* Calculations use average data for Russia

1 132 000 rubles

Minimum start-up capital

40%

Profitability

8 months

Payback

519 560 ₽

Net profit

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

To implement the business idea of \u200b\u200ba furniture manufacturing enterprise, production premises are rented in the industrial area of \u200b\u200bthe city. The total area of \u200b\u200bthe premises is 350 m2, where the production workshops and the sales office are located.

Target audience - middle-income families who renew their furniture every 3 years and prefer unique, high-quality furniture made from natural materials. The price segment is medium.

The main advantages of the furniture manufacturing business:

relatively small amount of capital investment;

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

the profitability of the furniture manufacturing business can reach 300%.

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

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

The net monthly profit of the furniture production project upon reaching the planned sales volume will amount to 519,560 rubles. The return on sales in the first year of operation will be 25%. Upon reaching these indicators, the initial investment will pay off in the eighth month of work. The integral indicators of the project's effectiveness are presented in Table 1.

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

Profitability of furniture production

The active growth in housing construction and the number of purchase and sale transactions in the residential real estate market resulted in an increase in demand for furniture. Buying a new home is always associated with the need to buy furniture. It is possible to notice these trends by comparing the dynamics of housing commissioning and the volume of the furniture market - the peak falls in 2014, followed by a decrease in both indicators, which is associated with the crisis. By monitoring the performance of the construction market, it is possible to predict the situation in the furniture industry.

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

As of 2014, the share of furniture from abroad was about 65% of the total sales. At the end of 2015 alone, imports of furniture decreased by 45.8%. According to the estimates of the marketers of the largest furniture retailers, IKEA and Hoff, by the beginning of 2018, the share of the domestic manufacturer in the furniture market will reach 70%. This forecast opens up prospects for business development in this segment.

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For example, at the end of 2016, the real volume of the furniture production market continues to decline, but in nominal terms it remains at the same level, which is due to an increase in furniture prices. According to statistics, prices for furniture increased by 19.14% - this is the highest growth rate in the last 7 years. Thus, there is a decrease in the qualitative growth of the furniture market.

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

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

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

The highest density of furniture production is noted in the Central and Volga federal districts - about ¼ of the total number of manufacturers are concentrated there. In the rest of the regions, the volume of retail sales significantly exceeds the volume of its own production. At the same time, it is more profitable for furniture manufacturers to sell their products within the region, which allows them to reduce transaction costs.

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

Another parameter of the furniture market is the trade format. According to surveys conducted at the end of 2016, one in five residents ordered furniture from an online store. In the first half of 2016, online sales grew by almost 47% and reached 974 million rubles, which is 12.5% \u200b\u200bof total market sales. Almost half of the furniture chains have their own websites, but not all of them have an online selling function. Every year, the popularity of online furniture stores is increasing, as this allows sellers to reduce the cost of renting large trading floors and lower prices, and online shopping is a more convenient option for buyers.

Ready ideas for your business

By combining the trends of the Russian furniture production market, it is possible to form the image of a successful furniture company: an economy class furniture manufacturer operating in a city with a population of 500-800 thousand people and selling products through an online store. These parameters will ensure constant demand, practically independent of the economic situation, reduce competition, reduce costs, which will reduce product prices.

Experts predict that the share of small and medium-sized enterprises in the furniture business will continue to grow and in a few years will reach 75-80%. The key task of such manufacturers is to find their niche in the market. For example, manufacturers of wicker furniture have almost no competitors in the market, and custom-made furniture is gaining popularity every year.

Recently, the demand for the products of furniture workshops has been increasing - the exclusivity of the offer and the variability of production are important parameters when the consumer chooses furniture. This trend is supported not only by the taste preferences of consumers, but also by the development of the market for design services, which almost doubled in 2014. With all the variety of choices presented on the furniture market, the consumer cannot always find suitable furniture that would correspond to the design project.

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

The advantages of this format of furniture production:

• does not require large investment costs;
• large premises are not needed to locate production facilities;
• savings on equipment;
• small price of finished products;
• production flexibility.

The disadvantages of furniture manufacturing include:

• innovation and imagination are the basis for business success;
• handmade furniture is time consuming;
• independent search for clients.

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

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

• relatively small investment in furniture production;
• a promising direction, interest in which will never disappear;
• furniture is a general consumer product that provides a wide target audience;
• business profitability can reach 300%.

The main disadvantage of the furniture manufacturing business is the fierce competition in the market. However, with a competent construction of production, you can occupy your own niche, in which competition will be minimal.

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

Determining the range of furniture production

The furniture company is engaged in the production and sale of wooden furniture - dining groups, as well as upholstered furniture - sofas and armchairs. The created furniture company positions itself as a "furniture workshop", specializing in manual assembly of products and the production of non-standard furniture for individual orders... The products of this enterprise are favorably distinguished on the market by the following indicators: low prices, custom-made work, a wide selection of equipment and upholstery, colors and materials of products, the possibility of online shopping.

The products intended for production are:

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

Chair, made of solid pine, painted with imitation of aging, dimensions: chair height 105 cm, chair back height 60 cm, chair back width 50 cm, seat width 52 cm, seat depth - 45 cm;

Triple sofa, wooden armrests, folding mechanism - book, jacquard upholstery, dimensions: length - 240 cm, depth - 96 cm, height of the seat of the sofa - 40 cm, 2 decorative pillows, filler - spring block sintepon polyurethane foam, niche for linen. Additional design (carriage coupler, upholstery and color options, various models - 3-seater, 2-seater, corner, with or without folding mechanism)

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

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

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

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

Furniture manufacturing enterprise marketing and sales

The target audience of the furniture company is middle-income families who renew their furniture every 3 years and prefer unique, high-quality furniture made from natural materials. The target audience of a furniture manufacturing enterprise is quite extensive, therefore, in order to develop an effective marketing strategy, it is necessary to divide the target group into subgroups of consumers:

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

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

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

Ready ideas for your business

Since the workshop for the production of furniture focuses specifically on online sales, the main method of advertising is to create your own website, profiles on social networks and their active promotion. The first stage is a professional landing page, in which it is necessary to indicate the range of products, production time, examples of work and current discounts. The development of a full-fledged website with the necessary functionality will be about 50,000 rubles.

More a budget option - creation of profiles in social networks and their promotion. In addition to the assortment of products in the profile, you can post photos and customer reviews, a list of services provided by a furniture workshop, useful information about various materials, information on furniture care, design solutions that fit your products, information on promotions and bonuses.

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

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

Ready ideas for your business

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

Do not forget about such promotion channels as cooperation with private interior designers, design studios, furniture salons. Search for intermediaries must be carried out independently and offer them a percentage of the order amount in the amount of 10-20%.

Effective ways to attract the attention of the consumer are participation in all kinds of exhibitions and fairs, distribution of advertising materials, availability of additional services and after-sales services: free shipping, assembly, one-year warranty for repair or replacement of the product in case of defects, etc.

One of the main tasks of marketing is the formation of public opinion and loyalty of consumers to the company. Therefore, it is worth considering options for conducting a survey among customers, the results of which will make it possible to make the necessary adjustments to production, take into account the requirements of consumers for products.

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

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

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

Participation in furniture exhibitions and fairs.

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

The most important part of marketing is sales forecasting. Table 2 presents a plan for the sale of products of a furniture workshop. Average order value may vary depending on order details.

It is planned to receive a corporate order for the manufacture of furniture. Therefore, you should search for clients among the corporate segment - these can be cafes, offices, beauty salons, etc. It is also worth considering the option of cooperation with a furniture salon, which will be ready to purchase part of the products for sale.

Table 3. Planned workshop salesfor the production of furniture by product type

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

Furniture production plan

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

1) Selection of premises for production. Since it is planned to open a full-cycle furniture production, the area of \u200b\u200bthe premises must accommodate large-sized equipment. This will require a room with a total area of \u200b\u200b300-350 m2, which will accommodate:

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

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

paint shop - a room for paintwork;

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

warehouse for finished products and warehouse for raw materials;

production staff room;

bathroom with shower;

administrative staff premises, office premises.

In addition to the area for the production of furniture, the following requirements are imposed on the production premises:

non-residential premises for industrial purposes, since the work of the workshop is associated with a high level of noise;

first floor, two entrances. Since the unloading and loading of bulky materials is carried out, it is necessary to locate the production on the ground floor. Separate entrances are made for the workshop and sales office;

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

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

lack of dampness and high humidity. The materials used in the production of furniture are afraid of moisture and dampness.

Finished products should also not be stored in such conditions, since upholstered furniture tends to absorb moisture and odors.

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

To implement the project, a production facility is leased. Total area - 300 m2, cost - 50,000 rubles / month

2) Purchase of equipment. To ensure full cycle production, you need to purchase a set of equipment:

planing machine - 70,000 rubles;

thicknessing machine - 120,000 rubles;

milling machine - 70,000 rubles;

drilling and grooving machine - 50,000 rubles;

copying turning-milling machine - 150,000 rubles;

grinding machine - 80,000 rubles

equipment for painting - 130,000 rubles;

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

screwdriver and hammer drill - 15,000 rubles;

other auxiliary equipment and tools - 50,000 rubles.

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

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

preparation of a product project;

work on material cutting and parts manufacturing;

material processing works;

assembly of finished furniture.

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

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

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

5) Service form. Working with a client consists of several stages:

client's appeal to the company: the client contacts the manager and stipulates all the conditions of the order. The manager receives the order and hands it over to the designer-technologist, who helps the client to determine the design of the product, materials and develops an individual project.

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

production and delivery of the order: upon the manufacture of furniture, a delivery schedule is formed. To do this, the manager contacts the customer and approves the delivery time. The remaining amount of the order is paid upon delivery. The delivery service costs 300 rubles, and for orders over 20,000 rubles it is provided free of charge.

Organizational plan for the production of a furniture workshop

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

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

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

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

31.01 - Manufacture of furniture for offices and trade enterprises;

31.02 - Manufacture of kitchen furniture.

Licenses for these types of activities are not required, however, it recommends certification of all manufactured furniture to confirm the quality of the products. This requires compliance with norms and standards:

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

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

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

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

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

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

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

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

Table 4. Staffing table and payroll

№	Position	Salary, rub .	Number, people
Administrative
	Leader
	Accountant
Industrial
	Shop specialist
	Production Master
	Designer-technologist
Trade
	Manager
Auxiliary
	Forwarding driver
	Cleaning lady (part-time)
Total:				210 000.00 ₽
Social Security contributions:				63 000.00 ₽
Total with deductions:				273 000.00 ₽

Specialists of the shop - they serve all stages of furniture production, combine the functions of a furniture assembler. Education - secondary technical, work experience in a similar position.

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

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

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

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

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

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

Cleaning lady - cleans the sales office.

Financial plan for the production of furniture

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

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

Table 5. Investment costs

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

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

Table 6. Fixed costs of furniture production

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

Evaluation of the efficiency of furniture production

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

Potential risks of furniture production

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

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

higher prices for raw materials, interruption in the supply of raw materials. In the first case, there is a risk of increased costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in production. It is possible to reduce the likelihood of these threats with the right choice of suppliers and the inclusion of all necessary conditionsthat provide for the supplier's financial liability in case of their violation;

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

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

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

• refusal to lease premises or increase in the rental price. To mitigate this risk, you need to conclude a long-term lease and choose your landlord carefully.

Internal risks include:

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

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

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

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

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

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Today IQ Review publishes a production story. Few people want to do this, because the buy-sell scheme requires much less skills and labor costs. However, there are daredevils. This is the story of an “ideological” married couple who wanted to make the world a little better. You will learn what mistakes they made and what it takes to be successful in production.

How we decided to start the production and sale of cabinet furniture made of chipboard

My name is Irina, I live in Irkutsk, my husband and I were 26 years old at the beginning of the start of the business in 2013, we will close soon (2.5 years of activity).

Manufacture of cabinet furniture

My husband and I had a dream - to do our own business. But not just by buying and selling, but by production needed by people things to be useful. My husband was good at designing and making cabinet furniture from chipboard (laminated particle board), he really liked to translate his ideas into tangible objects and make familiar things comfortable.

At first, it was furniture for their home and for friends, relatives, and then small private orders from other people appeared. After that I had experience as a furniture project manager in industrial production. And we decided, that's it - it's time to start doing furniture production on our own, and not work for “uncle”. Of course, we had no experience in running our own business, and we began to study this issue.

In general, a manufacturing business involves a complex system. You need to immediately have a room, equipment, qualified personnel, transport. Think about suppliers and many other things, and at the same time, so that not a single element falls out of sight.

As for the production of furniture specifically, these rather bulky items also require a lot of space: for large machines, storage of materials and finished products, as well as space for work at different stages of production.

Many have told us about the high competition in this segment - and indeed, the furniture market is one of the actively growing ones. The volume of the Russian market of cabinet furniture is already more than 4 billion dollars a year (author's data as of the end of 2015 - ed.)... But furniture production is mostly concentrated in the Central District of Russia, and only 2.9% of the total volume is produced in our region.

We have decided on our target audience - these are low and middle income clients. The basic material for our production is relatively inexpensive (laminated chipboard) and is widely used, and fittings and furniture facades were chosen for each project, depending on the customer's budget.

We planned to be engaged in the production of cabinet furniture only (this includes models with a hard case and the absence of soft parts) in areas, including built-in furniture:

• Kitchen sets
• Furniture for bedrooms
• Living room furniture
• Hallway furniture
• Office furniture

We had several variants of the concept for the project: the manufacture of furniture for private orders for individuals and legal entities, the creation of collections of typical furniture for different segments of buyers and its implementation through the shops of the city and region. We even wanted to create an online store of ready-made furniture solutions (we started to do it), and then our own chain of stores. But we decided that at first we would focus on working on an individual order, and then we would think about a line of typical pieces of furniture.
At the same time, we were going to actively work on creating and promoting their brand, focusing on quality, ergonomics and non-standard design (as far as possible with such materials).

Furniture production business plan

We did not have our own initial capital - only ideas, a desire to change the world and a small client base. They hoped only for themselves and believed in luck. Since we had nothing to hire workers for, we divided our work responsibilities among ourselves: my husband completely covered the production at all stages, took orders, worked with suppliers and communicated with clients personally. In addition, he was engaged in general strategy and the search for points of sale. And I got marketing, advertising, public relations, taxes and future personnel.

It was planned to invest 5-8 million rubles in business over five years at the expense of profits, loans and investments from outside. These funds were supposed to gradually acquire the necessary equipment and premises. By the end of the investment, the total number of employees was going to be increased to 18 people (director, accountant, sales manager, designer-technologist, storekeeper, 11 production workers and two loaders). The minimum planned sales volume at the end of the first year of operation was to be 400 thousand rubles per month.

How to get a subsidy of 300,000 rubles for a small business

We were not going to write a real business plan (we thought that everything would be counted), but just at that time the city administration announced a competition for projects to provide subsidies to small and medium-sized businesses. Investments in the business of 300,000 rubles with practically no obligations interested us very much, and we decided to try to participate in the competition.

For this, my husband registered as an individual entrepreneur, and we began to collect required documents and draw up a business plan. The simplified taxation system of 15% was chosen as taxation - the most convenient option for production with high costs.

It was important at the beginning of the work to find suitable premises and equipment. We were very lucky that we managed to agree on the lease of a workshop with the necessary machines of the former operating production. There was everything that was needed for normal work for the first time. Of course, not in excellent condition, but it was possible to work. The husband himself learned to repair machines. We drew up a contract with the landlord, discussed the price for a long time, but we decided that we would handle everything. The advantage of this room was the close delivery of the main material for production. We carried out the delivery of small items by personal transport, which, of course, affected its quality.

We completed all the documents and wrote the business plan ourselves. We barely managed to collect documents confirming the expenses for the required amount (15% of the requested subsidy - 45,000 rubles) from the beginning of the IP registration. Let me remind you that we had no money at all, so it was necessary to have time to complete several orders for furniture and from this already write down the costs. We barely managed to collect everything, having submitted documents for a subsidy in the last minutes. We won the tender for the subsidy, but we got the obligation to constantly report and officially hire three people for six months.

Our main mistakes in business

The subsidy amount of 300,000 rubles was requested for a new edgebanding machine (a piece that quickly glues the edge and reduces the time for making furniture). It was supposed to increase production and profitability. It was the choice of this machine that became one of our main mistakes. Looking back, we understand that it was worth spending the received subsidy on renting a workshop, purchasing materials or basic machines that will be used frequently. But we bought something that stood idle almost all the time. I wanted to buy more new equipment for not very big money. The machine turned out to be inconvenient, difficult to maintain, and there were constantly some problems with the supplier company. Our inexperience and their irresponsibility did their job, the money was wasted.

The quality of work and active promotion really made us a name, and there were always orders. But the husband simply could not physically produce the required volume of products to cover the basic costs. Incomes were rarely more than 100 thousand per month instead of the planned 400 thousand. Debt for renting premises began to accumulate - our biggest expenditure part. And also quarterly taxes, pension contributions and force majeure were added (somehow our workshop was flooded and destroyed a lot of finished products and materials with water). And there were also rash decisions such as renting an office, in which we did not work for a day, and buying a domain for a website.

We decided that it was time to hire workers, especially since the deadline for the obligations for the subsidy was approaching. Our expectations that people will come who are just as good at technology and who want to work hard and earn from the results of their labor, of course, did not come true. Then we started looking for just talented students without experience, but again - nothing. As it turned out, not everyone wants to earn money, most people just want to receive money. So my husband had to work alone with varying degrees of success, seven days a week, and sometimes without sleep.

Since we were still bound by subsidy obligations and had to employ people and pay at least the minimum wage and all deductions from it, we found ourselves in an even bigger financial hole. If it was possible to guess what the receipt of the subsidy would lead to in our case, we would hardly go for it. They would work quietly in the shadows without any taxes and deductions and raise capital for business development. But what's done is done.

We got into fixed costs:

• rent,
• insurance premiums for individual entrepreneurs.

Into variables:

• purchase of materials,
• electricity charge,
• Payroll and payroll taxes,
• tax on simplified taxation system,
• other general and operating expenses.

Due to financial problems, we lost our workshop, the new machine had to be returned to pay off the debt for rent. We found ourselves without funds for production, and even with obligations to customers. They began to cooperate with another workshop for cutting material, here the husband was already doing the main work. Accordingly, productivity dropped significantly, and we lost customer confidence due to non-compliance with the lead time. After all, now the chain of actions for creating a finished product has become very lengthened, and almost every element has its own problems.

In fact, we never had any profit, we always found ourselves in debt to someone, borrowed and re-borrowed money. Now we are holding out the fulfillment of the last orders in order to pay off the most urgent obligations and we are closing the activity. You shouldn't have hoped for the opportunity to work in production without any capital. Alas, the dream of creating a strong production has remained only a dream.

In the modern Russian market, the production of cabinet furniture takes up a quarter of the total furniture production. Small and medium-sized businesses consider this industry profitable and profitable - the demand for quality products is stable. Consider how much investment will be required to organize your own furniture workshop, how difficult it is to lead the market and whether it is worth trying for aspiring entrepreneurs in this area.

The demand for cabinet furniture is very high now. In general, it is always quite high, but currently the growth of interest is explained by the revival of the market for new housing construction.

When buying a new apartment or renovating an old one, the purchase of new cabinet furniture is almost inevitable. This is the foundation of any interior.

Cabinet furniture is all furniture made from solid modules installed and fastened horizontally and vertically. This variety includes:

• cabinets;
• buffets;
• headsets;
• storage areas;
• racks, "walls", shelves, bedside tables;
• dining and writing tables.

At the same time, in modern conditions, one cannot complain about the lack of supply. Both small workshops and huge corporations actively sell their furniture. The furniture business is highly competitive is the main reason for the closure of most start-up businesses. Therefore, before trying to be realized in this area, it is worth drawing up a business plan, analyzing the costs and taking into account all the pros and cons.

All furniture made of solid modules is called cabinet furniture.

What materials are cabinet furniture made from?

How to start a furniture business from scratch? First, you need to find out what modern cabinet furniture is made of. The most common material is particle board (chipboard) or wood panel medium density (MDF). Solid wood furniture is less common: it costs significantly more, because the demand for it is lower.

Chipboard furniture is much cheaper, as it is produced, in fact, from glued wood chips. Modern decorating techniques make it possible to give it a more expensive and solid look, while keeping the cost low.

If you are planning to start the production of cabinet furniture from chipboard, you definitely need a reliable supplier of materials that will provide you with blanks for work in due time and in the required volume. It is better to conclude a supply contract with a chipboard manufacturer, rather than purchase materials on demand yourself.

As for the accompanying accessories and other materials, it is also necessary to conclude contracts with reliable contractors for their delivery in order to avoid a situation where it is impossible to fulfill the order in due time due to the lack of components.

How cabinet furniture is made

Before proceeding with the compilation of a list of the necessary equipment and other costs for your enterprise, it is important to get at least a general idea of \u200b\u200bthe technological process of manufacturing cabinet furniture. Simplified, it can be described by the following cycle:

1. Preparation of a product project, determination of the shape and size of the components
   modules.
2. Manufacturing of modules in accordance with the product design.
3. Preparing the mounting holes.
4. Processing of sections (foil, veneer, laminated edge).
5. Collection of the finished product.

Any workshop for the production of furniture in one way or another reproduces this technological cycle. Its minor changes depend on the equipment available at the enterprise, production optimization, and the qualifications of employees.

The speed and comfort of work depends on the quality of machines and other equipment.

What equipment is required for your own furniture production

Now let's consider what equipment for the production of furniture is needed for a start-up enterprise. First of all, these are different types of machines for furniture production:

1. Format-cutting machine. Using this machine, modules of the required size and shape are created from chipboard blanks. They allow you to cut panels horizontally and vertically, as well as at an angle without chips, with exact observance of the required dimensions. Such machines are divided into varieties depending on the technology of feeding the workpiece: manual, semi-automatic and fully automated.
   

   For small industries, manual ones are suitable - they allow you to maintain the required volume and at the same time are cheaper. When enlarging an enterprise and moving to mass production, it is reasonable to replace them with semi-automatic or automatic machines. The price for such machines starts from 200 thousand rubles.

2. Edgebanding. The name of this machine directly speaks of its function - processing the edges of the product. Several options for processing the cuts are possible: gluing decorative foil, melamine edging tape, installing veneer or wooden slats... For a new such car, you will have to spend at least 600 thousand rubles, for a used one - about 300 thousand.
3. Drilling and filler. Required for installing hinges and fixing holes. The cost of such a machine starts at 300 thousand rubles.

In addition to machine tools, a modern furniture shop should be equipped with:

1. Grinding machine - for polishing workpieces or finished products. From 2 thousand rubles, but for production purposes it is better to consider options from 10 thousand rubles.
2. Screwdrivers. There should be several of them, since they are required by each employee. The purchase of screwdrivers will have to spend from 30 to 50 thousand rubles.
3. Perforator. From 10 to 20 thousand rubles.
4. Knives, drills and other cutting tools, about 20 thousand rubles.

Thus, only on equipment for the manufacture of furniture and related tools will have to spend at least 1,200,000 - 1,500,000 rubles. There are several ways to save money. For example, buy used equipment or lease it to get started.

When purchasing machines, new or used, carefully consider all associated warranties. A good sign there will be a warranty service. Pre-study customer reviews. The speed and comfort of work, and therefore the quantity and quality of products, depend on the quality of machines and other equipment.

Where to open a furniture production

The production of cabinet furniture for business purposes requires quite a lot of space. Conventionally, the entire space can be divided into zones:

• storage of blanks;
• installed machines / workplaces;
• collection and processing of finished products;
• storage of finished cabinet furniture.

A small business requires an area of \u200b\u200babout 100 square meters. It is better to rent it in the industrial part of the city: it will cost much less. Make sure that the rented space has convenient access roads for the delivery of materials and suppliesas well as loading of finished products. The cost of renting premises varies significantly depending on the region, but on average it will cost 100-200 thousand rubles.

A small business requires an area of \u200b\u200babout 100 square meters.

How cabinet manufacturers work

The overwhelming majority of furniture manufacturers, especially those from the small business, prefer to make and assemble products to order. This approach is beneficial to both parties: buyers receive furniture of the right size, color and configuration, and the manufacturer spends just as much resources as necessary and does not work at a loss.

With this approach, one sample is made, which is exhibited in the store, indicating that the copy for sale will be made taking into account the wishes of the client. The main thing with this approach is to make furniture quickly enough and offer customers the maximum number of options.

Who to hire in the state

The basis of the furniture enterprise will be made up of workers, mainly carpenters, whose task is directly to manufacture samples and products to order. The number of employees depends on the volume of production, for a small workshop 2-4 people are enough.

A sales manager is needed to find sales channels, interact with customers and collect orders. This specialist negotiates with furniture stores, looks for clients in reality or via the Internet. Can act as a marketer and work on the company's sales strategies. The purchasing manager does the reverse work - looking for suppliers, ensuring the timely delivery of components for production.

It is very good if there is an opportunity to hire (albeit half the rate) a furniture and interior designerwho will develop sketches of samples and recommend various solutions for clients.

When a company assembles furniture according to the customer's measurements, an employee is needed to take orders and, if necessary, go to the site and take measurements (for example, for the manufacture of cabinets, "walls", kitchen sets and shelving). A designer or sales manager can take over this function.

Advantages and Disadvantages of the Cabinet Furniture Business

How profitable would such a business be? Furniture is always in demand, but it is very difficult for start-up companies to prevail over competitors. Therefore, before investing funds and efforts in organizing your own furniture enterprise, carefully evaluate all the pros and cons of this business.

Strengths: high demand and self-realization

1. Cabinet furniture is always in demand, so a manufacturer of quality products can always earn money.
2. Relatively small investment in the company. Of course, the initial capital for a furniture company cannot be called minimal. But, first, it is significantly lower than the capital required for most other industries. Secondly, investments can be significantly reduced by purchasing used equipment or by leasing it.
3. The opportunity for self-realization as a businessman or a craftsman producing high-quality and demanded products.

Furniture is always in demand, but it is very difficult for start-up companies to prevail over competitors.

disadvantages

The main disadvantage of the cabinet furniture business is the very high competition. Such activities are carried out by small private workshops and huge factories. Startups find it difficult to compete, many are closed after a year and a half of work, having suffered losses.

What gives furniture manufacturers an edge in the market

Why do some workshops successfully operate on the cabinet furniture market for years, while others close after 12-16 months? The reasons can be very diverse, but there are several characteristics that successful companies have in common:

1. Conscientious work with quality materials. By purchasing such furniture, buyers expect that it will serve them for at least 10-15 years and will retain its "marketable" appearance. It is rather difficult to guarantee this when working with chipboard, therefore those companies are retained on the market that combine maximum quality with affordable prices.
2. Maximum attention to the wishes of customers, exact adherence to sizes, variability of colors and textures.
3. Manufacturing of furniture in different price categories - for greater coverage of potential buyers.
4. Active advertising campaigns aimed at attracting new customers and loyalty programs for regular ones.

Conclusion

The business of manufacturing cabinet furniture requires an initial capital of 1.2 million rubles and a set of specific knowledge. A small business requires 4-6 employees. The competition in this area is very high and is explained by the steady demand among various categories of clients.

Premises.

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

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

Financial plan.
Investments.
Payback.

Production options.

Custom-made furniture production.
Business development prospects.

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

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

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

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

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

Premises.

After all the design steps, it is necessary to organize the premises where the workshop will be located. The industrial area of \u200b\u200bthe city is best suited. The premise is not small - about 300 m2. Hangar structures are perfect.

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

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

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

Equipment for the production of furniture.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Marketing.

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

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

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

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

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

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

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

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

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

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

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

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

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

Use printing services. Colorful booklets, flyers, business cards. These are mandatory advertising attributes for starting any business.

You can post information about the new company in the media. Better if these are specialized publications. Do not skimp on the best places - this is the first and last spread of the magazine. It is expensive, but justified by the result.

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

Sales of products.

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

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

One of the most the best options Is opening your own store. Better yet, a small network. If the production is located in a metropolis, then several districts of the city can be used for the functioning of stores. If the production workshop is located in the region, the regional center is perfect. It can be a very small room with an area of \u200b\u200b20 square meters. You can place several types of products there and work according to the catalog.

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

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

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

Dealers.

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

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

Tenders.

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

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

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

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

Financial plan.

Investments.

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

Payback.

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

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

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

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

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

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

Materials - laminated chipboard (laminated chipboard), covered with a decorative protective layer. Used in manufacturing furniture facades about the buildings.
PVC edgeband - PVC-based finishing edge. The material has increased wear resistance, bears a protective function of the ends of parts made of chipboard from various kinds of damage. Perfectly blocks the ingress of moisture on open material during operation.

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

MDF - specialized environmental material, made from fine dried wood fibers. Processed with binders. It has a fine-dispersed structure throughout the entire section and is light in machining, shape milling and different types finishes.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Custom-made furniture production.

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

Business development prospects.

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

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

In this material:

Furniture manufacturing is one of the actively developing industries in Russia. Many people willingly invest in it, despite the high level of competition. Those who are interested in opening their own workshop should first research the market and draw up a detailed business plan for the production of furniture with calculations. With its help, it will be possible to determine the required amount of initial investment, identify and minimize possible project risks, and also develop an effective enterprise development strategy.

Business Description

The goal of the project is to create a small furniture shop that manufactures products of the middle price segment for profit. The mission of the company is to meet the demand of the local population for quality furniture items. Own funds are attracted for financing.

Depending on the volume of start-up investments and the presence or absence of experience in this area, production can be organized in the form of a short, medium or full cycle.

Many aspiring entrepreneurs opt for short cycle production. They order already cut sheets of MDF, laminated chipboard and fittings and are only engaged in the assembly of products. This option does not require large investments and allows you to gradually occupy your niche and gain a good reputation. Over time, entrepreneurs develop their business, mastering the production of the middle cycle, which includes not only assembly, but also independent cutting of sheets. A full cycle of furniture manufacturing requires large investments, since it includes the production of raw materials.

To organize a small business you will need:

• a room with an area of \u200b\u200bat least 150 m2;
• staff;
• suppliers of the material from which the pieces of furniture will be made;
• equipment.

The success of the project largely depends on the qualifications of the workers and a properly organized marketing strategy. It is important to determine the format of the enterprise and choose the direction of business. Manufacturing custom-made cabinet furniture individual projects clients is the easiest way for a novice businessman.

Relevance of a business idea

The furniture market in Russia is developing at a rapid pace, which is facilitated by the active growth in the construction of residential and office buildings. Furniture imports from 2014 to 2015 decreased by 20%. By 2018, the volume of domestic production of furniture products reached 67%. Experts predict further growth in the share of large retailers in this industry.

Attention! The Furniture of Russia catalog includes more than 14,000 enterprises, a third of which position themselves as manufacturers. This indicates a high level of competition in this area.

The most saturated is the furniture market in the Moscow and Leningrad regions. The least industrial enterprises are concentrated in the Central and Volga regions. According to the results of marketing research, companies producing economy class furniture are more successful in cities with a population of more than 500,000 people.

Business advantages and disadvantages

The main advantage of a business idea to open your own furniture workshop is the opportunity to start with a relatively small amount of investment - up to 1,000,000 rubles. In this case, the use of inexpensive used equipment is implied. Other advantages of the project:

• high demand for the product;
• favorable forecast for the development of the industry;
• the possibility of self-realization and self-expression.

The disadvantages of the project include a high level of competition. Thousands of workshops and hundreds of furniture factories are engaged in similar activities today. It is not easy for a beginner to stand out against their background. It is important to make a list of the company's competitive advantages. These include:

• use of quality materials;
• selection of qualified personnel with extensive experience in this area;
• a wide range of furniture items;
• focus on different social strata of the population, which will help to reach a wide target audience;
• compliance with the terms of furniture manufacturing;
• high-quality performance of work;
• warranty service;
• competent conduct of advertising campaigns.

Furniture manufacturing includes the following steps:

• project development using a computer program;
• cutting the material;
• drilling holes for connecting parts to each other;
• edge facing;
• assembly of parts.

The technological process can be fully or partially automated. The first option requires the presence of CNC machines that are tuned for certain parameters. With this equipment, it is easy to get the desired parts with ready-made holes in a few minutes. It is impractical to purchase such installations if we are not talking about mass production. Semi-automatic production lines require direct human intervention.

Furniture workshop opening: where to start?

To be successful, an entrepreneur will have to analyze the situation in the local market. It is important to determine the format of the business and decide which furniture is better to produce - soft, cabinet or specialized. The next step is to create a portrait of the target audience, assess competitors and identify possible project risks.

The target audience

Manufacturing custom-made cabinet furniture is the easiest and most promising way for a budding entrepreneur. Walls in the living room, cabinets, dressers, hallways, kitchens - this is what is in demand among the population. The buyers of such products are:

• local residents with average income and below;
• office owners and tenants;
• government agencies - kindergartens, schools;
• intermediaries - furniture stores.

Assessment of competition in the city

Before starting the project, you will have to study the competitive environment in the city. It is important to find out which firms are engaged in the manufacture of furniture, how many of them, how long they have been on the market. You need to collect detailed information about competitors:

• what materials they use;
• what commodity items and models are offered to customers;
• study the pricing policy and reviews of competing firms.

This data will help you develop your own strategy and become successful in achieving your goal.

Potential risks

When developing a business plan, it is necessary to take into account the negative factors that can affect the development of the project. For instance:

• low competitiveness;
• equipment breakdown;
• staff turnover;
• low qualification of workers;
• increasing the cost of raw materials and accessories;
• power outages;
• the emergence of new competitors.

Organizational part of the business plan

Setting up a furniture manufacturing business includes several stages of work. The first step towards the implementation of the idea is the legalization of activities. Next, the entrepreneur will have to find a suitable premises for a workshop, purchase equipment and establish contacts with suppliers of raw materials. Particular attention should be paid to the formation of the staff.

Company registration

In order to be able to cooperate with organizations in the future, it is better to register an LLC with one founder. In this case, the entrepreneur will have access to a simplified taxation system with tax rates:

• 6% of the amount of income;
• 15% of the difference between the company's income and expenses.

If the cost of maintaining the project is more than half of the proceeds from product sales, it is better to choose the rate of 15% (income minus expenses).

To register an LLC, you must collect documents:

• application for state registration of a legal entity in the form of Р11001;
• a receipt for payment of the state duty (4000 rubles);
• Charter;
• lLC establishment protocol;
• documents confirming the production address (letter of guarantee from the owner of the premises);
• passport and copies;
• TIN and copies.

Attention! Within 30 days after registration with the tax service, you must submit an application for the application of the simplified tax system.

When submitting an application for registration of an LLC, you need to select OKVED codes that allow you to conduct activities related to the manufacture and sale of furniture:

• 31 - main group;
• 31.1;
• 31.02;
• 31.02.2;
• 31.09;
• 31.09.1;
• 32.99;
• 47.99.

Search for premises

The minimum area of \u200b\u200bthe premises for a mid-level enterprise is 150 m2. Most of it is allocated for the production area. You will need free space for storing blanks and raw materials, as well as for finished products. It's good if you can find a place for a small showroom. It is worth giving preference to a building located on the outskirts of the city or outside of it - this location will reduce rental costs.

It is important to ensure that all the necessary communications are carried out to the room - ventilation, heating, electricity, water supply. The recommended mains voltage is 380 Volts. The presence of a convenient access to the territory of the enterprise and a platform for loading and unloading will be an additional plus.

Attention! Before starting production, you will have to obtain a work permit from the fire service and SES.

Equipment purchase

The bulk of the investment will be spent on the purchase of equipment. To organize the smooth production of furniture you will need:

1. Panel saw machine. With its help, sheets of chipboard, MDF, chipboard are cut into elements of the desired size. Installations are automatic, semi-automatic and manual. For a start, you can purchase manual equipment, it is inexpensive, but it allows you to make a sufficient amount of furniture. In the future, you can purchase semi-automatic machines to speed up the production process.
2. Edgebander. With its help, the edges of the products are processed. A special film is glued on them. edging tape, veneer or slats.
3. Drilling and filler machine. It is used for making holes of different calibers for fittings and in places where parts are attached.
4. Milling machine.
5. Lathe.
6. Grinder.
7. Drill screwdriver.

In addition to special equipment, you will need tables for cutting sheets, a workbench, several shelves for storing small tools and accessories. The creation of furniture begins with its design on the computer. You will have to buy a licensed version of the program:

• Astra (furniture designer);
• PRO-100.

Attention! Not worth saving on software... Creating a design project is one of the most important stages of work.

Supplier search

Raw materials for the production of cabinet furniture are sheets of MDF, laminated chipboard, chipboard, fiberboard. Most workshops give preference to laminated particle boards. This material is inexpensive, easy to use, there will never be any problems with its supply - there are many manufacturers of laminated chipboard in Russia. Its use allows you to reduce the cost of production, since it does not require veneer or lamination.

It is important to find reliable suppliers who are ready to cooperate with aspiring entrepreneurs at a favorable price, do not fail on deadlines and offer high-quality materials that comply with GOST standards.

Staff formation

To organize the work of a small workshop, you will need personnel:

1. Designer. He will create sketches and model the product using a computer program.
2. Joiners - 2-3 people.
3. Manager. Its task is to find distribution channels for finished products.
4. The business owner is in the lead and is looking for suppliers.
5. Accounting is outsourced.

Reference. If the company manufactures furniture according to individual clients' projects, you will need a measurer with a personal car.

Product range

The cabinet furniture workshop produces:

• cabinets;
• racks;
• slide walls;
• modular and custom-made kitchens;
• hallways;
• sleeping sets;
• writing and dining tables;
• chairs;
• single beds;
• loft beds;
• pedestals;
• dressers.

Over time, you can expand the range of products to include upholstered furniture - armchairs, sofas, ottomans, kitchen corners. This will require purchasing additional equipment and tools, finding suppliers of fabrics, foam rubber and other materials.

Advertising and marketing

• distribution of brochures and leaflets in places where the target audience is concentrated - in markets, in construction supermarkets;
• creation and promotion of groups in social networks with regular posting of photos of finished products;
• creation of a website with a detailed list of services and a price list, examples of work and customer reviews;
• participation in furniture fairs;
• placement of ads on paid and free boards on the Internet.

The furniture production plan contains accurate financial calculations. Comparison of the estimated income and expenses of the company will help determine the profitability of the business and quickly reach the break-even point.

Investment in the project

Opening costs include:

• expenses for registration of LLC - 4,000;
• purchase of equipment - 800,000;
• expenses for the repair of the premises - 50,000;
• working capital - 1,500,000;
• advertising - 25,000.

Total: 2,379,000 rubles.

Attention! When working on individual orders of clients, an advance payment of 50% of the cost of the finished product is taken. In this case, you will need a small amount of working capital.

Running costs

Monthly expenses include the costs of maintaining the project:

• rental of premises - 40,000;
• salary of employees with deductions - 150,000;
• outsourcing - 8,000;
• purchase of raw materials - 2,500,000;
• utility bills - 15,000;
• advertising - 30,000;
• tax deductions - 15% of the difference between income and expenses.

Total: 2,743,000 plus taxes.

Income and profit of the furniture shop

It is planned to produce at least 300 pieces of furniture monthly. The average sales receipt is 12,000 rubles. The expected dirty income of the shop for the month will be 3,600,000 rubles.

Let's calculate the profit of the enterprise, subtracting current expenses from the proceeds:

• 3,600,000 - 2,743,000 \u003d 857,000 rubles - the company's profit for the month;
• 857,000 x 0.15 \u003d 128,550 rubles - tax deductions;
• 857,000 - 128,550 \u003d 728,450 rubles - the net profit of the furniture shop for the month.

Business payback period

If the production plan is fulfilled, the investment in the project will pay off within 8-12 months, since it is impossible to immediately reach the planned level of sales. Downtime is possible in the first months after launch. When the flow of orders increases, the company will begin to receive a stable profit of 500,000-800,000 rubles per month. As the flow of orders increases, you will have to think about expanding the staff and re-equipping the production workshop.

The furniture manufacturing business is an idea with good prospects. It is suitable for the adventurous person who is familiar with this industry. The advantage of the project is that furniture products are always in demand. The main condition for success is to offer consumers good quality goods at an affordable price.

Buy a ready-made business plan

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