First of all, a beginner needs to take into account that the furniture market has already developed. And if 15-20 years ago it was possible to bring any furniture and find a buyer for it, now it is difficult to guess the needs of the client. Therefore, you need to study the market and focus on those segments of the population that you want to serve. Farid Safin, CEO of the Vash Byt furniture store network, told the BIBOSS portal about the intricacies of this business.
Where to start?
For starters, experts advise conducting market research. See what competitors are selling, what are their advantages and disadvantages. Entrepreneurial intuition must work. First of all, you need to understand what niche you want to occupy. The stratification of the target audience is observed strong. There are those who buy expensive imported furniture. There are those who proceed only from the functional features of furniture - design and manufacturer are not important for them.
Beginning entrepreneurs, as a rule, do not have a lot of capital and the opportunity to occupy large retail areas for samples. Therefore, it is advised to start working with the economy and middle class, where the bulk of buyers are concentrated.
You can consult with those who have been working in this market for a long time. They can be manufacturing partners who produce furniture and know what is in demand. In Russia, such manufacturers are well-established companies that maintain marketing services, constantly study demand, and go to exhibitions.
By the way, visiting furniture exhibitions is a good way to study the market. Manufacturers exhibit existing and new furniture samples there and monitor the reaction of visitors. There are many ordinary buyers and representatives of retail chains at the exhibition, they conclude contracts with manufacturers for the supply of furniture.
Working with a supplier, you can find out what kind of furniture in the region is in demand. Because demand varies from region to region. Somewhere one color and model is popular, somewhere another. For example, in Tatarstan, where there are many Muslims, calm green tones are held in high esteem. But furniture models throughout Russia are basically the same. Only Moscow and St. Petersburg stand apart - there is a demand for advanced models. The most ultra-modern modern direction is first mastered in Moscow and St. Petersburg, and then goes to the regions. Therefore, if you open a store not in these capitals, then it is better not to immediately bring unusual furniture here - it is unlikely that it will find a buyer.
How to get ahead of competitors? It is necessary to find those models that can compete with those who are already on the market in terms of price and quality.
Farid Safin
If we talk about us, we have been working on the market for a long time and cover all categories of clients - from economy class to VIP clients. In our showrooms you can view catalogs of expensive furniture, we exhibit some samples of high quality Italian, Belarusian furniture. The client places an order and we contact the manufacturer. Orders for expensive furniture are infrequent, so keeping all models in the store is unprofitable, since renting retail space is not cheap.
Investment size
Farid Safin
General Director (Founder) of the Vash Byt group of companies
As for the search for funds for the launch, it is better not to rely on state support. Today in Russia, first of all, they support producers and agribusiness. It is believed that trade is already sufficiently developed and organized, so this industry is not subsidized. There is hope only for banks that participate in programs to support small and medium-sized businesses. They lend to businesses at reasonable interest rates.
Farid Safin
General Director (Founder) of the Vash Byt group of companies
But there are nuances. Based on personal experience, I can say that all banks require a deposit - a room, an apartment, a car. At the same time, today the direction of furniture trade is considered a risky business. Recently, we wanted to take out a loan, it seemed that the bank was fine with everything, there was a pledge, but later they told us that the furniture business was risky, and they refused to give us a loan. Therefore, not everything is so simple. It is better to find an investor, partners who are ready to invest in the business and develop together.
What are the running costs of the business? It is necessary to have a warehouse stock of furniture, rent and maintain warehouses, where loaders work for the acceptance and release of furniture, storekeepers. Accounting systems are now computerized, so programmers are needed. Plus transportation costs, including the delivery of furniture from the manufacturer - from factories and factories.
How to optimize costs? You can transfer something to outsourcing - for example, the services of programmers, rent warehouses with a ready-made staff of loaders, or even work from the "wheels" - pick up furniture directly from the factory and immediately deliver it to customers. The advantage of small enterprises is that they do not need to maintain a large office staff: dispatchers, commercial service, accounting, management. Many entrepreneurs at the initial stage perform all these functions themselves - he is a forwarder, and a manager, and a dispatcher, and an accountant. But even as you grow, it’s better not to inflate the staff, this will allow you to optimize costs.
On average, the current costs of a furniture store at the initial stage, with a minimum number of attendants, amount to 100-150 thousand rubles per month. But this amount does not include rent - it depends on the area. In large Russian cities, on average - from 800 to 1500 rubles per sq.m.
Step-by-step instruction
In your activities, you will have to interact with a number of contractors and suppliers. First of all, they are furniture manufacturers. You can access them directly. But when sales volumes are small, it is difficult, because manufacturers are interested in large orders. Therefore, it is easier for small companies to work with dealers and wholesalers.
Farid Safin
General Director (Founder) of the Vash Byt group of companies
Our company has a wholesale department. We bring furniture from all over Russia, as well as from China, Belarus, the Baltic States and release from our central warehouse in small batches for small entrepreneurs - they take the assortment they need. This is convenient for beginner entrepreneurs, the more they can take into account our trading experience, because we know in which region what furniture is in demand, and we give our recommendations.
If a person once bought furniture in one retail chain and was completely satisfied with the quality and price, the next time he tries to go to the same store. Between the seller and the buyer there is a relationship that is maintained for years. Our network has regular customers who have been buying furniture from us for many years and bring their children.
The main quality for the seller is the desire to work. If a person thinks that the furniture will sell itself, but he can sit on the couch and read, waiting for the buyer to come up and place an order, then you do not need him. Today there is a wide selection of furniture in different salons. And the seller himself must interest the buyer. Most often, after 2-3 months of internship, a person masters the assortment and can already cope well with sales. Developed companies have their own personnel department, which is engaged in the recruitment and training of personnel.
Farid Safin
General Director (Founder) of the Vash Byt group of companies
We try to ensure that people work in our company stably, constantly. And so it happens. Most of our employees have been working, if not from the day the company was founded, then on average 10-15 years. To do this, we constantly use the motivation system and periodically review it so that it is attractive to our employees. We have the 13th salary, there is a trade union organization that maintains ties with many institutions - for example, sanatoriums, and you can get preferential vouchers. People can get vacation pay, sick pay. We hold corporate parties - and New Year's holidays, and March 8, and May 1. In the New Year, we sum up the work and announce the best employees, give gifts and certificates of honor.
In shopping centers, you will be forced to adhere to the established work schedule. In free-standing salons, focus on the mode that is acceptable for a particular area of the city.
Documentation
No special permissions are required. Hygienic quality certificates are needed, but usually they are supplied by the manufacturer.
Today, there are two main types of taxation used by entrepreneurs engaged in retail trade - a single tax on imputed income and a simplified taxation system. UTII is charged depending on the area. “Simplified” depends on the turnover, that is, the tax is paid depending on how many goods are sold. And the choice of the type of taxation depends on the patency of the outlet. There are retail outlets with high traffic, where rent is high, but the return per sq.m. turnover is also high. In this case, it is better to pay UTII. If the areas are large, but the traffic is low, the rent is low - a simplified system works better here.
Opening checklist
The opening of a store in a stand-alone building must be highlighted as an event. If the store is designed for the scale of the area, you need to let its residents know about the opening. Usually, when a store opens, they create a beautiful furniture exposition, hang balloons at the entrance, attract animators who will meet and entertain guests and children. Such events are not complete without gifts - even if they are small, so that when they come home, people will tell their family and neighbors about your store.
Hi friends! Today I will tell you a small but interesting story. 15 years ago I came from a small district center to a city with a population of one million. To get a job and get back on my feet.
In the former place, in order to receive a salary, it was necessary to write an application addressed to the director. Prescribe the required amount and correctly argue why you need this money. 🙂
Initiation
At that time, the furniture business was on the rise. There was a huge demand for furniture of absolutely any quality. There were two large enterprises and many small workshops in the city.
My older brother was already working in one of the factories. And just received an offer for a higher paying job. But in order to take advantage of the offer, it was necessary to find a person in his old place.
And so my place of work was determined. I lived with my aunt as in Christ's bosom, for which I am still grateful to her. The truth is far from work, I had to spend 2 hours on the road.
When I received 3,000 in cash in the first week, I was simply stunned by such happiness. I was not afraid of extra loads and took on additional responsibilities. Accordingly, my salary increased.
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In three years
My life has changed dramatically. I have mastered almost all the factory stages of furniture production. And when all the workers went home, I switched to another machine and worked until 8-9 o'clock. I liked my work, I didn't get tired, I was interested.
At the same time, the elder brother, together with his friend, opened his own production and periodically invited me to go to him for hire. To which, after some persuasion, I agreed and got good experience in managing a team.
The worst thing was that there was no order. The advance payment from the salon was taken by one of the bosses who was the first to have time. And I took the rap for the delay. Until lunch, my hand did not fall below the shoulder, I constantly had to reassure customers. I gained experience working with people.
Money appeared in the workshop only a day or two before the end of the order, and at a frantic pace I managed to organize the delivery of material, sawing, assembling and installing furniture. My nerves were stretched like strings, I was tired. It couldn't go on like this anymore.
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Eight years later
The bro shared the business with a friend and we started working together. We complemented each other perfectly - he is a born salesman, and I am a pedant in the production and installation of furniture. Our income has grown.
Because my brother didn’t really like to measure correctly, and this is one of the most important stages in the production of custom-made furniture, I had to sweat a lot during the installation. Before 10 pm, I did not return from the installation. Moreover, I thought that this was the result of my inexperience.
When it dawned on me that the reason was in measurements and calculations, I began to perform these operations on my own, taking into account all the nuances. And with each new order, I received the necessary skills to produce high-quality and beautiful furniture.
We survived the first crisis without any problems. The furniture makers were out of work, and we continued to work. But in 2013, sales dropped and my brother offered to fire a great employee in order to provide me with a job. And after conferring, we decided to leave the guy, and I will find orders for myself.
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The present
I have risen from my knees and stand well on my feet. I constantly analyze the furniture market, set the right goals for myself and achieve them, I get a real buzz! I never stop learning and developing my skills to a professional level.
At the moment, I'm not thinking about where to take orders. My clients are queuing up to get my product. I defeated my competitors, only with my perseverance and hard work. But I do not stop there.
I understand that in nature there is no state of stagnation. Either you develop or you degrade, there is no other way. I constantly learn from leading experts in the field of interest. I have no doubt that new skills will help me reach a new level of development of my business.
I have always liked teaching and helping people, the result is especially inspiring. Offline, I have already taught two guys how to make money on custom-made furniture. We often see each other and I see that I did not waste my time in vain. The guys work and enjoy life.
Future
That is why, I set myself a new goal to help people who have a great desire to build a furniture business rise from their knees. I know for sure that it is better to learn from a person who is a couple of steps above you. Because those who have risen high no longer remember all the steps.
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With good thoughts about you, furniture expert
Rekun Dmitry.
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:
- Premises: workshop and office;
- Employees: designer-technologist and furniture assembler;
- Suppliers of materials and accessories;
- 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;
Furniture for home: 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:
- Forming applications through your own office, which is also a showroom;
- Through intermediaries: furniture stores, design studios. This way of cooperation will allow you to cover a geographically larger market;
- 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:
- Young working people aged 25 to 30 who purchase furniture for the first time;
- 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:
- Work under the order. No need to organize a warehouse and store large stocks of materials;
- The minimum set of tools. At the first stage, you do not need to invest in the purchase of expensive equipment;
- Small staff. To get started, it will be enough for you to hire two employees in a permanent staff;
- Availability of own showroom and exhibition samples in interior and furniture showrooms;
- Possibility to change the range of products depending on the trend of demand;
- Large selection of materials and accessories for customers with different income levels;
- Creation of an online store with delivery in the region;
- 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 leader 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.
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.
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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, the equipment for facing the edges 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).
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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.
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The workpiece is installed on the work table exactly with the pre-treated base surface. The workpiece is fed to the rotating knives automatically. Main technical characteristics:
Rated supply voltage - 220 W;
Rated power consumption of the collector motor - from 1500 W;
The frequency of rotation of the planer shaft with planer knives - 8000 rpm (idle);
The average height of the workpiece processed on the machine is 15 cm, the width of the working table is from 25 to 50 cm, with the corresponding width of the workpiece being processed up to 45 cm.
the average speed of the automatic feed of the workpiece is 8 meters per minute.
The average planing depth is 2.5 mm. Depends on the width and properties of the workpiece.
Thicknessing machines are divided into one-sided and two-sided. Unilateral have one knife shaft located above, over a desktop. Double-sided, respectively, have two knife shafts. The second is built into the desktop and performs the function of processing the lower part of the part. The working table itself is movable, with the help of it the required height is set for processing the material to the required thickness. Machines are also distinguished by the power and maximum lifting of the desktop, its width and depth of planing.
A fairly wide price range is convenient for choosing the necessary equipment depending on the buyer's budget. The price depends on the country of manufacture and technical parameters.
When choosing a thicknesser, pay attention to the safety features. The design must necessarily be protected from overloads by a power interruption unit. When an overload occurs, the thermal relay must be activated and the power supply to the machine must be interrupted.
Choose machines with quiet operation that a belt drive can provide. It also protects the engine of the machine from overloads.
For additional safety of machine operation, network switches are often used. In addition to direct functions, they are equipped with a protective function against unauthorized activation during the absence of the operator.
In furniture production, wood or any other material goes through many technological processes, and a four-sided machine is the basic equipment for many of them.
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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 work 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 in the cooperation agreement a clause 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, nothing can be done about it. Before 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. These 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!
At the moment, all areas of small business are developing very actively. The business associated with the production of furniture is considered especially productive and profitable. In order to be aware of all the subtleties of this production, you do not need to undergo special training. To successfully conduct business, you must have elementary knowledge, concepts and little experience in this area. Luck and patience are not the last components of your success in this business.
Furniture business today
Not only mass production, but also piece-made furniture today has become a simple matter, accessible to everyone. Assembly processes are sometimes referred to as adult building blocks. If you have elementary ideas of what and how to do, then it will not be difficult for you to assemble modern furniture that is sold in expensive stores.
In fairness, it is worth noting the fact that the furniture market in Russia today suffers from great competition. About three thousand large medium-sized enterprises are actively fighting for their potential customers. Is there even the slightest chance for small businesses to find their niche in this market segment? In this article, we will try to address issues related to this topic.
If the company is not very large, it should pay great attention to the development of the production base, otherwise it may lose its competitiveness and go bankrupt.
In big cities, people are picky and very demanding about the quality of furniture. They are not satisfied with low quality products. The consumer is increasingly complaining about poorly made furniture. He looks closely not only at the appearance of the goods, but also wonders how long the furniture will last.
It is very difficult for small producers to compete with large firms, which have much more opportunities to produce products of better quality and in a larger assortment.
Many experts are inclined to think that the share of small and medium-sized enterprises in the furniture business will increase every year. This trend is quite understandable and predictable. In a few years, the share of small enterprises is expected to increase to 75 - 80%.
One of the most promising areas is the production of kitchen and office furniture. There is a real boom in this industry. Over the past 10 years, profits in this sector have increased by 20% every year. Small businesses are increasingly turning their eyes to built-in furniture - it is the leader in sales. Inexpensive, high-quality furniture, which is almost half the price of similar furniture made abroad, is in great demand among the population of our country.
It is worth knowing that investors are happy to invest in this type of business, as they know that with a successful investment, they can count on 40% profit.
For small and medium-sized furniture businesses, the main task is to occupy a certain niche. It means to produce a specialized product. Increasingly, firms are emerging on the market that are engaged in the production of unusual furniture made of glass, plastic, and rare woods.
Do not forget that lately it has become very fashionable to make furniture to order, which will have non-standard shapes, colors and designs. Manufacturers of wicker furniture have virtually no competition. Their merchandise sells well.
Instructions for those who decide to open a pawnshop, but do not know how best to do it:
Furniture business from scratch: we buy equipment
You can organize the production of furniture of various types and purposes. It can be a business for the production of built-in furniture, cabinet, upholstered, kitchen, office, garden and specialized.
The choice of premises and the purchase of the necessary equipment for the production of furniture is one of the most important components of the entire process. At the beginning of your career, an inexpensive tool will be enough for you. A sample list of what you can not do without:
- electric drill;
- screwdrivers;
- jigsaw;
- grinding machine;
- milling cutter manual;
- perforator;
- industrial dryer;
- tool for manual carpentry;
- miter box;
- clamps.
After the production moves to a new, high level, it will be possible to take care of buying a better and more expensive tool. The cost of buying a tool can be from 40 thousand rubles and more. Professional machines are expensive and should only be purchased when sales volumes and orders reach economically viable levels.
How to promote a furniture business?
The main role in the implementation belongs to the retail trade. You can negotiate the sale of your products in large shopping centers and stores. Large manufacturers create their own branded salons, in which they sell goods of their own production.
Retail outlets should have a large area so that the furniture is placed freely and is clearly visible. In small towns, furniture sells well in the markets. To sell specialized furniture, you need to send out booklets and leaflets to company managers.
Relevant at the moment is the sale of furniture via the Internet. The only disadvantage of promoting the product in this way is the inaccurate representation of the buyer about the product.
The profitability of this type of business
To open shop medium scale, you will need from 2.5 to 3 million rubles. The bulk of the money will be used to rent the premises, purchase goods and pay staff. The business will pay off in 1.5 - 2 years with a margin on goods of 20 - 40% of the cost.
Budget and profitability of the furniture shop:
- rent of premises - 60-70,000 rubles per month;
- purchase of equipment, arrangement of production - 1,000,000 -1,300,000 rubles;
- purchase of the necessary raw materials and materials - 250,000 rubles;
- wages for workers - 100,000 -120,000 rubles per month;
- expenses for other needs - 30,000 - 40,000 rubles.
Furniture shop can pay off in 2 - 2.5 years. Profit per month will be about 80,000 rubles.
Furniture factory- ideal profitability - 10 - 25%.
- rent of premises - 2.5%,
- staff salaries - 8 - 10%,
- purchase of materials - 70%,
- utilities and equipment maintenance - 3.5%,
- transport - 2%,
- advertising - 2%.
This is a calculation for a factory that specializes in the production of cabinet office furniture from chipboard. At the same time, the sales volume must be at least 10,000 items per month.
The furniture manufacturing business has always been and remains promising. People have changed and will continue to change furniture according to the degree of its wear. Manufacturers will never be out of work. And you can safely plunge into the production process. The main thing to do is to plan everything accurately and organize it correctly.
