Solid wood furniture business plan. How to open a furniture business from scratch: step by step instructions and development plan

This business plan for the production of upholstered furniture will enable entrepreneurs to create and competently organize the work of a small workshop. The increased demand for high-quality and inexpensive upholstered furniture is one of the main reasons for the emergence of a significant number of new manufacturers on the Russian market, which today account for over 70% of all products sold. And upholstered furniture occupies about 15% of the entire furniture market, its production is an attractive niche, especially for small and medium-sized businesses, and does not require significant initial investments.

General concept of the project

The popularity of upholstered furniture is explained by several factors.

First, its production is increasingly oriented towards "make-to-order". It is difficult for small enterprises engaged in mass production of large batches of cabinet furniture and solid wood products to compete in the market, while the production of small batches of upholstered furniture can provide quite acceptable profitability.

Secondly, in small private workshops engaged in the manufacture of custom-made upholstered furniture, a significant part of the work is done manually, which does not require the purchase of high-performance and expensive production and technological equipment.

Thirdly, furniture production at small enterprises is easily and quickly reorganized to produce new products due to changes in consumer tastes and fashion trends.

Fourth, starting a small furniture manufacturing business is a great experience for building a large-scale profitable business in the future.

Fifthly, in the Russian market, the niche for making custom-made furniture in small towns and rural areas is practically free, so here the prospects for successful work for small furniture workshops are the greatest.

Description of the object

Our business plan for the production of upholstered furniture with calculations is designed to assist in the creation and launch of a small workshop that will manufacture products to order. The most productive use of the document is the organization of production in small towns. The enterprise must provide a full technological cycle for the manufacture of upholstered furniture and its sale to consumers.

Main product range:

• sofas.
• Banquets.
• Ottomans.
• Armchairs.
• Sun loungers.
• Chairs.

Surprisingly, but in the regulatory and technological documentation there is no definition of "upholstered furniture". In the current standards, concepts such as “seating furniture” and “lying furniture” are used. Moreover, these products can be made with both soft and hard elements. Therefore, in the generally accepted sense, upholstered furniture refers to products in the design of which there are traditional elements of "softness": pillows, springs, various fillers, and so on.

Market analysis of upholstered furniture

As statistics show, a middle-income Russian changes a sofa or chair about once every 3-4 years. Most of today's upholstered furniture market in the country is a product of the middle price range. They occupy 60% of the market. The share of premium upholstered furniture is relatively small and amounts to about 13%. This is primarily due to the high cost of such products. In addition, in this price range, consumers are more likely to choose branded products from foreign manufacturers.

Today, the domestic furniture market is characterized by a decrease in the number of production facilities operating "on stream". An increasing number of enterprises are moving to the production of products to order.

It often happens that consumers, following fashion, order furniture, which, in terms of performance, is significantly inferior to "in-line" products. An example of this is the production of original soft corners with silk or white upholstery. It goes without saying that such furniture is extremely impractical and that when ordering it, the consumer expects to change the “decoration” in one, maximum two years.

This trend is also supported by a financial factor: significant investments are required in the activities of enterprises with mass production. These resources are directed not only to start-up needs related to the purchase of equipment, but also to current ones, due to the need to purchase large quantities of material, components, upholstery fabrics, etc. In this case, it is very difficult to withdraw money from the business, if necessary, because the funds remain "frozen" in the form of loans, finished products, debts to suppliers of components and materials.

As practice shows, the seasonal factor has a great influence on this business. For example, during a period of decline in demand, out of 1000 items put up for sale, no more than 200-250 pieces are actually sold. To ensure the profitability of the enterprise, it is necessary to focus on the sale of finished products in the region where it is located. This will not only reduce transportation costs, but also respond more sensitively to changes in the preferences of the main consumers of products, thereby optimizing the overall production costs. For long distances, it will be profitable to supply only premium-class furniture.

Description of the object

The most popular types of upholstered furniture in our country are transformer models. The new enterprise will provide a full technological cycle of their manufacture, which includes the following stages.

1. Cutting lumber in the carpentry shop. Here, operations are performed on sawing boards and plywood into blanks and assembling wooden furniture frames.
2. Frame upholstery. This process step is carried out in the upholstery section of the production facility. During it, the frame is pasted over with dornite, then with foam rubber, on top of which the upholstery is fixed.
3. Installation of softness elements. The main such element in most types of upholstered furniture are springs. They perform an orthopedic function, and are mounted on products in the form of blocks that are installed in the center and perimeter of the product. Then the spring blocks are pasted over with foam rubber.
4. Pasting with protective materials. On top of the spring block, a dense woven material and spunbond are successively fixed in an adhesive way, which protect the upholstery from abrasion against the springs.
5. Laying foam rubber or synthetic winterizer. On top of the pads is placed another element of softness about 40 mm high. The presence of a synthetic winterizer in it will allow the foam rubber to “breathe”.
6. Cut upholstery materials in the sewing workshop. Here, on special equipment, operations are performed with various types of upholstery: from ordinary fabrics to genuine leather. After cutting the upholstery according to the dimensions of the product design, it is “targeted” to the multilayer base.
7. Manufacture and fastening of covers. Covers are made in strict accordance with the dimensions of the product. They are worn over a frame with a fixed base.
8. Control assembly of the finished product. This operation is carried out in order to check the operability of all elements of the product design and subsequent correction of the detected shortcomings.
9. Product packaging in polyethylene and cardboard.

These technological operations differ little in the manufacture of sofas or armchairs. These products use only different transforming mechanisms (if they are provided for by the design).

It is expected to launch an enterprise that implements the technology described above in full within two months from the start of the project. To do this, you must perform the following activities:

1. To study the state of affairs in this industry and analyze the regional market for furniture production.
2. Get advice from representatives of this business, if necessary.
3. Draw up a detailed business plan with calculations for your business organization option.
4. Conclude an investment agreement and get a loan.
5. Register a business.
6. Conclude contracts for the purchase of materials, furniture fittings and other components for the manufacture of upholstered furniture.
7. Select the necessary production premises and conclude a lease agreement.
8. Acquire technological equipment, make its installation and adjustment.
9. Select and, if necessary, train company personnel.
10. Establish markets for products.
11. Organize an active advertising and marketing campaign.

These activities are scheduled to be completed within the following timeframes:

The terms are indicative and depend on the specific conditions of the organization of production.

Organizational and legal form, taxation system and registration of an enterprise

The enterprise is created within the framework of the organizational and legal form of LLC (limited liability company). This choice is due to the advantages that this form of business provides: first of all, the opportunity to work with legal entities and more opportunities for the sale of finished products.

The workshop for the production of upholstered furniture will work according to the general taxation system, which provides for the payment of the following taxes:

Registration of a business entity is carried out in the following areas of activity:

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

The production of upholstered furniture does not require a license. Certification of products is carried out at the request of the manufacturer in order to increase the competitiveness of manufactured products.

Room selection

Production for the production of upholstered furniture is located in a rented premises with a total area of ​​at least 440-450 square meters. m. It will contain:

• carpentry (80 sq. m.);
• sewing (35 sq. m.);
• upholstery (70 sq. m.);
• prefabricated (25 sq. m);
• packaging (25 sq. m).

Warehouse and retail premises:

• Warehouse for components and raw materials (50 sq. m).
• Warehouse for finished products (100 sqm)
• Trade and exhibition hall (70 sq. m).
• Company office space (30 sq. m).

The expected amount of rent will be 81,000 rubles per month (with an average price per 1 sq. m - 180 rubles).

Enterprise equipment

To ensure the normal operation of the workshop for the production of upholstered furniture, the following equipment is purchased:

In addition, the company purchases a computer, furniture designer software, office furniture and accessories, and consumables. Thus, the initial cost of equipping the workshop will be 300,000 rubles (excluding the cost of renting premises).

Recruitment

To work in the workshop for the production of upholstered furniture, the following specialists are required:

For the main production specialties (designer, upholsterer, carpenter, craftsman), the set is made according to the criteria of professional suitability adopted in this industry.

Marketing and Advertising

The marketing policy of the company is aimed at creating an opinion among consumers that the upholstered furniture produced has excellent performance characteristics, has a lower cost than its main competitors, and that the company is ready to consider any options for long-term cooperation with the provision of significant price preferences.

To this end, the following promotional activities are planned:

• Preparation and publication of messages about the enterprise in local media.
• Development of a targeted advertising scheme by sending letters to specialized stores and companies.
• Development of the company's own website with the possibility of online ordering products.
• Activation of consumer demand by developing attractive commercial offers and holding promotions.

The main marketing resource of the enterprise is the high quality of its products, which can be purchased directly from the manufacturer.

Financial plan

At the initial stage of the enterprise's activity, it is supposed to accept up to 100 orders for the manufacture of furniture per month. In this case, the maximum cost of the product (sofa) will be:

The current expenses of the enterprise will be:

Taking into account the calculations performed, the total cost of products manufactured in 1 month will be 5788.26 rubles. With a profit margin of 25%, the average cost of products on sale will reach 7235.33 rubles.

Taking into account the payment of taxes, the workshop will receive a profit for the 1st month of work in the amount of 115,765.78 rubles. The profitability of the enterprise will be 25%, which will make it possible to recoup the costs of opening it no later than four months from the start of work.

Conclusion

Opening a workshop for the production of custom-made upholstered furniture is a profitable business with an average level of potential risks. With proper planning, low costs and a favorable situation in the consumer market, the founder will have the opportunity to receive a stable profit from a steadily functioning enterprise with the prospect of expanding it.

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

How we decided to engage in the production and sale of cabinet furniture from 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 are closing soon (2.5 years of activity).

Production of cabinet furniture

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

At first it was furniture for my home and for friends and relatives, and then there were small private orders from other people. 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 the "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. It is necessary to immediately have premises, 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.

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

Many people 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 is produced in our region.

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

We planned to engage in the production of only cabinet furniture (it includes models with a rigid body and the absence of soft parts) in the following areas, including built-in furniture:

• Kitchen sets
• Bedroom furniture
• Living room furniture
• Hallway furniture
• Cabinet furniture

We had several options for 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 customers and its sale through city and region stores. They even wanted to create an online store of ready-made furniture solutions (they started doing it), and then their 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, they were going to work actively to create and promote their brand, focusing on quality, ergonomics and non-standard design (as far as possible with such materials).

Business plan for furniture production

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, we divided work responsibilities among ourselves: my husband completely covered production at all stages, took orders, worked with suppliers and communicated with customers personally. In addition, he was engaged in the overall 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 the business within five years at the expense of profits, loans and investments from outside. These funds were supposed to gradually purchase 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 calculated), but just at that time the city administration announced a competition for projects to provide subsidies to small and medium-sized businesses. We were very interested in investing in a business of 300,000 rubles with virtually no obligations, and we decided to try to participate in the competition.

To do this, my husband registered as an individual entrepreneur, and we began to collect the necessary documents and draw up a business plan. 15% USNO was chosen as taxation - the most convenient option for high-cost production.

It was important to find suitable premises and equipment at the beginning of the work. We were very lucky that we managed to agree on the lease of a workshop with the necessary machines of the former existing production. There was everything you need for normal operation for the first time. Of course, not in excellent condition, but it was possible to work. My husband taught himself how to repair machines. We made a contract with the landlord, negotiated the price for a long time, but we decided that we could handle everything. The advantage of this premises 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 did all the paperwork and wrote the business plan ourselves. They barely managed to collect documents confirming the expenses for the required amount (15% of the requested subsidy - 45,000 rubles) from the start of registration of the IP. I remind you that we had no money at all, so it was necessary to have time to fulfill several orders for furniture and from that already enter the costs. We barely had time to collect everything, handing over documents for a subsidy in the last minutes. We won the competition for a subsidy, but in addition we got obligations for constant reporting and the official hiring of three people within six months.

Our biggest business mistakes

The amount of a subsidy of 300,000 rubles was requested for a new edge banding machine (a thing that quickly glues the edge and reduces the time it takes to make furniture). It was assumed that it would increase the volume of 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 the rent of the workshop, on the purchase of materials or on the main 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, problematic to maintain, and some problems constantly arose with the supplier company. Our inexperience and their irresponsibility did their job, the money was spent nowhere.

The quality of work and active promotion really made a name for us, and there were always orders. But the husband simply could not physically produce the necessary volume of products to cover the basic costs. Income was rarely more than 100 thousand per month instead of the planned 400 thousand. The debt for the rent of the premises began to accumulate - our largest expenditure part. And they added quarterly taxes, pension contributions and force majeure (somehow our workshop was flooded and a lot of finished products and materials were destroyed by water). And there were also rash decisions, such as renting an office where we didn’t work a day, and buying a domain for the site.

We decided that it was time to hire workers, especially since the deadline for obligations for the subsidy was approaching. Our expectations that people will come who are just as well versed in technology and who want to work hard and earn based on the results of their work, of course, did not come true. Then we began to look for just capable students without experience, but again - nothing. As it turned out, not everyone wants to earn money, most people just want to get money. So my husband had to work with varying degrees of success alone without days off, and sometimes even 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 greater financial hole. If it were possible to guess what the receipt of a subsidy would lead to in our case, we would hardly have gone for it. They would work quietly in the shadows without any taxes and deductions and would collect capital for business development. But what's done is done.

We got into fixed costs:

• rent,
• IP insurance premiums.

into variables:

• purchase of materials
• electricity bill,
• payroll and payroll taxes,
• USNO tax,
• other general business and production expenses.

Due to financial problems, we lost the workshop, the new machine had to be given away to pay the rent debt. 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 did the main work. Correspondingly, the productivity dropped dramatically, and we lost the trust of customers due to non-compliance with the deadlines for the production of the order. After all, now the chain of actions for creating a finished product has become very long, and almost every element had its own problems.

In fact, we never had a profit, we always ended up in debt to someone, borrowed and re-borrowed money. Now we are delaying the fulfillment of the last orders in order to pay off the most urgent obligations and close our activities. It was not worth hoping for the opportunity to work in production without any capital. Alas, the dream of creating a strong production remained only a dream.

Finding a niche in the flood of opportunities is not easy. It will help you navigate and find the scope of your abilities to collect information, as well as statistics on the most profitable and rapidly developing areas of business.

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

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

Manufacturers stop at a specific type of product and try to find their consumer, who would provide a constant profit.

Business Specialization

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

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

The number of potential specializations is extremely large. Absolutely in any kind of activity furniture is required. Experts are sure that in the near future the appeal to specializations will only increase.

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

The direction of restoration and restoration of furniture is also developing. This type of business flourishes exclusively in big cities and is imprisoned for antiques. Like a business, furniture restoration also satisfies the needs of its customers.

Range

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

Operating Instructions

• household;
• for public areas.

According to those properties

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

By appointment

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

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

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

Choosing a place for furniture production

The choice of a place for locating your production should be treated with particular care. For the first time, it is best to rent a commercial space. In the future, if the business develops steadily, you can move on to buying your own space or building a production building on your own.

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

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

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

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

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

Often, if the regime is not followed, mold and spots appear on the raw materials, indicating that the wood is susceptible to decay.

For initial production you will need:

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

Equipment for the enterprise

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

To produce furniture parts, the following types of equipment will be required:

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

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

Staffing

Working in the workshop requires specialized knowledge in the field of furniture production. For hiring, you will need craftsmen with the appropriate qualifications. Properly select staff, because the quality of products and the efficiency of order execution will depend on their work.

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

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

Wages are paid in accordance with the Labor Code. Observance of the rights of workers for a businessman is one of the priorities.

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

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

Purchase of raw materials

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

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

• Laminated boards;
• Films;
• MDF boards;
• Fittings;
• Paints and varnishes;
• sliding systems;
• aluminum profiles, etc.

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

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

Sales and promotion

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

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

• Products;
• Price policy;
• Promotion;
• Place of sale.

Do not focus on your products, try to navigate the world of furniture, visit exhibitions, participate in competitions, be on the wave of new products and current trends.

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

There are currently two main implementation paths: sales of products through own outlets and work through distributors.

The first way will shape the name and reputation of your new company, as well as make the entrepreneur more independent. However, this path is complicated by considerable financial losses.

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

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

Marketing via the Internet is the most suitable way for a start-up business. It doesn't cost much and can bring real results.

The financial analysis

To calculate the initial business plan, all initial and recurring investments must be taken into account. This includes the cost of launching the project, promotion, sales of goods and advertising. It is necessary to compare them with the financial indicators of the project: profitability, investment and payback period.

Main items of expenditure

Focus on items such as:

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

The cost is approximate, there is a reasonable error. 1,600,000 rubles - this is the approximate cost of launching a furniture business.

Business Profitability

The furniture business differs from other areas of business activity by a high percentage of profitability - 40% per year. Therefore, even at the initial stages of a business, amazing results can be achieved.

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

Pros and cons of furniture business

Advantages:

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

Disadvantages:

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

findings

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

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

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

• Recruitment
• Sales organization
• How much can you earn

Recently, there has been some growth in the furniture and furniture production market in Russia. In many ways, this is facilitated by two circumstances - an increase in the number of new buildings put into operation and an increase in the income of the country's population. The main influence was made by individual orders, that is, orders for the manufacture of furniture according to original author's sketches. The expected annual growth of the furniture market, according to experts, is 8-10%. The main prerequisite for the development of the furniture market is the growth of the real estate market.

How to start a furniture manufacturing business

You can open your own furniture manufacturing business in one of two ways:

1. Manufacture of furniture according to individual orders;
2. Serial release.

These areas differ sharply in a number of important parameters, namely in the general approach to the organization of production, distribution channels, profitability (in serial production it is no more than 15%, and in individual production - more than 25%).

Today, many furniture factories offer sofas of the same design, but of completely different quality and at different prices. This is because the formation of Russian furniture production began with copying Western models. The point is that designing, producing prototypes, and researching demand on your own is expensive. Only a large enterprise or a highly specialized company operating in the premium segment can afford this.

Thus, copying furniture samples until recently was a profitable business. Factories were not very eager to produce some original models, because the consumer was already well aware of what was being done for the masses.

However, recently the situation has changed somewhat. Buyers are increasingly paying attention not only to price and quality - now they are also interested in furniture design. Therefore, more and more manufacturers are beginning to introduce their own developments, opening design bureaus at their production sites. In general, the serial production of designer furniture is a promising business. A striking example is Italy, the birthplace of furniture design. For Italians, the price of furniture is largely determined by the name of its author or brand.

How much money do you need to start a business

The size of the initial investment entirely depends on the "manufacturability" of production. The simpler the technology, the less money is needed to launch furniture production.

The cheapest way to produce furniture from laminate - both cabinet (cabinets, walls), and upholstered. The amount of investment for opening a business (purchase of equipment, repairs, rent) in this case will be 2-3 million rubles.

You can purchase equipment on lease - this is an excellent alternative to bank loans. Leasing does not require collateral, which is very important for a novice entrepreneur who does not have real estate on his balance sheet. In addition, lease payments reduce the taxable base.

Turn to the state for help - today there is an opportunity to receive gratuitous financial assistance from the state, including receiving a grant for starting a business, subsidizing part of the cost of paying interest on a loan, under leasing agreements, etc. For more information about the forms of support in your region, please contact the local administration or the websites of the relevant ministries.

What equipment to choose for the production of upholstered furniture

For the production of upholstered furniture, you will need sewing machines (one each of three to four different types), a panel saw and a pair of pneumatic pistols with a compressor.

Such a set of equipment is enough to organize production with a monthly turnover of 1.5 million rubles.

Technology for the production of upholstered furniture

1. Sawing board materials according to frame shapes and cutting foam rubber for soft elements.
2. Assembly of the frame and fittings.
3. Upholstery of details and tailoring of covers.
4. Final assembly of upholstered furniture.

What equipment to choose for the production of cabinet furniture

The set of equipment for the production of laminate cabinet furniture is slightly different. You will need to purchase an edge bander, panel saw and hand power tools.

Cabinet furniture production technology

1. Cutting board materials.
2. Edge banding of furniture parts.
3. Assembly and fitting of fittings.

If the company plans to work with veneer, MDF boards and solid wood, then an additional planer and milling machines for processing solid wood, grinding and calibrating-grinding for processing solid wood and board materials, hot and cold presses for veneering board materials with veneer, varnishing and painting booth for finishing finished furniture.

The technological process in this case is somewhat more complicated, and will include three stages: veneer, sanding and varnishing with painting. The organization of such production is many times more expensive, since more equipment is required. Working with laminated chipboard (laminated chipboard) requires the purchase of expensive packaging equipment, as well as large warehouses, since the sales volumes of laminated chipboard furniture with the same monthly revenue turnover are several times higher (by 300-400%) than the sales volumes of furniture made of solid wood and boards MDF. The cost of producing furniture from MDF plywood is five times higher than the production of the same model from chipboard, not so much due to materials, but due to higher labor costs.

If there are very few funds for the purchase of expensive equipment, then the main part of the production processes, including veneer veneer, can be outsourced to third parties. Although this increases the cost of the final product. Outsourcing is beneficial when an enterprise specializes in the manufacture of cabinet furniture from laminated chipboard for individual orders, but occasionally they come across customers who want to buy something more expensive and prettier, and it is not unforgivable to miss such a customer. In this case, it makes sense to order semi-finished products on the side, and only assemble them ourselves. But only very small “handicraft” shops work this way.

Choice of premises for production

Finding the right space for furniture production is not an easy task. The thing is that the room must meet a number of stringent requirements, which are dictated by the specifics of the technological process: high fire hazard, high energy consumption, the need to maintain a certain temperature in the room (not lower than 16-18 degrees). So, at the request of the fire inspection, the main production (furniture finishing) should be located on the first floor of the building. There should be free access roads to the building itself.

The room should be equipped with a fire alarm system, the installation of which will cost about 500 rubles. for 1 sq. m. In addition, the installation of an industrial ventilation system will be required, which is also far from cheap. Do not forget about the presence of a stationary water heating system - without this, it will not be possible to organize a normal production process.

What documents are needed to open a furniture manufacturing business

1. Certificate of conformity for finished products. Issued for a three-year period by non-profit organizations that have the appropriate accreditation;
2. Sanitary and hygienic certificate. Issued by Rospotrebnadzor for a period of five years;
3. Certificates of conformity for materials used in furniture production. Their copies are issued by any bona fide supplier. Passing the certification procedure with these documents is not difficult - it will take no more than three months.

Recruitment

One of the most effective and easiest ways to find staff is to place ads in newspapers.

Please note that an experienced carpenter will ask for a salary of at least 35 thousand rubles per month. You will not have much choice, as there is a shortage of qualified personnel in the labor market. The system of vocational education in our country is in an undermined condition. Even those young people who want to work in production have received such poor training in schools that they do not even know basic safety rules.

The only way to somehow solve this problem is to divide the production process into a number of simple operations and assign several workers to them. In this case, the number of specialists potentially ready to work in your production will increase. However, you should be aware that cabinet makers will not completely replace cabinet makers.

The success of a furniture company largely depends on the availability of highly professional engineering and technical specialists. However, there should not be more of them than the workers directly at the machine. As the company grows, IT specialists will also be required, as modern machines have software.

As for increasing labor motivation, it is necessary to introduce a piece-bonus form of remuneration - this greatly increases the efficiency of staff work. But no one has canceled the “carrot and stick” method either - an elementary fine improves the quality of production and responsibility for observing safety regulations.

Sales organization

Not a single normal production will function without well-developed distribution channels for products. In the case of furniture production, there are several ways to sell products:

1. Work with private customers. Under such a scheme, in order to ensure a normal cash flow, more than 15 large projects need to be completed annually on a turnkey basis. When cooperating with private clients, be prepared for their temporary insolvency, missed deadlines for approvals, etc.

2. Opening your own outlet in a shopping center. This is the easiest way to start selling your own products. The presence of a retail outlet in the shopping center ensures a constant influx of customers, while the company incurs fewer costs (for security, repairs, advertising, etc.). But, the organization of trade, especially for novice manufacturers, can take a lot of effort. In addition to the actual production problems, it is necessary to solve a lot of tasks that are unusual for a production worker, including the search for a retail space, sales personnel, the introduction of trade standards, training in sales techniques, etc. Despite this, having your own retail point of sale (and more than one) is very useful.

3. Sales office or head office. Having our own sales office allows us to serve home furniture customers (designers and architects), and also allows us to process transactions via the Internet. While the World Wide Web cannot yet provide a large number of remote sales (no more than 10% of the total number of orders), nevertheless, more and more manufacturers are beginning to trust this sales channel and consider Internet sales to be very promising.

How much can you earn

I think everyone is very interested in how much you can earn in the furniture industry? First you need to understand by what criteria the cost of a particular furniture is formed. Most often, actual manufacturers calculate the final cost of finished furniture, the cost of materials (spent on the production of this piece of furniture) and all this is multiplied by a factor of 2x. As a result, this amount will be enough for:

• expenses (purchase of parts, materials, accessories);
• wages for employees;
• rental of premises and warehouses;
• delivery.

As a result, the manufacturer has a small percentage of profits. In the process, everyone is satisfied, both customers (due to the rather low cost) and manufacturers (clientele is increasing). As a result, receiving a small percentage of each sale (and since there are many customers, which means sales, respectively), the manufacturer has a good income. At the same time, there are “furniture makers” - these are people who do not have high-quality production, equipment, enough workers, warehouses, etc. (they are also called “garage workers”) calculate the cost of furniture in a completely different way than the above-described “normal” manufacturers . Thus, due to the lack of organization of production, "furniture makers" have production costs much higher than those of the official organization. In prices, they charge extra for accessories, sawing and processing wood (and other parts), making doors, shipping, wages to workers (furniture assemblers, etc.). And all the costs, "garage" multiplies by a personal coefficient, the degree of which depends entirely on his personal views. As a result, the cost of the goods will be higher than that of the manufacturer "everything is according to the rules." But they also have their worst enemy - competition. Each "furniture maker" wants to earn as much money as possible, but due to the fact that their number is growing every day, they begin to reduce prices so that they take goods from them, after a certain period of time their business goes into complete bankruptcy and they have to close.

Which OKVED to indicate when registering a business for the production of furniture

For registration of furniture production, the main OKVED code is 31.X. Under the symbol X, various branches of furniture production can be used. For example:

• for the production of furniture for offices and trade enterprises, the code is used - 31.01;
• production of kitchen furniture - 31.02;
• production of other furniture - 31.09;
• if furniture is traded, then the main code is 52.X.

Which taxation system to choose for business registration

It is impossible to say exactly which system of taxation to choose. It all depends on some factors. If you have a large number of legal clients. persons, then undoubtedly LLC - it will be easier for them to work with you. If you want to create furniture based on a patent, then you should choose an individual entrepreneur, but this will limit the number of possible workers.

Do I need a permit to open a furniture production?

Yes need. To do this, the employer needs to take some kind of permission that allows you to carry out high-risk work, as well as the use of various high-risk machines, mechanisms, and equipment. You will also have to take a short course on labor protection and conduct safety briefings.

In this material:

Furniture production is one of the actively developing industries in Russia. Many 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 investments, identify and minimize the possible risks of the project, as well as develop an effective strategy for the development of the enterprise.

Business Description

The goal of the project is to create a small furniture workshop 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 pieces of furniture. Own funds are raised for financing.

Depending on the volume of initial 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, chipboard and fittings and are only engaged in assembling 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 a medium cycle, which includes not only assembly, but also independent cutting of sheets. The full cycle of furniture production requires large investments, as it includes the production of raw materials.

To organize a small business you will need:

• a room with an area of ​​at least 150 m2;
• staff;
• suppliers of material from which furniture items 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 decide on the format of the enterprise and choose the direction of the business. Production of cabinet furniture to order according to individual projects of clients is the easiest way for a novice businessman.

The relevance of the business idea

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

Attention! The Furniture of Russia catalog includes more than 14,000 enterprises, one 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. In the Central and Volga districts, the least industrial enterprises are concentrated. According to the results of market 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 ability 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 goods;
• 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 from 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 field;
• a wide range of furniture items;
• focus on different social strata of the population, which will help to reach a wide target audience;
• observance of terms of production of furniture;
• quality work;
• warranty service;
• competent advertising campaigns.

Furniture manufacturing includes the following steps:

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

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

Opening a furniture workshop: where to start?

To achieve success, an entrepreneur will have to analyze the situation in the local market. It is important to decide on the format of the business and decide what kind of furniture is better to produce - upholstered, cabinet or specialized. The next step is to create a portrait of the target audience, evaluate competitors and identify possible project risks.

The target audience

Production of cabinet furniture to order is the easiest and most promising way for a novice entrepreneur. Walls in the living room, cabinets, chests of drawers, hallways, kitchens - this is what is in demand among the population. The buyers of these products are:

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

Assessment of competition in the city

Before the start of the project, it will be necessary to study the competitive environment in the city. It is important to find out which companies 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.

Possible risks

When developing a business plan, you need to take into account negative factors that may affect the development of the project. For example:

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

Organizational part of the business plan

The organization of 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 room for the workshop, purchase equipment and establish contacts with suppliers of raw materials. Particular attention should be paid to the formation of personnel.

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 deduction 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 the sale of products, it is better to choose a rate of 15% (revenues minus expenses).

To form an LLC, you must collect the following documents:

• application for state registration of a legal entity in the form P11001;
• receipt of payment of state duty (4000 rubles);
• Charter;
• protocol on the establishment of LLC;
• documents confirming the address of production (a 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 applying 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.

Room search

The minimum floor area for a medium-sized enterprise is 150 m2. Most of it is devoted to the production area. You will need free space for storing blanks and raw materials, as well as for finished products. Well, if you can find a place for a small exhibition hall. It is worth giving preference to a building located on the periphery of the city or outside it - this location will reduce rental costs.

It is important to ensure that all necessary communications are carried out to the room - ventilation, heating, electricity, plumbing. The recommended mains voltage is 380 volts. The presence of a convenient entrance 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.

Purchase of equipment

The bulk of the investment will go to the purchase of equipment. To organize an uninterrupted production of furniture, you will need:

1. Format cutting 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 starters, you can purchase manual equipment, it is inexpensive, but allows you to produce a sufficient amount of furniture. In the future, you can purchase semi-automatic machines to speed up the production process.
2. Edge banding machine. With its help, the edges of the products are processed. They are glued with a film, a special edge tape, veneer or slats.
3. Drilling machine. It is used for making holes of various calibers for fittings and in places where parts are attached.
4. Milling machine.
5. Lathe.
6. Grinder.
7. Drill driver.

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

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

Attention! Don't skimp 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, chipboard, chipboard, fiberboard. Most workshops prefer laminated chipboard. This material is inexpensive, easy to use, and there will never be any problems with its supply - there are many manufacturers of laminated chipboard in Russia. Its use makes it possible 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 start-up entrepreneurs at a bargain price, do not fail on time and offer high-quality materials that comply with GOST standards.

Formation of staff

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 owner of the business plays a leading role, he is also engaged in the search for suppliers.
5. Accounting is outsourced.

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

Product range

The workshop for the production of cabinet furniture produces:

• cabinets;
• racks;
• slide walls;
• modular and custom kitchens;
• hallways;
• bedroom sets;
• desks and dining tables;
• chairs;
• single beds;
• loft beds;
• cabinets;
• dressers.

Over time, you can expand the range of products by including upholstered furniture - armchairs, sofas, ottomans, kitchenettes. To do this, you will need to purchase additional equipment and tools, find suppliers of fabrics, foam rubber and other materials.

Advertising and marketing

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

The furniture production plan contains accurate financial calculations. Comparing 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:

• LLC registration costs - 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 customer orders, an advance payment of 50% of the cost of the finished product is taken. In this case, a small amount of working capital will be needed.

Current expenses

Monthly expenses include the costs of maintaining the project:

• rent 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 workshop for the month will be 3,600,000 rubles.

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

• 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 met, the investment in the project will pay off within 8–12 months, since it is impossible to immediately reach the planned sales level. In the first months after launch, downtime is possible. When the flow of orders increases, the company will begin to receive a stable profit in the amount 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.

Furniture manufacturing business is an idea with good prospects. It is suitable for an enterprising 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 products at an affordable price.

Buy a ready-made business plan

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