In modern life, no one can do without a cozy and comfortable home without furniture. Literally everything that is connected in our life with home comfort and even luxury mainly relates to high-quality pieces of furniture. Can you imagine a kitchen, living room, bedroom and children's room without sofas, cabinets and beds? It is possible to develop a business in the furniture industry according to two scenarios - to realize furniture already assembled by someone or to make your own. Often, aspiring entrepreneurs, deciding to work in the field of furniture sales, forget to study the needs and specifics of their customers' needs. To become successful, it is important to develop a business plan for furniture production in advance.
In what form is it necessary to register an enterprise
It is important to note that the legal form that is needed for this type of business is an IP (individual entrepreneur). This can be explained by the fact that the clients are ordinary citizens, that is, private individuals. But if it is expected that customers will appear among legal entities, it makes sense to register an LLC (limited liability company).
Business relevance
Opening a furniture company is a really good decision, because solid and stylish furniture is always in constant demand. But, despite this, it is important for novice entrepreneurs to remember that there is strong competition in this industry. In order to attract the attention of potential customers with their products, you need to competently approach the organization of the company, that is, draw up a real business plan for furniture production with calculations.
Concept development
What should be considered at the first stage of opening your own company? In the business plan of furniture production, it is worth determining what kind of furniture to offer consumers. By functional value, it is divided into the following groups:
- storage systems (chests of drawers, cabinets, racks, cabinets);
- furniture for "relaxation" (beds, chairs, armchairs, sofas);
- dining, coffee and writing tables.
Depending on the design features, furniture can be:
- built-in;
- collapsible;
- transformable;
- sectional.
The finished business plan for furniture production should include a description of the materials from which it is planned to make products. For production can be applied:
- natural wood;
- MDF;
- Chipboard;
- thick plastic;
- glass;
- metal and others
It is important to take into account in the business plan furniture production and furniture samples, namely their detailed descriptions.
An excellent option is the manufacture of furniture to order, taking into account all the wishes of customers. Thanks to the original design, interesting shapes and stylish layout of colors, it is possible to create truly unique projects. In addition, the manufacture of wicker furniture is considered a profitable business, because such products are pretty well sold out in the spring, summer and autumn.
Stages of building a business
For the successful implementation of the business plan for furniture production, you need to understand in what order to act. Main stages:
- Registration of an enterprise, which includes the preparation of documentation and its submission to the tax authority.
- Search for suppliers of materials and accessories. Preference should be given to those companies that are located next to the assembly shop. This will minimize the risk of delayed delivery of raw materials, eliminate the shutdown of the production process.
- Purchase of special woodworking equipment.
- Rental of premises.
- Production of furniture.
- Conducting an advertising campaign.
- Drawing up a commercial proposal and search for distribution channels.
Manufacturing technology
If you want to build a successful business, it is important not only to draw up a successful business plan for furniture production with calculations, but also to understand the intricacies of furniture assembly. Consider the basic technology for manufacturing products:
- development of the design of furniture using a special program;
- cutting materials for the details of future products;
- forming holes for fasteners;
- sticker of PVC film, veneer or laminated film;
- Furniture assembly.
Financial calculations
In order to bring the business plan for opening furniture production to life, you should, of course, invest start-up capital in the business. To open your own workshop you will need the following amounts:
- for the purchase of equipment - from 1 million rubles;
- initial purchase of material and accessories - from 150 thousand rubles;
- notarization of documents and company registration - from 30 thousand rubles.
In addition to this, it is important to remember that there are monthly costs, which also need to be included in the business plan of furniture production:
- subsequent purchase of consumables and raw materials - from 150 thousand rubles;
- rent for premises - from 50 thousand rubles;
- staff salaries - from 100 thousand rubles;
- utilities - from 20 thousand rubles;
- the cost of an advertising campaign - from 10 thousand rubles.
With average employment, monthly income from the sale of furniture will amount to 400 thousand rubles. If we subtract from this amount expenses for the payment of wages, taxes and other expenses, the amount of net profit will be from 60-70 thousand rubles.
As a result, the starting capital will be from 1.2 million rubles, the monthly profit from the sale of furniture - from 80 thousand rubles, and the payback period of investments - from 14 months.
Work Room Requirements
Renting a room should be taken very seriously, because the health of staff and productivity will directly depend on this. When choosing working areas, preference should be given to a well-ventilated and dry room, which should be located on the ground floor. It must meet the following requirements:
- total area - from 500 sq. m;
- the availability of all necessary communications, for example, ventilation system, water supply and sanitation;
- 380 W electric network;
- the availability of access roads and the possibility of forming convenient loading platforms.
The working area should consist of several zones: a production workshop, an exhibition hall, a warehouse for storing materials and finished products. Of course, such conditions are ideal for doing business, which will minimize many costs, but this is not always possible. Most often, warehouses are located across the block or even at a greater distance from production facilities.
Equipment
In order to cut the material, cut out the recesses for fastenings and even to connect the structural elements, you should have the appropriate tools and equipment. This is mandatory indicated in the business plan of furniture production for Ukraine, Russia and other countries. What kind of equipment for furniture production to buy for business owners? The standard set includes such tools and machines:
- network drill / driver;
- format-cutting machine;
- milling copying equipment;
- drilling and additive equipment;
- edge banding machine.
Staff
Do-it-yourself furniture manufacturing requires experience, specific knowledge and certain professional skills. From this we can conclude that before starting production, you should hire qualified employees who are able to handle professional tools and machine tools that are installed in the workshop. The staff must include:
- directors;
- production masters;
- accountant;
- specialists in cutting and assembling furniture (about 5 people);
- the designer;
- manager
- maintenance workers (2 people).
It is necessary to determine in advance how and who exactly will deliver the furniture, if customers do not have time to independently transport the products. If you plan to deliver orders on your own, you will additionally need a driver. Since the manufacture of cabinet and other types of furniture is not the safest, experts recommend starting a safety magazine. In it, each of the employees should systematically sign, but only after organizing a lecture on safety rules.
Recruitment Tips:
- Outgoing people should work at the point of receiving orders, who can easily find a common language with potential customers.
- When hiring, it is worth paying attention to the personal qualities of a person.
Advertising and sales of finished products
A business plan for the production of furniture facades and basic structures must necessarily include advertising costs. To attract buyers, you can use a variety of methods:
- creation of your own website or business card website, their promotion and active attraction of subscribers;
- placing ads in interior magazines, on radio and television;
- banner mounting on special billboards of the city, by public transport.
You can sell furniture wholesale and retail, while agreeing with supermarkets, specialty stores and shopping centers. In the event that your company produces products in large volumes, it is advisable to open furniture stores in which only your products will be sold. It is also important to display in the business plan of furniture production, a sample with the calculations of which is presented in this review. You can also collaborate with large organizations.
Possible risks
Owners of their own business should remember that in the business of manufacturing furniture designs there are some risks:
- an increase in the cost of raw materials, and accordingly, an increase in the cost of production;
- loss of market share due to ever-increasing competition;
- downtime due to power outages or tool breaks.
Having foreseen possible risks and choosing the right strategy, novice entrepreneurs will be able to quickly pay back all financial investments, and eventually get a stable high income.
Further business development
Success in the furniture business directly depends on how much you manage to stand out among the "rivals". In fact, there are many options:
- free delivery and assembly;
- low cost of furniture assembly;
- seasonal discounts and promotions;
- sweepstakes etc.
If the company's strategy is aimed at high-speed stamping of cabinet furniture, then do not forget about the quality of the products. Try to look for new types of furniture, expand the assortment, and you will be able to distinguish yourself from competitors who most often seek to copy each other.
It is important to think about what presents can be given to regular and new customers. Also, a large role will be played by investors who are involved in a small business through a franchise. Sales will not increase if you carry out a major advertising campaign, give bonuses, and at the same time answer an incoming call from a potential client with a sleepy and boring voice.
In a word - create! Despite all the prospects of the furniture business, due to the loss of competitiveness of foreign manufacturers, this niche will not remain empty for a long time. As in any business, the one who stably works on it will win.