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

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

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

How to start a furniture manufacturing business?

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

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

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

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

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

How to choose the right material supplier?

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

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

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

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

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

Search for premises and purchase of equipment

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

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

Confidence in the safety of all property is also important, because over time, if the business develops successfully, components and equipment worth several thousand dollars can be simultaneously located in the workshop. Don't forget to provide a convenient download here too. finished furniture and unloading of brought parts with fittings.

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

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

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

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

Software

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

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

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

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

Prospects for the development of the furniture business

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

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

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

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

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

Their cost is approximately:

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

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

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

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

In order to organize your own successful furniture business from scratch, it is paramount to do right choice its focus and format. Therefore, an entrepreneur must get acquainted with the peculiarities of furniture production in Russia, as well as study supply and demand in the intended functioning market. With proper organization, the furniture business will become a source of high profit for its owner and will not lose its relevance. long years.

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Services provided and business formats

The list of the main services provided by the furniture company:

• mass production of furniture in accordance with the catalog;
• piece production of furniture to order, taking into account the individual wishes of each client;
• exclusive furniture design;
• sale of furniture;
• transportation and lifting to the floor;
• Furniture assembly;
• restoration/repair of old furniture.

Depending on what kind of furniture is produced, all enterprises are divided into universal and specialized.

Furniture business specialization options:

• kitchen furniture;
• cushioned furniture(sofas, armchairs);
• beds;
• furniture for a children's room;
• tables and chairs;
• office furniture;
• bar counters;
• commercial equipment (showcases, racks, reception, etc.);
• wooden furniture;
• glass furniture;
• wicker furniture;
• built-in furniture, etc.

In order for a novice businessman to gain a foothold in the market, he needs to choose the right market niche.

Recently, there are more and more companies involved in the production of non-standard furniture from:

• tree;
• glass;
• plastic;
• chipboard;
• MDF etc.

Experts note that today the most promising for start-up entrepreneurs are areas related to the production of furniture for the kitchen and office.

The idea of ​​creating your own business in the furniture industry can be embodied in one of the following ways:

• a full-fledged furniture factory (for example, for the manufacture of upholstered furniture);
• furniture shop;
• furniture repair/restoration salon;
• traditional furniture store;
• furniture online store;
• a company engaged in the delivery, assembly and installation of furniture.

The classic furniture company provides:

• designing furniture and creating your own product catalog;
• manufacturing of components;
• assembly of furniture (if necessary);
• sale of finished products through branded outlets.

However, quite often there are small furniture workshops that assemble furniture from ready-made components. For example, when buying MDF boards, they will be sawn directly in the warehouse in accordance with the right size. Facades, countertops and fittings can be ordered from furniture factories that are ready to make custom-made elements with certain parameters. To assemble furniture, it remains only to drill desired holes for fasteners and install all parts. Such a business requires a minimum investment.

Relevance

Reasons for the relevance of the furniture business:

1. High yield and profitability. When organizing a small furniture shop profitability of 60 percent or more can be achieved.
2. Perspective. There is always a demand for furniture, as few people can make interior items on their own. Furniture is a general consumer goods with a wide target audience. Despite high competition, the market is not saturated; any entrepreneur who is serious about his business can gain a foothold on it. Sales rates are consistently high and do not have a seasonal nature.
3. You can open your own furniture workshop with minimal investment. This business option is suitable for people with a limited budget. Having mastered the market, the entrepreneur, if necessary, will be able to expand the business to a factory format.
4. furniture business can be organized by both a person with experience in this field of activity, and a beginner. The latter does not need to undergo special training, he will be able to figure everything out on his own with the help of the Internet and specialized literature.
5. The procedure for registering a business is not very complicated. It can be issued as an IP. For the successful operation of the enterprise, it is necessary to comply with the sanitary and fire safety requirements of supervisory services.
6. Many market segments, among which you can choose the closest, simplest, most understandable and promising. For example, the production of furniture for a children's room or sofas made of genuine leather.

Description and analysis of the market

Characteristics of the Russian furniture market:

• high competition, about three thousand medium and large furniture enterprises operate on the market, there are a total of five thousand workshops / factories;
• according to marketers of large furniture manufacturers, in 2020 the share of domestic companies will reach 70 percent of the market capacity;
• the ten largest furniture companies in Russia occupy 30 percent of the total market capacity (the leader is IKEA, 22 percent);
• in the short term, an increase in the number of small and medium-sized enterprises is expected (their total share will be 70-75 percent);
• the maximum number of furniture manufacturers is concentrated in the Central Federal District and the Volga Federal District (about 25 percent of the total number of market participants);
• a promising sector of the market where furniture for the kitchen is produced (in the last 10 years, the annual growth of the market is about 20 percent);
• among entrepreneurs, the market sector is popular where built-in furniture is made to order;
• the most promising segment of economy-class interior items, therefore, a reduction in the share of the premium segment and an increase in the standard/budget segment are predicted;
• the furniture market stimulates an active growth in the pace of housing construction and its purchase, since any apartment / house needs interior items;
• the growth of the exchange rate leads to a reduction in the number of furniture suppliers from abroad;
• it is more profitable for small furniture manufacturers to sell products in their region, thus transaction costs will be reduced;
• it is easier for market participants to sell products in settlements with up to 500 thousand people, since there are often no network retailers here;
• according to statistics, today every fifth Russian orders furniture in an online store (in 2016, 12.5 percent of interior items were sold via the Internet);
• 50 percent of furniture manufacturers have their own website;
• new models/developments regularly appear on the furniture market, it is constantly in motion, and for successful operation, you need to follow the latest trends.

Photo gallery

Dynamics of housing commissioning in the Russian Federation from 2000 to 2019 Dynamics of the capacity of the furniture market in the period from 2009 to 2016 The results of the response of Russians to the question about the place of purchase of furniture Revenue dynamics of wholesale and retail trade in household and office furniture (2011-2015), thousand rubles

The target audience

Depending on the business format and its orientation, target consumers can be:

• people with average income;
• low-income people;
• people with high income;
• resellers (traditional and virtual furniture stores, hypermarkets, etc.);
• entrepreneurs (when buying commercial furniture, for example, a bar counter, cafe tables, shop windows, computer tables for the office, etc.).

Buyers can be both men and women, Internet users and not, large enterprises or small, wholesale and retail trade networks. Average age target audience - from 18 to 60 years.

Competitive advantages

In order for a furniture company to stand out from the background of numerous competitors, it must have the following features:

• adequate price corresponding to the quality of the finished product;
• efficient and high-quality performance of work on the production of furniture;
• use only proven and high-quality materials;
• availability of agreements with suppliers of fittings, components and other materials;
• well-thought-out product catalog, including a variety of furniture options for different tastes (providing for many variations of colors, textures, materials, fabrics, etc.);
• when designing furniture, a professional designer and / or engineer should be involved;
• close-knit team of competent specialists;
• the use of modern equipment that allows you to get an exclusive and / or very high quality product;
• a successfully functioning online store;
• the possibility of making furniture according to the client's order;
• design capability exclusive furniture in accordance with the wishes of the client;
• friendly customer service;
• organization of delivery and assembly of furniture;
• providing a guarantee;
• replacement of goods or a refund if a factory defect is detected.

The business idea of ​​a furniture company will be successfully implemented when the entrepreneur correctly determines the specialization of the business and forms the necessary competitive advantages.

Sales channels

Ways to market products furniture factory/workshops:

• own department in a furniture shopping center / hypermarket;
• own network of furniture stores;
• own store in a multi-profile shopping center;
• non-chain furniture stores;
• resellers;
• direct sales to corporate clients (for example, face-to-face meetings, phone calls and catalog distribution);
• own online store.

Advertising campaign

To stimulate sales, the following activities should be carried out:

• installation of stands / billboards with information about the company's products on the street in busy places, for example, near metro stations, public transport stops;
• creating your own high-quality website and online store;
• opening a company profile in social networks;
• promotion of the company's website on the Internet;
• development of catalogs, brochures, booklets, business cards, leaflets, etc., for distribution among potential customers and partners;
• establishing relationships with partner companies for mutual marketing, for example, with hardware stores and design studios;
• development of a program to increase customer loyalty (including promotions, discounts, bonus programs, etc.);
• placement of advertisements in thematic print media;
• participation of the company in exhibitions and fairs dedicated to furniture topics.

In the furniture industry, it is very important not to lose your reputation. If the product produced is of poor quality, then no advertising will force buyers to purchase it. Therefore, the entrepreneur must pay special attention to working with the client, quality control of purchased materials and components, as well as the production process.

Step-by-step instructions for opening

To open a furniture workshop and organize the production process, you will need:

1. Analyze the furniture market in the proposed region for the location of the enterprise and the sale of products.
2. Determine the direction of the business, its scale, production technology and solve other key issues.
3. Choose a place and a room for the workshop.
4. Calculate the performance indicators of a furniture production business project from scratch.
5. Register an enterprise in accordance with the legislation of the Russian Federation.
6. Conclude long-term lease agreements for a production facility or buy it.
7. Find equipment suppliers and purchase it.
8. Find suppliers of raw materials (boards, chipboard, MDF), materials (paints, adhesives, fabrics), accessories, etc., and also agree on their supply.
9. Select specialists with the required qualifications.
10. Develop furniture designs.
11. Carry out work on the manufacture of parts, cutting material and their processing.
12. Perform furniture assembly.
13. Create a catalog of the company's products.
14. Determine distribution channels for products.
15. Start implementing a marketing plan.

The documents

Key points of the furniture business registration process:

1. Optimal forms for registration of furniture production activities: IP, LLC. The choice in one direction or another is largely determined by the scale of the enterprise and the number of founders. When opening a small workshop by one entrepreneur, the option of creating an IP is more suitable.
2. When registering, the OKVED code is indicated - 31 "Furniture production". In the case of manufacturing furniture for offices and commercial enterprises, code 31.01 is selected, and for kitchen furniture - 31.02. For the production of other types of furniture, paragraph 31.09 is suitable, which in turn may involve work on an individual order or not. In order to be able to sell products independently at retail, code 47.59 is indicated, and via the Internet - 47.91.2.
3. For the manufacture of interior items, a license is not required, but it is recommended to certify the products. This measure will confirm the quality of manufactured furniture. Products made according to individual project, is not subject to certification. In this case, there must be documents confirming the quality of the materials used.
4. When determining the taxation system, you should stop your choice on UTII or STS.

The main current norms and standards that must be observed at a furniture company planning to obtain quality certificates for manufactured products:

• GOST 16371 - 93 "Furniture. General TU";
• GOST R 50051 - 92 "Furniture. Chairs";
• GOST 19917 - 93 "Furniture for sitting, lying. General TU";
• GOST R 54208 - 2010 "Protective and decorative coatings on furniture made of wood / wood materials";
• GOST 19194 - 73 "Furniture. Method for determining the strength of fastening of decoy legs of furniture”;
• GOST 30255 - 95. "Furniture, wood and polymer materials".

To obtain an opinion from the State Fire Supervision, the following papers are prepared:

• statement;
• company registration certificate;
• BTI floor plan;
• contract for the installation of fire alarms;
• property insurance policy.

To obtain an opinion from Rospotrebnadzor, the following papers are prepared:

• statement;
• certificate of establishment of the company and its registration in the IMNS;
• a contract for the lease of production premises or a document confirming the ownership of it;
• list of manufactured goods;
• sanitary passport of the premises;
• contracts for the removal of waste and garbage.

room

Classic medium-sized furniture production includes the following workshops and premises:

1. The office of a designer/engineer who designs furniture and improves existing models.
2. Manufacturing facility. This is where the woodworking equipment is located. Here is the production of details of future furniture.
3. Assembly shop. This room is intended for the assembly of furniture from manufactured parts and purchased components.
4. Paint shop. This is where the paint work is done.
5. Sewing factory. It is necessary in the production of upholstered furniture and beds, it is used for cutting fabrics and sewing upholstery for interior items.
6. Dryer. This room allows you to save raw materials and prepare for further processing / use.
7. Warehouse for finished furniture, raw materials, consumables, accessories, etc.
8. Room for quality control of finished products.
9. Utility room for staff.
10. Bathroom equipped with shower.
11. Administrative space.

Requirements to production premises:

• the status of non-residential premises for industrial purposes (due to the high noise level);
• low rent or cost (if purchased);
• location - on the first floor (maximum - the second), it is possible on the outskirts of the city;
• number of entrances - two entrances (one for production purposes, and the second for working with partners and clients, to the office);
• availability of three-phase electricity (380 W), ventilation, water supply, heating;
• convenient access roads (for personnel, suppliers of raw materials, buyers);
• platform for loading and unloading of raw materials, materials, finished products, etc.;
• moderate humidity and lack of dampness, since most of the materials used for the production of furniture are afraid of moisture;
• compliance with the requirements of SES and fire safety;
• the possibility of expanding production in the future.

The area of ​​​​the room is determined based on the fact that:

• it should contain all the equipment of the technological chain;
• it was possible to organize several separate workshops;
• the necessary stock of raw materials and materials was placed;
• warehouse stock of finished products.

The minimum area for organizing a furniture workshop is 150-200 square meters.

If the furniture production business idea involves the organization of its own distribution system, then the entrepreneur needs to find premises / premises for opening a store or a network of salons.

When choosing a suitable trading platform, the emphasis should be on:

• high passability of the target audience;
• the minimum number of direct competitors;
• affordable price.

Equipment and inventory

An approximate list of equipment for a small furniture workshop for the production of upholstered furniture:

Equipment	Approximate prices, rub.
Jointing and thicknessing machine	23 000
Lathe	62 000
Milling machine	125 000
Miter saw	15 000
jigsaw	5 000
	15 000
	8 000
Clamps	2 000
Vise	5 000
Painting equipment	120 000
Screwdriver, perforator	15 000
Sewing machine	30 000
cutting table	20 000
Chisels, knives, cutters	15 000
Office furniture, office equipment	50 000
Auxiliary inventory, tools	20 000
Gazelle car	350 000
Total	880 000

The video tells about the machines used in furniture production. Filmed by the channel: "Hao Zhang".

Photo gallery

poppet grinding machine Desktop drilling machine Jointing and thicknessing machine Miter saw Milling machine Wood lathe

Staff

The staffing of a small furniture workshop:

№	Position	Salary of one employee, rub.	Number of persons
1	Director (performs the functions of an accountant and sales manager)	25 000	1
2	Design engineer	20 000	1
3	Production department specialist	20 000	1
4	Assembly line specialists	20 000	1
5	Paint shop specialist	20 000	1
6	Sewing shop specialist	15 000	1
7	Production master	23000	1
8	Handyman (acts as a driver)	12 000	1
Total		155 000	8

Requirements for the main personnel of furniture production:

• availability of professional knowledge and skills in the field of the position held and the functions performed;
• technical education;
• work experience;
• ability to handle professional equipment;
• responsibility;
• no bad habits.

To motivate staff to work, their wages should be tied to the amount of work performed.

Financial plan

The profitability of the furniture business in each case is individual and depends on many factors underlying the implementation of a business project.

Further financial planning of a business idea for organizing furniture production is based on the following data:

Indicator	Description
Business Format	Small furniture shop
Business focus	Cushioned furniture
Main assortment positions	Sofas and armchairs in the middle price segment
Organizational form of business	Individual entrepreneur
Location	The Russian Federation; a city with a population of up to 500 thousand people; premises in an industrial area on the outskirts of the city
Ownership of the premises	Long term rental
Room area	200 square meters
The area of ​​the adjacent territory	100 square meters
State	8 people
Sales	Through intermediaries (dealers, furniture stores, online stores)

How much does it cost to start furniture production?

Investments in the opening of a furniture workshop:

Expenditures
Registration of entrepreneurial activity	5 000
Obtaining permits to start production	20 000
Rent for production premises (for 4 months)	200 000
Design, redevelopment, construction and repair of industrial premises, as well as laying communications	100 000
Purchase of equipment and its installation	880 000
Salary with accruals	250 000
Marketing expenses (including the creation of a business card website)	30 000
Purchase of raw materials, materials, components	100 000
Other costs	15 000
Total	1 600 000

Recurring costs

Furniture workshop regular expenses:

Expenditures	Estimated prices in rubles
Production space rental fee	50 000
Utility payments (water supply, sewerage, gas, electricity, waste disposal)	20 000
Payroll fund with accruals	196 500
Purchase of raw materials	50 000
Advertising	3 000
Depreciation (based on 7 years)	10 500
other expenses	5 000
Total	335 000

Income

The profitability of the furniture business was calculated based on the following initial data:

Financial indicators of the project, allowing you to estimate how much you can earn on furniture:

Indicator	First year	Second year	Third year
Monthly revenue, rub.	600 000	720 000	864 000
Monthly profit, rub.	265 000	385 000	529 000
Annual revenue, rub.	7 200 000	8 640 000	10 368 000
Annual profit, rub.	3 180 000	4 620 000	6 348 000
Business profitability, %	44	53	61

Calendar plan

Schedule for the implementation of the furniture production project:

Stages	1 month	2 month	3 month	4 month	5 month
Furniture market analysis	+
Solving basic issues of business organization (format, specialization, assortment, technology, etc.)	+
Premises selection	+
Drawing up a business plan	+
Preparation of papers for registration of a furniture workshop	+	+
Company registration		+
Purchase/rent of business premises		+
Room preparation		+	+
Search for suppliers of raw materials, materials, components and conclusion of supply contracts with them		+	+
Recruitment		+	+
Purchase of equipment (its installation, installation, adjustment) and inventory		+	+
Issuance of permits		+	+
Website development			+
Carrying out promotional activities			+	+
Purchase of raw materials, materials, components			+	+
Furniture catalog development		+	+	+
Definition of distribution channels			+	+
Start of production					+

Risks and payback

External risks of a furniture workshop business project:

1. Rising prices for materials, raw materials, components and their transportation, as well as rent of premises. In such a situation, there is an increase in the cost of production. If the market situation does not allow increasing the cost of finished products, then the increase in costs will be offset by part of the entrepreneur's profit. Reducing this risk is possible by concluding an agreement with a supplier, which will guarantee that prices remain unchanged for a certain period of time.
2. Low quality of raw materials, materials and components. The entrepreneur must make a careful selection of reliable suppliers of components from which the finished product is made.
3. High market competition. In order for the company to function in the market for many years, the manager needs to take care of creating competitive advantage. He must monitor the behavior of other representatives of the furniture business, the needs of customers, fashion trends etc.
4. Decrease in demand. To increase sales, it is necessary to carry out marketing activities and develop a loyalty program.
5. Force majeure circumstances. To prevent the onset of fire in the premises of the furniture factory, a modern specialized alarm system must be installed, and the established norms / rules must be observed. In addition, the risk of force majeure can be insured.
6. Refusal to renew the lease. To avoid this, it is necessary to analyze the offer of suitable premises for the organization of production, choose the most suitable one and conclude a long-term lease agreement.
7. Economic/financial crises. They lead to a decrease in the solvency of potential buyers. In such a situation, it would be logical to reorient the enterprise to the production of goods in a lower price segment.

Internal risks of a furniture workshop business project:

1. Failure to meet sales plan. A competent marketing campaign will help to solve this problem. It is also worth paying attention to the catalog of products offered to the buyer, perhaps it is outdated, does not correspond to the latest fashion trends and customer needs.
2. Failure to meet production plan. The reasons for this phenomenon can be: interruptions in the supply of raw materials, equipment breakdown, low qualification of personnel, etc. For the smooth operation of the enterprise, the entrepreneur must establish the logistics of supplies, organize monitoring of the condition of the equipment and its timely maintenance, and carefully select personnel.
3. Staff turnover. To motivate employees to work, it is recommended to use a bonus tool (for example, a percentage of profit) and organize decent working conditions.
4. Marriage of finished products. The company's reputation depends on how high-quality furniture is produced by the enterprise. It is important to organize internal quality control of manufactured furniture and prevent the sale of goods with low performance characteristics.

The payback of the project will be 6-7 months, since the monthly earnings of the workshop (minus expenses) in the first year is 265 thousand rubles.

Video

The key points in drawing up a business plan for furniture production are presented in the video. The presenter talks about how to open a profitable and profitable furniture business. Filmed by the channel: "Business Support Center".

The production of cabinet furniture is enough profitable business, since the demand for this species furniture stable throughout the year. For this business you will need:

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

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

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

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

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

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

Initial investment - 640,000 rubles.

The average monthly profit is 86,615 rubles.

Break-even point - 4 months.

The payback period of the project is 11 months.

2. Description of the business, product or service

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

The range of offered products includes:

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

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

Due to the influence of the seasonality factor, the assortment may change. For example, in summer time in large quantities they order furniture 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 the organization of small business "from scratch" by the most the best option is work on the principle of a short cycle. In this case, there is no need to purchase expensive equipment, and the workshop works under a specific order.

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

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

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

3. Description of the market

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

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

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

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

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

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

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

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

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

4. Sales and Marketing

Marketing channels

5. Production plan

Stages of creating a business for the production of cabinet furniture

Creating your own production consists of the following steps:

• State registration

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

However, if you intend to soon expand production and work with large suppliers and customers, it is better to register as an LLC right away. Optimal taxation system when working with orders coming from individuals- STS (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 high level 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 right 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 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 more long periods manufacturing. 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.

* Calculations use average data for Russia

1 132 000₽

Minimum starting capital

40%

Profitability

8 months

Payback

519 560 ₽

Net profit

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

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

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

Key Benefits of a Furniture Manufacturing Business:

relatively small amount of capital investments;

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

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

The volume of initial investments in the production of furniture is 1,132,000 rubles. Investment costs are aimed at repairing the premises, purchasing equipment, equipping the office, the initial purchase of raw materials and the formation 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 have increased by 19.14% - this is the most high rate growth rate over the past 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 retail significantly exceeds the volume of its own production. At the same time, it is more profitable for furniture manufacturers to sell their products within the region, which reduces transaction costs.

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

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

Ready-made ideas for your business

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

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

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

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

The advantages of this format of furniture production:

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

The disadvantages of furniture production include:

• innovation and imagination are the basis of business success;
• 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, performance of work to order, wide choose complete set 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, tabletop 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, seating height 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-seater, 2-seater, 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 the enterprise for the production of furniture 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 delivering and assembling furniture;

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

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

Ready-made ideas for your business

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

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

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

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

Ready-made ideas for your business

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

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

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 shipping, assembly, one-year warranty to repair or replace the product in case of defects, etc.

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

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

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

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

Participation in furniture exhibitions and fairs.

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

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

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

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

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

Furniture production plan

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

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

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

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

paint shop - a room for paintwork;

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

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

production staff room;

bathroom with shower;

administrative staff, office space.

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

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

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

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

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

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

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

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

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

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

planer - 70,000 rubles;

thicknessing machine - 120,000 rubles;

milling machine - 70,000 rubles;

drilling and grooving machine - 50,000 rubles;

copying lathe and milling machine - 150,000 rubles;

grinding machine - 80,000 rubles

painting equipment - 130,000 rubles;

panel saw with manual feed of materials - 140000;

screwdriver and puncher - 15,000 rubles;

other auxiliary equipment and tools - 50,000 rubles.

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

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

product design preparation;

work on cutting material and manufacturing parts;

material processing work;

assembly of finished furniture.

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

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

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

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

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

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

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

Organizational plan for the production of a furniture workshop

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

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

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

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

31.01 - Manufacture of furniture for offices and trade enterprises;

31.02 - Production of kitchen furniture.

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

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

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

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

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

GOST 13715-78 “Joinery plates. Specifications";

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

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

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

Table 4. Staffing and payroll

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

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

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

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

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

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

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

The head is a 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 production 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 with the selection of qualified personnel, the purchase of good equipment and high-quality materials;

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

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furniture making business

Have you ever tried to make furniture yourself, with your own hands? At home. At home, in the garage...

If you are completely unfamiliar with this issue in general and the process of organizing a furniture manufacturing business in the so-called “home conditions” (as a result of this knowledge and skills), then I will tell you that this is done in an elementary way!

Learn make your own furniture and, perhaps, start your furniture business- believe me, it is available to everyone!

That's what you think it is furniture business in Russian today?

And this is a business that:

Does not require large financial investments;
- has a profitability of 80 to 300%;
- the product of which all people use;
- can exist and develop independently of the technical equipment of your future enterprise;
- will never end;
- every year it develops more and more.

A business that people are already doing and quite successfully. A business that even a full-time student can do.

Piece manufacturing and mass production of furniture today have become simple to disgrace ...

This can no longer be called production ... Rather, it is a process that can be called: "Assemble the designer without outside help if you are 14 years old."

Today there is a real possibility make your own high quality, modern, absolutely any furniture, any configuration that you are used to seeing in a store - be it a kitchen, a wardrobe, a wall ...

And in order to make this furniture, you do not need to have any machines - only a computer, printer, hand drill and a small amount of manual (not electric) small tools in the form of screwdrivers, a hammer, etc. And of course, the knowledge of how this is all assembled, I emphasize, is not made, but assembled.

Does this sound unbelievable to you?

But what if I tell you that making modern, elite furniture that is sold in expensive, allegedly Italian salons, in which there are more “bells and whistles” than in a car, is no more difficult to make than assembling a computer from components. Of course, provided that you understand something in this ...

And if I also add that this furniture is not made in Italy, but in the garages closest to the store?

Yes, yes, I am talking about the very kitchen that you have been dreaming of all your life, with an aluminum or wooden front ... with a worktop that resembles natural granite ... with smoothly opening wide drawers ... with self-opening fronts ... with a granite sink ... with various chrome tubes , baskets, dryers, and aluminum profiles ... The one that costs from 80,000 rubles ...
About that very closet that has huge aluminum doors with a huge mirror and cooler stuffing than in BMW… which also costs more than one thousand dollars…

You just don't know anything about how furniture is made today!

Making furniture at home? Easy to learn!

You will learn many secrets of the furniture business, which can be done by any person who has never thought of engage in furniture production.

And the most interesting thing is that you do not have to invest a lot of money in this business, but at the same time, this business has a profitability of 80% or more.

And even a full-time student can do it, in their free time from study.

“How so?!”, you ask, “If a business has at least some profitability, therefore, it is necessary to invest at least some amount of money in it in order to make a profit.”

All right. But you will not invest money. You can be 100% sure of this. All you need is a minimal set of tools that almost every owner has and a place to assemble finished parts...

To make your own furniture, you do not need to have a special technical education and have innate design skills. Everyone (even a housewife or a child over 10 years old) will be able to independently design and manufacture almost any cabinet furniture without outside help. At worst, if you doubt your creativity, you can always recreate furniture from any photo or picture from a furniture magazine that catches your eye.
Can you imagine the seriousness of such knowledge and skill and what role it can play in your life?!

Let's look at a specific example of the manufacture of the most complex type of furniture - the kitchen. Why is the kitchen the most complex view? Because the kitchen package includes the most various fittings and materials, this is the first, and the second - all the details are small, and even the smallest flaws are immediately evident.

Let's take as a basis such an expensive kitchen:

What can be said about her? Large expensive kitchen, made of the most modern materials. It is relatively expensive, 48,000 rubles, excluding household appliances, stoves, ovens and microwaves. Honestly, its price in the store will be more than 15 thousand for sure.

The facade is made of frame MDF, has a built-in household appliances, lighting, deep drawers, roof rails, long handles. The boxes are made of high-quality German laminated chipboard, the fittings are also German, by Hettich. The cuisine is no worse than Western analogues, neither in quality nor in price.

Can you make your own kitchen? Not? And what is the difficulty? Don't know how it's done? Okay, I'll try to convince you otherwise.

Take another look at this kitchen. Could you assemble it if you were given everything disassembled, with an understandable sketch of each individual cabinet or bedside table and all the necessary bolts and nuts attached to this “constructor”?

Thought? And if you were given, let's say, 24,000 rubles for collecting it? And on top for the installation of 8% percent of the total cost, which will be another 4,000 rubles?

Would it be worth the effort of 5-7 days?

Do you think no one will give that much for assembling a kitchen? They will! You just need to think a little. Of course, if you buy such a kitchen in a store, then you will receive no more than 3% of the cost for the assembly, and if you “make it yourself”, you will receive at least 50% of its cost.

Your task is to find everything and order according to certain sizes or buy.

That is, at the first stage, you need to make clear documentation for the product, in which you will have to write out for yourself all the materials and accessories necessary for the manufacture of the kitchen and calculate all possible costs for making the order.

The material is purchased at a regular warehouse, sawing is ordered there. Facades, countertops, accessories, components are made at huge factories, they have representative offices in every city. So when buying, you are on an equal footing with all furniture makers. They also buy everything in a specialized store. You can buy anything, if not in stock, they will bring it to order. Glass is cut in glass workshops to your dimensions. We submitted an application indicating the name of the glass and the size, and received the finished glass...

What then comes out of all this?

All you need to do is drill holes for the euro tie to assemble the furniture, install all necessary fittings, handles, hinges, guides.

Well, stuff like that ... All this can be done in any garage, on a balcony, or even on the spot in an apartment.

Let's say, in order to assemble the kitchen that you saw above, you need to spend a maximum of 5-7 days (or sacrifice three days off) for everything - from the delivery of material to the installation of the finished product.