• Staff
• conclusions

Natural wood furniture will never lose its relevance. The demand for wooden furniture from year to year shows a steady growth, despite the fact that there is a lot of furniture from alternative materials (glass, plastic, metal). The main reasons for this are high environmental friendliness, the absence of toxic impurities, moreover, the tree carries positive energy and warmth.

Assortment of production from natural wood

Wood is the best raw material for making furniture for the kitchen and children's room.
That is why a properly organized business for the production of wood products will always find its client. The list of products that can be made from wood is very diverse:

• tables;
• Chairs;
• Furniture for restaurants and bars;
• Arbors and furniture for summer cottages;
• Doors and wall panels;
• Sofas and armchairs for offices;
• Cabinet furniture;
• Kitchen sets;
• Playgrounds;
• Game tables (billiards, poker);
• etc.
  

What taxation system to choose for a wood furniture business

The organizational and legal form of an enterprise for the production of wooden furniture can be either an ordinary individual entrepreneurship or a limited liability company. For small workshops, at the initial stage, a regular IP is quite suitable, since registration of this activity (as well as closing) is many times easier and cheaper than opening a legal entity (LLC).

But, individual entrepreneurs cannot create their own branches, large firms are not so willing to work with them, and entrepreneurs have more risks of losing personal property (in the event of lawsuits) than legal entities (which risk only the property of LLCs).

Therefore, with the consolidation of the business, the registration of an LLC promises a lot of advantages. As a taxation system, the most optimal is a simplified taxation system - USN, 6% of revenue or 15% of profit.

The application of the USN exempts the enterprise from paying income tax, property tax and VAT. Switching to this special the mode is carried out immediately at the time of business registration on the basis of a notification.

What is the OKVED for a wood furniture business

When registering a business, the application must indicate the OKVED code. For production and sale wooden furniture the following codes will work:

• 36.12 Manufacture of furniture for offices and trade establishments;
• 36.13 Production kitchen furniture;
• 36.14 Manufacture of other furniture
• 51.47.11 Wholesale of household furniture;
• 52.44.1 Retail sale of furniture;
• 52.44.5 Retail sale of wood products, cork and wickerwork;
• 52.61.2 Retail sales carried out directly by means of television, radio, telephone and the Internet.

If you open an individual business, then the application should indicate all the OKVEDs for which you plan to work (you can at least 30, it will not be superfluous). If you register an LLC, you can specify only one code, since the charter of the LLC will state that the Company can engage in any type of activity that does not contradict the law.

As for the license. Mandatory licensing and certification of manufactured furniture is not established by law. But, some enterprises voluntarily draw up quality certificates for their products (to increase sales). In this case, compliance with such norms and standards as:

• GOST 16371-93 “Furniture. General technical conditions”;
• GOST 28793-90. Furniture. Tables. Definition of sustainability
• GOST 28777-90. Furniture. Crib Test Methods
• GOST R 50051-92. Furniture. Chairs. Definition of sustainability
• GOST 19917-93 “Furniture for sitting and lying. General technical conditions”;
• GOST 19194-73 “Furniture. Method for determining the strength of fastening of decoy legs of furniture”;
• GOST R 54208-2010 “Protective and decorative coatings for furniture made of wood and wood-based materials. Classification and designations.
• GOST 13715-78 “Joinery plates. Specifications";
• GOST 30255-95. Furniture, wood and polymeric materials.

What equipment to choose for the production of natural wood furniture

To organize a full-cycle furniture production, you will need to purchase: a thicknessing machine, a jointer, a drilling and grooving machine, a circular saw for cutting a wide board, milling machine, grinding machine, turning and milling copy machine, spray gun, drilling and filler machine, edge banding machine and other auxiliary equipment. The main equipment supplier is China and Taiwan.

How much money do you need to start a business for the production of natural wood furniture

Estimated costs for the purchase of equipment for organizing the production of full-cycle wood furniture are 700 - 1000 thousand rubles(including accessories).

Raw materials used for furniture production

For the manufacture of wooden furniture, ready-made furniture panels or edged solid boards are used. The most popular types of wood are: pine, oak, beech, hornbeam, alder, birch, larch. Sawn and dried boards are purchased from forestries, timber enterprises and private firms.

One m3 edged board from pine will cost about 6500-7500 rubles. Particular attention in the production should be given to the paintwork. The varnish protects the wood from external influences, increases resistance to moisture, thereby increasing the life of the furniture. To achieve the best result, the wood is varnished at least three times, drying thoroughly after each application.

Expert tips for creating natural wood furniture

Step by Step Plan to Start a Wood Products Business

The size of the premises for organizing a furniture business directly depends on the planned volume of production. If we are talking about a full production cycle (and not a “garage version”), then the following departments are required:

1. Production shop - a place where woodworking machines and other equipment will be located;
2. Assembly shop - a place for assembling wooden furniture from pre-prepared parts;
3. Paint shop - a room for paint and varnish work;
4. Dryer or drying chamber;
5. Warehouse for finished products / warehouse for raw materials;
6. Production staff room;
7. Restroom, shower room;
8. Premises for administrative staff and sales managers.

The requirements for the production facility are standard and require heating, water supply, ventilation, a 3-phase network, a system fire safety.

Technology of production and manufacture of furniture made of wood

The full cycle of wood furniture production includes the following steps:

Stage 1. Preparing a working sketch. At this stage, technologists develop three-dimensional models and working drawings of the future product.

Stage 2. Preparation of wood for production. At this stage, the type of wood is selected, as well as the drying of the solid wood for 10 days, until its moisture content drops to 80% of the original values.

Stage 3. Dissolution furniture board using a multi saw machine. At this stage, the bark is removed and the board is cut to the specified dimensions.

Stage 4. The cross cutting machine removes knots, resin pockets, curves and other defects.

Stage 5. Splicing of bars along the length - preparation of lamellas. Wooden blanks are laid out on the table, aligned along the edge and pressed with a press from above and on the sides. Upon reaching the programmed length, the lamellas are cut off and sent to the press.

Stage 6. Lamellar bonding. The lamellas are subjected to two-sided grinding and glued on a fan press, taking into account the guide fibers. The bonding time is 40-50 minutes.

Stage 7. Shield Formation right size using a tape dividing machine.

Stage 8. Planing a lamella from both sides on a thicknessing machine.

Stage 9. Sawing a furniture board to the desired thickness using a calibrating grinder.

Stage 10. To create additional strength, an array of wood is finished with veneer.

Stage 11. Reaming mounting holes on a drilling and filler machine. The production of individual pieces of furniture is carried out on automated machines according to specified parameters. Such machines make all the necessary cuts, cuts and edges of veneer.

Stage 12. Finished products are subject to control checks for defects and defects.

Stage 13. All details are polished 3 times to give the perfect smoothness of the product.

Stage 14. Lacquering and painting of furniture in accordance with the given design.

Stage 15. Drying of the product.

Stage 16. Packing the product and sending the finished product to the warehouse. In addition to the full cycle, there is also a short production cycle. This is when ready-made dried boards serve as raw materials for the production of wood products, which are polished, sawn into certain parts, assembled and varnished.

Staff

The mandatory staff of even a small enterprise for the production of wooden furniture includes:

• constructor-designer;
• technologist;
• carpenters-machine operators (from 4 people);
• carvers;
• auxiliary workers (from 2 people);
• Sales Manager.
  

The company will also need an accountant, a cleaner, a personnel officer and a lawyer. However, most small businesses in order to reasonable economy attract these workers on the rights of outsourcing. It is not profitable to arrange such employees for a full-time job, with small volumes of production.

conclusions

The organization of the production of furniture from wood of a full cycle is a very complicated matter. The project manager has to solve such important issues as: selection of qualified personnel, staff motivation, selection of high-quality wood and paintwork materials, purchase of expensive equipment and tools, study and implementation of carpentry technologies, regular retraining of production personnel, sales management, processes, people and much more.

It is for this reason that many inexperienced newcomers to this field are in for an imminent collapse. According to some market players, the best way to study the industry with minimal risk - to organize the business in a somewhat "truncated form". For example, you can only design furniture, and entrust the production processes to an experienced craftsman. The key task of organizing a business will be to find a responsible and competent partner.

Professional business plans on the topic:

• Furniture production business plan (36 sheets) - DOWNLOAD ⬇
• Furniture store business plan (39 sheets) - DOWNLOAD ⬇

How much can you earn in the production of wood furniture

The payback period for such a business is an average of 2 years. The competition in this area is quite strong and in order for your business to flourish, you need to constantly care about product quality, analyze the market and competitors, conduct advertising activities and attract new customers through continuous improvement and expansion of the product range.

With the right organization of the business, the annual net profit will be up to 40 percent of the costs, which is definitely a good enough indicator.

What documents are needed to open a business for the production of wood furniture

First you need to decide on the legal form of the enterprise. The organizational and legal form will depend on the choice of potential consumers of your products - individuals, small entrepreneurs, or legal entities and institutions. Required documents for registration of LLC:

1. Company name.
2. Opening decision protocol.
3. Information about the founder and accountant.
4. Requisites.
5. Charter.
6. A document confirming the payment of the state fee.

Are permits required to open a business?

List of permits for opening a business for the production of wood furniture:

1. Trading license.
2. Permission from SES.
3. Fire department permit.
4. Product certification.

An experienced lawyer will provide you with assistance in obtaining all permits and certificates, which will significantly reduce the time for registration.

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

How we decided to engage in the production and sale of cabinet furniture from chipboard

My name is Irina, I live in Irkutsk, my husband and I were 26 years old at the beginning of the start of the business in 2013, we are closing soon (2.5 years of activity).

Production of cabinet furniture

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

At first it was furniture for my home and for friends and relatives, and then there were small private orders from other people. After had experience as a furniture project manager in industrial production. And we decided, that's it - it's time to start doing furniture production on our own, and not work for the "uncle". Of course, we had no experience in running our own business, and we began to study this issue.

In general, a manufacturing business involves a complex system. It is necessary to immediately have premises, equipment, qualified personnel, transport. Think about, suppliers and many other things, and at the same time, so that not a single element falls out of sight.

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

Many people told us about the high competition in this segment - and indeed, the furniture market is one of the actively growing ones. The volume of the Russian market of cabinet furniture is already more than 4 billion dollars a year (author's data, as of the end of 2015 - ed.). But furniture production is mostly concentrated in the Central District of Russia, and only 2.9% of the total is produced in our region.

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

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

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

We had several options for the concept for the project: the manufacture of furniture for private orders for individuals and legal entities, the creation of collections of typical furniture for different segments of customers and its sale through city and region stores. They even wanted to create an online store of ready-made furniture solutions (they started doing it), and then their own chain of stores. But we decided that at first we would focus on working on an individual order, and then we would think about a line of typical pieces of furniture.
At the same time, they were going to work actively to create and promote their brand, focusing on quality, ergonomics and non-standard design (as far as possible with such materials).

Business plan for furniture production

We did not have our own initial capital - only ideas, a desire to change the world and a small client base. They hoped only for themselves and believed in luck. Since we had nothing to hire workers, we divided work responsibilities among ourselves: my husband completely covered production at all stages, took orders, worked with suppliers and communicated with customers personally. In addition, he was engaged in the overall strategy and the search for points of sale. And I got marketing, advertising, public relations, taxes and future personnel.

It was planned to invest 5-8 million rubles in the business within five years at the expense of profits, loans and investments from outside. These funds were supposed to gradually purchase the necessary equipment and premises. By the end of the investment, the total number of employees was going to be increased to 18 people (director, accountant, sales manager, designer-technologist, storekeeper, 11 production workers and two loaders). The minimum planned sales volume at the end of the first year of operation was to be 400 thousand rubles per month.

How to get a subsidy of 300,000 rubles for a small business

We were not going to write a real business plan (we thought that everything would be calculated), but just at that time the city administration announced a competition for projects to provide subsidies to small and medium-sized businesses. We were very interested in investing in a business of 300,000 rubles with virtually no obligations, and we decided to try to participate in the competition.

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

It was important to find suitable premises and equipment at the beginning of the work. We were very lucky that we managed to agree on the lease of a workshop with the necessary machines of the former existing production. There was everything you need for normal operation for the first time. Of course, not in excellent condition, but it was possible to work. My husband taught himself how to repair machines. We made a contract with the landlord, negotiated the price for a long time, but we decided that we could handle everything. The advantage of this premises was the close delivery of the main material for production. We carried out the delivery of small items by personal transport, which, of course, affected its quality.

We did all the paperwork and wrote the business plan ourselves. We barely managed to collect documents confirming the expenses for the required amount (15% of the requested subsidy - 45,000 rubles) from the start of IP registration. I remind you that we had no money at all, so it was necessary to have time to fulfill several orders for furniture and from that already enter the costs. We barely had time to collect everything, handing over documents for a subsidy in the last minutes. We won the competition for a subsidy, but in addition we got obligations for constant reporting and the official hiring of three people within six months.

Our biggest business mistakes

The amount of a subsidy of 300,000 rubles was requested for a new edge banding machine (a thing that quickly glues the edge and reduces the time it takes to make furniture). It was assumed that it would increase the volume of production and profitability. It was the choice of this machine that became one of our main mistakes. Looking back, we understand that it was worth spending the received subsidy on the rent of the workshop, on the purchase of materials or on the main machines that will be used frequently. But we bought something that stood idle almost all the time. I wanted to buy more new equipment for not very big money. The machine turned out to be inconvenient, problematic to maintain, and some problems constantly arose with the supplier company. Our inexperience and their irresponsibility did their job, the money was spent nowhere.

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

We decided that it was time to hire workers, especially since the deadline for obligations for the subsidy was approaching. Our expectations that people will come who are just as well versed in technology and who want to work hard and earn based on the results of their work, of course, did not come true. Then we began to look for just capable students without experience, but again - nothing. As it turned out, not everyone wants to earn money, most people just want to get money. So my husband had to work with varying degrees of success alone without days off, and sometimes even without sleep.

Since we were still bound by subsidy obligations and had to employ people and pay at least minimum wage and all the deductions from it, we found ourselves in an even greater financial hole. If it were possible to guess what the receipt of a subsidy would lead to in our case, we would hardly have gone for it. They would work quietly in the shadows without any taxes and deductions and would collect capital for business development. But what's done is done.

We got into fixed costs:

• rent,
• IP insurance premiums.

into variables:

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

Due to financial problems, we lost the workshop, the new machine had to be given away to pay the rent debt. We found ourselves without funds for production, and even with obligations to customers. They began to cooperate with another workshop for cutting material, here the husband did the main work. Correspondingly, the productivity dropped dramatically, and we lost the trust of customers due to non-compliance with the deadlines for the production of the order. After all, now the chain of actions for creating a finished product has become very long, and almost every element had its own problems.

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

Furniture business - great choice to start a young entrepreneur. People always buy furniture, regardless of the season and weather. Even a crisis will not change anything in your business, except that it will reduce the class of furniture from elite to classic. Therefore, open a furniture shop – a good and promising idea that will surely bring you great profits.

Studying the market

Furniture production can be divided into three main areas:

1. Production of classic office furniture (cabinets, partitions, cabinets, tables). The main emphasis is on functionality and rigor of appearance.
2. Production of kitchens and suites. The kitchen is the face of the home, it is here that people spend most of their free time, so it should be equipped with comfortable and high-quality furniture. Every year the demand for kitchen sets grows by an average of 15%.
3. Release of furniture under the order. This is the most promising type of business. Furniture is created depending on the requirements of the client, according to individual sizes and drawings.

Begin furniture business not difficult - for this, a minimum investment is enough

Note: in megacities you will face serious competition, so this business is best to start either in small towns or enter the market with an original and promising offer.

Be sure to find out if there are similar furniture manufacturing workshops in your city, what services they offer, what are the actual terms of furniture production and the price range of your competitors. Think about what you can do better to win over customers.

Room requirement

To organize a full-fledged factory, you need three full-sized rooms. This:

1. Workshop for the production of furniture. Its area must be at least 100 m2.
2. Office. Managers will work here, concluding contracts for the purchase of raw materials and accessories, as well as for the sale of finished products. Often in the office there is a small exhibition stand with samples of materials and furniture, or even a small shop.
3. Warehouse. This room will be used for storage of material and finished products. It should be spacious (about 70-100 square meters) and dry.

These premises may be located in the same building or be scattered around the city. For example, the workshop itself will be located on the outskirts, and the office with samples in the city center or convenient passing place. This will greatly increase the number of potential customers. The warehouse can also be located on the outskirts near the factory. This will allow you to reduce rental prices by several times and avoid complaints from residents about the constant noise from cutting material.

The room for the production of furniture should be spacious

Purchase of the necessary equipment

start production upholstered furniture how the business should have enough money to purchase the appropriate equipment. You can, of course, cooperate with other workshops for cutting furniture sheets, but this will significantly increase the lead time for orders and the cost of finished products, which will nullify all your competitive advantages. Therefore, buying machines is definitely necessary. To save money, you can buy used equipment - its price can be 30-50% lower than that of a new one. But you need to be well versed in the machines, so as not to buy already decommissioned ones.

Read also: Equipment for the production of sawdust briquettes

For work, you will need the following types of machines:

1. Band saw. Such equipment is used for precise cutting of wood, MDF or chipboard according to the ordered dimensions.
2. Drying. These machines are used if you plan to work with natural wood and it will need to be dried to a certain humidity.
3. Machines for decorating and fine woodworking. Used for shaping wood, processing edges, cutting various chamfers, other milling and drilling machines.
4. Glass working equipment. These include sandblasting machines, drilling, engraving, cutting, etc.
5. Devices for working with metal. This includes welding, drilling, cutting, polishing metal.
6. Sewing equipment for creating upholstery, covers and various upholstered furniture items.
7. Tools. These include hand drills, screwdrivers, staplers, screwdrivers, planers, hammers, etc.

Also, for the production of furniture, you will need a variety of fiberboard and chipboard sheets, MDF boards, high-quality fittings and a large number of fasteners. From consumables: various varnishes, paints, adhesives, etc.

Staff

A lot in the furniture business depends on the staff. To build a furniture business from scratch, you need skilled and responsible workers who will accompany the product at all stages from design to sale and installation at customers. IN without fail you will need:

1. A manager who will take orders, draw up contracts for the supply of necessary fittings and materials, and support projects.
2. Director of operations. The duties of this person include control over each stage of furniture production. This is a foreman who monitors the workers, organizes their work and takes finished orders.
3. Workers. 3-4 people are enough for a small workshop, up to 8 specialists may be needed for a medium one. Their responsibilities include the entire cycle of work on the production of furniture from raw materials.
4. Driver. This person will be engaged in the delivery of furniture to customers from the warehouse. Also ensures the supply of necessary materials.

Qualified staff is the basis of your business

This is the minimum possible staff for the operation of a mini-factory that makes furniture. The role of the manager and accountant at the first stages can be performed by you - there is nothing complicated in this. If you do not want to waste time, then you can hire people, but this will reduce the payback period due to salaries.

Marketing

You can start putting together a marketing plan even when you haven't opened. The task of this plan is the correct organization of various events for the sale of the maximum possible amount of finished products. How to sell furniture the right way?

1. Open an exhibition center or mini-shop in the office.
2. Conclude an agreement with furniture stores and put up products for sale with them.
3. Start working with tenders created by budgetary organizations. Very often, schools, kindergartens, hospitals and various municipal institutions become regular customers that bring in serious money.
4. Interested in several large private clients. These can be banks that periodically open new branches, various offices, etc.
5. Create your own website, on which you need to post detailed information about furniture, phone numbers for communication and a detailed price list.
6. Create groups on social networks and support them.
7. Launch classic advertising: banners, flyers, streamers, signs, billboards.
8. Advertising in the media: radio, TV, newspapers, magazines.

How much money do you need to open

It is impossible to calculate exactly how much money you need to start furniture production as a business from scratch without knowing the specifics of your region: everything depends heavily on the level of rent, the chosen work profile, the number of workers and equipment. We will give the average prices for the country, which will be fair in almost 80% of cases.

1. The purchase of premises for doing business will cost about 1 million rubles. If you rent a building, then you will spend about 50-70 thousand per month, that is, it is more profitable to buy a building.
2. Purchase of equipment for the factory, its delivery and installation - 600,000.
3. Repair of the building, paperwork - 300,000.
4. Consumables - 250,000.

Never skimp on accessories and tools

Now let's calculate the fixed costs. They will include:

1. Utilities fee - 30,000.
2. Salary - 180,000.
3. Fixed expenses for the maintenance of the site, social networks, advertising and marketing - 20,000.
4. Other expenses, incl. and taxes - 30,000.

* 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. total area premises - 350 m2, on which 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 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 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.

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

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

The advantages of this format of furniture production:

• does not require large investment costs;
• to accommodate production capacity 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;
• furniture handmade 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 tie, upholstery and color options, various models– 3 local, 2 local, corner, with folding mechanism and without)

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 from low level income occupy the largest specific gravity within the 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, furniture care information, design solutions, in which your products fit, information about promotions and bonuses.

Also for the furniture manufacturing business, the most effective way advertising is the placement of information about products 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 effective option promotion of the workshop for the production of furniture can be the printing of advertising blocks in the 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%.

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

One of the main tasks of marketing is the formation public opinion and loyalty of consumers to 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 in government bodies. To conduct commercial activities, an individual entrepreneur is registered with a simplified taxation system (15% “income minus expenses”). Types of activities according to OKVED-2:

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

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

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

31.01 - Manufacture of furniture for offices and trade enterprises;

31.02 - Production of kitchen furniture.

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

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

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

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

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

GOST 13715-78 “Joinery plates. Specifications";

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

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

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

Table 4. Staffing and payroll

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

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

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

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

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

Accountant - is a materially responsible person, maintains all financial documentation, carries out accounting, controls 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 instructions, hires and dismisses employees, selects suppliers and searches for distribution channels. Education - higher, work experience in this field - 3 years.

Cleaning lady - cleans the sales office.

Financial plan for the production of furniture

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

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

Table 5. Investment costs

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

The fixed costs of furniture manufacturing consist of rent, utility bills, payroll, advertising costs, taxes, and depreciation. The amount of depreciation deductions is determined by the straight-line method, based on the term beneficial use 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, which 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 in the shop fire alarm 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 by selecting qualified personnel, purchasing good equipment and 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

Cabinet furniture enjoys a fairly wide target audience - both budget and wealthy buyers acquire structural elements for home or office furnishing, as well as businesses. Definitely, if we consider such a business idea as a startup, then there is a rational grain here - there will be customers, there is no need to spend too much on development, and the product is in demand. Therefore, next we will talk about how to open furniture manufacturing, draw up a business plan and how much income you can expect.

How to develop a furniture manufacturing business?

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

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

It should also be noted appearance furniture - design trends change almost every season, and therefore small productions have a significant advantage over large-scale productions - you can quickly switch to the release of a new line.

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

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

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

Starting a business - first steps

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

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

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

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

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

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

How to write a furniture manufacturing business plan

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

The structure of this document is something like this:

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

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

Marketing part

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

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

Separately, it should be said about advertising: there is no need for empty promises like “the lowest prices and the most the best quality”, “the deadline for any order is 2 days”, and so on - you need to do everything with high quality, at a reasonable cost, and promise your customers the same in promotional products.

Starting costs

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

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

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

Features of the production of cabinet furniture

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

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

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

Premises selection

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

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

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

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

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

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

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

Necessary equipment

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

To get started, you will need the following equipment:

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

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

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

Hiring

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

The classic scheme for such production is as follows:

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

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

Calculation of income and profit

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

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

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

Now for the profit:

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

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

Summing up

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

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

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