Business plan cabinet furniture order. Furniture business - from assembly at home to production in the workshop

The success of any enterprise is associated with certain circumstances. What is important is how interesting the products of the enterprise are for consumers, how competitive they are.

At the same time, starting a business from scratch, the main thing is to make the right choice in favor of one direction or another.

There are many options for starting a new business. Each of them is attractive in its own way and has certain advantages.

Advantages of the furniture business

In terms of development prospects and profitability, the furniture business from scratch occupies one of the first places. According to the studies of purchasing activity, the volume of furniture purchases over the past two years not only did not decrease, but even increased.

There is a decrease in sales of luxury furniture. And yet, this decrease is very small. And sales of furniture of average and economy level have grown. This trend continues and is likely to continue in the coming years.

The fact is that buying furniture is perceived as a serious purchase, along with a car. However, unlike the machine. Buying furniture is more affordable. Therefore, investments in the furniture business seem to be correct and economically justified.

Why opening a furniture business is profitable

Starting your own business is always a big decision. Therefore, every entrepreneur wants to make sure. Some of its features act as such insurance in the case of this business:

Sales stability

Furniture sales do not fall depending on the time of year. They do not depend on foreign exchange rates and the cost of natural resources. Along with clothing, furniture is an item that is always needed. Therefore, she is the leader in sales.

A slice of the market made at any time of the year will show that the level of furniture sales remains stable.

At the same time, the availability of offers is also an important point. Furniture prices have risen, but not critically. It is still public, unlike cars. This is also due to the fact that most of these products are produced in Russia.

But this circumstance also has a negative connotation for a beginner in the furniture business. This is high competition.

However, it is surmountable. There are hundreds of furniture options. Therefore, you can always find your niche and work within it, getting stable, decent money;

Possibility of small investments

Furniture production involves completely different levels of investment. There are several market segments in which you can work. If we talk about low-budget investments, then such a business is available to everyone. At the same time, own production is good because it can be gradually developed. You can introduce new technologies, purchase equipment and get more interesting and diverse products;

Lack of a large number of documents

To start a furniture business, you do not need to draw up a lot of documents. An individual entrepreneur can also organize his own enterprise. At the same time, there are no special requirements for production facilities. It is enough to comply with general fire and sanitary standards;

Supplier selection

Thanks to a large number of suppliers of upholstery materials, various fillers, accessories and other things, everyone will be able to choose the most profitable options.

What do you need to start a furniture business?

Of course, to start a new business from scratch, investments are required. However, the amount of these investments depends on the capabilities of each merchant. Therefore, it makes sense to talk about the general conditions for organizing such a business:

First of all, you need to register as an individual entrepreneur. The cost of this procedure is small and limited to a few thousand rubles. At the same time, it is completely optional to use the services of various companies;

You will need to choose a taxation system. The most acceptable is the system of tax on imputed income. Thus, the entrepreneur will pay a fixed amount annually. Nothing more is required of him.

Everything is done with the help of multifunctional centers that draw up all the necessary documents. To do this, you only need an application and a receipt for payment of the state fee.

You will need a production facility. In order to save money, it can be rented on the outskirts. After all, this is not a place to sell. Therefore, such a room should not be located in the city center or in close proximity to it.

We must not forget that such a room must comply with fire safety requirements. Otherwise, it is fraught with large fines and suspension of the enterprise.

It is necessary to provide ways for waste disposal and delivery of products to retail outlets. Thus, the location of the production should be convenient, and the room itself should be spacious.

A competent choice of suppliers of accessories and upholstery materials will save good money. Each of these suppliers seeks to find a new client and cooperate with him indefinitely. Therefore, it always makes sense to negotiate the conditions for granting discounts and other privileges.

Also, it will be necessary to hire assemblers and other personnel. In order to reduce their labor costs, a minimum wage should be set for them. Its level is established by law and the salary cannot be less than it. And the rest of the income, workers will have to earn.

It is about linking the level of earnings of employees of an enterprise that is open from scratch to the level of productivity of their labor.

The more an employee has completed in a day, the more money he will receive at the end of the month. This approach seems to be the most justified. Under the condition of conscientiousness, the employees themselves will be interested in it, first of all.

Thus, it will be possible to seriously stimulate them. Ultimately, this will lead to an increase in labor productivity, and, consequently, to an increase in sales. In addition, the performance discipline will increase, and the interest in the results of labor on the part of the team will also increase. These circumstances will create exactly the conditions that are necessary for the sustainable development of a new business.

In general, it should be noted that the furniture business is a promising industry. This segment of the market is constantly evolving, there are new models, new developments.

Improving the quality of services and end products. Therefore, being inside and understanding the ongoing processes and following them means creating a full-fledged, efficient and profitable business.

At the same time, the level of investments is determined by each investor independently. However, in order to reduce risks, it is undesirable to use all your capabilities at once. It makes sense to let the business and the conditions in which it will develop show itself.

Hello friends! Today I will tell you a small but interesting story. 15 years ago I came from a small district center to a city with a population of one million. To get a job and get back on my feet.

In the former place, in order to receive a salary, it was necessary to write an application addressed to the director. Prescribe the required amount and correctly argue why you need this money. 🙂

Initiation

At that time, the furniture business was on the rise. There was a huge demand for furniture of absolutely any quality. There were two large enterprises and many small workshops in the city.

My older brother was already working in one of the factories. And just received an offer for a higher paying job. But in order to take advantage of the offer, it was necessary to find a person in his old place.

And so my place of work was determined. I lived with my aunt as in Christ's bosom, for which I am still grateful to her. The truth is far from work, I had to spend 2 hours on the road.

When I received 3,000 in cash in the first week, I was simply stunned by such happiness. I was not afraid of extra loads and took on additional responsibilities. Accordingly, my salary increased.

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In three years

My life has changed dramatically. I have mastered almost all the factory stages of furniture production. And when all the workers went home, I switched to another machine and worked until 8-9 o'clock. I liked my work, I didn't get tired, I was interested.

At the same time, the older brother, together with his friend, opened his own production and periodically invited me to go to him for hire. To which, after some persuasion, I agreed and got good experience in managing a team.

The worst thing was that there was no order. The advance payment from the salon was taken by one of the bosses who was the first to have time. And I took the rap for the delay. Until lunch, my hand did not fall below the shoulder, I constantly had to reassure customers. I gained experience working with people.

Money appeared in the workshop only a day or two before the end of the order, and at a frantic pace I managed to organize the delivery of material, sawing, assembling and installing furniture. My nerves were stretched like strings, I was tired. It couldn't go on like this anymore.

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Eight years later

The bro shared the business with a friend and we started working together. We complemented each other perfectly - he is a born salesman, and I am a pedant in the production and installation of furniture. Our income has grown.

Because my brother didn’t really like to measure correctly, and this is one of the most important stages in the production of custom-made furniture, I had to sweat a lot during the installation. Before 10 pm, I did not return from the installation. Moreover, I thought that this was the result of my inexperience.

When it dawned on me that the reason was in measurements and calculations, I began to perform these operations on my own, taking into account all the nuances. And with each new order, I received the necessary skills to produce high-quality and beautiful furniture.

We survived the first crisis without any problems. The furniture makers were out of work, and we continued to work. But in 2013, sales dropped and my brother offered to fire a great employee in order to provide me with a job. And after conferring, we decided to leave the guy, and I will find orders for myself.

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The present

I have risen from my knees and stand well on my feet. I constantly analyze the furniture market, set the right goals for myself and achieve them, I get a real buzz! I never stop learning and developing my skills to a professional level.

At the moment, I'm not thinking about where to take orders. My clients are queuing up to get my product. I defeated my competitors, only with my perseverance and hard work. But I do not stop there.

I understand that in nature there is no state of stagnation. Either you develop or you degrade, there is no other way. I constantly learn from leading experts in the field of interest. I have no doubt that new skills will help me reach a new level of development of my business.

I have always liked teaching and helping people, the result is especially inspiring. Offline, I have already taught two guys how to make money on custom-made furniture. We often see each other and I see that I did not waste my time in vain. The guys work and enjoy life.

Future

That is why, I set myself a new goal to help people who have a great desire to build a furniture business rise from their knees. I know for sure that it is better to learn from a person who is a couple of steps above you. Because those who have risen high no longer remember all the steps.

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With good thoughts about you, furniture expert

Rekun Dmitry.

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

Studying the market

Furniture production can be divided into three main areas:

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

It is not difficult to start a furniture business - a minimum investment is enough for this.

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

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

Room requirement

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

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

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

The room for the production of furniture should be spacious

Purchase of the necessary equipment

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

Read also: Production of PVC windows as a business

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

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

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

Staff

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

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

Qualified staff is the basis of your business

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

Marketing

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

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

How much money do you need to open

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

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

Never skimp on accessories and tools

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

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

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

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

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

Production of cabinet furniture

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

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

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

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

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

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

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

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

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

Business plan for furniture production

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

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

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

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

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

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

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

Our biggest business mistakes

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

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

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

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

We got into fixed costs:

• rent,
• IP insurance premiums.

into variables:

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

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

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

It is difficult to imagine a comfortable and cozy home without furniture. Opening a business in the furniture industry, with proper preparation and taking into account all the nuances, can bring considerable profit. In the article, we will consider a furniture production business plan with calculations from scratch, how to open and not burn out.

Business plan for furniture production

The furniture business exists in two versions: the sale of manufactured furniture or the production of its own. Often, businessmen start with sales, and then, having studied the specifics of consumer requests, open their own production. In this line of work, you will need furniture business plan.

We will make the calculation for a furniture workshop that produces cabinet furniture in the middle price segment. This includes kitchens, office furniture, cabinets, etc. The organization of the enterprise will be carried out on the principle of an incomplete cycle: suppliers will prepare raw materials, and the company will produce finished panels for assembly using the developed drawings. For an additional advantage in the formation of pricing policy and a shorter payback period, own funds will be used at the start of the project.

Before drawing up a business plan, it is important to carefully study the market - suppliers, consumers, competitors. The volume of furniture production in the Russian Federation, according to the Association of Furniture and Woodworking Industries, is distributed as follows:

• Office furniture - 23%;
• Cabinet furniture (sets, hallways, suites) - 25%;
• Kitchens - 22%;
• Bedrooms - 13%;
• Upholstered furniture - 17%.

The range of domestic furniture presented is distributed according to the following parameters:

• Functional purpose: cabinet furniture for lying or sitting: armchairs, chairs, deck chairs, beds, sofas, etc.; for storage: chests of drawers, cabinets, cabinets, shelves; for work and eating: desks, dining tables, coffee tables, etc.
• Constructivity: non-separable, sectional, universal-prefabricated (it can be repeatedly disassembled and assembled), built-in, bent, transformable, wicker.
• Materials: made of wood materials and wood, plastics, metal.

Planned assortment

We will preliminarily compile a list of the range of our products (the data will change as demand is studied):

• Facades for kitchens, kitchens;
• Cabinets, cabinets, drawers, shelves, chairs, dining tables, stools;
• Office furniture - shelves, computer tables, filing cabinets.

Target group

• End consumers (wholesale) - hotels, restaurants, large government agencies, office centers, etc.
• End consumers (retail) are business people with average incomes who update furniture every 2-3 years.
• Intermediaries - design studios, specialized stores of interior items, furniture.

Furniture production business plan: marketing organization

Ways to sell products:

• Through his office, which is also a showroom.
• Using a network of stores, concluding partnership agreements with them (including also stores from other regions and CIS countries).
• Direct sales to government agencies, hotels, large private firms, using mailing lists and calls through the database of potential customers.

Advertising

• Your own website on the Internet, its creation and promotion, weekly updating of the catalog, sending news to regular subscribers - contributes to the geographical expansion of the circle of consumers.
• Placement of advertising blocks in interior and design publications, furniture magazines and other specialized press.
• Placement of advertising banners on Internet resources of similar subjects.

Required documents

In terms of taxation and work with legal entities, it would be preferable to register an enterprise in the form of a limited liability company.

Documents for registration of LLC:

• Information about the name of the company - should be associated with its field of activity.
• Agreement on the establishment of an LLC with a decision to open;
• Statutory documents with a list of activities and the size of the authorized capital of at least 10,000 rubles (paid in money or property - office furniture, office equipment, etc.).
• Data of the director and chief accountant - a copy of the passport, identification number, contact phone number, address.
• Documents on payment of state duty.
• Details of the bank where the current account is opened.

Production plan

Business plan for furniture production includes one of its most important parts - the production plan. Production will be arranged according to the principles of an incomplete cycle. Running models of cabinets, prefabricated cabinets, kitchens, tables and other cabinet furniture will be produced according to the configuration and required dimensions. Processing of purchased ready-made chipboard and MDF boards under the given patterns is envisaged. The furniture is delivered to the consumer and assembled on site.

Requirements for the premises

It will take 2 rooms: for the production of furniture and for receiving customers. It is desirable that they be located close to each other. The premises have different functionality, so the requirements for them are different:

• The area of ​​​​the production premises is not less than 500-600 m², you need a heated spacious room on the ground floor, the possibility of arranging storage space and installing equipment, an equipped entrance with a platform for unloading materials and raw materials and shipping finished products.
• Accessibility for the client is important for the office. Preferably its location in the center of commercial and business activity, on the ground floor, with an equipped showroom for displaying product samples. Area - 50-60 m². Be sure to have communications and cosmetic repairs.

Equipment

List of equipment for the production of cabinet furniture parts:

• Machine tools controlled by computer programs for the manufacture and modeling of furniture - "Astra-Furniture Designer", "Astra-Cutting".
• Milling machine.
• Electric jigsaw.
• Lathe.
• Some small tools.

Staff

List of employees with special skills and knowledge:

• Shop workers - 5-7 people. Requirements: experience on the main types of furniture machines for processing chipboard and MDF boards.
• Production master - 1 person. Bears financial responsibility for machines, raw materials and materials. Requirements: knowledge of the features of the production processes of assembly and manufacture of cabinet furniture, experience in organizational work.
• Driver - 1 person.

Raw material suppliers

Raw materials for use in production are chipboards (chipboards), MDF boards. You will need domestic or foreign suppliers of plates, consumables (glue, paint, coatings, hinges, handles, drawer guides, hinges, locks, fasteners, etc.).

Requirements for suppliers: the company's reputation, availability of certificates, delivery, the possibility of deliveries with deferred payment. The search for suppliers is carried out in specialized publications, on the Internet, several offers are selected and compared.

Financial plan

To calculate the business plan for the production of furniture, we take into account all the initial costs for launching and promoting the project, fixed costs, and compare with cash receipts. We analyze the main financial indicators: profitability, size of investments, payback period of the project.

Initial costs:

• Purchase of equipment - 1,000,000 rubles;
• Company registration - 30,000-40,000 rubles;
• Purchase of consumables - 150,000 rubles.

Total for the launch of the project - 1200000 rubles.

Type of borrowed funds - own, borrowed. In the second case, additional costs for interest on the loan are taken into account. With an average interest rate of 22-25% per year, the profitability of production is required at least 30-35%. The payback period depends on the profit after paying all taxes, interest on loans and other costs.

We will consider the option of own funds to start production.

Variable costs (per month):

• Salary of workers - 100,000 rubles;
• Raw materials and materials - 150,000 rubles.

Fixed costs (per month):

• Salary for office workers - 20,000 rubles.
• Rent of premises - 50,000 rubles.
• Advertising costs - 10,000 rubles.

The planned sales revenue is expected to be about 400,000 rubles per month. Intensive promotion will contribute to the growth of revenue per year by 20%.

Taking into account 30% profitability, the monthly income will be 150,000 rubles. Monthly fixed costs - 80,000 rubles. Profit after deducting fees, taxes and costs - 70,000 rubles. In case of profitability of 30%, the payback period will be 14 months.

Business risk analysis

The main risks include the smuggling of cheap low-quality furniture from China and Poland. Such furniture is short-lived and can be harmful to health.