Furniture production as a business: which direction to choose? Business plan for the production of cabinet furniture Business plan for the production of designer furniture

Room.

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

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

Financial plan.
Investments.
Payback.

production options.

Manufacture of custom-made furniture.
Business development prospects.

Despite the fact that you won’t surprise anyone with the production of furniture for a long time, the demand for these products is not falling. There is no oversupply in Russia, but production facilities operate in a highly competitive environment.

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

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

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

Also, this legal status gives prospects for participation in profitable tenders and cooperation with serious chains of furniture supermarkets, which positively affects the reputation and income of the enterprise.

Room.

After all the design actions, it is necessary to organize the room where the workshop will be located. The industrial zone of the city is best suited. The room you need is not small - about 300 m2. Hangar structures are perfect.

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

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

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

Equipment for the production of furniture.

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

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

The edge banding process takes place after the cutting process of the material on the format saw. We'll talk about it a little lower. Without fail, equipment for edge cladding must be selected depending on what kind of furniture you intend to manufacture.

For better understanding, here is a brief description of the process of the machine:
- Manually or by means of an automatic module, glue is applied to the surface, heated to the desired temperature.
- The machine applies an edge according to the dimensions of the workpiece. It is possible to cut the edge with a technological margin.
- Further, with the help of the machine, the edging material is pressed against the surface to be treated.
- After the operation of the machine, the applied edge is finished - removing excess glue, processing the edge, grinding and polishing lines and corners.

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

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

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

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

No matter what equipment you choose, pay attention to the availability of additional tables. They are indispensable when cutting full-fledged sheets of material. An important point is the clamping upper beam and the upper pneumatic clamp. They will provide reliable fixation of small workpieces, which is necessary in the production of furniture of exclusive design with small details.

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

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

Thicknessing machines are divided into one-sided and two-sided. Unilateral have one knife shaft located above, over a desktop. Double-sided, respectively, have two knife shafts. The second is built into the desktop and performs the function of processing the lower part of the part. The working table itself is movable, with the help of it the required height is set for processing the material to the required thickness. Machines are also distinguished by the power and maximum lifting of the desktop, its width and depth of planing.

A fairly wide price range is convenient for choosing the necessary equipment depending on the buyer's budget. The price depends on the country of manufacture and technical parameters.
When choosing a thicknesser, pay attention to the safety features. The design must necessarily be protected from overloads by a power interruption unit. When an overload occurs, the thermal relay must be activated and the power supply to the machine must be interrupted.

Choose machines with quiet operation that a belt drive can provide. It also protects the engine of the machine from overloads.

For additional safety of machine operation, network switches are often used. In addition to direct functions, they are equipped with a protective function against unauthorized activation during the absence of the operator.

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

The main function is profiling molded products, cutting boards into lamellas for a furniture board. For a furniture production workshop, sufficiently powerful equipment with a large throughput is required. When choosing a four-sided machine, first of all, you need to pay attention to its dimensions. For example, in order to process a workpiece with a size of 40 cm, a milling cutter of the appropriate parameters (about 80 mm.) is needed. In order for the equipment to cope with the processing of materials of large sizes, a high-feed function is required. The worktable must be robust and wear-tested for stable operation under constant load.

Best of all, strength is shown by machines with cast iron tables. Very convenient and often necessary is the function of increasing the supply and reception tables. To do this, the characteristics of the machine must indicate the presence of a function of manual or automatic regulation. If you are planning a serious production, then your four-sided machine must have a high feed rate - up to 30 meters of processing per second.

Some manufacturers produce universal four-sided processing machines. That is, with the possibility of resmusing and profiling functions. By simply moving the planer knives in the desired direction, the working function can be easily changed. Such a machine will help to significantly save money on starting investments. But for the full-fledged operation of the workshop with maximum output, you still have to pay special attention to each process - this will increase quantitative indicators, which is important.

To fully support the furniture production workshop, there is a fairly large number of different machine tools, but the four most important and mandatory are described above. The purchase of such a kit will cost approximately $40,000.

Staff.
An enterprise in the LLC statue has obligations of mandatory staffing.

Director.
Appointed by the meeting of founders. The candidate may be one of them, or an outsider who meets the requirements of the position.
Full-time accountant. Person with liability. He can easily perform the functions of an employee of the personnel department. Must be familiar with the articles of the Labor Code. Maintain personnel records and related reports.

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

Designer.
Such a specialist is definitely necessary for the enterprise, but it does not have to be full-time at all. Design may well perform the function of "coming". Cooperation is formalized by means of an agreement with an agreement on the number of working hours per week or month and the corresponding salary. A designer can collaborate with several companies at once, have several projects and easily implement them. It would not be superfluous to prescribe a clause in the cooperation agreement not to disclose the plans and concept of the enterprise's work in order to withstand fair competition and without violating one's interests.

Sales Manager.
Don't be skeptical about this much-needed staff. At the first stages of launching production, an employee who will be responsible for sales is more than necessary. Try not to save money and look for an experienced manager with your own client base and a good reputation. This will be of great help in promoting your business. Moreover, the manager also performs the function of an advertising medium. And you need advertising like air.
There are several algorithms for calculating wages for a sales employee:
Fixed amount (rate).

As a rule, a fixed rate is quite rare and is usually accompanied by the official registration of labor activity. Often the amount of the rate is equal to the minimum wage established by law. Someone like this option, we wish them good luck.

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

Rate + % of cash receipts for the current month;
In this case, the guaranteed payout amount may be different. The % figure is no more than 1. But, pay your attention to one “BUT” - the manager earns his hard-earned% from the amount of money coming into the company, that is, from the amount that the accounting department sees on the account at the end of the current month. Many beginners confuse or simply do not pay attention to this condition when applying for a job. Naturally, then the problems begin.

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

% of the receipt of money for the company for the current month.
Accrual according to the same principle as in paragraph No. 3, only without a guaranteed rate. In this case, the % depends on the planned sales volume - the higher it is, the lower the %. Not the worst algorithm in the event that the manager came to an already established client base, that is, there were already sales in the past period and money for the sold goods will be received this month. This is important, because the majority of clients work with deferred payment, especially for large retail outlets - where the delay can reach up to 3 months.

Basically, according to this algorithm, the sales agent begins to receive a salary not earlier than the third month of work. Let it not surprise you if you agreed to such an algorithm - take it as it is, there's nothing to be done about it. Until the money for sales begins to flow into the company, you can offer a fixed rate, but it will be minimal or increased - this algorithm is described in paragraph No. 2.

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

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

The salaries of employees are determined by the average salaries of employees of the relevant categories and profile of the region in which it is planned to launch production.

Marketing.

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

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

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

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

The very first thing to do is to clearly define the market segment and clearly imagine who your customers will be. Who do you want to see in your customer base.
An advertising company is an expensive business, but it does not make sense to save on it. It is necessary to direct it as accurately as possible to the segment that you identified as potential in the first place.

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

In addition to "black" and "gray" manufacturers, Chinese manufacturers of furniture and components remain your competitors. This is another serious niche in the furniture industry and occupies a significant place in the market. It is not worth underestimating such a competitor and not paying attention to him.

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

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

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

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

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

Actively promote the site and the ledding on the network - this will add enough customers to the company.
Building a good website costs about $500. Form an accessible interface and make it understandable even for inexperienced users. Without fail, the site must contain information about the company, its data, contacts. Create a colorful eye-catching catalog and order button. Describe all the benefits of the proposals and customers will not keep themselves waiting long. Create a wide range of payment methods.

Take advantage of our printing services. Colorful booklets, flyers, business cards. These are mandatory advertising attributes for starting any business.

You can place information about the new company in the media. It is better if these are specialized publications. Don't skimp on the best seats - this is the first and last spread of the magazine. It's expensive, but justified by the result.

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

Sales of products.

As mentioned above, the sales manager will deal with the sale of products. It may be one or more. But the owner must be directly involved in the development of the action plan.

You have already implemented advertising that attracts a potential client to you. You can, of course, stop there and fulfill those orders that come to you from these sources.
But if possible, do not miss the opportunity to increase sales.

One of the best options is to open your own store. Better yet, a small network. If the production is located in a metropolis, then several districts of the city can be used for the operation of stores. If the production workshop is located in the region, the regional center is perfect. It can be a very small room, with an area of ​​​​20 square meters. You can place several types of products there and work according to the catalog.

Cooperation with furniture supermarkets can be called a very profitable type of sales. For young companies, this option is ideal. Because supermarkets fully ensure the operation of the workshop according to the entire price list provided by the production.

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

Another important positive point is advertising through representation. Super- and hypermarket chains release their catalogs of seasonal offers. Catalogs are distributed free of charge. Thousands of potential customers will find out about you. Another plus of cooperation can be considered from the side of logistics. Customer demand will guide your production in the right direction. You will always be aware of new trends and bring new ideas in technology and design solutions.

Dealers.

These are the companies that will sell your products in their regions. This is a great way to promote and cover as wide an area as possible. The process of finding a dealer is similar to general distribution. Be sure to create a beautiful, viewable commercial offer. Describe the benefits, the proposed terms of cooperation and send it to all relevant companies. A sales manager can handle this very well.

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

Tenders.

No matter what kind of furniture you produce, there will always be customers who are potentially interested in your products. For example, if production operates in a resort area, these are sanatoriums, recreation centers.

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

You will always be aware of the ongoing events in this area. The distribution is absolutely free.

You can unsubscribe at any time if you don't need it. Of course, it is up to you to make a decision, but you should not refuse such opportunities. Again, the status of an LLC can greatly help you with this. In addition, if you have a need for quality consumables for production, you can place your tender. Terms of participation and placement of tenders in the public domain. Do not miss any opportunity to make your business even more profitable.

Financial plan.

Investments.

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

Payback.

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

Even if we assume that the difference between the cost and the price of finished products is 100%, it will take more than one month and a year to pay back the invested funds. The production of the first batch of furniture, starting from development and ending with the date of receipt of funds from the sale, will take at least three months.
Summing up the monthly expenses and minus them from the profit received, it is clear that in order to pay off only the consumable material, at least two full-fledged sales of all products made from the entire batch of consumables will be needed.

Ideally, when the workshop is fully loaded and the finished product is fully sold, taking into account the installment payment for the products supplied to the buyer, it will take at least 8 months to pay back the consumables. And besides this amount, there is another $60,000 of invested money. If $ 40,000 paid off in 8 months, then the rest in proportion will pay off for another 2 years.

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

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

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

Materials - laminated chipboard (laminated chipboard), covered with a decorative protective layer. It is used in the manufacture of furniture facades and cases.
PVC edge is a finishing edge based on polyvinyl chloride. The material has increased wear resistance, has a protective function of the ends of chipboard parts from various kinds of damage. Perfectly blocks the ingress of moisture on open material during operation.

PVC film is a film based on polyvinyl chloride. Are applied to vacuum and membrane pressing on facades. Advantages - heat resistance, withstands household scratching well, retains the original color well (does not fade). There are film materials with antibacterial and antifungal treatment provided.

MDF is a specialized ecological material, made from small dried wood fibers. Treated with binders. It has a finely dispersed structure over the entire cross section and is easy to machine, shape milling and various types of finishes.

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

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

It is also worth adding that materials should be used that are easy to hygienically process the finished product. The reasons are clear - the health of the child is above all!

This is a separate category of furniture. Features of such production are in the widest range of finishing materials and design possibilities. Sofas and sofas, poufs and ottomans. Variety of chairs. In such production, design abilities will be able to manifest themselves in all their diversity.

According to GOST, the definition of "upholstered" furniture includes structural elements with flooring materials with a thickness of at least 20 mm.
base materials - boxes, panels and frames made of wood, plywood and fiberboard. The main element that gives the product softness are the springs. Snake springs, tapes made of rubber and rubber fabrics, tapes twisted from rubber threads in a cotton winding are used.

If it is planned to produce expensive upholstered furniture, then an elastic beam made of wood is used for the frame. If not, then you don’t need to invent a bicycle - materials such as plywood and chipboard are perfect. They are cheaper and easier to process. They are quite durable and there are no complaints about low quality.

To create soft elements, foam or polyurethane foam is used. What exactly to use is up to you. They differ from each other in production technology and density.
The upholstery uses both woven materials (natural and artificial fibers), and leather, leatherette. For the production of inexpensive upholstered furniture, it is not advisable to use leather as upholstery. Use fabric - it's cheaper, more practical and easier to process.

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

The only thing you can pay attention to is the simplicity of the manufacturing process. Easier not where. There are almost no decorative elements. Strict appearance. Classic colors of materials, a high level of convenience and practicality - these are the main criteria for office furniture.

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

Under such conditions, wooden furniture quickly delaminates and warps. MDF and chipboard use special coatings that guarantee long-term operation. With the help of MDF, you can make furniture of almost any shape. This can even be called an advantage, because such furniture, in comparison with office furniture, is more suitable for design performances and experiments.

Another material that is used daily in the manufacture of bathroom furniture is plastic. He's not expensive. It is also convenient in reproducing various forms. But its difference from the MFD in a wide range of colors makes it a favorite both in production and in operation.
There are some fashion trends in the design of furniture, especially when it comes to glass products. This is arttoning and sandblasting drawings. All this is done with special equipment. To tint glass elements, a tinted vinyl film is used.

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

Such furniture, too, for the most part, belongs to the cabinet. But production is easier due to the fact that the needs of a summer residence differ from a full-fledged residential building in their simplicity. We mainly produce various tables, chairs, shelves. Wall compartments, built-in and external, are very popular.

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

Manufacture of custom-made furniture.

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

Business development prospects.

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

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

First of all, a beginner needs to take into account that the furniture market has already developed. And if 15-20 years ago it was possible to bring any furniture and find a buyer for it, now it is difficult to guess the needs of the client. Therefore, you need to study the market and focus on those segments of the population that you want to serve. The luminary of the market with many years of experience, General Director of the network of furniture stores "Vash Byt" Farid Safin, told the BIBOSS portal about the intricacies of this business.

Where to start?

For starters, experts advise conducting market research. See what competitors are selling, what are their advantages and disadvantages. Entrepreneurial intuition must work. First of all, you need to understand what niche you want to occupy. The stratification of the target audience is observed strong. There are those who buy expensive imported furniture. There are those who proceed only from the functional features of furniture - design and manufacturer are not important for them.

Beginning entrepreneurs, as a rule, do not have a lot of capital and the opportunity to occupy large retail areas for samples. Therefore, it is advised to start working with the economy and middle class, where the bulk of buyers are concentrated.

You can consult with those who have been working in this market for a long time. They can be manufacturing partners who produce furniture and know what is in demand. In Russia, such manufacturers are well-established companies that maintain marketing services, constantly study demand, and go to exhibitions.

By the way, visiting furniture exhibitions is a good way to study the market. Manufacturers exhibit existing and new furniture samples there and monitor the reaction of visitors. There are many ordinary buyers and representatives of retail chains at the exhibition, they conclude contracts with manufacturers for the supply of furniture.

Working with a supplier, you can find out what kind of furniture in the region is in demand. Because demand varies from region to region. Somewhere one color and model is popular, somewhere another. For example, in Tatarstan, where there are many Muslims, calm green tones are held in high esteem. But furniture models throughout Russia are basically the same. Only Moscow and St. Petersburg stand apart - there is a demand for advanced models. The most ultra-modern modern direction is first mastered in Moscow and St. Petersburg, and then goes to the regions. Therefore, if you open a store not in these capitals, then it is better not to immediately bring unusual furniture here - it is unlikely that it will find a buyer.

How to get ahead of competitors? It is necessary to find those models that can compete with those who are already on the market in terms of price and quality.

Farid Safin

If we talk about us, we have been working on the market for a long time and cover all categories of clients - from economy class to VIP clients. In our showrooms you can view catalogs of expensive furniture, we exhibit some samples of high quality Italian, Belarusian furniture. The client places an order and we contact the manufacturer. Orders for expensive furniture are infrequent, so keeping all models in the store is unprofitable, since renting retail space is not cheap.

Investment size

Farid Safin

General Director (Founder) of the Vash Byt group of companies

As for the search for funds for the launch, it is better not to rely on state support. Today in Russia, first of all, they support producers and agribusiness. It is believed that trade is already sufficiently developed and organized, so this industry is not subsidized. There is hope only for banks that participate in programs to support small and medium-sized businesses. They lend to businesses at reasonable interest rates.

Farid Safin

General Director (Founder) of the Vash Byt group of companies

But there are nuances. Based on personal experience, I can say that all banks require a deposit - a room, an apartment, a car. At the same time, today the direction of furniture trade is considered a risky business. Recently, we wanted to take out a loan, it seems that the bank was fine with everything, there was a pledge, but later we were told that the furniture business was risky, and we were refused a loan. Therefore, not everything is so simple. It is better to find an investor, partners who are ready to invest in the business and develop together.

What are the running costs of the business? It is necessary to have a warehouse stock of furniture, rent and maintain warehouses, where loaders work for the acceptance and release of furniture, storekeepers. Accounting systems are now computerized, so programmers are needed. Plus transportation costs, including the delivery of furniture from the manufacturer - from factories and plants.

How to optimize costs? You can transfer something to outsourcing - for example, the services of programmers, rent warehouses with a ready-made staff of loaders, or even work from the "wheels" - pick up furniture directly from the factory and immediately deliver it to customers. The advantage of small enterprises is that they do not need to maintain a large office staff: dispatchers, commercial service, accounting, management. Many entrepreneurs at the initial stage perform all these functions themselves - he is a forwarder, and a manager, and a dispatcher, and an accountant. But even as you grow, it’s better not to inflate the staff, this will allow you to optimize costs.

On average, the current costs of a furniture store at the initial stage, with a minimum number of attendants, amount to 100-150 thousand rubles per month. But this amount does not include rent - it depends on the area. In large Russian cities, on average - from 800 to 1500 rubles per sq.m.

Step-by-step instruction

In your activities, you will have to interact with a number of contractors and suppliers. First of all, they are furniture manufacturers. You can access them directly. But when sales volumes are small, it is difficult, because manufacturers are interested in large orders. Therefore, it is easier for small companies to work with dealers and wholesalers.

Farid Safin

General Director (Founder) of the Vash Byt group of companies

Our company has a wholesale department. We bring furniture from all over Russia, as well as from China, Belarus, the Baltic States and release from our central warehouse in small batches for small entrepreneurs - they take the assortment they need. This is convenient for beginner entrepreneurs, the more they can take into account our trading experience, because we know in which region what furniture is in demand, and we give our recommendations.

If a person once bought furniture in one retail chain and was completely satisfied with the quality and price, the next time he tries to go to the same store. Between the seller and the buyer there is a relationship that is maintained for years. Our network has regular customers who have been buying furniture from us for many years and bring their children.

The main quality for the seller is the desire to work. If a person thinks that the furniture will sell itself, but he can sit on the couch and read, waiting for the buyer to come up and place an order, then you do not need him. Today there is a wide selection of furniture in different salons. And the seller himself must interest the buyer. Most often, after 2-3 months of internship, a person masters the assortment and can already cope well with sales. Developed companies have their own personnel department, which is engaged in the recruitment and training of personnel.

Farid Safin

General Director (Founder) of the Vash Byt group of companies

We try to ensure that people work in our company stably, constantly. And so it happens. Most of our employees have been working, if not from the day the company was founded, then on average 10-15 years. To do this, we constantly use the motivation system and periodically review it to make it attractive to our employees. We have the 13th salary, there is a trade union organization that maintains ties with many institutions - for example, sanatoriums, and you can get preferential vouchers. People can get vacation pay, sick pay. We hold corporate parties - and New Year's holidays, and March 8, and May 1. In the New Year, we sum up the work and announce the best employees, give gifts and certificates of honor.

In shopping centers, you will be forced to adhere to the established work schedule. In free-standing salons, focus on the mode that is acceptable for a particular area of ​​the city.

The documents

No special permissions are required. Hygienic quality certificates are needed, but usually they are supplied by the manufacturer.

Today, there are two main types of taxation used by entrepreneurs engaged in retail trade - a single tax on imputed income and a simplified taxation system. UTII is charged depending on the area. “Simplified” depends on the turnover, that is, the tax is paid depending on how many goods are sold. And the choice of the type of taxation depends on the patency of the outlet. There are retail outlets with high traffic, where rent is high, but the return per sq.m. turnover is also high. In this case, it is better to pay UTII. If the areas are large, but the traffic is low, the rent is low - a simplified system works better here.

Opening checklist

The opening of a store in a stand-alone building must be highlighted as an event. If the store is designed for the scale of the area, you need to let its residents know about the opening. Usually, when a store opens, they create a beautiful exposition of furniture, hang balloons at the entrance, attract animators who will meet and entertain guests and children. Such events are not complete without gifts - even if they are small, so that when they come home, people will tell their family and neighbors about your store.

On the modern Russian market, the production of cabinet furniture occupies a quarter of the entire furniture production. Small and medium-sized businesses consider this industry profitable and profitable - the demand for quality products is stable. Consider how much investment is required to organize your own furniture workshop, how difficult it is to lead the market, and whether it is worth it for aspiring entrepreneurs to try themselves in this area.

Demand for cabinet furniture is currently very high. In general, it is always quite high, but at present, the growth of interest is due to the revival of the new housing construction market.

When buying a new apartment or repairing an old one, the acquisition of new cabinet furniture is almost inevitable. This is the basis of any interior.

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

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

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

Cabinet furniture is all furniture made from solid modules.

What materials are cabinet furniture made of?

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

Chipboard furniture is much cheaper, as it is made, in fact, from glued wood shavings. Modern decorating methods make it possible to give it a more expensive and solid look, while maintaining a low cost.

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

As for related fittings and other materials, it is also necessary to conclude contracts with reliable counterparties for their supply in order to avoid a situation where it is impossible to fulfill an order in due time due to lack of components.

How cabinet furniture is made

Before you start compiling a list of the necessary equipment and other costs for your enterprise, it is important to get at least a general idea of ​​​​the technological process of manufacturing cabinet furniture. Simplified, it can be described as the following cycle:

1. Preparation of the product design, determination of the shape and size of the components
   modules.
2. Production of modules in accordance with the product design.
3. Mounting hole preparation.
4. Section processing (film, veneer, laminated edge).
5. Collection of the finished product.

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

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

What equipment is required for your own furniture production

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

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

   For small productions, manual ones are suitable - they allow you to serve the required volume and at the same time are cheaper. With the enlargement of the enterprise and the transition to mass production, it is reasonable to replace them with semi-automatic or automatic machines. The price of such machines starts from 200 thousand rubles.

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

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

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

Thus, only 1,200,000 - 1,500,000 rubles will have to be spent on equipment for making furniture and related tools. You can save money in several ways. For example, to purchase used equipment or to start leasing it.

When buying machines, new or used, carefully consider all associated warranties. A good sign would be the availability of warranty service. Read customer reviews first. The quality of machine tools and other equipment determines the speed and comfort of work, and hence the quantity and quality of products.

Where to open a furniture production

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

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

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

For a small enterprise, an area of ​​\u200b\u200babout 100 square meters is required.

How furniture manufacturers work

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

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

Whom to hire

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

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

It is very good if it is possible to hire a furniture and interior designer (albeit at half the rate) who will design sample designs and recommend diversified solutions for customers.

When an enterprise assembles furniture according to the customer's measurements, an employee is needed who takes orders and, if necessary, travels to the place and takes measurements (for example, for the manufacture of cabinets, "walls", kitchen sets and shelving). This function can be taken over by a designer or a sales manager.

Advantages and disadvantages of the cabinet furniture business

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

Strengths: high demand and self-realization

1. Cabinet furniture is always in demand, so the manufacturer of quality products will always be able to earn.
2. Relatively small investment in the enterprise. Of course, the initial capital for a furniture company cannot be called minimal. But, firstly, it is significantly lower than the capital required for most other industries. Secondly, investments can be significantly reduced by buying used equipment or leasing it.
3. The possibility of self-realization as a businessman or a craftsman who produces high-demand and high-quality products.

Furniture is always in demand, but it is very difficult for start-ups to gain the upper hand over competitors.

Flaws

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

What gives furniture manufacturers an advantage in the market

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

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

Conclusion

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

It is possible to conduct a furniture business in several ways: to sell furniture made by someone, to conduct your own production, or to work simultaneously in these two areas. Most often, entrepreneurs seek to open their own workshop for the manufacture of cabinet furniture.

The concept of cabinet furniture covers products that are installed along the walls, which have many drawers. These include:

• cabinets;
• cabinets;
• walls;
• racks;
• tables.

Business Organization Issues

Since the manufacture of cabinet furniture will require close cooperation with large companies (customers and suppliers), it is necessary to register an LLC. Taxes should be paid according to the general system. So you can work with retail buyers.

To register your workshop, you need to provide the following documents to the registration department:

• the charter, which will indicate the types of activities of the company, the authorized capital;
• receipt of payment of state duty;
• details of the settlement account of the enterprise, as well as the account to which the authorized capital will be credited;
• information about the accountant, director;
• minutes of the meeting of founders, at which a decision was made to open an enterprise;
• enterprise name.

The types of activity of the enterprise (OKVED) must be selected as follows: 36.12, 36.13, 36.14, 51.47.11, 52.44.1, 52.44.5, 52.61.2.

The furniture shop in the production of cabinet furniture should be guided by GOST 26800.4-86; GOST 28136-89; GOST 13025.1-85; GOST 28105-89; GOST 19882-91; GOST 16371-93.

Market analysis

Before drawing up a business plan for the production of furniture, you need to find out the situation on the market and the demand for such items. According to official statistics, the production of cabinet furniture occupies 25% of the market. At the same time, little attention is paid to brands, they are more focused on the quality of the products made.

The first thing that interests the consumer is the price. Then he is interested in what the furniture is made of, how high quality it is. The next selection criterion is design. And only then pay attention to the brand. Based on these data, we can say that the furniture business will be successful if you focus on the quality of manufactured products.

The target audience

• older shoppers exchanging old furniture for new ones;
• young people who buy it for the first time.

Most often, people are interested in kitchens and walls.

You can sell products through several channels:

• office centers, enterprises, hotels, other institutions;
• retail clients;
• intermediaries (studios, designers, shops, etc.).

Raw materials for production

For the manufacture of cabinet furniture, wood, MFD or chipboard are used. Often a combination of these materials is used. The most convenient option is the use of chipboard (double-sided laminated chipboard). In this case, the purchase order will always be completed on time - they are produced in sufficient quantities domestically, abroad. This allows you to find a supplier on the most favorable terms. In addition, the use of such raw materials helps to reduce the cost and speed up production - there is no need to carry out lining.

It is necessary that the chipboard comply with GOST 10632-89, and the fiberboard, which is placed on the back walls, with GOST 4598-86.

Production technology options

Any order can be executed according to the following technological chains:

• short, when only assembly is performed to order - the most profitable option for opening a workshop from scratch. For this, MDF, chipboard, and chipboard sheets cut to order are purchased. This allows you to allocate funds for cutting equipment only when the client base is built up, permanent orders are organized;
• medium, when the furniture shop works only with MDF, chipboard, chipboard, cutting them to order and assembling products;
• a full production cycle, when the production of raw materials for the furniture workshop is added.

Equipment in the production workshop

In general, at least 424 thousand rubles should be allocated for special equipment. They will go to the main and auxiliary equipment:

Basic equipment

Auxiliary equipment

Software for work

If you are engaged in the production of medium or small cycle, you do not need to buy expensive machines. But you still have to do the design. And it is better not to do it manually, as the probability of errors is high. There are several special computer programs that allow you to accurately, in detail, visually draw up a project of any furniture.

For example, using the PRO-100 program, you can create 3D images by fitting them into a drawn interior. Thus, you can see in advance how the furniture will look at home. The cutting program will show the ideal cutting option and the amount of material needed. Having a laptop with installed programs, you can go to the order and demonstrate the planned results of work to customers right on the spot. This increases the likelihood of a deal.

room

The workshop must meet the following requirements:

• Located on the first floor.
• Have the necessary communications in place.
• Have a 380 watt industrial power grid.
• Have loading docks and good access roads.
• Be dry and well ventilated.

In total, you need to buy or rent a room of at least 500 m2. It should be divided into three main parts:

• workshop for production - 350 m2;
• showroom and office - 50 m2;
• a warehouse in which raw materials and finished products will be stored - 100 m2.

If the premises are rented, you will need about 120,000 rubles. per month.

Staff

For the manufacture of products to order, it is enough to work in one shift. You will need approximately 12 staff members (thousand rubles/month):

• 2 auxiliary workers - 24;
• 5 workers in the workshop with special knowledge - 100;
• production master - 30;
• designer-designer - 25;
• manager - 20;
• accountant - 35;
• director - 40.

About 377 thousand rubles per month will be spent on salaries, including taxes.

Ways of implementation

As already mentioned, you can not only make furniture to order, but also sell products in several ways:

• through our own warehouse store;
• dealer networks;
• direct deliveries to large institutions.

But in any case, you will need an extensive advertising campaign. Without it, it is difficult to get at least one order. To do this, you can use specialized media, create and promote your web page, post banners and advertisements. At least 60 thousand rubles should be allocated for this per month.

Calculation of the cost of goods

The cost of production is calculated based on the following items of expenditure:

• depreciation;
• salary;
• consumption of materials;
• advertising;
• electricity;
• rent.

The consumption of materials can be carried out based on the following data:

The total cost of production will be (rubles):

• tables - 188 143;
• pedestals - 178,947;
• cabinets - 205 240;
• racks - 179 803.

They can sell about 100 items of each item per month with a 25% markup. Net profit per month will be 150,426 rubles. With investments of 1.177 million rubles. and the production of 400 pieces of furniture per month, the project will pay off in 8 months.

Finding a niche in the flood of opportunities is not easy. It will help you orient yourself and find the scope of your abilities by collecting information, as well as statistics on the most profitable and actively 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.

Flaws:

• 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.

conclusions

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.