* The calculations use average data for Russia

Currently, blacksmithing has been replaced for the most part by the industrial production of forged metal products. However, factories produce similar, non-unique products, and a consumer who wants to receive an exclusive forged product often turns to craftsmen who produce the desired product according to his individual order. The profession of a blacksmith today can also become an opportunity to earn money, and there are enough prospects in such an endeavor.

The blacksmith no longer wields an anvil and a hammer; they have been replaced by modern equipment, which greatly simplifies the process of forging metal. However, the person who produces such products must have artistic taste and the ability to create truly high-quality things, and it is especially important that the resulting product can serve for a long time and at the same time look aesthetically attractive. For some, the hobby of metal forging gradually becomes a business, while others immediately begin to master the profession of a blacksmith in order to earn money, but there are also entrepreneurs who do not stand at the machine themselves, but hire people and open an enterprise for the production of forged products to order.

Artistic forging stands out as a separate business because it is in some way opposed to factory production; these are often more expensive products, but made by hand, which adds value to them. A business in artistic forging can be classified as a small type of business, because the volumes will be small, and you need relatively little money to start. At the same time, the level of competition in most cases is quite low; factories producing forged products are not direct competitors, although when entering the market, their offers and positions also need to be studied and focused in their work on the fact that a certain percentage of consumers will choose between a factory product and made by hand.

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As for direct competitors, we can say that not all cities have offers of artisans, and even in large settlements there are rarely more than 10 blacksmiths working. In this regard, entering the market can be called quite simple, but it should be noted that at first you will have to work more on your reputation and attract new clients, forming your regular client base. Moreover, in many cases, the master receives a sufficient number of orders if he has his own style and an unusual artistic approach to the manufacture of forged products. In this case, clients will come to the blacksmith only because he makes certain and unique things.

To start your work, you need to register as a business entity. If an entrepreneur himself is a blacksmith, then it is easier for him to register as an individual entrepreneur, because this will not require large investments of money from him, the whole procedure will take a little time and take a little effort. In future work, if you register yourself as an individual entrepreneur, you will not have to maintain complex reporting, and taxes can be paid according to a simplified taxation system. This involves transferring no more than 6 percent of income or 15 percent of operating activities to the state. If there is a need to register a legal entity, then the preferred form is a limited liability company, because in this case you will not have to bear responsibility with your own property for the debts of the enterprise, and a simplified taxation system will also be available. It makes sense to register a legal entity if the company is opened by several people or a fairly large-scale expansion of activities is planned. The activity itself falls under the definitions (OKPD 2) 25.12 Doors and windows made of metal, (OKPD 2) 25.62 Services for processing metal products using basic technological processes of mechanical engineering, (OKPD 2) 25.99 Other finished metal products, not included in other groups. You will not need any special permits for your activities, and given that the products will be manufactured according to individual orders of consumers, there is no need to comply with state standards.

For their work, you will need a room, while many blacksmiths literally work from their own homes, because at the moment there is equipment that is not large in size, but allows you to produce a large number of forged products. However, everything also depends on the volume of production, so if there are a lot of orders, then you need to launch several lines at once, behind which several people will work, and in this case the size of the room increases significantly. However, this is more like organizing a full-fledged factory; for artistic forging, 50-70 square meters of production space is enough.

However, in addition to this, you need to take care of organizing your warehouse of finished products, while artistic forging involves the production of not only small products, but also fairly large metal structures such as gates or fencing sections. If you don’t have to work with such products, then you can completely limit yourself to a small workshop, which can be located in a garage or a small room.

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If it is not possible to work from home, then you need to rent premises, and it is advisable to locate it in the central areas of the city for the convenience of your consumers. The cost of renting a room greatly depends on the city of work and location in it, as well as on many other factors. For the interior arrangement of the premises, you will not need too much money, because if it is a rented premises, it may just require cosmetic repairs, and in some cases, organizing your own office, but here you will only need to buy office furniture and equipment. If a blacksmith works himself, then he usually independently negotiates with customers, after which he gets to work; with a more complex business organization, negotiations are conducted between the company manager and the consumer himself; perhaps after this, the client discusses the details and appearance of the product with the designer, and only after that the order is transferred to the craftsmen. If a more complex work scheme is organized, then it is necessary to allocate work places for all employees.

Next comes the purchase of the necessary equipment for the production of artistic forged products. Currently, the most common methods of cold and hot processing of metal workpieces, however, for full-fledged work you will need to buy equipment for one and the other processing method. It is in this case that it will be possible to offer its consumers a wide range of possible products and high-quality products that compare favorably with the offers of competitors. The cost of equipment can vary greatly depending on how technologically advanced and modern the machines are purchased, on their performance, on the manufacturer’s brand (Chinese ones are an order of magnitude cheaper than European ones), as well as on the overall characteristics and available operations. To work, you will need a special artistic forging machine, a hydraulic press, a rolling and forming machine, a bending and finishing machine, bending machines, rollers, cutting machines and sheet bending and profile bending machines. However, the exact list of equipment is selected depending on the chosen format of work and the catalog of products offered; in some cases, you can get by with one or two machines for your work.

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Some equipment suppliers offer a fully equipped blacksmith workplace for an amount not exceeding 100 thousand rubles, but for that kind of money you can only get units if artistic forging is a hobby, and the master is just starting to do it and does not plan to use it as a business idea. Professional equipment costs an order of magnitude more, so you need to expect that a fully finished workplace will cost more than 500 thousand rubles; in some cases, high-quality machines cost at least three hundred thousand rubles, and in addition to them you need to buy other equipment. In general, the amount of starting investment for a business based on artistic forging is usually at least one million rubles.

As already noted, such a business can be run alone if the entrepreneur himself is a blacksmith and manufactures products to individual orders. Many blacksmiths make a living from this, but in their work they focus on producing unique products with an excellent appearance. However, this idea can be developed, but in this case it will be necessary to attract additional specialists to ensure the operation of the company.

To begin with, it is worth mentioning people in administrative and organizational positions; they will deal with simple issues and contact clients, receive them in the office and answer their questions over the phone. It is very important that the company offers its client design services, that is, the opportunity not only to manufacture a product according to a finished sketch, but also to develop this sketch independently, based on the stated requirements of the customer. In this case, not every metalsmith can be a good designer at the same time, everyone must do his own thing, and usually the blacksmith simply fulfills the order according to the drawings, but a completely different person must create this drawing. That is why you need to think about attracting designers to your company who will act as a link between the consumer and the blacksmith.

If production involves the production of fairly large and dimensional metal structures, then you need to think about attracting people to perform simple work, which includes loading, unloading and transportation. If a large warehouse of finished products and raw materials is organized, it is also necessary to hire people for warehouse operations and maintenance of warehouse premises. To work, blacksmiths need assistants who can perform simpler work, such as painting and applying primer.

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All business processes that are not related to the organization’s profit making should be outsourced; This primarily includes accounting, as well as advice on tax and legal issues, because in this type of business it is not so often necessary to seek help from competent lawyers and tax consultants. Ensuring the safety and security of your enterprise, if it is really necessary, is better to transfer to a private security organization.

Also in your work you may need to organize logistics and marketing departments. The first is necessary only if there is a large number of orders, including from other cities, if you have to cooperate with a large number of clients and deliver products to them, if the production process is a fairly complex system with several production lines, if you have to work with many suppliers and partners. As for suppliers, here you can find a company that can wholesale rolled metal. In the case of home or small production, you will have to cooperate with companies that supply rolled metal in small wholesale.

The average cost of 1 ton is about thirty thousand rubles, but it must be taken into account that in the production process it is necessary to use a variety of materials; the simplest example would be steel, because if the products are planned to be used indoors, then you can limit yourself to cheap steel markings, because the structure will not be exposed to aggressive environments. If we are talking specifically about fences and gates or other structures that are located in the open air, it is advisable to use stainless steel or galvanized blanks of other metals to prevent corrosion. In addition to the metal itself, you will also have to purchase a large number of consumables, which include paint and primer, and other types of materials for decoration, such as wood or even marble or granite.

A marketing department may be required when a company wants to expand its field of activity and attract new customers. Otherwise, you can get by with organizing a simple advertising campaign, providing information about yourself in local media, as well as on thematic portals on the Internet. If possible, it is highly advisable to create your own website with information about yourself and a proposed product catalog. At the same time, previously completed orders are usually indicated in the catalog so that the client has the opportunity to evaluate the company’s work and, possibly, opt for a product from the catalog, which significantly simplifies the processing time of his application. However, creating a website may not be enough and will require optimization to ensure it appears first in search queries. If you do not have experience and knowledge in this area, then you can contact a company that creates and promotes websites.

Artistic forging involves the creation of a unique, and therefore more expensive, product. In this regard, its customers are usually wealthy people who want to get a truly high-quality product with an aesthetically attractive appearance. Some companies focus on simpler people, so they offer the production of slightly cheaper designs, but only according to standard drawings, perhaps with the addition of a small number of their own changes. In any case, there is a consumer in both areas; Some entrepreneurs are trying to reach as many potential consumers as possible, so they offer a large number of services and a wide range of prices for their products.

In addition to the production of metal structures, the company can offer services for its delivery, repair and installation; in many cases, the consumer also has the opportunity to order the installation of automation for their garage doors or gates. But if a company wants to offer such a service, then it needs to find a supplier of electronic automatic systems, as well as hire specialists to install these systems, which in some cases may not be practical, for example, when the manufacture of fences and gates is not the main activity of the company. The company usually gives a discount when ordering a large number of metal structures; the customer will really appreciate the opportunity to save on a large order.

The simplest designs cost approximately two thousand rubles per 1 square meter for the consumer, but the cost of artistic forging itself and exclusive works, as well as replicas, sometimes exceeds 20 thousand rubles per 1 square meter. At the same time, the cost of production in the case of artistic forging is an order of magnitude less than the final cost of the products, because the final price includes a reward for the skill of the blacksmith. However, here it can be noted that in some cases it is necessary to consume a fairly large amount of material to obtain a relatively small product.

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• Kind of activity: production of forged products
• Capital investments from 230,320 rub.
• Average monthly revenue from 429,000 rub. per month.
• Net profit from 109,800 rub. per month.
• Payback from 2 months.

Over the past two years, the demand for forged products has significantly increased in Russia. Every month, more than 300,000 people on the Internet are interested in elements of artistic forging, and this figure is growing by an average of 7%. The trend is explained by the fact that in the regions there is an active improvement of megacities and the construction of suburban villages.

As a result, there is a high demand for all types of metal structures: from small decorations for a garden plot to massive fences for a cottage. In the next six months, the dynamics will be even more revealing. A blacksmith shop, open during the “peak” spring-summer period, is an ideal option for a start and a quick payback.

Who is this business for?

Today, the blacksmithing business is available to beginning entrepreneurs. It does not require large capital investments and is easy to organize and produce. The entire process is automated and carried out on modern machines. Manufacturers are willing to provide assistance in training and business organization. To purchase equipment that even one person can operate, a little more than 200 thousand rubles is enough.

In this case, there is no need to undergo licensing or certification, and production can be established in any technical room, even a garage. Manufacturing forged products is an excellent opportunity to expand an existing business. In Russia, construction and finishing companies, interior design studios, and furnace construction specialists open their own forge workshops.

Competition in the market

This niche is simply empty. Unlike other business models with a low entry barrier, there is little competition. In cities, the number of blacksmith shops number in the dozens, while “popular startups” - retail enterprises, car washes, catering, tire repair - number in the thousands.

Where to look for clients?

The first step in this direction is to create a website. To do this, you can turn to professionals or do the work yourself. Today there are many free editors that will help you create it without programming knowledge. The site will attract its first customers within a month, and their flow can be increased with the help of contextual advertising. It is easy to customize and will allow you to attract your target audience even with minimal budgets.

The second opportunity is cooperation with trade and service companies. Construction stores, utility services, funeral service agencies, interior design studios - these and other organizations actively use forged products in their work.

Word of mouth is another effective way to attract customers. Finished projects are the best advertisement for a workshop, which means that beautifully completed work will attract new customers.

Additional channels for finding clients can also be posting information on websites with advertisements (Avito, “From Hand to Hand”, etc.), placing an open workshop on public streets, or opening your own store of finished products in shopping malls.

How a blacksmith shop can earn money:

• Fences
• Gates
• Chimneys
• Fencing (garden, balcony)
• Window bars
• Braziers
• Interior items, furniture (tables, flower stands, hangers in
  hallway, etc.)
• Other metal structures
• Welding work

Business plan "ECONOMY"

Suitable for those who want to open a blacksmith shop with a minimum investment. Having one universal forging machine “AZHUR-1M”, you can start producing: window grilles, forged fences, gates, gazebos, forged furniture, canopies, stair railings and much more.

Technical characteristics of the machine "AZHUR-1M".

The cost of the machine is 217,670 rubles. To expand the range of products, we recommend purchasing a set of rollers that allows you to produce forged products from profile pipes for 12,650 rubles. Additional equipment you will need to purchase is a welding machine and a grinder.

Calculation of monthly profit of a blacksmith's workshop. Option "ECONOMY".

In brackets are the prices of products made from solid rolled metal.

From the profit, we subtract the costs of maintaining the workshop: rent, advertising, electricity, transportation costs, taxes.

Business plan “OPTIMAL”

Suitable for those who wish to organize large-scale production of forged products. To extract maximum profit, production is organized using a set of machines. Some machines will give workpieces a sophisticated, expensive look, while others will create forged elements from processed workpieces. The resulting products will look expensive and sell faster.

Workshop equipment:

• Machine "Azhur - 1M". Equipment No. 2, costing 307,160 rubles. Additional equipment worth RUB 28,810. In this configuration, the machine allows you to produce the entire range of forged products. For more detailed information, please contact our specialists.
• Machine "Azhur -2" for 262,400 rubles. Additional equipment in the amount of 51,700 rubles. Covers the workshop's needs for metal finishing.
• Hydraulic press "Azhur - 3M" for 335,000 rubles. A set of molds worth RUB 29,900. allows us to produce forged products in large quantities.
• Machine "Azhur-4" for 392,000 rubles. manufactures decorative twisted pipe.
• Cutting machine "OS - 7" for 71,000 rubles. designed to prepare blanks for production.

Total: investment in equipment will amount to RUB 1,477,970.

Calculation of monthly profit of a blacksmith's workshop. Option "Optimal".

Let's look at them in more detail.

This small set of tools is designed to make blacksmithing easier; it is supplemented depending on the goals and capabilities of the master, but it is quite enough to start your own business. Experienced forge masters make many of these devices on their own, the reason for this is the low functionality of industrial designs.

As development progresses, it will be possible to take a closer look at more serious CNC equipment to automate the production of forged products.

In addition to the above equipment, for a successful metal forging business, you also need to stock up on stamps.

Hot metal forging.

Metal forging with preheating is used in cases where, in order to shape large enough products, it is necessary to deform without destroying the material. In a heated state, the metal becomes more plastic and allows various manipulations with it without fear of chips, cracks and other troubles.

The manual labor of a hot forging master is highly valued. This labor-intensive process allows you to create real works of art. Metal roses and lilies, striking in their precise repetition of the lines and sizes of natural flowers. Each product that comes out of the hands of such a master is unique. It will not be possible to repeat the plan twice on hot material: in any case, there will be differences.
Hot forging also has its unpopular features. Firstly, the economic side of the issue: the cost of fuel for forge (chamber) furnaces has not been canceled and this increases the cost of the final product. Secondly, there are difficulties with calculations, because due to the thermal expansion of the metal, the released part is in a hot state more than in a cold state. Consequently, in order for the product to comply with the drawings, it is necessary to make allowance for the compression of the metal during cooling, and for inexperienced craftsmen this is a significant difficulty. When producing products with significant mass, it is also necessary to install additional equipment for transportation, usually mechanical or electric hoists.
The main tools for hot forging of metal include pliers, a sledgehammer, a set of hammers of various shapes and weights, all kinds of punches, crimpers and smoothers, chisels and handbrake tools. Everything that can help give ductile metal the desired shape.

The metal forging business, like many other businesses, begins with a simple hobby. After you have given samples of your products to your friends and acquaintances, word of mouth begins to work and the first clients appear. By this point, you already have experience and some confidence in your “new” job. Confidence helps you communicate with strangers. But don’t forget that you need to constantly improve your skills and experiment.

Your first products will be simple and, in a sense, even primitive, but over time, if you understand that metal forging is truly your business, you will learn to do something that many others will not be able to do. It is also worth adding that each forging master has his own characteristics and his own style in his work, which has been developed for many years and is precisely thanks to which new clients are drawn to him.

You should start your business with minimal investment. If we break down the start of a metal forging business step by step, we will probably get the following picture:

• Education
• Writing a business plan
• Search for premises
• Purchase of forging equipment
• Work as self-promotion
• First clients - first orders
• Main job
• Development - expansion

An important point at the very beginning of a business is studying your region, your future competitors and markets.
You know:

• How many companies and individual entrepreneurs are engaged in metal forging in your region?
• What is the demand for forged products?
• Where do your competitors buy material and at what prices?
• Main markets for products?
• Is this production seasonal?
• What advertising works best in your region?
• What is the average check amount?
• What is the average number of clients over different periods?
• Which forged products are in greatest demand?

In general, the better your research, the more accurate your business plan will be, which will be the key document in your business.
In the business plan, you also need to reflect your uniqueness in your work, which is called indicating your individuality.
If you do not have money to purchase equipment, but after drawing up a business plan you have confidence in your business, try contacting the employment center to receive a subsidy. Many small entrepreneurs manage to receive start-up capital free of charge.

When starting a metal forging business, you should understand that the concepts of cold forging and hot forging are absolutely compatible things. Since both cannot exist without each other. It is impossible to make a stamp on a part without first heating it. There are also parts that need and can be shaped without heating them, which is called cold.

Room. Forging workshop.

Compared to the ancient Russian forge, the modern forging workshop has changed a lot. In the old days, a blacksmith made small items. Routine work included horseshoes or rims for cart wheels and all kinds of household utensils. The pinnacle of creativity of blacksmiths of that time were swords and sabers. Some examples of the work of ancient gunsmiths are still pleasing to the eye in museums today. The production of all this does not require large premises, so the forge of that time was not very large. However, the idea of ​​a blacksmith’s workplace was formed precisely during that period. If the conversation turns to it, our imagination draws us a furnace, an anvil, a hammer and a container filled with water to cool the metal.

Today, a forging workshop is a technologically advanced and largely automated production facility. Sledgehammer blows replaced mechanical hammers. Manual work was given over to programmable machines. The small room expanded to huge areas, divided between assembly, painting, and element creation workshops. The variety of premises varies depending on the type of production. Heating the metal to the deformation temperature was no longer necessary: ​​the hot cutting was replaced by threading using industrial shears.

Large production is unthinkable without significant progressive changes. However, with the increase in the volume of output, its individuality was lost somewhere. The same type of railings and stairs, gratings and fences filled everything around. And it was precisely because of this that the craft work of the blacksmith began to be revived. Exclusive things have always been in price, and now, when everything around is the same, standing out against the background of monotonous hedges, a hand-forged fence elevates the status of its owner above the rest. Unique forged products are in demand more than ever before. This creates favorable soil for the development of small businesses in the field of artistic metal forging.

To start your own metal forging business, a room in the form of a garage measuring 6x4 meters, which equals 24 sq.m., will be enough.

The following zones must be located in the room:

Slipway - approximate size 200x200 cm
Desk – 200x80 cm
Procurement zone – 350x40 cm
Rack for metal – 250x50 cm
Ventilation area – 150x100 cm

Process and technology for the production of forged products.

The algorithm for creating a forged product is in most cases very similar. It can be divided into certain stages.

Stage one or what we will actually do. This is the period of searching for drawings, drawings or simply prototypes for a future creation. There are no difficulties with this - fortunately, the Internet and print media have devoted a lot to this issue, and city streets are often full of forged jewelry. Especially talented individuals can independently develop the design of their product.

Stage two – purchase of metal. The standard metal profile has a length of 6 meters. The quantity of material should be planned in such a way that there is no need for a second visit to the supplier or warehouse later. It's better to make some reserve. There are quite a few cases of its application in practice. From a simple error when calculating the material, to accidentally damaged elements during the production process.

After the delivery of metal raw materials, stage number three often arises: pre-processing of raw materials or simply cleaning from rust and dirt. The material could get dirty during transportation, and its surface becomes corroded due to the fact that most metal depots do not bother to build a covered warehouse or even a canopy over rolled metal products.

The fourth stage is already carried out at the blacksmith’s main workplace and involves the manufacture of a frame. For some products it may not be needed, but it is still worth pointing out the features of its production. The frame must have perfectly even corners and match the dimensions. In artistic forging, the frame size is measured along the outer sides.

Stage five. Drawing. Image of the product in a one-to-one scale on a handy surface for subsequent measurements and cutting of metal raw materials. Measuring the length due to the figured shape of the elements is most easily done with a rope: we lay it on top of the drawn line, then, in an unfolded form, apply it to the rod. After this, the required part of the metal is cut off. Everyone understands about maintaining accuracy in all the above-described manipulations.

When assembling products, the production of small elements is always required. The sixth stage will be their creation. Smooth workpieces are given the shape conceived by the master by deformation using the devices described above. If the assembly of the final product requires many similar parts, it is necessary to make them as identical as possible.

By all rules, the seventh stage should imply the collection of all elements into a single creation. Here it is almost never possible to do without adjusting the parts to each other. Trim here, tweak here, the main thing is not to get carried away and not to distort the originally intended product. To do this, you need to check the drawing each time. When you are sure that all the parts have been assembled correctly, secure them in place with light welding.

Stage eight. Final welding of all elements together. If it is a lattice or fence, then after boiling all the elements on one side, you need to turn it over and repeat the procedure on the other side. It should be remembered that after the final welding of the elements, it will be impossible to change the type of product. Before you start welding, you should check everything carefully again.

After the product has acquired its almost final appearance, it is necessary to remove all excess. This is the ninth stage. Welding scales do not in any way decorate products for interior or facade decoration, nor do rough welds. The former must be removed, and the latter must be cleaned until the desired smooth shape is formed.

The tenth stage is often associated with decoration products. This is the time to decorate the product. There is a large selection of welding elements available for wrought iron products. When choosing, you should give preference only to options that are similar in style. Different styles of decorating elements can ultimately ruin all the efforts of the master.

The eleventh stage is necessary due to the metal's susceptibility to corrosion. The finished product should be primed and painted. The primer for these purposes should be chosen in an inverse color both in relation to the metal and in relation to the paint. This will make it easier to see flaws in the application. This type of product coating is required for outdoor elements, but if the forged element is located indoors, to save money, you can limit yourself to just a layer of paint.

Stage twelve or how to increase the cost of the finished product. It consists of performing additional activities to decorate the product. Examples include giving the effect of aging or gilding of individual elements. It all depends on the taste of the master or the requirements of the customer, the main thing here is not to overdo it. As they say: the best is the enemy of the good.

Sales of products.

To organize your own good product market, you need to decide on the demographic for which this product is actually suitable and make sure that this potential client wants to buy it here. So for standard products produced by cold forging, such as stairs, railings, gratings, the choice of buyers is very, very wide. However, a business limited only to the production of such products will not always be able to overcome the competition of large factories and industrial associations that have devoted many decades to this issue.

Buyers for artistic forging are more difficult to find, but competition for this item is quite acceptable. Decorative metal products are often needed by people with good or moderate incomes who want to decorate their homes, as well as wealthy offices to decorate office facades. The experience of cooperation with construction teams engaged in the construction of individual houses, cottages, estates or administrative buildings will also be positive. They will take upon themselves the coordination of product sketches with clients, and all you have to do is complete your work on time and with high quality.

It’s good if the work is done to order, but this also needs to be earned. A person usually trusts either something that someone has already tried and given personal positive recommendations, or a well-known brand that will not fail to maintain their own reputation. Any company, even the smallest one, can make its brand popular through advertising. The main thing is not to miss when choosing funds.

The following PR moves are suitable for artistic forging:
- personal contact with the consumer. A face-to-face conversation always gives better results than empty chatter on the phone. The buyer will be more likely to be interested in you if he personally sees your work and is convinced of your professionalism.
- advertising in the media. The cheapest and most expensive type of advertising at the same time. It all depends on the choice of location. The most affordable option is free. This is an advertisement on the Internet on popular sites that have a suitable contingent of visitors. The most expensive is television. The roller will hit your pocket hard at the most opportune time.
- outdoor types of advertising in “suitable” places, for example, a billboard near the entrance to a new cottage community, the construction of which is in full swing.

In any case, you can find a bunch of options both for a well-earning business and for beginners, for whom advertising is a necessary event, but due to the low turnover it is low budget. For industries that have not yet reached full strength, advertising on the Internet or simply submitting an ad in a newspaper is suitable. At the initial stage, you should not shell out money for expensive television or radio commercials; the effect of them is not always immediately visible, and the cost is not always reasonable. Remember, your money should not be wasted.

Costs and profit per unit of production:

This calculation shows that having spent 9,905 rubles on production and sold for 29,700 rubles, you get a pretty good profit.

Investments in metal forging business.

Equipment:

Necessary elements for the production of forged products - 200,000 rubles.
Grinding machine – 2,000 rubles.
Welding machine – 10,000 rubles.
Compressor – 15,000 rub.
Welder's table - 20,000 rubles.
Rack – 10,000 rub.
Slipway – 15,000 rub.
Cutting machine - abrasive - 15,000 rubles.
Ventilation – 15,000 rub.

Total for equipment: RUB 302,000.

Premises:
Rent of premises – 30,000 rubles. per month

Grand total: RUB 412,000.

If the business plan is implemented correctly, the payback period for the business should not exceed 6 months.

Options for manufacturing forged products.

• What orders are most often made?
• Recruitment
• Financial calculation
• Step-by-step plan for starting a business: where to start
• Which OKVED code to indicate when registering a business?
• What documents are needed to open
• Which taxation system to choose for registering a forging business?
• Do I need permissions to open?
• Production technology

The business of artistic forging has become quite widespread in our country, primarily due to the “cheap” start. You can open your own mini-enterprise with an amount of 1.0-1.5 million rubles. The main investment at the first stage is the purchase of equipment and materials for forging. After this, all that remains is to find a “handy” blacksmith and you can start forging money...

Due to the low entrance ticket to the artistic forging market, a large number of small firms and “handicraft industries” have sprung up. Garage production does not interfere much with large manufacturers and is mainly active only during the construction season. The products of such manufacturers are not of high quality, so the demand for their products is maintained only by low prices. Most of the products here are made by hand, so the result largely depends on the physical strength of the master and his dexterity. Meanwhile, about 60% of all orders are carried out by large firms, most often equipped with high-performance equipment. Their main clients are rich, solvent people.

What orders are most often made?

Orders are very different. The trend of the last few seasons is fireplace sets: poker, scoop, tongs. Classic products that are traditionally ordered are fences, canopies, canopies, window grilles, gates, monuments, gazebos, railings, benches and flower stands.

What you need for a successful business

According to experts, to open a successful business you must have either extensive experience or appropriate education in the field of blacksmithing. Or better yet, both. Before starting the case, it’s a good idea to study the relevant literature, for example, Fedotov’s book “Metal”. Study drawings, diagrams, drawings, metal processing techniques. Then, if finances and time allow, you should receive a special education. The best of the best, real blacksmithing professionals are trained at the St. Petersburg State Academy of Arts and Industry named after. Baron A. L. Stieglitz.

You don't have to start with a big investment. Blacksmithing for the most part is based on the enthusiasm and efforts of the organizer. An example of this is Sergey Shevchenko, an aspiring businessman from Omsk. The entrepreneur needed not much more than 300 thousand rubles to start fulfilling orders. “Having received a grant from the regional administration in the amount of 200 thousand rubles, I bought gas and electric welding, a special table for work, and with the remaining amount I bought a tool for bending metal,” says the blacksmith. Such a set of equipment fits freely in “garage” conditions, on an area of ​​15-20 m2.

How much money do you need to start a business like artistic forging?

Of course, if we talk about a serious matter, completely different investments will be required. At least 300 thousand rubles will be spent just on preparing the production site. For production of 200 sq. m of finished forged products per month, you will need to rent a room of 60 - 80 sq. m. m. Plus, some area (15-25 sq.m.) is allocated for storage space, where finished products and raw materials for production are stored. It is desirable that the room have high electrical power (the equipment consumes up to 7 kW), be connected to a water supply and have good supply and exhaust ventilation. Renting such an area, depending on the region, will cost from 70 thousand rubles per month.

What equipment is best to choose for the production of artistic forging?

The next investment is the purchase of equipment. Experts advise purchasing only professional forging equipment. You will need machines: for bending, twisting, shaping, cutting, forming and straightening rolled metal. In addition, you need a welding machine, a straightener, an anvil, one or two welding stations for assembling products, a cutting machine, an angle grinder for cleaning weld seams, a compressor with a spray gun for painting finished forged products, as well as a workbench with a vice. The total investment in such a set of equipment will be no less than 1.5 million rubles.

In order not to waste money on delivery of raw materials and materials, it is advisable to acquire a personal truck. Boo. a Gazelle van will cost 150 - 250 thousand rubles. On it, if necessary, it is possible to deliver finished products to the customer.

The total investment in the business will ultimately amount to at least 2 million rubles. No one can say the exact payback period for such investments - everything is very individual and largely depends on the organization of the business. You can make a profit after just six months of work. The average return on investment in blacksmithing is two to three years.

Recruitment

Now about the employees. You will need to employ at least three workers: a welder and a couple of mechanics. Physically, one cannot handle the entire production process, and one also needs to accept orders, pay off payments to suppliers, ship products, do accounting, etc. Finding qualified personnel is not easy, and most likely a person will have to complete their education on their own or be sent to appropriate courses. Wages are set as salary plus a percentage of the volume of manufactured products.

Financial calculation

The main materials in artistic forging are rolled metal (square or circle 14x14) and paint (such as Akrem metal). The price of rolled metal is on average 24 rubles/kg. The cost of paint is approximately 60 rubles/kg. For 1 square m2, 18 kg of rolled metal (415 rubles) and 0.15 kg of paint (9 rubles) are required.

In addition, when calculating the cost of goods, you should take into account material costs per 1 m2: electrodes - 10 rubles. (or argon + additive), abrasive wheels - 8 rubles. and propane gas - about 5 rubles. Electricity costs per shift are about 35 rubles. The wages for three craftsmen are 200 rubles, based on 1 m2 of finished product. About 20% or 100 rubles are overhead costs.

The total production cost of one square meter is about 800 rubles. The average selling price of forged products such as “houndstooth” or faceted lance is 3,000 rubles per 1 sq. m. Thus, profit per sq. m is equal to: 3000 (selling price) - 800 (cost) = 2200 rubles. By producing at least 100 m2 of forged gratings per month, you can make a profit of 220,000 rubles.

This calculation shows that one machine worth 350,000 rubles pays for itself upon the sale of 170 sq. m. forged products. If you produce at least 50 sq. m., then the machine will pay for itself in 3.5 months.

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