* The calculations use average data for Russia

1,132,000₽

Minimum starting capital

40%

Profitability

8 months

Payback

RUB 519,560

Net profit

The goal of the project is to create a furniture production for the sale of wooden furniture products in a city with a population of 500-800 thousand people.

To implement the business idea of ​​a furniture manufacturing enterprise, production premises are rented in an industrial area of ​​the city. The total area of ​​the premises is 350 m2, on which production workshops and a sales office are located.

The target audience is middle-income families who update their furniture every 3 years and prefer unique, high-quality furniture made from natural materials. Price segment – ​​average.

The main advantages of a furniture manufacturing business:

relatively small amount of capital investment;

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

The profitability of a furniture manufacturing business can reach 300%.

The volume of initial investment in furniture production is 1,132,000 rubles. Investment costs are aimed at renovating the premises, purchasing equipment, setting up an office, the initial purchase of raw materials and the formation working capital. Own funds will be used to implement the project.

Financial calculations cover a three-year period of operation of the furniture production project. It is planned that after this period the establishment will need to expand production and product range.

The net monthly profit of the furniture production project when it reaches planned sales volumes will be 519,560 rubles. The profitability of sales in the first year of operation will be 25%. If these indicators are achieved, the initial investment will pay off in the eighth month of operation. Integral indicators of project effectiveness are presented in Table 1.

Table 1. Key project performance indicatorsfurniture production

Profitability of furniture production

The active growth in housing construction and the number of purchase and sale transactions in the residential real estate market led to an increase in demand for furniture. Purchasing a new home always involves 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 occurred in 2014, which was followed by a reduction in both indicators, which is associated with the crisis. By tracking the performance of the construction market, it is possible to predict the situation in the furniture industry.

The active stage of development of the furniture market falls on 2011-2014 - it is during this period that the volume of the furniture market increases. The sharp drop in volumes in 2015 was due to two trends at once: first, a decrease in effective demand; and secondly, a sharp fluctuation exchange rate, which contributed to the displacement of foreign suppliers from the market.

As of 2014, the share of furniture from abroad was about 65% of total sales. At the end of 2015 alone, imports of furniture decreased by 45.8%. According to marketers from the largest furniture retailers, IKEA and Hoff, by the beginning of 2018, the share of domestic manufacturers 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 remains at the same level, which is due to increased prices for furniture. According to statistics, furniture prices increased by 19.14% - this is the highest growth rate in the last 7 years. Thus, there is a decline in the quality growth of the furniture market.

The crisis also affected the structure of the furniture market. The most significant changes affected the segment office furniture and bedroom furniture. The first trend is explained by the optimization of companies' expenses in difficult times. The second trend is based on the fact that bedroom furniture is the least necessary in a home environment. The least effect of the crisis is observed in the segment of furniture for the kitchen and living rooms, as well as upholstered furniture. Consequently, the most promising segment of the furniture market is the economy class, which feels more confident even in a crisis.

The furniture market is one of the least consolidated segments of the retail trade. The top 10 furniture retailers account for 1/3 of the entire market, and the growth rate of revenue of the leaders in 2015 exceeded the growth of the market as a whole. The constant leader in the Russian furniture market is IKEA, which occupies 22% of the total market. The annual revenue growth rate was 14.7%. Experts predict a further increase in the share of large retailers, which will reach 40%.

At the same time, the Russian furniture market is characterized by high level competition. As of 2017, the Furniture of Russia catalog includes more than 14,000 companies, 5,000 of which are direct manufacturers.

The highest density of furniture production is observed in the Central and Volga Federal Districts - about ¼ of total number manufacturers. In other regions, the volume of retail sales significantly exceeds the volume of own production. At the same time, it is more profitable for furniture manufacturers to sell their products within the region, which allows them to reduce transaction costs.

In cities with a population of 800 thousand or more, there are various large retailers, which are very difficult to compete with. In cities with a population of less than 500 thousand people, there are no network players and delivery in many online stores, which narrows the buyer's choice and reduces the level of competition.

Another parameter of the furniture market is the trading format. According to surveys conducted at the end of 2016, every fifth resident ordered furniture from an online store. In the first half of 2016, sales via the Internet grew by almost 47% and reached 974 million rubles, which is 12.5% ​​of total sales on the market. Almost half of the furniture chains have their own websites, but not all of them have an online sales function. Every year, the popularity of online furniture stores is increasing, since it allows sellers to reduce the cost of renting large retail spaces and reduce prices, and for buyers, online trading is more convenient option acquisitions.

Ready ideas for your business

By combining the trends of the Russian furniture production market, we can form the image of a successful furniture company: an economy-class furniture manufacturer operating in a city with a population of 500-800 thousand people and selling products through an online store. These parameters will ensure constant demand, practically independent of the economic situation, reducing competition, reducing 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 production workshops has been increasing - the exclusivity of the offer and the variability of production are important parameters when a 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 at the end of 2014 almost doubled. With all the variety of choices presented on the furniture market, the consumer cannot always find suitable furniture, which 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 opening a furniture workshop.

Advantages of this format of furniture production:

• does not require large investment costs;
• to accommodate production capacity no need large room;
• savings on equipment;
• low price of finished products;
• production flexibility.

The disadvantages of furniture production include:

• innovation and imagination are the basis for business success;
• furniture self made requires a lot of time;
• independent search for clients.

This format fits into the image modern manufacturer furniture. The implementation of this project involves the opening of a furniture workshop.

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 amount of investment in furniture production;
• a promising direction, interest in which will never disappear;
• furniture is a general consumer product, which 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 proper production structure, you can occupy your own niche in which competition will be minimal.

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

Deciding on the range of furniture production

The furniture company is engaged in the production and sale of wooden furniture - lunch groups, as well as upholstered furniture - sofas and armchairs. The newly created furniture company positions itself as a “furniture workshop”, specializing in hand-assembled products and the production of non-standard furniture for individual orders. The products of this company are favorably distinguished on the market by the following indicators: low prices, custom-made work, a wide selection of equipment and upholstery, color and material of products, the possibility of online purchase.

The products intended for production are:

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

Chair, made of solid pine, painted with imitation 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 seating part of the sofa - 40 cm, 2 decorative pillows, filler - spring block synthetic polyurethane foam, niche for linen. Additional design (carriage frame, upholstery and color options, various models - 3-seater, 2-seater, corner, with folding mechanism and without)

Chair, frame made of laminated chipboard, plywood, coniferous timber; The seat is made of polyurethane foam and a block of flat springs. Dimensions: length - 750 mm, depth - 870 mm, height - 890 mm. Additional design (carriage tie, upholstery and color options).

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

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

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

Marketing and sales of a furniture manufacturing company

The target audience of a furniture production company is middle-income families who update furniture every 3 years and prefer unique, high-quality furniture made from natural materials. The target audience of a furniture manufacturing enterprise is quite broad, so to develop an effective marketing strategy it is necessary to divide target group into consumer subgroups:

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 delivering and assembling furniture;

Clients with low level income occupy the largest specific gravity among consumers. The main criteria when choosing furniture: price/quality ratio, custom-made furniture in the budget category, provision of furniture reupholstery services.

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

Ready ideas for your business

Since the furniture production workshop is focused 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 you need to indicate the range of products, production times, examples of work and current discounts. Development of a full-fledged website with the necessary functionality will cost about 50,000 rubles.

A more budget-friendly option is to create profiles on social networks and promote them. In addition to the product range, you can post photographs and customer reviews in your profile, a list of services provided by the furniture workshop, useful information O various materials, information about furniture care, design solutions, which your products fit into, information about promotions and bonuses.

Also for the furniture manufacturing business the most effective way advertising is the placement of information about products on billboards. It is recommended to choose a billboard in close proximity to construction stores, on the outskirts of the city. The average cost of renting one 3*6 m billboard for 1 month is about 23,000 rubles/month.

Another effective advertising tool will be the placement of booklets with a list of all services and the portfolio of a furniture company in construction stores. The cost of such placement depends on the conditions of the hardware store and is discussed individually. You can offer cooperation hardware store and jointly holding a promotion, which involves issuing discount coupons in a furniture workshop for a fixed purchase amount. It is planned to spend 10,000 rubles on this method of advertising.

Ready ideas for your business

Also, an effective option for promoting a furniture production workshop can be printing advertising blocks in a specialized press. The cost of this type of advertising will be about 10,000 rubles.

Don’t forget about promotion channels such as cooperation with private interior designers, design studios, and furniture showrooms. You must search for intermediaries yourself and offer them a percentage of the order amount in the amount of 10-20%.

Effective ways to attract consumer attention are participation in various exhibitions and fairs, sending promotional materials, availability additional services and after-sales service: 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 loyal consumer attitudes towards the enterprise. Therefore, it is worth considering options for conducting a survey among customers, the results of which will allow you to make the necessary adjustments to production and take into account consumer requirements for products.

The use of a particular tool depends on the target audience of the establishment and the project budget.

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

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

Participation in furniture exhibitions and fairs.

Thus, expenses in the amount of 50,000 rubles are included in the promotion of a furniture production workshop.

The most important part of marketing is sales forecasting. Table 2 presents the furniture workshop's product sales plan. 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 also search for clients among the corporate segment - these could be cafes, offices, beauty salons, etc. It is also worth considering the option of cooperation with a furniture showroom, which will be ready to purchase part of the products for sale.

Table 3. Planned sales volume of the workshopfurniture productionby type of product

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

Furniture production plan

Opening a furniture production workshop and organizing production involves the following steps:

1) Selection of premises for production. Since it is planned to open a full-cycle furniture production, the area of ​​the premises must accommodate large-sized equipment. To do this, you will need a room with a total area of ​​300-350 m2, on which the following will be placed:

production workshop - a 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 painting and varnish work;

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

finished products warehouse and raw materials warehouse;

production staff room;

bathroom with shower;

administrative staff premises, office space.

In addition to the area for furniture production, 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 noise level;

first floor, two entrances. Since large materials are unloaded and loaded, production must be located on the ground floor. Separate entrances are made for the workshop and sales office;

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

availability of water supply, ventilation, fire safety system, ease of access to the building, availability of a site for unloading raw materials;

lack of dampness and high humidity. The materials used in furniture production are resistant to moisture and dampness.

Finished products should also not be stored in such conditions, since cushioned furniture has the ability to absorb moisture and odors.

• a heated room, which is also necessary to maintain the ideal quality of raw materials and finished products.

To implement the project, industrial premises are rented. Total area - 300 m2, cost - 50,000 rubles/month

2) Purchase of equipment. To ensure full cycle production, it is necessary to purchase a set of equipment:

jointing machine – 70,000 rubles;

thickness planer – 120,000 rubles;

milling machine– 70,000 rubles;

drilling and grooving machine – 50,000 rubles;

turning and milling copying machine – 150,000 rubles;

grinding machine – 80,000 rubles

painting equipment – ​​130,000 rubles;

format-cutting machine with manual supply 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 furniture production will be about 825,000 rubles. With the help of all this equipment, expect to produce 400 pieces of furniture simultaneously each month.

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

product design preparation;

work on cutting material and manufacturing parts;

material processing work;

assembly of finished furniture.

For full-cycle furniture production enterprises, edged solid boards are the main raw material. At the first stage of production, they are converted into panels and then parts for furniture are made. The most popular types of wood are: oak, birch, larch, pine. The most budget option for solid wood is pine. It is this material that will be primarily used in production. So it will be required chipboards and MDF.

To organize furniture production, you will need suppliers of wood, paints, coatings, adhesives, fittings, fabrics, etc. The main requirements for suppliers are a well-known, trusted company, availability of all necessary certificates, and the ability to deliver. It is preferable to cooperate on a long-term basis with companies that carry out quality control, provide wholesale discounts and the possibility of deferred payment.

4) Recruitment. Furniture production requires certain professional knowledge and skills, so 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 financial responsibility for raw materials and equipment, a sales manager, a designer-technologist, a forwarding driver, a manager, an accountant.

5) Form of service. Working with a client consists of several stages:

client contacts the company: the client contacts the manager and negotiates all the terms of the order. The manager receives the order and passes it on to the designer-technologist, who helps the client decide on the design of the product, materials and develops an individual project.

cost calculation, ordering: after agreeing on the project with the customer, the designer-technologist calculates the cost of the work. After this, the manager agrees on the cost of the order with the client, draws up the relevant documents and takes an advance payment of 30% of the order amount. The order execution period is specified in the contract and is 30 working days.

production and delivery of the order: upon production of the 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 is free for orders over 20,000 rubles.

Organizational plan for the production of a furniture workshop

The initial stage of opening a furniture workshop is registering the business with government agencies. To conduct commercial activities, an individual entrepreneur is registered with a simplified taxation system (15% “income minus expenses”). Types of activities according to OKVED-2:

31.09.2 - Production of other furniture and individual furniture parts not included in other groups, according to individual orders 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 - Production of furniture for offices and trade enterprises;

31.02 - Production of kitchen furniture.

A license is not required to carry out these types of activities, but it recommends certification of all furniture produced to confirm the quality of the products. To do this, it is necessary to comply with the norms and standards:

GOST 16371-93 “Furniture. General technical conditions";

GOST 19917-93 “Furniture for sitting and lying down. General technical conditions";

GOST R 50051-92 “Furniture. Chairs. Definition of sustainability";

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

GOST 13715-78 “Joiner slabs. 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 workshop's operating hours are from 8:00 to 17:00 (Mon-Fri). Sales office opening hours are from 9:00 to 19:00 (Mon-Sun). Based on this, the staffing table is formed.

Table 4. Staffing table and wage fund

№	Job title	Salary, rub .	Number, persons
Administrative
	Supervisor
	Accountant
Industrial
	Workshop specialist
	Production Master
	Designer-technologist
Trade
	Manager
Auxiliary
	Delivery driver
	Cleaning lady (part time)
Total:				210,000.00 RUR
Social Security contributions:				63,000.00 RUR
Total with deductions:				273,000.00 RUR

Workshop specialists serve all stages of furniture production and combine the functions of furniture assemblers. Education - technical secondary, work experience in a similar position.

Production foreman - organizes the work process, receives materials and draws up the relevant documentation, is the materially responsible person, monitors compliance with safety regulations in production, and carries out step-by-step control of the production of products. Education – higher, work experience in this field – 5 years.

Manager – implements the marketing policy of the enterprise, negotiates with potential clients, places orders and accepts payments, is a materially responsible person, deals with advertising and product promotion, and is responsible for filling the website and profiles on social networks. Higher education.

Designer-technologist - develops models and designs of furniture, carries out author's control over the compliance of the produced furniture with the developed models. Higher education.

An accountant is a financially responsible person, maintains all financial documentation, carries out accounting, monitors compliance with the law when spending money and material resources. Higher education, work experience in this field – 3 years.

Delivery driver – ensures timely delivery of orders to customers. Requirements: own car, work experience of at least 1 year, driver license categories B, C.

The manager is a financially responsible person, represents the interests of the enterprise, concludes agreements on economic activity, issues orders and instructions, hires and fires employees, selects suppliers and searches for distribution channels. Education – higher, work experience in this field – 3 years.

Cleaner – cleans the sales office.

Financial plan for furniture production

The financial plan takes into account all income and expenses of the project; the planning horizon is 3 years. It is planned that after this period the establishment will need to expand production and product range.

To launch a project, it is necessary to calculate the amount of investment. To do this, you need to determine the costs of renovating the office premises, purchasing equipment, the initial purchase of raw materials and the formation of working capital, which will cover losses in the initial periods. A specific feature of running a furniture business is the need to have a large amount of working capital.

Table 5. Investment costs

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

Fixed costs for furniture production consist of rent, utility payments, payroll, advertising expenses, taxes and depreciation. The amount of depreciation charges is determined linear method, 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 for furniture production

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

Evaluating the efficiency of furniture production

The payback period for the project with an initial investment of 1,132,000 rubles is 8-9 months. The net monthly profit of the project upon reaching planned sales volumes will be 519,560 rubles. The profitability of sales in the first year of operation will be 25%.

Possible risks of furniture production

To assess the risk component of the project, it is necessary to analyze external and internal factors. External factors include threats related to the economic situation in the country and sales markets. Internal – the effectiveness of organization management.

The specifics of a furniture manufacturing establishment determine the following external risks:

increase in prices for raw materials, disruption in the supply of raw materials. In the first case, there is a risk of increased costs and, as a consequence, 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 by choosing suppliers wisely and including all necessary conditions, which provide for financial liability of the supplier in case of their violation;

high competition in the market. Since the furniture market is quite saturated and highly competitive, the behavior of competitors can have a strong impact on the demand for your products. To reduce this risk it is necessary to create systems approach to organizing a business and establishing 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 clients 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 risk is associated with the economic situation or loss of market share. It is possible to reduce this risk by forming your customer base, concluding large contracts, and making production flexible;

fire, theft and other force majeure circumstances. The risk of such events causing property damage 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 and introduce regular monitoring of compliance with safety regulations. You can also insure the risk with an insurance company;

• refusal to provide rental premises or increase in rental costs. To reduce this risk, it is necessary to enter into an agreement long term rental and choose your landlord carefully.

Internal risks include:

failure to achieve the planned sales volume. This risk can be reduced with effective advertising campaign and competent marketing policy, involving various promotions and bonuses;

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

problems with personnel, which mean low qualifications, staff turnover, lack of motivation of employees. The easiest way to reduce 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, products can be sold at a discount 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 transferred to the client. This risk can be reduced by selecting qualified personnel, purchasing good equipment and quality materials;

a decrease in the reputation of the establishment among the target audience due to errors in management or a decrease in product quality. It is possible to mitigate the risk with constant monitoring of product quality, obtaining feedback from customers of the enterprise and carrying out corrective measures.

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Finding a niche in the numerous stream of opportunities is not so easy. Collecting information, as well as statistics on the most profitable and actively developing areas of business, will help you navigate and find the area where you can apply your abilities.

Now there is a tendency to increase construction volumes and an increase in mortgage lending, so the demand for furniture will be at a high level in the near future. If you've ever thought about starting your own business, you can't go wrong by trying your hand at the furniture business.

Today, in the market for goods, works and services offered, one can observe a tendency towards narrow specialization. By developing certain types of furniture models, entrepreneurs can focus on its unique properties, original design and specialized application.

Manufacturers settle on a specific type of product and try to find their consumer who would provide a constant profit.

Business specialization

Representatives of small and medium-sized businesses focus on a narrow market niche. Having established themselves in one direction, entrepreneurs are already making a choice in favor of stability or expansion of production, capturing more and more new profiles.

There is a large set of companies that specialize in the production and sale of furniture for pharmacies, restaurants and workshops, car services, supermarkets, etc.

The number of potential specializations is extremely large. Absolutely any type of activity requires furniture. Experts are confident that in the near future the appeal to specializations will only intensify.

Now innovators are already appearing on the market, offering glass, plastic, frameless and multifunctional furniture made from rare tree species.

The direction of restoration and restoration of furniture is also developing. This type of business flourishes exclusively in big cities and is geared towards antiques. Like business, furniture restoration also satisfies the needs of its clients.

Range

When choosing a field, you should decide on the range of products. Among the furniture there are such groups as:

Instructions for use

• household;
• for common areas.

According to those properties

• collapsible;
• sectional;
• bent;
• wicker;
• built-in;
• non-removable.

By purpose

• case;
• for sitting or lying;
• furniture for work;
• furniture for dining.

Domestic manufacturers strive not only to provide the population with furniture, but also to provide a range of additional services for delivery, assembly and selection of individual designs.

There is both mass production of identical models and the creation of custom-made furniture. In the latter case, clients can provide everything - from the size and purpose of the model, to the design and selection of materials.

Choosing a location for furniture production

The choice of place to locate your production must be treated with special care. For the first time, it is best to rent a commercial space. In the future, if the business develops steadily, you can move on to purchasing your own premises or building industrial building on your own.

When choosing a location, be guided by the following characteristics:

• Availability of convenient transport interchange;
• General condition of the structure;
• Indoor temperature;
• Humidity level.

All these components are necessary to maintain optimal storage conditions for materials. The recommended temperature should not exceed 18 degrees Celsius, while the required indoor relative humidity is between 55 and 70%.

With these characteristics, the raw materials will not be damaged and will be stored in the warehouse for a long time.

Otherwise, the wood will swell and the paintwork will fade.

Often, if the regime is not followed, mold and stains appear on the raw material, indicating that the wood is susceptible to rotting.

For initial production you will need:

• Workshop premises;
• Warehouse for finished products;
• Retail premises;
• Administrative premises or central office.

Equipment for the enterprise

High-quality furniture production requires high-tech equipment and components.

To produce furniture parts you will need the following types of equipment:

• CNC machines, with modeling programs;
• Jigsaw;
• Milling machine;
• Lathe;
• Other tools.

It is almost impossible to create competitive furniture by working only with domestic suppliers. This problem can only be solved if the company provides itself with the necessary equipment required quality or resorts to the use of foreign technological products.

Staffing

Working in a workshop requires specialized knowledge in the field of furniture production. For hiring, craftsmen with appropriate qualifications will be needed. Select your personnel wisely, because the quality of products and the efficiency of order execution will depend on their work.

For the first time, for a standard workshop of a starting furniture business you should hire:

• 5-7 workshop specialists with experience working on the main types of machines when processing wooden blanks, chipboard and MDF;
• 1 production foreman with experience in organizing production activities;
• 1 driver with driving category for cars and trucks.

Payment is made according to Labor Code. Respect for workers' rights is one of the businessmen's priorities.

For the first month of work, the total wage for all employees must occupy a special expense item and be at least 150,000 - 200,000 rubles.

The average payment depends on the region where the business is sold. In big cities you need to take the maximum amount threshold.

Purchase of raw materials

There are a number of metropolitan distributors who will help you purchase equipment from imported manufacturers.

Start-up companies quite often order the following components abroad:

• Laminated boards;
• Films;
• MDF boards;
• Accessories;
• Paints and varnishes;
• Sliding systems;
• Aluminum profiles, etc.

Preference is given Western companies, especially Germany, Latvia, Great Britain and Sweden. Manufacturing companies from these countries guarantee durability and, of course, excellent quality of products.

If you are guided by the expected volume of output, it is quite possible to plan the volume of purchases. You will need to select reliable suppliers who will provide your business with the required raw materials, accessories and related products for production.

Sales and promotion

Even if your company produces unique and quality furniture, without the right sales mechanisms, selling products will be very difficult. The main thing is to competently build a sales policy, keep the business in a stable position and, to the extent possible, continue its development.

Experts in the business world advise being guided by the following components when building sales tactics and, of course, promotion:

• Products;
• Price policy;
• Promotion;
• Sales place.

Don’t get hung up on your products, try to navigate the world of furniture, attend exhibitions, participate in competitions, stay on top of new products and current trends.

Remember your competitors, set the average price for the market, relying on a flexible policy of discounts and bonuses to attract new customers.

At the moment there are two main ways of implementation: sales of products through our own outlets and work through distributors.

The first method will build the name and reputation of your new company, and will also make the entrepreneur more independent. However, this path is complicated by considerable financial losses.

A more effective way would be to sell your own goods through existing distributor stores. You can sell furniture wholesale, rent it out on interest, or rent one of the halls. The distributor will take the risk of the sale, which will require you to prove your competitiveness.

It is worth considering that a furniture business can also be promoted through an online store. Create a convenient website with an up-to-date product catalog and price list, register in furniture company catalogs, open pages on social networks and organize a newsletter for potential clients.

Selling via the Internet is the most suitable way for a start-up business. It does not require large expenditures and can bring real results.

The financial analysis

To calculate the initial business plan, you need to take into account all initial and recurring investments. This includes costs for launching a project, promotion, sales of goods and advertising. It is necessary to compare them with the financial indicators of the project: profitability, investment and payback period.

Main expense items

Focus on expense items such as:

1. Purchase of equipment and related tools(1,000,000 rubles);
2. Purchase Supplies(150,000 rubles);
3. Registration of an enterprise (30,000 - 40,000 rubles);
4. Raw materials (150,000 rubles);
5. Payment of workers (150,000 - 200,000 rubles);
6. Rental of premises (50,000 rubles);
7. Advertising (20,000 rubles).

Prices are approximate and there is a reasonable margin of error. 1,600,000 rubles - this is the approximate cost of starting a furniture business.

Business profitability

Furniture business from other areas entrepreneurial activity has a high percentage of profitability - 40% per year. Therefore, even at the initial stages of business, you can achieve amazing results.

With a profitability of 30%, the expected profit will be 400,000 rubles per month. With intensive business development, this amount will increase by 20% every year. The payback period for such a project will be 14 months.

Pros and cons of furniture making

Advantages:

• High profitability up to 40%;
• Constant demand for products;
• Relatively short payback period;
• Expanded choice of ways to sell goods;
• Possibility of narrow specification on one type of furniture;
• A large number of suppliers of raw materials and low prices for materials;
• Governmental support.

Flaws:

• Quite high requirements for personnel;
• Lack of quality equipment in our country;
• High cost of the initial business project;
• Special conditions for storing raw materials in warehouses;
• Sanitary and other requirements for the materials used.

conclusions

Due to the fact that the construction of apartment buildings and cottages has remained one of the priority areas in Russia for many years, it is worth assuming that in the next decades, the furniture business will remain afloat.

Over the past few years, the demand for furniture has increased significantly. At the same time, the number of Russian companies in this area is incredibly small. This is due to the high level of competition with Western manufacturers and poorly developed strategies of bankrupt companies.

If you build a furniture business correctly, production profitability can reach 40% per year. But to achieve such results, you will need to approach the matter carefully.

In this article:

A furniture business can be developed in two ways - to sell furniture already made by someone or to produce your own. But it is much more profitable to combine these two currents into one channel. And the simplest option for organizing your own furniture production is considered to be opening a workshop for the production of cabinet furniture.

What is included in the category “cabinet furniture”

Cabinet furniture is furniture that has a “box” design and is designed to be placed along the walls. This category includes: tables, shelving, cabinets, cabinets, walls and other types of furniture made from separate rigid parts.

The production of cabinet furniture is regulated by the following standards:

• GOST 16371-93: Furniture. General technical conditions.
• GOST 19882-91: Cabinet furniture. Test methods for stability, strength and deformability.
• GOST 28105-89: Cabinet furniture and tables. Test methods for drawers and half-drawers.
• GOST 13025.1-85: Household furniture. Functional dimensions of storage compartments.
• GOST 28136-89: Wall-mounted cabinet furniture. Strength testing methods.
• GOST 26800.4-86: Furniture for administrative premises. Functional dimensions of cabinet compartments.

Analysis of the cabinet furniture market

According to Rosstat, the manufacture of cabinet furniture is the most popular type of furniture business, which occupies about 25% of the niche of all furniture production. Today's consumer is well aware of what cabinet furniture is and what it is needed for. At the same time, even the brand or the company’s long presence on the market is not important - offer a lower price with decent quality - and the buyer is yours.

If we arrange consumer requirements in the form of a pyramid, then the lowest and most “weighty” tier will be the price, then the materials used, build quality, original design, and only then the manufacturer’s brand. Therefore, despite the huge competition in the cabinet furniture production business, there is a place for everyone who can understand the desires of the consumer and predict fashion trends.

Who is he, a potential buyer?

According to the analysis age characteristics, the target audience of cabinet furniture buyers is divided into two groups:

• young people under the age of 30 who are purchasing furniture for the first time;
• older age category (40-50 years old) who buy new furniture to replace the old one.

The most popular “representatives” of cabinet furniture are kitchens and walls for the hallway and living room.

Raw materials for the production of cabinet furniture

Cabinet furniture can be made from chipboard, MDF, solid wood. To reduce the cost of production and the final cost of the product, companies often combine these materials, for example, replacing expensive furniture panels on the wall area and partitions with chipboard or laminated fiberboard.

The simplest option to start production is to make furniture from double-sided laminated chipboards (LDSP). Why?

Firstly, there will never be any problems with the supply of such raw materials - laminated chipboards are produced in abundance by both domestic and foreign manufacturers. Secondly, for the same reason (wide supply), it is possible to negotiate favorable delivery terms (with deferred payment, discounts for large quantities, etc.). Thirdly, the use of laminated chipboard significantly reduces the cost of production, since it reduces one stage - veneer or laminate cladding in the manufacture of furniture, which requires additional investment and makes sense only for large production volumes.

To select raw materials, you must be guided by the following indicators:

• thickness of laminated chipboards (16-18 mm for external walls and 12 – for internal partitions);
• density – compliance with GOST 10632-89;
• emission class according to 16371-93 – E1.

For rear walls For furniture, fiberboard can be used (GOST 4598-86).

Features of the technological process for the production of cabinet furniture

There are several options for the technological process of manufacturing cabinet furniture. They can be divided into chains of different lengths:

• complete technological process - from the manufacture of material for the cabinet base (chipboard, MDF, furniture board) to the finished product. This best option for mass and serial production, which allows to significantly reduce the cost of materials, but is very expensive from the point of view of small businesses;
• medium – furniture manufacturing, where the raw materials are ready sheets Chipboard, fibreboard, MDF - essentially just cutting and assembly;
• short (assembly only) - the production of cabinet furniture is carried out from already cut to order chipboard, laminated chipboard, MDF. This is the most popular option for starting a small business from scratch, which involves working on a specific order without purchasing expensive cutting equipment. Then, after developing an appropriate customer base and receiving serial orders, you can think about purchasing your own cutting and edge banding machines in order to “lengthen” the technological process chain and expand production. This explains the relative ease of entering the furniture manufacturing business - in fact, it can be plan in any sequence of the production cycle.

The manufacturing technology of any cabinet furniture is divided into five main stages:

• Drawing up a project of the finished product in various planes;
• Uncover necessary materials for details of future furniture;
• Drilling sockets for fasteners;
• Finishing of cut edges (laminated edge, veneer, PVC film);
• Assembly of the finished product.

A detailed description of the technological process depends on the automation of production and the percentage of use of manual and mechanized labor. The most progressive (and, accordingly, expensive) production is considered to be one equipped with automated machines (CNC). The operator only needs to enter the dimensional data into a special computer program, design the desired product and give the “start” command.

In just a few minutes, a CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, and drill holes according to the development plan. All that remains is to trim the edges and assemble the finished furniture. But it is profitable to buy such lines if there are constant serial orders. It makes no sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let us consider, as an example, the “golden mean” - the operation of a semi-automatic line of several machines with partial use of manual labor.

To start such production you will need the following equipment:

1. format-cutting machine with manual supply of materials;

2. edge banding machine for finishing straight edges, concave and convex elements;

3. drilling and filler machine for making blind and open holes for fittings, hinges, dowels;

4. grinding machine;

5. screwdrivers;

6. hammer drill;

7. cutting tools (mills, drills, knives).

Description of the production technology of cabinet furniture

1) After the design has been developed and approved by the customer, a model of the future product is created using a computer program , which can be installed on a regular laptop.

For example:

• Cutting– a program for selecting the optimal cutting of chipboard, laminated chipboard, MDF sheets with the least loss;
• PRO 100– a program for visualizing a sketch of a model in 3D, drawing up a design, constructing and calculating the necessary materials, parts and accessories for assembly.

But manufacturers of automatic and semi-automatic machines also offer other types of programs already installed on their equipment, for example “UCANCAM V9″, “ArtCAM”, etc.

2) The slab of material from which the product will be made is fixed on the machine and cut into individual parts in accordance with the cutting charts.

If furniture is made from fiberboard - on this preparatory work and when finished - the parts go to assembly. If we're talking about about furniture made of chipboard or laminated chipboard - rough blanks are subject to mandatory mechanical processing of sawn edges;

3) Furniture parts made from chipboard are fed to an edgebanding machine, where they are used with glue and a pressure press slab sections are lined with laminated edges , PVC film, melamine or other edge materials;

4) Depending on the configuration of the machine, holes for fasteners are done:

• semi-automatically– on additive machines;
• manually, using rotary hammers and electric drills, using drawings with additive diagrams.

6) After adding holes, the product is ground along the edges (to smooth, remove overhangs of the edge material in height and length) and sent for assembly;

7) Test assembly using hand tools helps to identify shortcomings and inconsistencies and eliminate them in finished product. After which, the furniture is disassembled (if necessary), packaged and sent to the finished goods warehouse.

Estimated business plan for organizing the production of cabinet furniture

1. Project goals

The company plans to open furniture workshop for the production of cabinet furniture in the middle price segment.

Range: cabinets, tables, racks, bedside tables. Production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboard and fiberboard boards, as well as accessories, will be purchased from suppliers for further cutting according to patterns. ready-made panels, processing and assembly of furniture according to the developed drawings.

2. Financing

To launch production, it is planned to attract the own funds of the LLC founders, which will reduce the payback period and give an advantage in shaping the pricing policy.

3. Target group of buyers:

• intermediaries - specialized furniture stores, repair and design studios;
• end consumers (retail) - people with average incomes who prefer to update furniture every 3-4 years;
• end consumers (wholesale) - state-owned enterprises and government institutions, office centers, hotels.

4. Ways of implementation:

A) through a warehouse store, in which samples of work will be displayed and an office will be equipped to receive customers;

B) direct deliveries of furniture to private companies and government agencies; C) through dealer networks (including in other regions).

5. Advertising campaign

Advertising will be built with the target group of consumers in mind, for which the following will be used: media (advertising in the press of relevant topics), creation and promotion of your own website on the Internet, placement advertising banners on websites dedicated to interior design and renovation. It is planned to allocate 60,000 rubles/month for advertising purposes.

6. Organizational issues

For legal registration of the business, it was decided to create a Limited Liability Company (LLC) on common system taxation. This form makes it possible to work with both large wholesale suppliers and consumers, and retail buyers.

To register the activities of a company, you will need the following documents:

• information about the name of the enterprise;
• decision of the founders (protocol) on opening;
• information about the director and accountant;
• details of the account opened for the contribution of the authorized capital (if the contribution is in cash) and the current account for conducting business activities;
• confirmation of payment of state duty;
• charter, indicating the size of the authorized capital (at least 10,000 rubles) and the following types of activities:
  • 36.12 Production of furniture for offices and trade enterprises
  • 36.13 Production of kitchen furniture
  • 36.14 Manufacture of other furniture
  • 51.47.11 Wholesale trade of furniture
  • 52.44.1 Retail sale of furniture
  • 52.44.5 Retail sale of wood, cork and wickerwork
  • 52.61.2 Retail trade carried out directly through television, radio, telephone and the Internet.

7. Requirements for premises for the production of cabinet furniture

• First floor,
• availability of all communications,
• three-phase electricity 380 W,
• access roads and loading platforms,
• absence of dampness and high humidity.

It is planned to rent a premises of 500 m2 at a price of 240 rubles/m2, divided into 3 parts:

• office with a showroom with an area of ​​50 m2;
• workshop for the production of cabinet furniture, with an area of ​​350 m2;
• warehouse for raw materials and finished products – 100 m2.

Total – 120,000 rubles/month (1,440,000 rubles/year).

8. Staff

To work one shift (21 working days/month, including holidays and weekends), the following staff is required:

• director – 40,000 rubles/month;
• accountant – 35,000 rubles/month;
• customer service manager – 20,000 rubles/month;
• designer - 25,000 rubles/month;
• production foreman - 30,000 rubles/month;
• workshop specialists - workers with knowledge of the main types of furniture machines and the features of working with chipboard, fiberboard and MDF boards (5 people for 20,000 rubles / month);
• auxiliary workers - (2 people, 12,000 rubles / month).

Total: 12 people.

The estimated wage fund is 274,000 rubles/month.

Salary taxes (37.5%) – 102,750 rubles/month.

Total salary expenses – 376,750 rubles/month.

9. Main and auxiliary equipment

Total cost - 423,950 rubles

10. Performance

It is planned to produce products in the following volumes:

• cabinets – 100 pieces/month,
• tables – 100 pieces/month,
• cabinets – 100 pieces/month,
• racks – 100 pieces/month.

11. Calculation of product costs

According to the calculated data from the table of material consumption for production

and prices for materials,

The cost of production will consist of the following material costs:

• consumption of materials,
• electricity,
• advertising,
• salary,
• depreciation,
• rent

Cabinets – 18,354 (material costs) + 207.59 (electricity) + 94,187.5 (payroll + unified social tax) + 21,197.5 (depreciation) + 45,000 (other costs: rent, advertising) = 178,946.59 rubles /month.

Tables – 27,550 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 188,142.59 rubles/month.

Cabinets – 44,647 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 205,239.59 rubles/month.

Racks – 19,210 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 179,802.59 rubles/month.

Total: 752,131.36 rubles/month.

12. Price

Calculation of the wholesale selling price per unit of production (cost per unit of production + profit margin):

Cabinets – (RUB 178,946.59: 100 pieces/month)+25% = RUB 2,236.83.

Tables – (RUB 188,142.59: 100 pieces/month)+25% = RUB 2,351.78.

Cabinets – (RUB 205,239.59: 100 pieces/month)+25% = RUB 2,565.49.

Shelving – (RUB 179,802.59: 100 pieces/month)+25% = RUB 2,247.53.

13. Revenue and profit

Revenue: 2,236.83 * 100 pieces + 2,351.78*100 pieces + 2,565.49*100 pieces + 2,247.53*100 pieces = 940,163 rubles/month.

Cost: RUB 752,131.36/month.

Balance sheet profit: 940,163 – 752,131.36 = 188,031.64 rubles/month.

Income tax (20%): RUB 37,606.33/month.

Net profit: 940,163 – 752,131.36 – 37,606.33 = 150,425.31 rubles/month.

14. Financial analysis

Expenditure part

• material costs - 752,131.36 rubles;
• capital costs - 423,950 rubles.

Total: 1,176,081.36

15. Product profitability

(Book profit: Cost) * 100% = (188,031.64: 752,131.36) * 100% = 25%

When producing 400 units of cabinet furniture per month, the payback of the project will be 8 months.

It's hard to imagine a comfortable and cozy home without furniture. Starting your own business in the furniture industry proper preparation and taking into account all the nuances can bring considerable profit. In this article we will look at a business plan for furniture production with calculations from scratch on how to open it and not go broke.

Business plan for furniture production

The furniture business exists in two versions: selling manufactured furniture or producing your own. Often businessmen start with sales, and then, having studied the specifics of consumer requests, open their own production. In this direction of activity it will be necessary furniture production business plan.

We will make the calculation for a furniture workshop that produces cabinet furniture in the middle price segment. This includes kitchens, office furniture, cabinets, etc. The organization of the enterprise will be carried out on the principle of an incomplete cycle: suppliers will prepare raw materials, and the company will produce ready-made panels for assembly, using the developed drawings. For an additional advantage in shaping the pricing policy and a shorter payback period, our own funds will be used when launching the project.

Before drawing up a business plan, it is important to carefully study the market - suppliers, consumers, competitors. The volume of furniture production in the Russian Federation, according to data from the Association of Furniture and Woodworking Industry Enterprises, is distributed as follows:

• Office furniture – 23%;
• Cabinet furniture (sets, hallways, suites) – 25%;
• Kitchens – 22%;
• Bedrooms – 13%;
• Upholstered furniture – 17%.

The range of domestic furniture is presented according to the following parameters:

• Functional purpose: cabinet furniture for lying or sitting: armchairs, chairs, chaise lounges, beds, sofas, etc.; for storage: chests of drawers, cabinets, cabinets, shelves; for work and eating: desks, dining tables, coffee tables, etc.
• Design: non-dismountable, sectional, universally prefabricated (it can be repeatedly disassembled and reassembled), built-in, bent, transformable, wicker.
• Materials: made of wood materials and wood, plastic, metal.

Planned assortment

We will first compile a list of the range of products we produce (data will change as demand is studied):

• Facades for kitchens, kitchens;
• Cabinets, cabinets, drawers, shelves, chairs, dining tables, stools;
• Office furniture - shelves, computer tables, filing cabinets.

Target group

• End consumers (wholesale) - hotels, restaurants, large government agencies, office centers, etc.
• End consumers (retail) – business people with average incomes, updating furniture every 2-3 years.
• Intermediaries are design studios, specialized stores of interior items and furniture.

Business plan for furniture production: sales organization

Ways to sell products:

• Through your office, which is also a showroom.
• Using a network of stores, concluding partnership agreements with them (including stores from other regions and CIS countries).
• Direct sales government agencies, hotels, large private companies, using mailings and calls to the database of potential clients.

Advertising

• Your own website on the Internet, its creation and promotion, weekly updating of the catalog, sending news to regular subscribers - contributes to the geographical expansion of the circle of consumers.
• Placement of advertising blocks in interior and design publications, furniture magazines and other specialized press.
• Placing advertising banners on similar topics on Internet resources.

Required documents

In terms of taxation and working with legal entities, it would be preferable to register an enterprise in the form of a limited liability company.

Documents for LLC registration:

• Information about the name of the company should be associated with its field of activity.
• Agreement on the establishment of an LLC with a decision to open;
• Charter documents with a list of types of activities and the amount of authorized capital not less than 10,000 rubles (contributed in money or property - office furniture, office equipment, etc.).
• Details of the director and chief accountant - copy of passport, identification number, contact phone number, address.
• Documents confirming payment of state duty.
• Details of the bank where the current account is opened.

Production plan

Business plan for furniture production includes one of its most important parts - the production plan. Production will be organized according to the principles of incomplete cycle. We will produce popular models of cabinets, prefabricated cabinets, kitchens, tables and other cabinet furniture according to the configuration and required sizes. It provides for the processing of purchased ready-made chipboards and MDF boards to the specified patterns. The furniture is delivered to the consumer and assembled on site.

Premises requirements

You will need 2 premises: for furniture production and for receiving clients. It is advisable to locate them close to each other. The premises have different functionality, therefore the requirements for them are different:

• Square production premises– at least 500-600 m², you need heated spacious room on the ground floor, the possibility of arranging warehouse space and installing equipment, an equipped entrance with a platform for unloading materials and raw materials and shipping finished products.
• Accessibility for the client is important for the office. Its location is preferable in the center of trade and business activity, on the ground floor, with an equipped showroom for displaying product samples. Area – 50-60 m². Communications and cosmetic repairs are required.

Equipment

List of equipment for the production of cabinet furniture parts:

• Machines controlled by computer programs for the manufacture and modeling of furniture - “Astra-Furniture Designer”, “Astra-Cutting”.
• Milling machine.
• Electric jigsaw.
• Lathe.
• Some small tools.

Staff

List of workers with special skills and knowledge:

• Workshop workers – 5-7 people. Requirements: experience operating the main types of furniture machines for processing chipboard and MDF boards.
• Production foreman – 1 person. Bears financial responsibility for machines, raw materials and supplies. Requirements: knowledge of the features of production processes for the assembly and manufacture of cabinet furniture, experience in organizational work.
• Driver – 1 person.

Raw material suppliers

Raw materials for use in production are chipboards (chipboards), MDF boards. You will need domestic or foreign suppliers of slabs, consumables (glue, paints, coatings, hinges, handles, drawer guides, hinges, locks, fasteners, etc.).

Requirements for suppliers: company fame, certificates, delivery, possibility of deliveries with deferred payment. The search for suppliers is carried out in specialized publications, on the Internet, several offers are selected and compared.

Financial plan

To calculate a business plan for furniture production, we take into account all the initial costs of launching and promoting the project, fixed costs, and compare them with cash receipts. We analyze the main financial indicators: profitability, size of investment, payback period of the project.

Initial costs:

• Purchase of equipment – ​​1,000,000 rubles;
• Registration of a company – 30,000-40,000 rubles;
• Purchase of consumables – 150,000 rubles.

Total for launching the project is 1,200,000 rubles.

Type of funds raised – own, borrowed. In the second case, we also take into account additional expenses on interest for the loan. With an average interest rate of 22-25% per year, production profitability is required to be at least 30-35%. The payback period depends on the profit after paying all taxes, interest on loans and other costs.

We will consider the option of using our own funds to start production.

Variable costs (per month):

• Workers' salary – 100,000 rubles;
• Raw materials and materials - 150,000 rubles.

Fixed costs (per month):

• The salary of office workers is 20,000 rubles.
• Rent of premises – 50,000 rubles.
• Advertising costs – 10,000 rubles.

The planned sales revenue is expected to be about 400,000 rubles per month. Intensive promotion will contribute to revenue growth per year by 20%.

Taking into account 30% profitability, the monthly income will be 150,000 rubles. Monthly fixed costs – 80,000 rubles. Profit after deducting fees, taxes and expenses – 70,000 rubles. If the profitability is 30%, the payback period will be 14 months.

Business risk analysis

The main risks include the smuggling of cheap, low-quality furniture from China and Poland. Such furniture is short-lived and can be harmful to health.

Nothing lasts forever, including furniture. People regularly update it in their apartment and spend a huge amount of money on it. Today we want to talk about how to start a furniture production. It's pretty interesting business, which in the future can bring very good profits. We will tell you below what needs to be done to make a really good profit and to make the investment pay off.

About the market

Not many people know how to start a furniture production from scratch with minimal investment and quick payback. You need to draw up a business plan, carefully study the market and potential competitors, select premises, find experienced employees

Modern furniture manufacturing has the following main directions:

• Production of classic office furniture — Special attention focused on functionality and rigor. Partitions, cabinets, tables, and other structures are produced.
• Kitchen production— it is in the kitchen that people spend the bulk of their time, so you need to take care of convenience and comfort. It is not surprising that the demand for the headset is so high.
• Creation of custom-made furniture— such furniture is manufactured at the request of clients, taking into account the specified parameters.

You can choose one of the indicated areas of activity or combine several types of activities.

It must be taken into account that in megacities one has to face high competition. It is profitable to launch such a business in small towns, offering customers interesting ideas. It is important to find out about the presence of a similar production workshop in the region. It is necessary to study the pricing policies of competitors and their main features. This will allow you to make sure you make interesting offers to your customers.

Business registration

You can open a private furniture production company or choose an LLC. The choice always depends on the scale of the project. If you plan to work with individuals, it is enough to register an individual entrepreneur. Cooperation with organizations and various institutions involves opening an LLC.

Choose OKVED codes, which relate to furniture production, retail, and wholesale.

To register a business, you need to provide certain information:

• company name;
• information about the director, accountant;
• decision to organize your own business:
• Bank details;
• charter;
• check for payment of duty to the treasury.

What kind of furniture to produce?

One of the most important issues, which an entrepreneur must decide before starting production, and what kind of furniture should he produce?

The following are the most popular categories that potential buyers are looking for online:

• Soft
• Hull
• Kitchen
• Office
• Furniture transformer
• Loft furniture

Regardless of whether you are drawing up a business plan for the production of kitchen furniture or some other, all its paragraphs will be approximately similar, except for the paragraph on product sales.

Let's give a simple example: not everyone likes loft-style furniture. If you run targeted ads on VKontakte to everyone, the number of conversions will be much less than if you found a target audience who is interested in the loft style and ran ads specifically to them.

Cabinet furniture

There is a business plan for the production of cabinet furniture, and it will help a novice entrepreneur. It is necessary to study the intricacies of release and organizational issues. The production of cabinet furniture has the following features:

• project development;
• cutting materials, forming suitable parts;
• drilling holes, places for fastening;
• facing of cut edges;
• assembly.

The technology is selected taking into account the features of the automated process. By introducing CNC it is possible to reduce the percentage of human labor involved. An experienced operator is required to enter parameters, and the machine does the main work. It's cutting edge and economical way manufacturing of cabinet furniture, which is often used in workshops.

It must be taken into account that programs will have to be constantly reconfigured while working on individual orders. If you have to deal with such requests, it is better to refuse to use CNC machines. In large companies, you have to spend a lot of time on reprogramming, which is not profitable.

It is possible to organize semi-automatic lines using several machines. Human labor is partially involved here, which allows you to quickly and, most importantly, efficiently cope with the assigned tasks.

Need to purchase necessary tools, machines:

• formatting and cutting equipment;
• edge banding machines;
• drilling and additive equipment;
• grinding machine;
• perforator;
• screwdrivers, drills, cutters, knives.

You can produce up to 400 units of products per month. This list may include cabinets, cabinets, tables, and racks. The expenditure part consists of the purchase of materials, advertising, energy costs, rental of premises, and depreciation of equipment.

The approximate income from 400 products is up to 1660 thousand rubles, of this amount the profit is approximately 1060 thousand rubles.

Cushioned furniture

To quickly start the production of upholstered furniture, just look at the examples of successful businessmen. This will be a good support when starting a business. Upholstered furniture occupies approximately a sixth of the entire furniture market, so this niche is considered quite attractive for entrepreneurs.

In recent years, there has been an increasing trend towards the production of custom-made armchairs and sofas. Many small businesses successfully compete with large companies. They are ready to produce small batches of sofas and armchairs. There is no need to purchase expensive equipment for this. Almost all work is done manually.

Small and medium-sized entrepreneurs can track fashion trends and apply them to the creation of upholstered furniture. Large companies will not be able to quickly adapt to customer requirements.

A small company is ready to provide several variations of fittings, upholstery, and material, which allows you to achieve exclusivity. The production of upholstered furniture requires the purchase of the following machines:

• milling;
• combined,
• grinding;
• edged;
• crosscut;
• turning.

They will cost 160,000 rubles. It is also necessary to purchase equipment intended for drying, Sewing machines, cutting tables. This still requires up to 40,000 rubles.

The technology for creating upholstered furniture will require 200,000 rubles. To this amount you need to add the purchase of office equipment and additional furniture - 90,000 rubles. As a result, it will be possible to organize a business that will allow the production of up to 100 sofas monthly. Income – from 750,000 rubles, production costs – 580,000 rubles, profit – up to 290,000 rubles. The average payback period is from four months.

Room

The proposed business plan for opening a furniture production workshop can be effective. It is necessary to successfully select a room that will meet certain requirements and have several departments. On its territory there should be located:

All these premises must be located in the same building, but can be located in different parts of the city. It is better to choose an office with product samples in the center, where there is sufficient foot traffic. It is better to locate the warehouse next to the production workshop to reduce transportation costs.

Equipment

Starting a business begins with finding money to purchase equipment. You should not cooperate with other workshops for cutting materials, which will entail additional waste and increased costs. In this case, competitive advantages are reduced to nothing. It’s worth finding out in advance how to open a furniture production shop and invest your money profitably.

To save on waste, you can purchase used equipment, which will cost 30-50% less. You will need to purchase the following machines:

• Drying - if you plan to use it at work natural wood, which is pre-dried.
• Band saw – performs precise cutting of wood, chipboard, MDF.
• Machines for decoration, which helps to give the required form wood, cut chamfers.
• Devices that help you work with glass.
• Machines for working with metal materials.
• Sewing machines.
• Tools.

Will be used during operation chipboard sheets, fiberboard, MDF, fittings, fasteners, varnishes, paints.

Software

Organize visualization production process possible using implementation computer programs. They will allow you to quickly model various objects in 3D format. Designers will always be able to demonstrate furniture to the customer. You can use the Pro100 program.

Employees

It is quite possible to organize furniture production, open a business and receive a stable profit. Success will largely depend on the employees themselves. To work you will need:

• Manager— accepts orders, draws up contracts, supports projects;
• Head of production line– control of all stages of production;
• Workers– up to four people for small production, the number of employees increases with the volume of work;
• Driver– delivery of furniture to the warehouse or customer.

This is the minimum number of people who can work. The number of employees depends on the scale of organized production.

Attracting clients

You need a business plan for furniture production; you can view it from trusted sources. It is important to create a marketing plan that will help you sell your product profitably. It is important to properly organize activities to find potential clients.

To successfully sell finished products, you must:

Sales of products

An effective business plan for furniture production with calculations should include this item. It is important to think about distribution channels. Typically, a furniture workshop produces goods for:

• individuals;
• customers of your own store;
• furniture stores.

The production plan is developed taking into account demand. According to statistics, cabinet, office, kitchen, and upholstered furniture are popular. A well-designed advertising and marketing campaign will allow you to get the desired income.

Sales of office furniture

Business is not just a mechanical repetition of actions, but also the use creativity. You must think creatively about selling your products and come up with some unusual ways to sell the product.

Let's give an example. You have a business plan for the production of office furniture and you are wondering who to sell it to? Just driving around your city, you will find at least several office centers under construction. Just knock on their door and offer them your furniture at a competitive price!

With exactly the same approach, you should sell furniture for the kitchen, living rooms or bedrooms.

Expenses and income

The concept of “furniture production” is quite loose. One grandfather who assembles furniture at his dacha and makes money from it is already considered a full-fledged production. Therefore, it is impossible to determine exactly how much money you will need to open a business. You can start working alone, or you can hire several employees at once and then your monthly expenses will increase.

We will calculate the initial investment and monthly expenses for a small business in this niche.

Name	Sum
Initial costs
Equipment	1.500.000rub
Room renovation	RUB 300,000
Consumables	RUB 300,000
Business registration	20.000rub
Advertising campaign	RUR 50,000
other expenses	RUR 50,000
Total:	RUR 2,220,000
Monthly expenses
Staff salaries	RUR 180,000
Renting premises	80.000rub
Public utilities	20.000rub
other expenses	RUR 30,000
Total:	RUR 310,000

The net profit of such a business should be approximately 100,000 rubles per month. This takes into account that the revenue will be 410,000 rubles, from which we will subtract monthly expenses in the amount of 310,000 rubles. The payback period will be 23 months.