The main role in the implementation belongs to retail. Agree on the sale of their products in large shopping centers and stores. Large manufacturers create their own company salons in which they sell goods of their own production. Outlets should have a large area so that the furniture is placed freely and can be clearly seen. In small towns, furniture sells well in the markets. To sell specialized furniture, you need to send booklets and leaflets to company managers. Actual at the moment is the sale of furniture via the Internet. The only drawback of promoting the product in this way is the buyer’s inaccurate understanding of the product. Profitability of this type of businessTo open the store Medium-sized you will need from 2.5 to 3 million rubles. The main amount will be spent on rental premises, the purchase of goods and wages to staff. The business will pay off in 1.5 - 2 years with a margin on the product 20 - 40% of the cost. Budget and profitability of the furniture workshop:
The furniture workshop can pay off in 2 - 2.5 years. Profit per month will be about 80,000 rubles. Furniture factory - ideal profitability - 10 - 25%.
This calculation is for a factory that specializes in the production of cabinet office furniture from chipboard. At the same time, sales should be at least 10,000 products per month. The furniture business has always been and remains promising. People have changed and will continue to change furniture according to its degree of wear. Manufacturers will never be left without work. And you can safely plunge into the production process. The main thing that needs to be done is to plan everything accurately and organize it correctly. In this material: How to start a furniture business from scratch? You can also find enterprises that make furniture without equipment and some serious production facilities. But the consumer is already tired of cheap walls and tables, chipboard furniture, which is falling apart in a few years. Now more demands are made on the manufactured goods. To match them, you have to open a full-fledged furniture production workshop. Market ReviewWhere to start furniture production? Before you open a furniture workshop, tune in to the fact that small and medium-sized businesses in this area are characterized by specialization in something specific. You should not clutch at the production of everything in a row, but you should try to make every effort to ensure that you gain a foothold in some narrow niche. This is a fundamental rule in survival strategies in furniture manufacturing. You can focus your efforts on your own production of the following furniture:
Advertising furniture is used to decorate points of sale and attract as many customers as possible to a product or service. For trade organizations, such as shops, pharmacies, shopping centers, salons, special shelves and display cases are required, on which the range will be exhibited. Furniture manufacturing involves a large number of specializations. You can focus on collecting any products with limited functioning, such as, for example, Euro pallets or computer tables, or you can make glass tables and cabinets, produce furniture from any specific material - plastic, natural wood. Furniture manufacturing as a business does not only mean creating goods. The restoration services for cabinet and upholstered furniture are also popular. These services are especially in demand among citizens with a low level of income, and there are a lot of such services in the country. The opposite direction is the restoration and restoration of antiques. In this case, services will be in demand in regions that are economically developed. An unoccupied niche in this market is the production of wicker furniture. A small enterprise can master it, but wicker chairs, sofas, cabinets continue to be imported from abroad, leaving them in the high price segment. An excellent specialization for small and medium-sized businesses is built-in furniture. In this case, an individual approach to each client is required. Large enterprises cannot satisfy individual customer requirements. To understand whether it makes sense to start a furniture business, pay attention to the development trend of related areas. If the real estate market is developing, foreign cars are being purchased, the antiques and advertising services market is developing, and this dynamics can be observed in the next two to three years, you can start in this direction. On the other hand, there will always be a demand for furniture: following its decline, the upward trend returns very quickly. Organization of productionWhere to start manufacturing furniture? Once you have decided on a specialization, you need to find a suitable room. The minimum required area is 200 m 2. Its rent will cost 1300-6500 rubles per year for 1 m 2. This range of prices varies by region. In Moscow and St. Petersburg, you need to tune in to the cost of 1 m 2 in 5-6.5 tons. per year, and in regions, especially economically undeveloped, it is quite possible to count on the lowest prices. The average figure is 3300 rubles per year for 1 m 2. Total rent will cost 650-660 tons in year. If you manage to take the premises for long-term rent cheaper, it will be very good. For equipment, depending on the specialization, it is necessary to spend from 350 t. up to 1.5 million rubles. This does not include the purchase of office equipment, software, or a truck, by which furniture will be delivered to the consumer or to points of sale. You can buy both standard machines and entire production lines that are made to order. Pay attention to the purchase of quality components. Please note immediately that it is impossible to produce furniture that will be of high quality and competitive, relying only on parts and fittings of domestic production. We will have to establish relations with distributors of foreign companies that offer everything that is necessary for furniture production. Decide in advance and make a list of suppliers of components, conclude supply contracts:
At the initial stage, it is necessary to duplicate suppliers for each item. Diversify the assortment so that there is not only the production of furniture from chipboard. During the work, some of them will be eliminated, cooperation will continue only with some of them, which turned out to be reliable and profitable in the price range. Then it remains to resolve the issue with the staff. The level of training of employees should be high, but it also requires a high payment. You can organize your training in the specialty, if you have experience and qualified personnel for this. The furniture workshop should include:
The production hall can accommodate from 10 to 50 people, depending on the volume of production. In addition to them, it is also necessary:
The total payroll fund (PAYF), if there are no more than 15 employees, is 350 t. These calculations are valid for the general case. Depending on the specialization and scale of the region, they can vary both in the direction of decrease, and in the direction of increase. For example, for economically underdeveloped regions, the wage fund will decrease, but for Moscow and St. Petersburg it will increase several times. Consider specific examples in niches for the production of cabinet and upholstered furniture. Production of cabinet furnitureThe technology for the production of cabinet furniture includes the following:
This process depends on how automated it is. It is believed that the use of CNC machines reduces the percentage of manual labor, increases the automation of the process. The operator of such a machine only needs to enter the size data into the program, create the required product and the machine itself, after starting, will cut out everything that is needed in a few minutes. This method of manufacturing is considered advanced and high-tech. The disadvantage of this production is that constantly reconfiguring the program for an individual order is considered an unprofitable occupation. Therefore, to work with individual orders, the use of CNC machines is not suitable. The best option is the organization of furniture production on several machines, which form a semi-automatic line with combined manual labor. For such a furniture manufacturing workshop, you will need to purchase the following equipment and tools:
With all this, you can count on the simultaneous monthly release of 100 units:
Only 400 units of finished products. The expenditure should include the costs of:
In addition, the cost of furniture production is formed by payroll and rent. The payroll together with taxes on wages is about 400 tons, rent - 50-55 tons. The cost of 400 of these products will be about 500 tons The cost of a table or cabinet varies from 2.3-3.3 tons, and the cost of cabinets and shelving is 3.5-5 tons. The approximate income will be - 1160-1660 tons The profit will be 590-1060 tons per month. This is a perfect calculation. To obtain real numbers, the final values \u200b\u200bcan be divided in half, even if labor efficiency is high. Upholstered furniture production
There is a tendency to manufacture sofas and armchairs to order, which makes it possible for small enterprises to successfully compete with large enterprises that will not chase an individual customer. It is just convenient for small and medium-sized businesses to make small batches of armchairs and sofas. For small and medium-sized businesses, this niche is also attractive because it does not require the purchase of expensive equipment. Basic operations are manual. Finally, such small and medium-sized businesses easily adapt to fashion trends, are ready to quickly complete an order, even if a new product has just appeared on the market. For this, the factory needs a quarter to transfer equipment and the technological process to the production of any specific models. A small workshop can only provide a whole range of models to the customer through combinations of upholstery, fittings and material, thereby winning through exclusivity. The production of upholstered furniture requires the purchase of the following machines:
Their total cost is 150-160 tons In addition to machine tools, drying equipment and pneumatic tools, as well as hand tools, a sewing machine and cutting tables, will be required. This is another 40 tons. Total technology for the production of upholstered furniture will require about 200 tons of equipment and tools. In addition to equipment for the production workshop, it will also be necessary to purchase office equipment - office equipment and furniture with a total cost of 60-90 tons. This equipment allows monthly production of up to 100 sofas, each of which can be offered for sale at a price of 7.5 tons. The income of the enterprise will be from 750 tons The costs of its production of upholstered furniture are:
Total total production costs amount to 440-580 tons The company's profit before taxes is 170-310 tons, and after - 160-290 tons The real value of profit will be 1.5-2 times lower. The average payback period for investments in equipment and tools in this type of activity, if the efficiency is high, is considered normal from 4 months. Take into account the production of facades. The number of enterprises that specializes in this is growing every year, but for many manufacturers these products are not of high quality. Buyers are willing to spend more money on high-quality facades, therefore, if the emphasis is on the quality of products, not striving to lower the cost price due to it, then the production of facades can be a very profitable enterprise. To open its production, it will take 1.5 million rubles. One equipment, its purchase, delivery and installation will cost 1 million rubles. Still need to provide for the purchase of raw materials for a month of furniture production, which will cost another 250-300 tons
One person can work on the equipment, so the payroll will be small. In a month, such a workshop for the production of furniture gives 400-500 m 2 of MDF facades. The cost of 1 m 2 reaches 1 t. The income of such an enterprise is 400-500 tons Consumable part - up to 200 tons The initial investment will pay off in 8-12 months. What to focus on?How to organize your own furniture manufacturing business in order to achieve high labor efficiency? First: safety precautions must be followed. Second: the staff should have a personal interest in high and quality production. Therefore, establish that the salary is formed from a fixed rate and interest for the work performed, and the marriage is calculated from the salary. This will increase the interest of workers and increase labor efficiency. After the work is established in the workshop, engage in an active search for customers. You can sell products both through retail chains in your city, and in other cities.
It is very good if you have your own online store for the sale of manufactured furniture. If you invest in its promotion and contextual advertising, it allows you to increase sales by several times, while the cost of advertising will be low. Order a business plan
In the manufacture of furniture complex machines and assemblies are used. Today, no one can imagine a cozy, comfortable home without furniture. Everything that is connected in our life with home comfort and luxury, first of all, is associated with solid and high-quality pieces of furniture. Kitchen, living room, bedroom, children's room - can we imagine them without cabinets, sofas and beds? A business in the furniture industry involves two paths - selling someone else's finished furniture or producing one of their own. Often, businessmen who have worked in furniture sales for several years decide to open their production, knowing the needs and specifics of their customers' needs. To open such a line of activity, you need to calculate a business plan for furniture production. Project SummaryThe calculation will be made for the furniture workshop, which produces cabinet furniture of the middle price segment. These are office furniture, kitchens, cabinets, etc. The enterprise will be organized on the principle of an incomplete cycle, that is, suppliers will be engaged in the preparation of raw materials, the enterprise will produce ready-made panels for assembly according to the developed drawings. Own funds will be used to launch the project, which will give an additional advantage in forming a pricing policy and a shorter payback period. Furniture business: how to build a business in the manufacture of furniture. Project marketingMarket ReviewA business plan for the production of furniture requires a thorough study of the market - suppliers, competitors, consumers. According to the Association of Furniture and Woodworking Enterprises, the volume of furniture production in Russia is distributed as follows:
If we list the entire domestic furniture range presented on the Russian market, it can be conditionally divided into the following groups according to the following parameters:
Planned assortmentA preliminary list of the range of products (with further study of demand, this data will change):
Target group
Frameless furniture manufacturing is a profitable business. How and to whom is the distribution organized?We will sell our products in several ways:
Read also: Confectionery business plan Advertising
Required documentsIt is better to register an enterprise as a limited liability company. In this case, this is the optimal form of ownership and taxation, which makes it possible to work with legal entities (suppliers and large consumers), and other enterprises. In order to register an LLC, you will need the following documents:
The preparation of the production plan must be taken very responsibly, because this is one of the most important parts of a business plan Production planProduction will be built on the principle of an incomplete cycle. Running models of prefabricated cabinets, cabinets, tables and kitchens and other cabinet furniture will be made to order in the required sizes and configurations. Purchased finished wood-shaving and MDF - slabs for specified patterns will be processed at the factory with the installation of appropriate accessories for delivery to the consumer and assembly on site. Room requirementsTwo rooms will be needed: for production and for receiving customers. It is good if they will be nearby. According to the requirements, they differ among themselves, because designed for different functions:
EquipmentFor the production of cabinet furniture parts, you need to purchase the following equipment:
Attention! The free business plan offered for download below is an example. The business plan that best suits the conditions of your business must be created with the help of specialists. Overview SectionThe proposed model business plan for the production of furniture aims to familiarize yourself with the main issues of creating your own business project for the manufacture of furniture. From the point of view of the organizational and legal side, the proposed form of entrepreneurial activity should be referred to as a “private entrepreneur”. This is due to the fact that the role of final consumers is played by private individuals. But if it turns out that the demand for furniture will be quite high among state institutions and legal entities, it will be possible to additionally register a limited liability company. The success of the furniture project is expected to be high, as since 2000, demand for furniture has begun to grow. The growth rate is 15-20% per year. Description of the enterpriseIt is proposed to open an enterprise that will accept orders from private individuals and furniture stores for the production of various pieces of furniture: cabinet, kitchen, office and other. Production planWhen implementing a business plan, first of all, you need to find suitable premises. They must have at least two. One room will serve as an office. Here, orders will be accepted, as well as coordination of actions with customers. The office should be located so that customers can easily get to his address. Another room will be used as a production building. The production hall can be located separately, even outside the city, if this reduces rental costs. The best option is a combination of an office, a production room and a store in one place. The next stage in the implementation of the business plan for furniture production is the purchase of the necessary equipment. You will need a milling machine, an electric jigsaw, a lathe, a format-cutting machine. It is important to properly organize the back-up of employees for all offered vacancies. An order pickup should include a person who is well versed in at least one of the programs designed to model furniture. He must also get along well with people, be able to communicate with customers. Depending on the volume of production, 2 to 8 workers will be needed. Sales planIn accordance with this business plan, the following sources of sales of manufactured products are provided:
Financial planConsider those aspects of our furniture manufacturing business plan that are related to the financial side of furniture manufacturing. Good to know! We respect your choice, but we want to remind you that the least risky, relatively easy and comfortable start-up of a business can be organized under the wing of a successful company on a franchise basis. We invite you to get acquainted with. Why starting a business with a franchise is easier and more convenient to learn from a selection of articles published in the section: Costs and revenues:
Total: 2.3 - 3.6 million rubles. as starting capital. |
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