It is difficult to imagine a comfortable and cozy home without furniture. Starting your own business in the furniture industry, with proper preparation and taking into account all the nuances, can bring considerable profit. In this article we will look at a business plan for furniture production with calculations from scratch on how to open it and not go broke.
Business plan for furniture production
The furniture business exists in two versions: selling manufactured furniture or producing your own. Often businessmen start with sales, and then, having studied the specifics of consumer requests, open their own production. In this direction of activity it will be necessary furniture production business plan.
We will make the calculation for a furniture workshop that produces cabinet furniture in the middle price segment. This includes kitchens, office furniture, cabinets, etc. The organization of the enterprise will be carried out on the principle of an incomplete cycle: suppliers will prepare raw materials, and the company will produce ready-made panels for assembly, using the developed drawings. For an additional advantage in shaping the pricing policy and a shorter payback period, our own funds will be used when launching the project.
Before drawing up a business plan, it is important to carefully study the market - suppliers, consumers, competitors. The volume of furniture production in the Russian Federation, according to data from the Association of Furniture and Woodworking Industry Enterprises, is distributed as follows:
- Office furniture - 23%;
- Cabinet furniture (sets, hallways, suites) - 25%;
- Kitchens - 22%;
- Bedrooms - 13%;
- Upholstered furniture - 17%.
The range of domestic furniture is presented according to the following parameters:
- Functional purpose: cabinet furniture for lying or sitting: armchairs, chairs, chaise lounges, beds, sofas, etc.; for storage: chests of drawers, cabinets, cabinets, shelves; for work and eating: desks, dining tables, coffee tables, etc.
- Design: non-dismountable, sectional, universally prefabricated (it can be repeatedly disassembled and reassembled), built-in, bent, transformable, wicker.
- Materials: made of wood materials and wood, plastic, metal.
Planned assortment
We will first compile a list of the range of products we produce (data will change as demand is studied):
- Facades for kitchens, kitchens;
- Cabinets, cabinets, drawers, shelves, chairs, dining tables, stools;
- Office furniture - shelves, computer desks, filing cabinets.
Target group
- End consumers (wholesale) - hotels, restaurants, large government agencies, office centers, etc.
- End consumers (retail) are business people with average incomes who update furniture every 2-3 years.
- Intermediaries are design studios, specialized stores of interior items and furniture.
Business plan for furniture production: sales organization
Ways to sell products:
- Through your office, which is also a showroom.
- Using a network of stores, concluding partnership agreements with them (including stores from other regions and CIS countries).
- Direct sales to government agencies, hotels, large private companies, using mailings and calls to a database of potential clients.
Advertising
- Your own website on the Internet, its creation and promotion, weekly updating of the catalog, sending news to regular subscribers - contributes to the geographical expansion of the circle of consumers.
- Placement of advertising blocks in interior and design publications, furniture magazines and other specialized press.
- Placing advertising banners on similar topics on Internet resources.
Required documents
In terms of taxation and working with legal entities, it would be preferable to register an enterprise in the form of a limited liability company.
Documents for LLC registration:
- Information about the name of the company - should be associated with its field of activity.
- Agreement on the establishment of an LLC with a decision to open;
- Charter documents with a list of types of activities and the amount of authorized capital not less than 10,000 rubles (contributed in money or property - office furniture, office equipment, etc.).
- Details of the director and chief accountant - copy of passport, identification number, contact phone number, address.
- Documents confirming payment of state duty.
- Details of the bank where the current account is opened.
Production plan
Business plan for furniture production includes one of its most important parts - the production plan. Production will be organized according to the principles of incomplete cycle. We will produce popular models of cabinets, prefabricated cabinets, kitchens, tables and other cabinet furniture according to the configuration and required sizes. It provides for the processing of purchased ready-made chipboards and MDF boards to the specified patterns. The furniture is delivered to the consumer and assembled on site.
Premises requirements
You will need 2 premises: for furniture production and for receiving clients. It is advisable to locate them close to each other. The premises have different functionality, therefore the requirements for them are different:
- The area of the production premises is at least 500-600 m², you need a heated spacious room on the ground floor, the possibility of arranging warehouse space and installing equipment, an equipped entrance with a platform for unloading materials and raw materials and shipping finished products.
- Accessibility for the client is important for the office. Its location is preferable in the center of trade and business activity, on the ground floor, with an equipped showroom for displaying product samples. Area - 50-60 m². Communications and cosmetic repairs are required.
Equipment
List of equipment for the production of cabinet furniture parts:
- Machines controlled by computer programs for the manufacture and modeling of furniture - “Astra-Furniture Designer”, “Astra-Cutting”.
- Milling machine.
- Electric jigsaw.
- Lathe.
- Some small tools.
Staff
List of workers with special skills and knowledge:
- Workshop workers - 5-7 people. Requirements: experience operating the main types of furniture machines for processing chipboard and MDF boards.
- Production foreman - 1 person. Bears financial responsibility for machines, raw materials and materials. Requirements: knowledge of the features of production processes for the assembly and manufacture of cabinet furniture, experience in organizational work.
- Driver - 1 person.
Raw material suppliers
Raw materials for use in production are chipboards (chipboards), MDF boards. You will need domestic or foreign suppliers of slabs, consumables (glue, paints, coatings, hinges, handles, drawer guides, hinges, locks, fasteners, etc.).
Requirements for suppliers: company fame, certificates, delivery, possibility of deliveries with deferred payment. The search for suppliers is carried out in specialized publications, on the Internet, several offers are selected and compared.
Financial plan
To calculate a business plan for furniture production, we take into account all the initial costs of launching and promoting the project, fixed costs, and compare them with cash receipts. We analyze the main financial indicators: profitability, size of investment, payback period of the project.
Initial costs:
- Purchase of equipment - 1,000,000 rubles;
- Registration of a company - 30,000-40,000 rubles;
- Purchase of consumables - 150,000 rubles.
Total for launching the project is 1,200,000 rubles.
Type of funds raised: own, borrowed. In the second case, additional costs for interest on the loan are taken into account. With an average interest rate of 22-25% per year, production profitability is required to be at least 30-35%. The payback period depends on the profit after paying all taxes, interest on loans and other costs.
We will consider the option of using our own funds to start production.
Variable costs (per month):
- The workers' salary is 100,000 rubles;
- Raw materials and materials - 150,000 rubles.
Fixed costs (per month):
- The salary of office workers is 20,000 rubles.
- Rent of premises - 50,000 rubles.
- Advertising costs - 10,000 rubles.
The planned sales revenue is expected to be about 400,000 rubles per month. Intensive promotion will contribute to revenue growth per year by 20%.
Taking into account 30% profitability, the monthly income will be 150,000 rubles. Monthly fixed costs - 80,000 rubles. Profit after deducting fees, taxes and expenses - 70,000 rubles. If the profitability is 30%, the payback period will be 14 months.
Business risk analysis
The main risks include the smuggling of cheap, low-quality furniture from China and Poland. Such furniture is short-lived and can be harmful to health.
Dmitry Kuprienko, an experienced entrepreneur in the field of furniture production, shares practical advice on how to start and organize a business in furniture production, what you need to organize your first workshop, how to get up from scratch and where to start in this business.
Many companies that started their business by manufacturing cabinet furniture in small workshops several years ago have become quite successful and expanded their business. Today, some of these organizations, in addition to the production of kitchens, wardrobes and other interior items, provide a number of other services to the population. Typically this involves cutting laminated chipboard and manufacturing MDF facades according to customer sizes, gluing the ends of parts with PVC and melamine edges, assembling doors from aluminum profiles and selling furniture fittings with accessories.
Having some experience and initial knowledge in this area, you can organize your own small business, which has every chance of success. Moreover, you will not need any serious capital investments or large production areas at the initial stage. With a skillful approach, rational use of earned funds and a certain amount of luck, you can literally have a decent income in 1-2 years.
How to start a furniture manufacturing business?
Kuprienko Dmitry(author of the material) - has been producing custom cabinet furniture for more than ten years:
“The presence of a huge number of players in this market segment should not stop you. In any business, as elsewhere, the evolutionary process never stops - someone goes bankrupt, and a more efficient entrepreneur takes his place.”.
Since, as already noted, starting a small business producing cabinet furniture does not imply large financial expenses, there can be no talk of any expensive advertising campaigns or other promotions. Finding your clients can be much easier and cheaper. It is enough to order business cards and distribute them to everyone you can, or publish several advertisements in special newspapers.
Also try to negotiate cooperation with small construction stores, since the chances of finding a customer in such a place are quite high. People making renovations most often plan to purchase new furniture. If you can convince the owners of these outlets that they will benefit from a certain percentage of your orders, then customers will soon appear.
In addition to traditional methods, you need to start preparing your website or blog, since every year more and more orders, especially in large and medium-sized cities, are received by craftsmen via the Internet. Of course, promoting your own virtual store will require financial and material costs from you, but not everything is done at once. Gradually developing your main production, at the same time develop an Internet resource, which, if the circumstances are successful, will provide you with many orders - the dream of all entrepreneurs without exception.
How to choose the right materials supplier?
Fairly high competition in this sector forces firms providing this type of service to pursue approximately the same financial policies. Therefore, choosing an organization based only on prices will be completely wrong. Some may sell some products cheaper than competitors, while others are more expensive; as a result, the average cost of components for furniture production will be approximately similar everywhere. Naturally, we are talking about the same level of quality, since materials and accessories from different manufacturers have different prices.
The maximum possible range of goods and services offered by the organization to its customers. In such a place you should be able to buy almost everything you need without spending additional time and money on trips to other stores for some little thing. Moreover, it is highly desirable that components be sold in different price categories, since clients have different income levels, and not everyone will be able to pay for expensive luxury materials, and some only need those. Therefore, you should have freedom of choice in one place.
Equally important are the timing of your orders and the discounts provided to regular customers. Duplicate the information received from the company’s employees with experienced clients. It is from them that you can learn important nuances.
The location of the organization plays a significant role; it is better to start working with a company that is located as close as possible to your workshop. Voyages through the entire city with the current congestion of roads during the daytime take up a lot of precious time.
The territory must have convenient access to the workshops and properly equipped areas for loading parts into your vehicles. It’s good when such places have canopies that guarantee the safety of parts in any bad weather.
Search for premises and purchase of equipment
To make cabinet furniture, at the initial stage you will need a room with an area of about 20-25 square meters; it will be good if it turns out to be one large room. Please note that there will be a small warehouse here for both recently imported blanks and finished products. In the same room you will need to drill and process parts, as well as assemble furniture, so choosing a room smaller than 20 square meters is not recommended.
In addition, pay attention to the possibility of maintaining its temperature at 10-15 degrees in the autumn-winter period. Immediately calculate how much it will cost you. Sometimes cheap rent is completely offset by expensive heating. There was no need to remind you at all that the room should be dry, since this is one of the main conditions, and by neglecting it, you risk a lot.
Confidence in the safety of all property is also important, since over time, if the business develops successfully, the workshop may simultaneously contain components and equipment worth several thousand dollars. Do not forget here about ensuring convenient loading of finished furniture and unloading of brought parts with fittings.
When purchasing equipment, many cannot decide on the class of hand-held power tool. There are very opposite opinions on this matter: some prefer to purchase inexpensive goods and replace them as needed, others work only with expensive products from world-famous brands.
There is also a tool that is in the middle price range, and this is probably worth choosing at the very beginning. In addition to production needs, it will always be useful for other matters. To ensure that you do not have any problems while fulfilling orders, you must have in your arsenal:
- Electric drill - 2000 rubles;
- Cordless screwdriver - 2500 rubles;
- A powered screwdriver - 2000 rubles;
- Jigsaw - 2200 rubles;
- Manual milling machine - 2500 rubles;
- Grinding machine - 2500 rubles;
- Electric miter saw - 7,000 rubles;
- Industrial hair dryer - 1600 rubles;
- Hammer - 2200 rubles.
- A set of cutting tools: drills, cutters, knives and crowns - 3000 rubles;
- A standard set of hand tools for a home craftsman - 1000 rubles;
- Clamps - 1000 rubles;
- Miter box - 800 rubles.
Over time, having gained more experience and saved up money for production development, you will purchase more complex equipment that provides a higher level of production. In the meantime, it is quite possible to get by with what is listed in this section, since this is quite enough to produce cabinet furniture from ready-made parts. Your costs when purchasing the mentioned tool will be about 30 thousand rubles, and prices may deviate in both directions by about 20%.
Software
No, we are not talking about expensive CNC machines, but only about two programs that can significantly facilitate your work at the stages of furniture design and when ordering cutting of laminated chipboards. One way or another, you will have to do this in any case, until good business allows you to hire an employee for these purposes. Without using software, this entire process will take a lot of time and effort, and errors in calculations are also possible. Therefore, it is worth paying attention to very simple and useful programs:
PRO 100- a program created for designing and constructing furniture. With its help, you can easily visualize the object and calculate the parts required for assembly. Today there are several versions of PRO 100, as the program is constantly being improved. The latest development allows you to create quite realistic 3D images.
Cutting- a program whose purpose is to provide assistance in drawing up the optimal option for cutting laminated chipboard and MDF sheets. Using it, you will quickly find out how much material is needed to make a particular product, and you will also be able to minimize unclaimed waste. Cutting saves both time and money.
In addition, it is advisable to have a laptop. Your future work will involve frequent visits to homes, offices and other facilities where measurements will be taken. Almost all clients in this case are childishly impatient; they want to immediately see what their furniture looks like. With a laptop and PRO 100 you can render in 45-70 minutes. By the way, this greatly increases your chances of receiving an order.
Prospects for the development of the furniture business
By following our recommendations and setting aside part of the money you earn for business development, you will be able to reach a new quality level within 2-3 years. In the process of fulfilling orders, acquaintances are made with construction teams, since repairmen and furniture makers, in fact, are inseparable. Such connections, like an Internet project, will allow you to increase the number of clients and increase your income.
An important factor guaranteeing success of endeavors, is the constant expansion of the production base, both in terms of increasing space and purchasing new equipment.
From the first days of work you will dream about format-cutting and edgebanding machines. They provide independence, allow you to quickly correct errors on site and save money.
But you can’t rush to buy them; many craftsmen, turning to a bank or private individuals ahead of time for a loan to purchase them, incorrectly assessed their capabilities and subsequently suffered losses. Therefore, it is better to make such serious purchases with your own money or borrow a small amount.
Expensive machines justify themselves only with the appropriate volumes of processed material; only then are they effective.
Their cost is approximately:
- Format cutting machine (made in China) - about 200,000 rubles.
- Curvilinear edge banding machine (made in Russia, China) - about 50,000 rubles.
There is equipment that is both slightly cheaper and much more expensive than the listed prices. But even familiarizing yourself with the average cost of machines that are usually purchased for small workshops is enough to avoid making impulsive decisions. Without a carefully verified business plan, which is confirmed by an increase in the number of orders, you should not start this event. A delay in such a purchase may be just as undesirable for effective development. You will simply waste money and time.
Furniture manufacturing has always been considered a promising occupation, especially in our country, since a huge percentage of the population still uses old furniture and dreams of new ones. People who bought a kitchen, wardrobe or hallway about 5-8 years ago are already starting to think about replacing them, so furniture makers will always have work to do. You just need to organize it correctly.
New business idea: Production of fences and enclosures for private households under the FenceLego franchise (new product, lack of competition, high demand even in current market conditions).
Furniture production. Let's consider a plan for organizing a medium-sized enterprise that specializes in furniture for the home and office.
Is it profitable to create furniture production?
Analysis of the furniture market segment shows that with proper organization of the factory, the owner can receive 40-50% profit per year. The profitability of the business is quite high and reaches 40%. Demand for medium-priced goods always remains stable. With established sales channels, an enterprise can increase its turnover and, after 4-5 years, grow from a medium to a large one.
Most often, furniture manufacturers choose a narrow specialization.
A company producing mid-priced office and home cabinet furniture can find buyers among businesses of all sizes and people with low and moderate incomes.
The business plan for furniture production involves selling to order through the office, as well as selling finished products through retail outlets.
Company advertising
The company must be known to customers, so advertising will first be aimed at brand recognition, increasing consumer loyalty and stimulating demand.
Enterprise registration
- sawing machines;
- milling machines;
- wood drying equipment;
- glass processing machines;
- metal processing machines;
- tools for the work of craftsmen.
For a workshop measuring 250 sq. m. the optimal amount of equipment would be 2 machines of each type. This will allow for a high speed production process.
Recruitment
The production of cabinet furniture according to a business plan requires hiring 7-10 furniture workshop craftsmen. The process will be effective if you select highly specialized workers for each stage of production.
To operate the office and sales area, 4 employees are enough to perform administrative tasks, advise customers and organize product sales.
To deliver furniture to customers, you need to hire one driver and buy a suitable sized truck.
Search for suppliers of raw materials
A business plan for furniture production can only be implemented if reliable suppliers of raw materials are found. When choosing suppliers you should be guided by the following aspects:
- close location to the production workshop;
- low prices for raw materials;
- high quality raw materials;
- reliability.
Calculation of initial investment
A business plan for the production of custom-made furniture includes approximate calculations of the cost of initial investments. They may differ depending on the region of business organization, the size of the enterprise and the financial capabilities of the entrepreneur.
So, in order to implement a business plan for creating a furniture workshop, you need to have about 3 million rubles. This amount is needed for a medium-sized enterprise. It is simply unprofitable to organize a small production enterprise.
Furniture production: analysis of 9 concepts + detailed business plan for furniture production: 4 steps to building your own business.
Furniture manufacture profitable idea for business.
Expensive, difficult and a lot of competition? Yes, to start making furniture, you need to have a clear plan of action that will lead you to success.
“Why this particular idea? I can start making British beanies: there’s less competition and you can easily become a leader.”
Yes, one cannot but agree with this statement. The furniture business is a tough, competitive environment.
But here’s what you get in return for the money and effort spent in organizing your own furniture production:
You can earn much more from furniture production than from fur hats.
We are talking not only about the manufacture of goods: sales, assembly, dealer activities - all this brings real income.
Regular customers.
Wholesale purchases and long-term cooperation are the basis of the work of furniture factories.
Sustainable profitability of production.
Quality furniture always sells. Every year the demand for domestically produced goods in the mid-price category is growing.
Opportunity to expand your business.
The percentage of Russian products on the market has grown to 55-70%. Demand creates supply.
The formation of regional production divisions will make it possible to compete in the battle for a monopoly in the furniture market.
How to open your own furniture manufacturing company without huge investments? This is the main question of the article.
Is this real? Yes, undoubtedly, it is quite possible without large investments.
When you read this article to the end, you will have no doubt about the veracity of this statement.
First step: decide on the concept of furniture production
Why do you think the demand for furniture has remained stable over the years?
Diversity is the key to success in this industry. The versatility of the market allows each manufacturer to find its own “island” of responsibility.
Let's list the areas of everyday life where various modifications of the same furniture can be used:
- educational institutions;
- shops (hypermarkets, trading floors);
- official representative offices;
- business centers;
- residential buildings;
- apartments;
- , cafes, public canteens;
- entertainment centers.
Each of these establishments has a certain interior style, which means that the furniture must have a unique design. Diversity is the basis for special product offerings.
The market is divided into a dozen sections, each of which differs from the others in production materials, furniture design, and pricing policy.
Deciding on the concept of your product is the first step to production success.
Let's evaluate together the main sections of furniture production in Russia.
1) Production of wooden furniture.
The basic option for production is the most accurate characteristic of this direction. Wood is considered a so-called warm material.
Wooden furniture is used in residential premises, educational institutions, hotels, and any service centers where the emphasis is on the client.
What are the advantages of producing wooden furniture?
- durability;
- reliability;
- ease of processing;
- sufficient amount of raw materials for production + moderate cost;
- variability of furniture design.
Also, we must not forget about the other important features of wood: it retains heat well + has a low density (the weight of the material is relatively small).
Is it worth it to produce wooden structures or is it better to find analogue materials?
There is nothing better than wood for a beginning woodworker.
2) Production of metal furniture.
Production of metal furniture: what is it intended for?
- Warehouses requiring practical furniture that can withstand heavy loads.
- Chemical industry, metallurgy and other industries, involving the use of specific materials.
Metal structures are better suited than others for storing medications and maintaining safety.
Food industry.
Working with some products (meat, fish, frozen products) requires the use of stable and easy-to-care structures.
Banking industry.
The main purpose of using metal furniture is maximum safety.
Working with metal is very different from cutting and shaping wood. Without special skills and abilities, you should not take on welding and metalworking machines.
3) Production of furniture from solid wood.
Readers may have a question: “What is the production of solid wood furniture?”
Solid wood is solid materials, i.e. boards, wooden panels that could not be processed in any way. The principle of solid wood extraction is cutting solid wood.
Solid wood products have a unique look, and working with them requires special knowledge and many years of experience working with wood.
The cost of raw materials for such furniture is high, so you can use this expensive and fragile material only if you are completely confident in your skills.
Is this the best idea for a start-up business? Definitely not! Only the most experienced entrepreneurs risk taking on the production of luxury solid wood furniture.
There is too much of a chance to burn out, especially considering the fact that serious customers turn only to experienced market players who have managed to strengthen their reputation with work and time.
4) Production of upholstered furniture.
Upholstered furniture is an indispensable attribute of a cozy home interior of an apartment or private house.
The trend of the 21st century is office equipment with all the amenities for workers, so the scope of use of this concept is only growing.
The design of upholstered furniture sometimes amazes with its functionality and thoughtfulness of details.
But, it is necessary to understand that the client’s demand is always focused on simple and understandable forms, comfort and low price.
What problems will you face if you choose to produce upholstered furniture?
Need for hand upholstery.
Automated upholstery equipment costs incredible amounts of money, so it will be cheaper to use the services of a professional upholsterer.
Making the frame + upholstery of the cover takes up to several days.
Failure to fully automate can have a negative impact on overall productivity.
Cost of materials.
The price of upholstery materials for furniture may exceed the cost of a frame assembled from fiberboard and chipboard.
Upholstered furniture is not a panacea for a novice entrepreneur. The cost and labor intensity of production require significant capital investment.
5) Production of cabinet furniture.
Simple cabinet furniture made from chipboard is used in all areas of human life. A bench for a classroom, a kitchen corner, a simple book table - all these are cabinet products.
The technological process of its production can be either 90% automated or manual, depending on the complexity of the design.
Why is cabinet furniture production a great idea for a small business?
Simplicity of design.
You don't need to use expensive designer services. Simplicity of design is the key to success in this sector of furniture production.
Easy to assemble.
The process can be automated, but furniture collection services can also be provided at home.
This will serve as another marketing advantage for your business.
High profitability.
There will always be clients.
With a little effort, you can establish contact with business centers or educational institutions.
You need to choose a direction for constant cooperation; this will ensure stability of orders + uniformity of work.
6) Production of office furniture.
The production of office furniture is a narrow specialization of the “cabinet” direction. Often, the production of office cabinet furniture differs from the production of household furniture.
The most obvious sign is the rigor of the design + restrained shades.
The best format for selling your services is to place orders for complete office furnishings.
What are the design features in the production of office furniture?
- The designer must develop a general concept for the room, i.e. Each piece of furniture in the office should correspond to the overall atmosphere.
- Clear product outline: Yet the rigor of the work process must be reflected in every detail.
- Materials: the use of the same type of materials for production allows you to invest minimal amounts on production.
Production of cabinet furniture for office? Yes, but only if you initially take the right position in the market.
Make furniture of a moderate price category, focusing on small offices. Then success among buyers is guaranteed.
7) Production of custom-made furniture.
The production of custom-made furniture is a separate sector of business. And also an ideal option for your own business.
The main goal of such entrepreneurship is to receive one order, complete it efficiently, and only then take on the second.
If you are an individual entrepreneur who has a garage with a minimum set of equipment, this is your gold mine. Of course, you need to have experience working with wood and be a high-level specialist to organize such production.
Clients order the services of an individual master carpenter only if there is a need to produce exclusive furniture.
The professionalism of the entrepreneur and his team is of primary importance in business development.
8) Production of children's furniture.
The production of furniture for children must be accompanied by constant monitoring. It is important to remember who you are creating the product for.
Basic quality standards that the production of children's furniture has:
Environmental friendliness of materials.
It is especially worth paying attention to the use of polymers.
Any open contact of a child's skin with industrial chemicals can lead to irritation and other unpleasant consequences.
Practical design.
Furniture should be stable and practical; this will ensure the safety of the child.
Interesting design.
Young children perceive the world somewhat differently. For them, not only practicality is important, but also the visual component.
If you are just starting your entrepreneurial journey, leave the production of children's furniture to other market players.
Any mistake in the production of an inexperienced businessman can put an end to all expectations.
9) Production of kitchen furniture.
Kitchen furniture, for the most part, is cabinet furniture, assembled from ready-made sections of fiberboard and chipboard.
An important indicator of quality is practicality. Working in the kitchen involves constant use of every element of the interior.
Kitchen furniture should be simple and understandable even for a child: no extra shelves or decorative elements.
What are the advantages of producing kitchen furniture for a beginning entrepreneur?
- The simple design simplifies production and allows for greater automation of the process.
It is not necessary to have a furniture workshop or factory.
It is enough to be a good designer to correctly describe the customer’s wishes.
Those. you must assemble a design layout, and then simply order the necessary sections and assemble them together in the client’s home.
Cheap materials.
If you take apart 90% of modern structures, inside you will see a mixture of fiberboard, chipboard, glue and varnish.
All financial transactions related to the acquisition of income of an individual entrepreneur must be carried out using a current account.
Decide on the accounting format.
Now everything is ready for the official start of the project. All that remains is to think about the format of your production.
STEP 2: Determine the supply base for materials. Equipment for furniture production.
Think about the question: where to get the materials needed for production?
The best option is to approve an agreement with a woodworking shop on wholesale purchases of chipboard, fiberboard and other consumables.
The advantage of such cooperation is the ability to order cutting of the material according to the dimensions you specify. This eliminates the need for expensive wood cutting machines.
List of materials for the production of cabinet furniture
Material name | Unit | Price, rub.) |
|---|---|---|
| Chipboard 12 mm | sq. m. | 95 |
| Chipboard 16 mm | sq. m. | 90 |
| Fibreboard 3.2 mm | sq. m. | 25 |
| Edge material | p.m. | 2 |
| Packaging (cardboard) | sq. m. | 2 |
| Accessories | set | 160 |
| Cutting tool | set | 7 800 |
| Fasteners | set | 60 |
Getting materials is not a problem. It is much more difficult to make a high-quality cut to meet the design requirements.
Don't want to pay for the services of a woodworking shop? Rent equipment for furniture production for a certain period of time.
To do this, you need to contact the administration of the nearest furniture factory and agree on the use of machines outside of working hours. The management of furniture production is interested in the constant operation of machines, because every minute of downtime costs them a lot of money.
Basic machines for furniture production
| Machine | Purpose |
|---|---|
Slitting machine  | Used for cutting fiberboard and chipboard panels. It is fundamental in the work of a carpenter with cabinet furniture. The cost starts from 100,000 rubles. Depending on the manufacturer and type of material supply, it can reach 300,000 rubles. |
Edge banding machine  | Allows you to close the edges of fiberboard and chipboard boards using high-temperature exposure to rolled cladding material. Cost from 100,000 to 200,000 rubles. |
| Drilling and filler machine | Used for drilling through and blind holes in chipboard and fiberboard panels. Cost 100,000-150,000 rubles. |
Renting machines will allow you to create the desired cutting shape yourself.
But if your level of professionalism does not allow you to carry out perfectly accurate work, trust the specialists of the woodworking shop.
STEP 3: “Where should I store finished furniture and how should I deliver it to the customer?”
There is no problem with storing materials if you work with woodworking production - use the area of their warehouse.
The rental cost will be minimal. You only need to have an area of 10-15 square meters. m., price 5,000-8,000 rub. per month.
Delivery of components to the customer will also not be a problem. If you do not have your own car, use the services of a transport company.
Cabinet furniture has a distinctive quality: it is divided into convenient sections, which simplifies transportation.
STEP 4: Installation of furniture and payment.
When you have delivered sections of the product to the customer's site, there is only one step left - assemble the structure and get your money.
To do this, you need to have the simplest tools with you: a screwdriver, a hammer drill and the necessary fasteners.
The greater the level of professionalism you show during the assembly process, the better feedback the client will leave about the work performed.
“How much will I earn from each completed project?” This is the most important question that concerns an entrepreneur.
There is no clear answer. Consider a specific example and evaluate your earnings prospects yourself:
- The cost of material for assembling a kitchen corner is 10,000 rubles.
- The cost of a finished corner in a hypermarket is from 40,000 rubles.
- Unique design solution at the request of the client + 2,000
- The final price for executing your order is 37,000 rubles.
Conclusion: having spent 10,000-15,000 rubles on materials + sawing work, you receive a reward of 37,000 rubles.
This price is lower than the market average, which will allow you to win the competition + you personally receive from 20,000 rubles.
Profitable enough? The answer is an obvious yes.
Furniture manufacture great idea for an entrepreneur. If you do not have initial capital, but know how to work with your hands and head, welcome to business.
Determine your sector of the furniture business and carefully consider the basic principles of work.
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Despite the fact that every city has a large number of furniture stores, there are times when people come to these businesses and cannot find what they really need. When funds allow, I want to make an exclusive renovation in the apartment and furnish it with expensive, elegant and practical furniture. In some cases, these may even be individual orders with your own sketches. That is why it makes sense to open a furniture production workshop.
It is worth noting that (like any other) you need to start only if you have a plan of specific actions. Therefore, in order to open a furniture workshop, it is necessary to draw up a business plan that will help resolve all issues related to the production and supply of cabinet and other types of furniture.
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What is needed to start a furniture business?
A furniture workshop involves opening an enterprise that will accept orders for the production of cabinet and other types of furniture from local stores.
It is worth knowing that the degree of success of this project can be assessed as high. This can be justified by the fact that the demand for furniture has been actively growing since 2000, by 15-20% per year.
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In what form should a business be registered?
It should be said that the organizational and legal form that is necessary for running this type of business is an individual entrepreneur (individual entrepreneur). This is due to the fact that the consumers of the services provided will be private individuals. However, if there is a possibility of having customers among legal entities, it makes sense to open an LLC (limited liability company).
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Performing market analysis in your city
The first thing you need to do is to perform a market analysis for furniture production in your city, consider the level of competition, find shortcomings and shortcomings in neighboring furniture shops in order to avoid them in your business.
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Selection of the necessary premises for furniture production
The next thing you need to take care of is finding a suitable room for a furniture workshop. It is worth knowing that at least two rooms will be required. Of these, one will need to be allocated for the office, in which all orders from potential clients for the production of furniture will be accepted, and the other - directly for the workshop in which the supplied products will be manufactured.
Regarding the office - it is worth understanding that it must be in a good place where a large number of people will see it every day. The workshop can be opened outside the city if this helps reduce costs. However, the best option would be to open two premises side by side. You can often see that some companies have an office, a workshop, and a store selling finished furniture nearby.
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Selecting the equipment and software needed to start production
Today, the market for the sale of equipment for furniture production includes products from a large number of different manufacturers (both domestic and foreign), and all machines can be easily integrated with the most common computer software for the production and modeling of furniture. The best of them are “KZ-Furniture”, “Astra Cutting”, “Astra Furniture Designer” and many others.
The minimum set of equipment that will be needed to start furniture production:
- jigsaw;
- milling machine;
- lathe;
- format cutting machine.
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What kind of employees are needed to operate a furniture shop?
An important step is the selection of personnel for the future enterprise. It will be necessary to assign a person to the office (order receiving point) who is well versed in computer programs for the manufacture and modeling of furniture. At the same time, he must be sociable in order to be able to find a common language with any potential clients.
A furniture production workshop will need to hire several workers who have experience working with the main types of machines and materials. An important condition is that employees must not drink, so as not to slow down the process of manufacturing and delivering furniture.
The main materials that employees must be able to work with are chipboard (particle board) and MDF (medium density fiberboard).
If you plan to open a store selling finished products, you will need to hire another employee - a sales consultant.
Accordingly, the general list of workers who will be needed to start production:
- driver - 1 person;
- store salesperson - 1 person (if necessary);
- workers in the workshop - 2-7 people (depending on the size of furniture production);
- designer-order taker - 1 person.
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Question about the supply of manufactured products
The following distribution channels are possible:
- individual customer clients;
- furniture stores;
- own store or showroom.
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Costs that will go into creating this business
- rent of premises for a workshop - 300,000 rubles per year;
- office premises (order receiving point) - 100,000 rubles per year;
- premises for a store or showroom - 200,000 rubles per year;
- purchase of necessary equipment - 200,000-1,500,000 rubles (depending on the selected manufacturer);
- consumables (300,000 rubles per year);
- payment for work performed by staff (at least 1,200,000 rubles per year).
Total: the total costs that will be needed to start furniture production are approximately 2,300,000-3,600,000 rubles. It is important to note that all calculations were made based on the pricing policy of Perm.