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

Starting a furniture 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 purposes, which premises are 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 fork is convenient for choosing the necessary equipment depending on the budget of the buyer. 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 identify 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 rights to representation in those 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!

Cabinet furniture is used by a fairly wide target audience - both budget and wealthy buyers purchase structural elements for decorating a home or office, as well as enterprises. Definitely, if we consider such a business idea as a startup, then there is a rational grain here - there will be customers, there is no need to spend too much on development, and the product is in demand. Therefore, further we will talk about how to open a furniture production, draw up a business plan and what income you can count on.

How to develop a furniture manufacturing business?

Today, most of the niche in this direction of entrepreneurship is occupied by medium and small businesses, as well as small workshops and workshops. If we analyze consumer demand, then the demand for furniture is as follows:

• Cabinet.
• Office.
• Kitchens.
• Cushioned furniture.
• Children's upholstered and cabinet furniture.
• Furniture for a summer residence.
• Specialized custom-made furniture - for production, enterprises and similar places

It is impossible not to note the appearance of the furniture - design trends change almost every season, and therefore small industries have a significant advantage over large-scale production - you can quickly switch to the release of a new line.

The main target audience for the products of the furniture workshop is as follows:

• Young families, including those with schoolchildren.
• Elderly people, citizens of pre-retirement age.
• Owners of small and medium-sized businesses - for office furnishings, workshops, and so on.

And since people in these categories are in the majority, it is possible, subject to good work, to secure a stable influx of customers.

Starting a business - first steps

In order for the furniture manufacturing business to be effective, you need to carefully think through and prepare everything beforehand, and only then launch your project. In this case, we are talking about the following specific features:

• In most cases, small or medium-sized businesses do not contain warehouses for finished products, in any case, large areas, and therefore the best option would be to work on order. But, on the other hand, you need to provide yourself with a stable flow of orders in order not to work to zero and not pay employees downtime.
• Advertising must be, even if we are talking about a small workshop, or medium-scale production. But, it’s not worth putting large amounts of money into the business plan for the production of cabinet furniture right away - it’s better to put most of the budget into production.
• It will not be superfluous to open your own small store for the sale of ready-made samples. But, it is better to do this a little later, after you have studied the preferences of your target audience well.
• A huge plus will be the presence of its own delivery service and a team of assemblers. Thus, you will, in fact, provide a full range of services, and this is an advantage over competitors.

Furniture manufacturing as a business requires a mandatory preliminary analysis of competitors and the market as a whole. Preliminary work includes the following:

• Evaluation of the work of firms-main competitors. This will help you identify their weaknesses and "play" on it - what they don't have, you can (of course, in a good way).
• Analysis of the solvency of your target audience - this will help you build a flexible pricing policy, and therefore provide the most favorable conditions on the market.
• Analysis of start-up costs, as well as monthly expenses.

All this will be needed in order to draw up a detailed business plan for furniture production with calculations.

Please also note that a business plan will be a necessary document if you intend to take a loan from a bank to develop your business.

How to write a furniture manufacturing business plan

A business plan for the production of furniture is, in fact, a fundamental document for the development of a business. Therefore, it is necessary to pay special attention to its compilation.

The structure of this document is something like this:

• The purpose of opening a production is the type of products produced, the proposed range to start with (later you will expand it, remove some positions). Also here you need to enter the technological process of production, the estimated payback period.
• Financial plans: spending own funds, attracting credit funds or co-founders' funds.
• Organization of production - rent or purchase of premises for a workshop, availability of a warehouse, office space, purchase of equipment and materials, accessories.
• Target audience - intermediaries, retail and wholesale buyers, individual customers, creation of their own network.
• Sales of products - own store, work only on individual orders, cooperation with furniture stores, intermediaries. You can also consider tenders.
• Business promotion and advertising. The item of expenditure on advertising should be prescribed no less carefully than the cost of arranging production, since at first it is advertising that will give customers, and hence profit to the enterprise.
• The documentary part is the costs of registering the enterprise.

A little advice - it is better to lay down the amounts for expense items a little with a margin, and you also need to separately lay in the business plan for the production of furniture the amount for force majeure.

Marketing part

It can be thought out and worked out at the stage of drawing up a business plan for a furniture factory. The essence of this section of the furniture workshop business plan is, in fact, business development and includes the following steps:

• Opening an office with an exhibition center or a small shop.
• Conclusion of contracts with furniture stores for the implementation or exhibition of their samples.
• Work with tenders - it gives good orders.
• Build your customer base.
• Advertising - the development of your site, a group in a social network, the design of outdoor advertising.
• Launch of an advertising campaign in the media.

Separately, it should be said about advertising: you don’t need empty promises like “the lowest prices and the best quality”, “the deadline for any order is 2 days”, and so on - you need to do everything with high quality, at a reasonable cost, and promise your customers the same in promotional items.

Starting costs

Actually, the purpose of creating a business plan for the production of furniture is just to calculate the financial part. If we take into account the average check in the market, then the starting costs are as follows:

• You will have to spend about 50-70 thousand rubles per month on renting a suitable building. About 1 million rubles will have to be spent on the purchase of a similar premises, but, in fact, in the long run it is more profitable.
• Purchase of the necessary equipment, installation with delivery - about 600,000 rubles.
• Repair of the premises, documentary registration of the business - about 300,000 rubles.
• Purchase of consumables - at least 250,000 rubles, but the price can fluctuate greatly - depending on what kind of furniture you will produce.

Do not forget that a separate article in your furniture shop business plan needs to calculate salaries - also the final cost will depend on how many employees you will have, as well as their specialization and workload.

Features of the production of cabinet furniture

The peculiarity of the production of cabinet furniture is that with the proper use of materials, there will be a minimum of waste. But, if we are talking about upholstered furniture, then there will be more manual labor - upholstery, filling, finishing, and so on. Therefore, additional equipment will also be needed - specifically for sewing.

Schematically, the development of furniture production as a business can be divided into the following main stages:

• Company registration.
• Room selection.
• Purchase of the necessary equipment.
• Hiring.
• Calculation of income and expenditure.

Premises selection

Ideally, if the room for a furniture factory will have a workshop and an office building (no need for a large one). Also, do not forget about a separate room for workers - where they can rest, have lunch, and clean up after work.

If we consider this issue only from the technical side, then the requirements for the premises for the furniture workshop are as follows:

• Compliance with fire safety requirements.
• Absence of dampness.
• The ability to maintain optimal temperature conditions - in our case, this is a range of 18-20 degrees.
• Availability of necessary communications - heating, electricity, sewerage, plumbing, ventilation system. Separately, it should be said about electricity - here you will need a three-phase 380 W, as powerful equipment will be used for work.
• Availability of convenient access roads.

If you want to immediately open a furniture factory, and not just a workshop, then the premises must be selected based on the fact that there should be an opportunity to equip:

• The production room itself, preferably divided into several zones.
• Office - for managers, management, accounting, meetings with clients.
• Household room for workers.
• Shower room and bathroom.
• Stock.

Convenient access roads must be mandatory - both for unloading materials and for unloading finished products.

It is not critical if all these premises are located in more than one place - for example, a warehouse can be rented further from the office, somewhere on the outskirts of the city - it will be much cheaper to rent, and it is easier to find premises for such purposes in a remote area of ​​​​the city.

Necessary equipment

If the budget is limited, then you can buy used equipment - this way you can save 30-50%. But, also take into account that you need to be well versed in the machines, otherwise you can buy not just used equipment, but simply decommissioned.

To get started, you will need the following equipment:

• Band saw - it will be needed for sawing sheets of MDF, chipboard, as well as precise cutting of wood.
• Drying - it is only necessary if you intend to work with natural wood.
• Machines for fine woodworking as well as decoration - for edging, shaping, chamfering and more.
• Equipment for working with glass - engraving, drilling, cutting, sandblasting.
• Devices for working with metal - drilling, for welding, cutting, polishing.
• Sewing equipment - but only if you work with soft structural elements.

In addition to equipment, you will also need hand tools - drills, screwdrivers, staplers, hammers, planers, saws, and so on.

The purchase of consumables must be done based on the established assortment.

Hiring

The well-known phrase “cadres decide everything” in production is more relevant than ever - the quality of the services provided, and hence the efficiency of your furniture production, will depend on the professionalism of your employees.

The classic scheme for such production is as follows:

• About 5 workers who will be directly involved in the manufacture of furniture, but in some cases there may be more - up to 8 people.
• A manager who will search for orders, work with clients.
• Director of operations.
• Furniture delivery and assembly team.
• Accountant.

At first, some functions can be performed independently or delegated to outsourcing. This is often the case with accountants.

Calculation of income and profit

We have already calculated the starting costs for the production of furniture. But, do not forget about the monthly expenses:

• Utility bills - about 30,000 rubles.
• Salary - from 180,000 rubles.
• Advertising expenses - from 20,000 rubles.
• Payment of taxes, small expenses - from 30,000 rubles.

Thus, to start, you will need at least 2 million rubles, and this is not counting monthly expenses.

Now for the profit:

• On average, the workshop sells furniture for 600-700 thousand rubles per month.
• If you subtract planned expenses, then the profit will be about 400 rubles.
• Thus, furniture production will reach full payback in 21 months.

The profitability of such projects is approximately 60%, which is very good. And if we take into account the purchase of the building, then the figures are more than optimistic.

Summing up

Furniture production as a business is an expedient project, but only if you approach this issue correctly. In this case, first of all, you need to work out a good business plan, as well as a marketing strategy.

The profitability of a furniture factory, subject to the purchase of a building for a workshop, is 60%, and this is an excellent indicator in an average city. Special attention should be paid to hiring personnel - the quality of work depends on their skills, and hence the efficiency of your business, profit growth.

In view of the fact that the main target audience of cabinet and upholstered furniture are young families (including those with children), owners of medium and small businesses, subject to quality work, there will be no shortage of customers.

In this article:

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

What is included in the category "cabinet furniture"

Cabinet furniture is a piece of furniture that has a "box" design and is designed to be placed along the walls. This category includes: tables, racks, cabinets, cabinets, walls and other types of furnituremade from separate hard parts.

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

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

Analysis of the market for cabinet furniture

According to the Federal State Statistics Service, the production of cabinet furniture is the most demanded type of furniture business, which occupies about 25% in the niche of all furniture production. Today's consumer is well aware of what cabinet furniture is and why it is needed. At the same time, even the brand or the long-term stay of the company on the market is not important - offer a lower price with decent quality - and your buyer is yours.

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

Who is a potential buyer?

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

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

The most demanded "representatives" of cabinet furniture are kitchens and walls for the hallway and living room.

Raw materials for the production of cabinet furniture

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

The easiest option to start production is to make furniture from double-sided laminated particle boards (LDSP). Why?

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

For the selection of raw materials, it is necessary to be guided by the following indicators:

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

For the back walls of furniture, fiberboard (GOST 4598-86) can be used.

Features of the technological process for the production of cabinet furniture

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

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

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

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

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

In just a few minutes, the CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, drill holes according to the development plan. It remains only to veneer the edges and assemble the finished furniture. But it is profitable to buy such lines in the presence of constant serial orders. It does not make sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let's consider for example the "golden mean" - the work of a semi-automatic line of several machines with partial use of manual labor.

To start such a production, you will need the following equipment:

1. panel saw with manual feed of materials;

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

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

4. grinder;

5. screwdrivers;

6. perforator;

7. cutting tools (milling cutters, drills, knives).

Description of the production technology of cabinet furniture

1) After the development and approval of the sketch by the customer, a model of the future product is created using a computer program , which can be installed on a regular laptop.

For example:

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

But manufacturers of automatic and semi-automatic machines offer other types of programs already installed on their equipment, such as "UCANCAM V9", "ArtCAM", etc.

2) A plate of the material from which the product will be made is fixed on the machine, sawn into separate parts in accordance with the cutting charts.

If furniture is made from fiberboard - this is where the preparatory work ends - the parts are sent for assembly. If we are talking about furniture made of chipboard or chipboard - rough blanks are subject to mandatory machining of sawn edges;

3) Furniture parts made of chipboard come to the edge banding machine, where with the help of glue and pressure press slices of plates are faced with a laminated edge , PVC film, melamine or other edging materials;

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

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

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

7) Control Assembly using a hand tool helps to identify shortcomings and inconsistencies and eliminate them in the finished product. After that, the furniture is disassembled (if necessary), packed and sent to the finished product warehouse.

Estimated business plan for organizing the production of cabinet furniture

1. Project goals

The company plans to open a furniture shop for the production of cabinet furniture of the middle price segment.

Range: cabinets, tables, shelving, bedside tables. The production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboard and fiberboard boards, as well as accessories, will be purchased from suppliers for further cutting according to patterns into finished panels, processing and assembling furniture according to the developed drawings.

2. Financing

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

3. Target group of buyers:

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

4. Ways of implementation:

A) through a warehouse-shop in which samples of work will be exhibited and an office equipped to receive customers;

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

5. Advertising campaign

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

6. Organizational issues

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

The following documents are required to register a company:

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

7. Requirements for the premises for the production of cabinet furniture

• First floor,
• availability of all communications,
• three-phase electricity 380 W,
• access roads and loading docks,
• lack of moisture and high humidity.

It is planned to rent a room of 500 m 2 at a price of 240 rubles / m 2, broken down into 3 parts:

• an office with an exhibition hall with an area of ​​50 m 2 ;
• workshop for the production of cabinet furniture, with an area of ​​350 m 2;
• warehouse of raw materials and finished products - 100 m 2.

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

8. Staff

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

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

Total: 12 people.

Estimated Wage Fund - 274,000 rubles / month.

Payroll taxes (37.5%) - 102,750 rubles / month.

Total salary expenses - 376,750 rubles / month.

9. Main and auxiliary equipment

Total cost - 423 950 rubles

10. Performance

It is planned to release products in the following volumes:

• pedestals - 100 pieces / month,
• tables - 100 pieces / month,
• cabinets - 100 pieces / month,
• racks - 100 pieces / month.

11. Calculation of the cost of production

According to the calculated data of the table of consumption of materials for output

and prices for materials

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

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

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

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

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

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

Total: 752,131.36 rubles / month.

12. Price

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

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

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

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

Racks - (179,802.59 rubles: 100 pieces / month) + 25% \u003d 2,247.53 rubles.

13. Revenue and profit

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

Cost: 752,131.36 rubles / month.

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

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

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

14. Financial analysis

Expenditure part

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

Total: 1,176,081.36

15. Product profitability

(Balance Sheet: Cost) * 100% = (188,031.64: 752,131.36) * 100% = 25%

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

* Calculations use average data for Russia

1 132 000₽

Minimum starting capital

40%

Profitability

8 months

Payback

519 560 ₽

Net profit

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

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

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

Key Benefits of a Furniture Manufacturing Business:

relatively small amount of capital investments;

the furniture produced is classified as a general consumer product, which ensures a wide target audience;

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

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

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

The net monthly profit of the project for the production of furniture upon reaching the planned sales volumes will be 519,560 rubles. Return on sales in the first year of operation will be 25%. Upon reaching these indicators, the initial investment will pay off in the eighth month of operation. Integral project performance indicators are presented in Table 1.

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

Profitability of furniture production

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

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

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

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

The crisis also affected the structure of the furniture market. The most significant changes affected the segment of office furniture and bedroom furniture. The first trend is explained by the cost optimization of companies in difficult times. The second trend is justified by the fact that bedroom furniture is the least needed in a home setting. The smallest effect of the crisis is observed in the segment of kitchen and living room furniture, as well as upholstered furniture. Consequently, the most promising segment of the furniture market is the economy class, which feels more confident even in times of crisis.

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

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

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

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

Another parameter of the furniture market is the trade format. According to a survey conducted at the end of 2016, every fifth resident ordered furniture from an online store. In the first half of 2016, online sales increased by almost 47% and reached RUB 974 million, which is 12.5% ​​of total market sales. Almost half of the furniture chains have their own websites, but not all of them have an online sale function. Every year, the popularity of online furniture stores is growing, as it allows sellers to reduce the cost of renting large sales areas and reduce the price, and for buyers, online trading is a more convenient purchasing option.

Ready-made ideas for your business

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

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

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

The most rational way out of the situation is the production of furniture to order, which is carried out by small furniture workshops. This segment of the market is represented mainly in the middle and expensive segment, while the economy class is practically free.
The easiest way to organize furniture production is to open a furniture workshop.

The advantages of this format of furniture production:

• does not require large investment costs;
• to accommodate production facilities do not need a large room;
• savings on equipment;
• low price of finished products;
• production flexibility.

The disadvantages of furniture production include:

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

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

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

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

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

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

Determining the range of furniture production

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

The products intended for production are:

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

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

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

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

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

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

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

Marketing and sales of a furniture manufacturing company

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

Successful customers are consumers of furniture in the middle price segment. The main criteria for choosing furniture: the uniqueness of the offer, high-quality materials, the manufacture of furniture according to sketches to order, the possibility of delivery and assembly of furniture;

Clients with a low level of income occupy the largest share in the composition of consumers. The main criteria for choosing furniture are: price / quality ratio, custom-made furniture in the budget category, provision of furniture upholstery services.

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

Ready-made ideas for your business

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

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

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

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

Ready-made ideas for your business

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

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

Participation in various exhibitions and fairs, distribution of promotional materials, availability of additional services and after-sales service: free delivery, assembly, one-year warranty of repair or replacement of the product in case of defects, etc. are effective ways to attract the attention of the consumer.

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

The use of one or another tool depends on the target audience of the institution and the budget of the project.

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

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

Participation in furniture exhibitions and fairs.

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

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

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

Table 3. Planned workshop sales volumefor the production of furnitureby product type

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

Furniture production plan

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

1) Selection of premises for production. Since it is planned to open a full-cycle furniture production, the area of ​​\u200b\u200bthe premises should accommodate large-sized equipment. This will require a room with a total area of ​​300-350 m2, which will house:

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

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

paint shop - a room for paintwork;

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

a warehouse for finished products and a warehouse for raw materials;

production staff room;

bathroom with shower;

administrative staff, office space.

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

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

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

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

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

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

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

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

For the implementation of the project, a production facility is rented. Total area - 300 m2, cost - 50,000 rubles / month

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

planer - 70,000 rubles;

thicknessing machine - 120,000 rubles;

milling machine - 70,000 rubles;

drilling and grooving machine - 50,000 rubles;

copying lathe and milling machine - 150,000 rubles;

grinding machine - 80,000 rubles

painting equipment - 130,000 rubles;

panel saw with manual feed of materials - 140000;

screwdriver and puncher - 15,000 rubles;

other auxiliary equipment and tools - 50,000 rubles.

Thus, the total cost of furniture production equipment will be about 825,000 rubles. With all this equipment, expect a simultaneous monthly output of 400 pieces of furniture.

3) Technology of furniture production and organization of supply. Furniture production technology includes the following main steps:

product design preparation;

work on cutting material and manufacturing parts;

material processing work;

assembly of finished furniture.

For enterprises producing full-cycle furniture, edged solid boards are the main raw material. At the first stage of production, they are converted into panels and then parts for furniture are made. The most popular types of wood are: oak, birch, larch, pine. The most budgetary version of the array is pine. It is this material that will be mainly used in production. So you need chipboard and MDF boards.

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

4) Recruitment. Furniture production requires certain professional knowledge and skills, therefore, before starting production, it is necessary to select qualified employees. The main requirement for personnel is experience with specialized equipment. The staff must include: shop specialists - 3 people, a production foreman with financial responsibility for raw materials and equipment, a sales manager, a designer-technologist, a forwarding driver, a manager, an accountant.

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

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

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

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

Organizational plan for the production of a furniture workshop

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

31.09.2 - Manufacture of other furniture and individual furniture parts not included in other groups, according to the individual order of the population;

47.59 - Retail sale of furniture, lighting fixtures and other household articles in specialized stores;

47.91.2 - Retail trade carried out directly with the help of the Internet information and communication network;

31.01 - Manufacture of furniture for offices and trade enterprises;

31.02 - Production of kitchen furniture.

Licenses are not required to carry out these activities, however, it is recommended that all furniture produced be certified to confirm the quality of the products. For this, it is necessary to comply with the norms and standards:

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

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

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

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

GOST 13715-78 “Joinery plates. Specifications";

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

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

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

Table 4. Staffing and payroll

№	Position	Salary, rub .	Quantity, pers.
Administrative
	Supervisor
	Accountant
Industrial
	Shop Specialist
	Production master
	Designer-technologist
Trade
	Manager
Auxiliary
	Delivery driver
	Cleaning lady (part time)
Total:				210 000.00 RUB
Social Security contributions:				63 000.00 RUB
Total with deductions:				273 000.00 RUB

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

Production foreman - organizes the workflow, receives materials and draws up relevant documentation, is a materially responsible person, monitors compliance with safety regulations in production, performs phased control of product manufacturing. Education - higher, work experience in this field - 5 years.

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

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

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

Driver-forwarding agent - carries out timely delivery of the order to customers. Requirements: own car, work experience from 1 year, driver's license category B, C.

The head is a financially responsible person, represents the interests of the enterprise, concludes contracts for economic activities, issues orders and instructions, hires and dismisses employees, selects suppliers and searches for distribution channels. Education - higher, work experience in this field - 3 years.

Cleaning lady - cleans the sales office.

Financial plan for the production of furniture

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

To launch the project, it is necessary to calculate the amount of investment. To do this, you need to determine the cost of repairing the office space, purchasing equipment, the initial purchase of raw materials and the formation of working capital, which will cover the losses of the initial periods. The specifics of the furniture business is the need for a large amount of working capital.

Table 5. Investment costs

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

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

Table 6. Fixed costs for the production of furniture

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

Evaluation of the effectiveness of furniture production

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

Possible risks of furniture production

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

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

increase in prices for raw materials, failure in the supply of raw materials. In the first case, there is a risk of increasing costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in production. It is possible to reduce the likelihood of these threats with a competent choice of suppliers and the inclusion in the contract of all necessary conditions that provide for the liability of the supplier in case of their violation;

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

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

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

• Refusal to provide rental premises or increase the cost of rent. To reduce this risk, it is necessary to conclude a long-term lease and carefully choose the landlord.

Internal risks include:

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

equipment failure and production downtime. Minimizing the risk will allow regular maintenance of the equipment in order to maintain its performance;

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

product defect. In case of a minor defect, the products can be sold at a discount price, and in case of serious violations, they can be sent for processing. The main thing is to identify product defects before the transfer of the order to the client. It is possible to reduce this risk with the selection of qualified personnel, the purchase of good equipment and high-quality materials;

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

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Profitability calculator for this business

• 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 facilities. 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.