Despite the fact that every city has a large number of furniture stores, there are times when people come to these enterprises and cannot find what they really need. When funds allow, I want to make an exclusive renovation in the apartment and furnish it with expensive, refined and practical furniture. In some cases, these can even be individual orders with their own sketches. That is why it makes sense to open a furniture production workshop.

It is worth noting that (like any other) you need to start only if you have a plan of specific actions. Therefore, in order to open a furniture workshop, it is necessary to draw up a business plan that will help resolve all issues related to the production and supply of cabinet and other types of furniture.

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What does it take to start a furniture business?

The furniture workshop implies the opening of an enterprise that will accept orders for the production of cabinet and other types of furniture from local stores.

It is worth knowing that the degree of success of this project can be assessed as high. This can be justified by the fact that the demand for furniture has been actively growing since 2000, by 15-20% per year.

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In what form should a company be registered?

It should be said that the organizational and legal form that is necessary for running this type of business is an individual entrepreneur (individual entrepreneur). This is due to the fact that consumers of the services provided will be private individuals. However, in the event that there is a possibility of having customers among legal entities, it makes sense to open an LLC (limited liability company).

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Performing market analysis in your city

The first thing to do is to analyze the furniture production market in your city, consider the level of competition, find shortcomings and shortcomings in neighboring furniture workshops in order to avoid them in your business.

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Selection of the necessary premises for the production of furniture

The next thing to take care of is finding a suitable room for a furniture workshop. It is worth knowing that at least two rooms are required. Of these, one will need to be allocated for the office, which will accept all orders from potential customers for the production of furniture, and the other - directly for the workshop in which the supplied products will be manufactured.

Tangent office - it should be understood that it should be in a good place where a large number of people will see it every day. A workshop can also be opened outside the city if this helps to reduce costs. However, the best option would be to open two rooms side by side. You can often see that some companies have an office, a workshop, and a store selling finished furniture nearby.

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The choice of equipment and software that you need to start production

Today, the market for the sale of equipment for the production of furniture presents the products of a large number of different manufacturers (both domestic and foreign), while all machines can be easily integrated with the most common computer software for the production and modeling of furniture. The best of them are KZ-Mebel, Astra Cutting, Astra Furniture Designer and many others.

The minimum set of equipment that will be needed to start the production of furniture:

• jigsaw;
• milling machine;
• lathe;
• format cutting machine.

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What kind of employees are needed for the functioning of the furniture workshop

An important step is the selection of personnel for the future enterprise. It will be necessary to put a person who is well versed in computer programs for the manufacture and modeling of furniture in the office (point of acceptance of orders). At the same time, he must be sociable so that he can find a common language with any potential customers.

In the furniture production workshop, you will need to hire several workers who have experience with the main types of machines and materials. An important condition is that employees must be teetotal so as not to slow down the process of making and delivering furniture.

The main materials that employees should be able to work with are chipboard (chipboard) and MDF (medium density fiberboard).

If you plan to open a store selling finished products, you will need to hire another employee - a sales assistant.

Accordingly, the general list of workers that will be needed to start production:

• driver - 1 person;
• seller in the store - 1 person (if necessary);
• workers in the workshop - 2-7 people (depending on the size of the furniture production);
• designer-receiver of orders - 1 person.

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Question about the supply of manufactured products

The following distribution channels are possible:

• individual customers;
• furniture stores;
• own shop or showroom.

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Expenses that will go into the creation of this business

• rent of premises for a workshop - 300,000 rubles per year;
• office space (order point) - 100,000 rubles per year;
• premises for a shop or showroom - 200,000 rubles per year;
• purchase of the necessary equipment - 200,000-1,500,000 rubles (depending on the chosen manufacturer);
• consumables (300,000 rubles per year);
• payment for the work performed by the staff (at least 1,200,000 rubles per year).

Total: the total costs that will be needed to start furniture production are approximately 2,300,000-3,600,000 rubles. It is important to note that all calculations were made based on the pricing policy of Perm.

• 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 the 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.

* 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 observed 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 surveys 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 suitable 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

№	Job title	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 materially responsible person, represents the interests of the enterprise, concludes contracts for economic activities, issues orders and orders, 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 production 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 level 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

Dmitry Kuprienko, an experienced entrepreneur in the furniture industry, shares practical advice on how to start and organize a furniture manufacturing business, what you need to organize your first workshop, how to rise from scratch and where to start in this business.

Many firms that started their business with the manufacture of cabinet furniture in small workshops a few years ago became quite successful and expanded their business. Today, some of these organizations, in addition to the production of kitchens, wardrobes and other interior items, provide a number of other services to the population. Usually it is sawing chipboard and making facades from MDF according to customer sizes, pasting the ends of PVC parts and melamine edges, assembling doors from aluminum profiles and selling furniture fittings with accessories.

With some experience and basic knowledge in this area, you can organize your own small business, which has every chance of success. Moreover, you will not need any serious investments and the presence of large production areas at the initial stage. With a skillful approach, rational use of earned funds and a certain amount of luck, you can literally have a decent income in 1-2 years.

How to start a furniture manufacturing business?

Kuprienko Dmitry(author of the material) - has been manufacturing custom-made cabinet furniture for more than ten years:

"The presence of a huge number of players in this market segment should not stop you. In any business, as elsewhere, the evolutionary process never stops - someone goes bankrupt, and a more efficient entrepreneur takes his place"

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Since, as already noted, starting a small business for the production of cabinet furniture does not imply large cash costs, there can be no talk of any expensive advertising campaigns and other promotions. Finding your customers can be much easier and cheaper. It is enough to order business cards and distribute them to everyone you can, or publish a few ads in special newspapers.

Also try to negotiate with small hardware stores for cooperation, since the chances of finding a customer in such a place are quite high. Renovators often plan to purchase new furniture as well. If you can convince the owners of these outlets that they will benefit from a certain percentage of your orders, then customers will soon appear.

In addition to traditional methods, you need to start preparing your website or blog, since every year more and more orders, especially in large and medium-sized cities, are received by craftsmen via the Internet. Of course, promoting such your own virtual store will require financial and material costs from you, but not everything is done at once. Gradually developing the main production, in parallel, engage in the development of an Internet resource, which, if successful, will provide you with many orders - the dream of all entrepreneurs without exception.

How to choose the right material supplier?

Sufficiently high competition in this sector forces firms providing this kind of services to pursue approximately the same financial policy. Therefore, choosing an organization based only on prices will be fundamentally wrong. Some may sell some products cheaper than competitors, while others - more expensive, as a result, the average cost of components for the production of furniture will be approximately the same everywhere. Naturally, we are talking about the same level of quality, since materials and accessories from different manufacturers have different prices.

The maximum possible range of goods and services offered by the organization to its customers. In such a place, you should be able to buy almost everything you need without spending extra time and money on trips to other stores for some small change. Moreover, it is highly desirable that the components be sold in different price categories, since customers have an unequal income level, and not everyone will be able to pay for expensive elite materials, and some only need these. Therefore, you should have the freedom of choice in one place.

No less important are the terms of execution of your orders and the discounts that are provided to regular customers. Duplicate the information received from the company's employees with experienced clients. It is from them that you can learn important nuances.

The location of the organization plays a significant role, it is better to start working with a company that is located as close as possible to your workshop. Voyages across the city, with the current traffic congestion during the daytime, take up a lot of precious time.

The territory should have convenient access to the workshops and properly equipped platforms for loading parts into your vehicles. It's good when in such places there are canopies that guarantee the safety of parts in any bad weather.

Search for premises and purchase of equipment

For the manufacture of cabinet furniture at the initial stage, you will need a room with an area of ​​\u200b\u200babout 20-25 square meters, it will be good if it turns out to be one large room. Please note that a small warehouse will be located here for both recently imported blanks and finished products. In the same room, it will be necessary to drill and process parts, as well as assemble furniture, so choosing a room of less than 20 squares is not recommended.

In addition, pay attention to the possibility of maintaining the temperature in it at the level of 10-15 degrees in the autumn-winter period. Immediately calculate how much it will cost you. Sometimes cheap rent is completely offset by expensive heating. There was no need to remind at all that the room should be dry, since this is one of the main conditions, and by neglecting it, you risk a lot.

Confidence in the safety of all property is also important, because over time, if the business develops successfully, components and equipment worth several thousand dollars can be simultaneously in the workshop. Do not forget here about ensuring convenient loading of finished furniture and unloading of imported parts with fittings.

When buying equipment, many cannot decide on the class of hand-held power tools. There are very opposite opinions on this matter: some people prefer to buy inexpensive goods and change them as needed, others work only with expensive products of world famous brands.

There is also a tool that is in the middle price range, and here it is, perhaps, worth choosing at the very beginning. In addition to production needs, it is always useful for other things. In order for you not to have any problems during the execution of orders, you must have in your arsenal:

• Electric drill - 2000 rubles;
• Cordless screwdriver - 2500 rubles;
• A cordless screwdriver - 2000 rubles;
• Electric jigsaw - 2200 rubles;
• Manual milling cutter - 2500 rubles;
• Grinding machine - 2500 rubles;
• Electric end saw - 7000 rubles;
• Industrial hair dryer - 1600 rubles;
• Perforator - 2200 rubles.
• A set of cutting tools: drills, cutters, knives and crowns - 3000 rubles;
• A standard set of hand tools for a home master - 1000 rubles;
• Clamps - 1000 rubles;
• Miter box - 800 rubles.

Over time, as you gain more experience and save money to develop your production, you will acquire more sophisticated equipment that provides a higher level of production. In the meantime, it is quite possible to get by with what is listed in this section, since this is quite enough to produce cabinet furniture from finished parts. Your costs when purchasing the mentioned instrument will be about 30 thousand rubles, and prices may deviate in both directions by about 20%.

Software

No, we are not talking about expensive CNC machines, but just two programs that can greatly facilitate your work at the stages of furniture design and when ordering chipboard cutting. One way or another, but you will have to do this anyway, until things are going well that allow you to hire an employee for this purpose. Without the use of software, this entire process will take a lot of time and effort, and errors in calculations are also possible. Therefore, it is worth paying attention to very simple and useful programs:

PRO 100- a program created for the design and construction of furniture. With its help, you can easily carry out both the visualization of an object and the calculation of the parts necessary for assembly. To date, there are several versions of PRO 100, as the program is constantly being improved. The latest development allows you to create quite realistic 3D pictures.

Cutting- a program whose purpose is to assist in compiling the best option for cutting sheets of chipboard and MDF. Using it, you will quickly find out how much material is needed for the manufacture of a particular product, and you will also be able to minimize unclaimed waste. Cutting saves both time and money.

In addition, it is desirable to have a laptop. Your future work is associated with frequent visits to housing, offices and other facilities where measurements will be made. Almost all customers in this case are childishly impatient, they want to immediately see what their furniture looks like. With a laptop and PRO 100, you can render in 45-70 minutes. By the way, this greatly increases your chances of getting an order.

Prospects for the development of the furniture business

Following our recommendations and setting aside part of the money earned for business development, you will be able to reach a new quality level within 2-3 years. In the process of fulfilling orders, acquaintances are made with construction teams, since repairmen and furniture makers, in fact, are inseparable. Such connections, like the Internet project, will allow you to increase the number of customers and increase your income.

An important factor that guarantees success of undertakings, is the constant expansion of the production base, both in terms of increasing space and purchasing new equipment.

From the first days of work you will dream of panel saw and edge banding machines. They provide independence, allow you to quickly correct errors on the spot and save money.

But you can’t rush to buy them, many craftsmen, applying ahead of time to a bank or private individuals for a loan to purchase them, incorrectly assessed their capabilities and subsequently suffered losses. Therefore, it is better to make such serious purchases with your own money or borrow a small amount.

Expensive machines justify themselves only with the appropriate volumes of processed material, only then they are effective.

Their cost is approximately:

• Panel saw (made in China) - about 200,000 rubles.
• Curvilinear edge banding machine (made in Russia, China) - about 50,000 rubles.

There is equipment and a little cheaper, and much more expensive than the given prices. But even familiarization with the average cost of machines, which are usually purchased for small workshops, is enough to avoid making impulsive decisions. Without a carefully calibrated business plan, which is confirmed by an increase in the number of orders, you should not start this event. Just as undesirable for effective development may be a delay in such a purchase. You will simply waste money and time.

Furniture manufacturing has always been considered a promising occupation, especially in our country, since a huge percentage of the population still exploits old sets and dreams of new ones. People who bought a kitchen, closet or hallway about 5-8 years ago are already starting to think about replacing them, so furniture makers will always be with work. You just need to organize it correctly.

New business idea: Production of fences and railings for private households under the Lego Fence franchise (novelty, lack of competition, high demand even in current market conditions).

The production of cabinet furniture is a fairly profitable business, as the demand for this type of furniture is stable throughout the year. For this business you will need:

1. Premises: workshop and office;
2. Employees: designer-technologist and furniture assembler;
3. Suppliers of materials and accessories;
4. Intermediaries to increase sales: furniture stores and design studios.

Depending on the planned volume of investments and experience in this area, you need to choose a way to organize production. Production can be organized in three ways, depending on the length of the technological process and the amount of investment:

• Full cycle production;
• Medium cycle production;
• Short cycle production.

A full description of the technological process is presented in other sections of this business plan.

To organize a private business from scratch, you do not need to try to cover all stages of furniture manufacturing. It is better to start with assembly from ready-made components in your own workshop. In this case, you will have time to build a system of work with a client, establish relationships with suppliers, research the market, and also develop a customer base. And as soon as the flow of customers becomes stable, it is possible to consider the possibility of expanding the business by covering other technological processes.

The range of cabinet furniture consists of office furniture (chairs, tables, racks, etc.) and home furniture (cabinets, wardrobes, chests of drawers, tables, chairs, stools, benches, etc.).

Initial investment - 640,000 rubles.

The average monthly profit is 86,615 rubles.

Break-even point - 4 months.

The payback period of the project is 11 months.

2. Description of the business, product or service

According to the companies operating in the market, the demand for cabinet furniture is distributed between office furniture and home furniture.

The range of offered products includes:

Office furniture: racks, cabinets, chairs, tables, cabinets;

Home furniture: kitchens, dining tables, chairs, stools, cabinets, storage boxes, shelves, benches.

Due to the influence of the seasonality factor, the assortment may change. For example, in the summer, furniture is ordered in large quantities for relaxing in the country: benches, stools, tables. In autumn, the demand for school desks and chairs, racks for papers and documents increases. Demand for kitchens remains consistently high throughout the year.

The production of cabinet furniture can be carried out in three different ways, depending on the duration of the production cycle.

• First way implies the presence of a full cycle: from the manufacture of the material that acts as the basis for cabinet furniture (chipboard, chipboard, MDF) to the release of the finished product.
• Second way eliminates the material manufacturing process, i.e. Ready-made sheets of chipboard, fiberboard, MDF are purchased. It remains to cut them, make an edge and assemble until ready.
• Third option production is organized on the principle of a short cycle and includes only the furniture assembly process. Furniture is assembled from custom-cut chipboard, chipboard, MDF.

For organizing a small business from scratch, the best option is to work on the principle of a short cycle. In this case, there is no need to purchase expensive equipment, and the workshop works under a specific order.

Once you have established a customer base and the company has a steady flow of orders, you can expand production to cover other cycles. By this time, you will already have enough accumulated funds to purchase sawing and edge banding machines, which will allow you to increase the process chain.

The sale of finished products will be carried out in several ways:

1. Forming applications through your own office, which is also a showroom;
2. Through intermediaries: furniture stores, design studios. This way of cooperation will allow you to cover a geographically larger market;
3. Sales through an online store. Delivery in this case can be carried out by a third-party transport company.

3. Description of the market

Consumers of this type of business can be divided into three target groups:

Retail end consumers. These are the people who will use your furniture. They can be divided according to the age criterion and the frequency of purchases:

1. Young working people aged 25 to 30 who purchase furniture for the first time;
2. People aged 30 to 50 who update cabinet furniture in their homes and offices every 4-5 years.​​​​​​​

​​​​​​​wholesale clients. As a rule, these are private and public organizations that buy the same type of products in large quantities. This type of consumer includes schools, kindergartens, hotels, office centers, etc. As a rule, depending on the volume of the order, they are given a certain wholesale discount.

Intermediaries. These include interior showrooms and furniture stores. They are interested in long-term cooperation and work with you for a certain percentage of the order. Many of them exist in the showroom format, which allows them to host exhibition samples of their own products.

The competition in the market for the production of cabinet furniture is quite high, so you should not initially invest a lot of money in this type of business. The demand for your products will mainly depend on the quality, delivery time, as well as the price of the finished products. An important factor will also be the provision of guarantees for products within a year from the date of installation and start of operation.

The high level of competition is due to the fact that your competitors are not only the same private workshops, but also large companies. For example, the international network IKEA offers a large selection of cabinet furniture. However, a favorable factor is that with the appreciation of the dollar, the prices of Swedish furniture have increased significantly.

Let's highlight the main advantages that will allow your company to occupy a stable niche in the cabinet furniture business:

1. Work under the order. No need to organize a warehouse and store large stocks of materials;
2. The minimum set of tools. At the first stage, you do not need to invest in the purchase of expensive equipment;
3. Small staff. To get started, it will be enough for you to hire two employees in a permanent staff;
4. Availability of own showroom and exhibition samples in interior and furniture showrooms;
5. Possibility to change the range of products depending on the trend of demand;
6. Large selection of materials and accessories for customers with different income levels;
7. Creation of an online store with delivery in the region;
8. Manufacture of designer furniture according to author's drawings.

4. Sales and Marketing

Marketing channels

5. Production plan

Stages of creating a business for the production of cabinet furniture

Creating your own production consists of the following steps:

• State registration

To open a small workshop with a short cycle production, you can register as an individual entrepreneur. In this case, you do not need to open a current account and create an authorized capital.

However, if you intend to soon expand production and work with large suppliers and customers, it is better to register as an LLC right away. The optimal taxation system when working with orders from individuals is the simplified tax system (15% income minus expenses). In this case, you will need a CCP installation.

• Rental of premises for workshop and office

Since at the first stages you will not need to install large-sized equipment, it will be enough to rent a room of 200 sq.m. At the same time, 150 sq.m. accounts for the workshop and warehouse, and 50 sq.m. to the office space, where exhibition samples will be presented, as well as workplaces for the designer and manager.

An additional advantage when choosing a room will be the opportunity to increase the rental area up to 300 sq.m. during a year. Subsequently, increasing production, you will need additional square meters to organize a warehouse for materials and finished products, as well as a place for machines and equipment.

Room requirements:

• Non-residential premises

The most suitable for this type of activity will be a production facility. This is due to the fact that the work of the workshop is accompanied by a high level of noise.

• Ground floor, two entrances

You will need to organize two separate entrances: to the office and to the workshop. In the second case, it is necessary to have access roads for trucks.

• Three-phase electricity 380W.

Some equipment has a high power consumption. This needs to be thought out in advance.

• Absence of moisture and high humidity.

This is a fundamentally important factor. Since the main material for work is wood, high humidity will immediately affect the quality of finished products.

Stages of working with a client

The implementation of the order is carried out in several stages:

• Client's contact with the company

At this stage, the manager or manager identifies the needs of the client and draws up a list of pieces of furniture that he needs. Further, the designer-technologist begins to work with the client. He helps the client decide on the design of the product, the number and size of drawers, the material, color and texture of the facade, etc.

• Cost calculation, ordering

After agreeing on the type and composition of products with the client, the designer-technologist calculates the cost of the order. Then the manager or manager agrees this cost with the client, places an order, and takes an advance payment. The term of the order is indicated as standard and ranges from 30 to 45 working days. In this case, early production of furniture is possible.

• Purchasing materials from suppliers

At this stage, the manager or manager orders individual components from suppliers.

Main material. In its role is chipboard, MDF or solid wood. You need to order not only a sheet of the desired material, but also its sawing to size and edge. You can place an order from one supplier, or you can purchase sheets separately from one supplier, and processing from another.

facades. Kitchen facades, as well as cabinet doors, are separate furniture elements. Their main function is decorative, so the range on the market is huge. You can choose to work with several suppliers by comparing prices for specific products.

Countertops. They can be made both from laminated chipboard sheets, and from natural and artificial stone.

Back walls and bottom of boxes. These elements are made mainly of HDF, the color is selected according to the main material of the furniture.

Furniture fasteners. These are metal products that act as connecting elements: furniture corners, wooden dowels, eccentric ties, euro screws, etc.

Accessories and guides. This category includes furniture hinges, lifting mechanisms, door handles, legs for furniture, as well as guides for sliding doors of wardrobes.

To compare suppliers of materials, two criteria should be followed: price and production and delivery time. As a rule, lower prices are accompanied by longer lead times. It is fundamentally important for the company that all individual elements are produced at the same time, as well as that the entire order as a whole is completed as quickly as possible.

• Main job: assembling the furniture body

This work is performed by the furniture assembler in the workshop. It accepts the delivery of components and assembles the main body of products. Small and mobile products are fully assembled. These include bedside tables, chairs, small tables. Large-sized furniture involves partial assembly in the workshop and final installation at the facility.

• Delivery and installation of the finished product

This is the last stage, which requires the presence of an assembler and a supervisor. The manager accepts the finished work, transfers it to the client and receives full payment. The order is considered completed.

6. Organizational structure

To start the organization, you will need three people: a manager, a designer-technologist, a furniture assembler.

With an increase in the scale of production, the staff will be replenished. In the future, the composition of the state:

Working staff - an increase in employees up to 5 workers and a production manager;