The average person prefers to change the kitchen, hallway, sofas, living room and other furniture as they become obsolete or physically worn out - every 8-10 years. The article will help a novice entrepreneur choose the direction to open a furniture business. Among other advantages, this direction is characterized by the ability to choose a format based on capital intensity and complexity of organizing activities:
The Russian market is overflowing with furniture from both local and foreign manufacturers. The stores offer intricate items of all shapes and colors to suit every budget.
Importers and domestic factories prefer to work with products that are produced in large batches: it is simply not profitable for them to spend time on processing individual orders. But many private clients and small businesses want to buy furniture that will suit their apartments and offices in configuration, color, size and style.
And specializing in single and small-scale products will be a successful strategy for the owner of a small workshop, where changing the model range is not a problem.
Decide on the direction of your furniture business:
No matter the direction furniture business has one significant advantage - the ability to scale. And when assembling products at home, an entrepreneur who pays attention to their quality and organization of sales will soon be able to purchase additional machines and equip a workshop, and in the future - a full-fledged factory.
The entrepreneur receives the parts of the designer, and they can be connected to each other without difficulty. After control assembly, the product is disassembled and delivered to the client, where it is installed in the specified location.
How much profit will producing furniture at home bring? According to Russian manufacturers, the retail price for such a kitchen reaches 35,000 rubles. When selling 8 products per month, the entrepreneur will receive revenue of 280,000 rubles. Net profit will be 91,000 rubles, and - 52%.
To start a business in this format, you don’t need a large workshop: a room or garage with an area of 25–30 m² that is dry and warm is suitable for setting up a workshop: humidity and temperature changes will ruin the wooden parts.
Since all labor-intensive operations are performed by third-party contractors, one hand tool is required for the job. Transport will be useful for delivering materials to the workshop and finished products to customers. The list of equipment includes:
To organize a business from scratch, an entrepreneur needs an assistant: it is difficult to unload heavy laminated chipboard sheets or assemble a kitchen from them on your own.
Producing furniture at home from cut parts does not require major investments (not counting the purchase of transport). The entrepreneur will only have to stock up on tools and register an individual entrepreneur:
Start-up costs
If an entrepreneur specializes in kitchens, in a month it is possible to assemble 8 sets of 2.5 m in length with purchased facades from MFD. Considering that the cost of each product is around 14,500 rubles, it will be possible to estimate the current expenses of the business:
Monthly expenses
Once you've figured out how to start a furniture business at home, think about expanding your small business. Purchase basic set processing machines will allow the entrepreneur:
Furniture assembly with my own hands as a business requires spacious premises. The transition to independent cutting of materials is accompanied by the purchase of machines, each of which will require an area of 6–8 m². Therefore, to set up a workshop, a regular garage is not enough; the entrepreneur needs to rent or buy a double box.
To implement a business plan for such production in a garage format, you will need both the listed hand tools and equipment - machines:
It is unrealistic to serve them alone. To increase labor productivity, they hire assistants - a measurer, a driver and an auxiliary worker.
Setting up a furniture manufacturing workshop in a garage is a capital-intensive business than assembling products from pre-cut parts. And when buying used machines you will have to invest 1.7 million rubles in it:
Start-up costs
When using special equipment, a furniture assembly shop in a garage will produce more products. In a month, the entrepreneur and assistants will have time to assemble and ship 15 kitchens. The expenses will be:
Monthly expenses
Selling such a quantity of products is more difficult. Therefore, a businessman will have to attract furniture stores that provide them with wholesale discounts. For the kitchen you will receive 32,000 rubles, which will bring 480,000 revenue per month. Net profit will be 144,500, and profitability will be 46%.
A full-fledged furniture workshop is an enterprise that performs all technological operations - from cutting laminated chipboard and before milling MDF facades. A production business plan with calculations shows that conducting activities in this format allows you to:
Rent and renovate a space of 350–400 m². There will be a production area, warehouses for materials and products, an employee rest room and administration offices. Premises requirements include:
The workshop is fully equipped technological line, which allows us to produce two to three kitchens per day. To complete the furniture, the business plan provides for the purchase of such machines and equipment as:
The workshop staff includes: machine operators, support staff - designer, driver, accountant and sales manager.
To draw up a business plan, you need to analyze all cost items, which includes: preparing the premises, purchasing equipment and creating a supply of materials for the first month of work.
Start-up costs
Enterprises of this scale assemble 50 kitchens per month. Taking into account the need to purchase raw materials, expenses for this period will be:
Monthly expenses
To organize sales, the help of wholesalers is needed. Therefore, the price of the kitchen will drop to 28,000 rubles. When producing 50 products per month, the business will bring in 1.4 million rubles in revenue. Net profit will reach 275,000, and profitability will be 25%.
The production of furniture is a small business, the weak point in it is the organization of sales. Craft 50–80 kitchen sets per month is not difficult, but you will have to try to find buyers for them.
It is possible to increase the level of sales by showing the product to potential clients not only on the screen of a designer laptop, but also in the form of a sample. To do this you need your own furniture showroom.
Opening a company store is not organizing a business producing furniture from scratch: the entrepreneur has a production workshop. But this does not mean that the issue of setting up a retail outlet can be approached irresponsibly.
It is important to choose a good location for the salon. To sell premium furniture, you need premises in the city center, while budget furniture is in demand in residential areas and areas of new buildings. The area of the hall must exceed 300–350 m², otherwise it will not fit even two dozen products.
Showcases, racks, etc. retail store equipment are not needed for a furniture showroom. The list of necessary equipment includes:
We'll have to start looking for sellers. These employees must understand furniture production technology and be able to captivate the client and convince them of the feasibility of the purchase. Fire passive and lazy workers.
In order for woodworking to be waste-free, it is opened for solid fuel boilers.
When you have a furniture production facility, it is possible to open a store with moderate investments: the owner does not need to invest money in stocking the goods. But when you create both enterprises, there will be expenses:
Start-up costs
Why is it profitable to open your own salon? With its help, sell products at the same retail price without discounts to wholesalers. Sales of 50 kitchen sets per month will bring 1.7 million rubles in revenue. The net profit of the salon at the workshop is 355 thousand, and the total profitability is 26%.
And in a small enterprise. When you have the necessary equipment, it is possible to produce any product - from soft ottomans to carved tables. But keep in mind that manufacturing exclusive products is an unstable income. Give preference to goods that are needed by mass buyers.
materials for furniture production
Modern wall or a kitchen set are high-tech products that combine metal, composite panels, polymers and glass. When planning to open a furniture manufacturing business, an entrepreneur must imagine what he will have to deal with:
Faced with the activity of competitors, a novice entrepreneur will inevitably think about how to promote a furniture business. It’s easier for experienced craftsmen: for them, the main source of orders is people’s recommendations. A beginner will have to try hard to find his target audience and organize the sale of products. Which sales channels are effective:
Furniture production is a business that, with a responsible attitude towards business, will allow you to switch to new level. Gradually, the entrepreneur will acquire a client base and useful connections with designers, builders, repair teams, large municipal and corporate customers in his city and from neighboring regions. This will help increase productivity and expand the range without worrying about sales.
* The calculations use average data for Russia
If you are looking for an idea to start your own business, you should pay attention to a furniture sales business. Many entrepreneurs do not consider this option because they consider the furniture sector to be too expensive, complex, long to pay off and, most importantly, highly competitive. However, in practice the opposite is true.
Russian furniture market
Despite the unfavorable economic situation, domestic market furniture (primarily upholstered) is growing steadily. Over the past four years, its annual growth rate has averaged 5%. Although literally ten to fifteen years ago the situation was completely different. Then New furniture purchased only after the old one failed. Now our compatriots are looking for a new sofa or armchair because the existing furniture is out of fashion or out of style. Favorable trends in the furniture segment are due to two main reasons - the growing welfare of the population and the presence of international furniture companies.
According to researchers, the share of imported furniture on the Russian market is increasing every year by 45%. The increase is achieved through the supply of components, since importing finished furniture is too expensive. Logistics costs directly affect the cost of production and, therefore, its market value too. However, domestic producers do not feel disadvantaged. There are a large number of Russian companies whose furniture is in great demand in a certain price category (mainly the low and medium price segment). Again, if we look at the 90s, the situation then was exactly the opposite. After the Iron Curtain was removed, the domestic market was flooded with foreign-made products. Russian furniture companies What helped, oddly enough, was the economic crisis of 1998, when consumers simply could not afford to buy foreign furniture and preferred cheaper Russian ones.
The second economic crisis, which occurred exactly ten years later, again played into the hands of domestic companies, which were able to offer their clients not only the optimal combination of affordable prices and good quality products, but also a uniform standard of service and, no less important, walking distance to furniture showrooms .
Now the economic situation in the country is close to the situation in 2008. Furniture manufacturers and sellers are already celebrating a sharp decline demand for expensive products and increased interest in domestically produced furniture. On the other hand, there is still a construction boom, which significantly increases the demand for furniture. Therefore, experts advise entrepreneurs who are just entering this market to rely primarily on domestic producers, choose trusted brands, good quality (even without designer frills) and affordable prices.
Furniture store formats
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First of all, you need to decide on the format of your future store. Classification of such retail outlets quite conditional. However, within its framework the following formats can be distinguished:
Standard furniture store. Its assortment includes an average of 200-250 product items, and its area ranges from 300 to 1000 sq. m. meters. The furniture products presented in it cover all main product groups (furniture for the bedroom, kitchen, office, cushioned furniture, office furniture).
Showroom. This store format is suitable for expensive exclusive furniture, often made or imported to order. Each trading position in such a room is usually presented in five to six different variations.
Furniture hypermarket. The area of such a store is from 1 sq. km, and the assortment includes over 1000 trade items. The widest selection of furniture is presented here (usually in the middle price category): hallways, walls, office furniture, kitchen furniture, bedrooms, etc.
Special shop. Stores of this type sell furniture of one specific product group (usually in sets): office, bedroom, upholstered, kitchen, etc.
The format of the furniture store you choose directly depends on starting capital and features of the regional market. Assess the level of competition in your city, identify direct and indirect competitors, paying attention to Special attention largest chain stores. The mid-price segment is considered the most profitable, but here the life of individual retail outlets is significantly complicated by such “monsters” of furniture retail as Ikea, Hoff, etc. We do not consider a furniture hypermarket in this article, since organizing such a business requires large investments. This segment includes international and federal networks. The exhibition hall is not the best option in the conditions of the impending economic crisis. The cost of renting a room for it may be too high with a relatively small selection and high prices for furniture. The standard format is represented mostly by regional networks, although federal players are gradually beginning to oppress them. A highly specialized store also has some disadvantages if we consider it as a business, but they can be leveled out by finding your niche and correctly forming the assortment.
Until recently, the main part of the Russian furniture market was upholstered furniture. However, now the situation has changed significantly. As manufacturers and sellers themselves note, in the home segment the share of bedroom and children's furniture, stationary beds, and living room furniture is increasing due to a decrease in the upholstered furniture segment. This is explained by changes in the way of life of our compatriots. If before this furniture was more of an aesthetic nature and served as interior decoration, now the consumer gives preference to simplicity and functionality. But in the office segment and HoReCa (restaurant and hotel industry), on the contrary, upholstered furniture is becoming more and more in demand: the number of people who prefer to spend their free time outside the home is increasing, and accordingly, the number of establishments where a person can relax and have a good time is growing .
We are drawing up a business plan for a furniture store
After you have chosen the format of your future store, you need to conduct several marketing studies, determining the market capacity and target audience. When determining the capacity of the furniture market, keep in mind that the turnover in this segment is comparable to the turnover of building materials. It is estimated at 300 billion rubles (data for 2013). Knowing the capacity of the regional market, you can determine the level of competition in your region.
The next step is to determine how much money it will take to open a furniture store. The main expenses include repairs to the retail premises, lighting, and production of signs. In the total budget, this expense item accounts for up to 45%. Exactly how much money you need depends on the location of the premises, its area, condition, selected building materials, store design, etc. The next significant expense item is inventory. Its share in the total budget is also estimated at 40-45%. The amount of expenses depends on the price category, the number of product groups that you will have, and the positions within each group. The remaining part of the budget (15-20%) is working capital, which includes rent for two months, as well as the monthly wage fund for your employees.
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To open a small specialized furniture store you will need from 3 million rubles. The payback period for such a project is estimated by experts to be at least two years.
Documents for opening a furniture store
In order to open a furniture store, you first need to choose a suitable organizational and legal form for running your own business. This is the name of the legal status of a business entity and its choice of method of using property. For small businesses, the best forms of ownership are individual entrepreneurs and LLCs. We will not dwell in detail on the advantages and disadvantages of one form or another. Let's just say that for a small furniture store it is quite enough to register as an individual entrepreneur with the INFS. In this case, you will need to choose a form of taxation. In addition, please note that in order to carry out your activities you must select OKVED codes. There may be several of them, but there is only one main one! The activities we are considering include the following codes:
52.12 - Other retail trade in non-specialized stores;
52.44 - Retail trade of furniture and household goods;
52.44.1 - Retail trade in furniture;
52.48.1 - Specialized retail trade of office furniture, office equipment;
52.48.11 - Retail trade of office furniture.
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When choosing OKVED codes, focus not only on those types of activities that you plan to engage in immediately at the very beginning of your work, but also those that may be relevant to you in the future. These may include, for example, the following:
36.11 - Production of chairs and other seating furniture;
36.12 - Production of furniture for offices and trade enterprises;
36.13 - Production of kitchen furniture;
36.14 - Production of other furniture;
51.15 - Activities of agents in the wholesale trade of furniture, household goods, hardware, cutlery and other metal products;
51.15.1 - Activities of agents in the wholesale trade of household furniture;
51.47.1 - Wholesale trade of household furniture, floor coverings and other non-electrical devices;
51.47.11 - Wholesale trade of household furniture;
51.64.3 - Wholesale trade of office furniture.
If some codes are missing from this list, this may subsequently cause difficulties when expanding the scope of your activity. You will have to make changes to the registration documents, which involves additional inconvenience and loss of time.
The list of documents that are submitted to the registration authority (INFS, located at the location of the individual entrepreneur being opened) includes: application for state registration individual as an individual entrepreneur in form P21001, a receipt for payment of the state fee for registering an individual entrepreneur, an application for transition to a simplified taxation system in form No. 26.2-1 (optional), a copy of the applicant’s passport. Registration documents can be submitted either personally or through a representative by proxy. In addition, you can send everything Required documents through the “Electronic Services” service or by mail in a valuable letter with a list of all enclosed documents. If all documents meet the requirements, then within five days after submitting them you will receive documents on individual entrepreneur registration.
In addition, you will need to prepare a number of documents necessary to conduct such business activities:
permission from Rospotrebnadzor employees to locate (this document provides the right to start the operation of the facility);
program for industrial and sanitary control (opening a furniture store is possible only if you have this document, which is designed to optimize the process of compliance with sanitary rules and regulations at the enterprise);
a sanitary and epidemiological conclusion, issued for a specific period by employees of Rospotrebnadzor, determines the compliance of the premises of the facility with the current norms and rules that apply for this type of enterprise;
contracts for the export of solids household waste and other garbage;
drawing up contracts for deratization, pest control, and disinfection work, which involves the execution of sanitary work to exterminate pathogens, rodents, and insects;
regulatory documentation for a furniture store;
drawing up an agreement for the provision of laundry and dry cleaning services for washing work clothes;
drawing up a contract for disinfection work for vehicles;
an agreement for regular disinfection and cleaning of ventilation and air conditioning systems;
official agreement for the disposal of fluorescent (mercury-containing) lamps.
Depending on the region and the specifics of the business, other documentation may be required to open a furniture store.
Furniture store premises
Even at the time of registration documents, start looking for premises for a store. It should be located on the first line and under no circumstances in the courtyards between houses. As for the region, the choice here is not so important. For good and high-quality furniture, people are ready to travel to the other end of the city. And in any case, they will need delivery of purchased furniture to their home, even if the store is located in the same area where they live. Upon examination suitable premises take into account the requirements and standards defined by law. Thus, industrial goods stores can be located in residential, public or separate buildings, in shopping centers and complexes. If the store is located in a residential building, then the entrance to the premises must be isolated from residential apartments. Norms for the area and height of premises are not regulated, and it is not recommended to use premises with a ceiling height of less than 2.5–2.7 m, with the exception of utility rooms.
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If you find a room on ground floor, then take into account that according to the standards it is allowed to locate stores in premises without natural light, but at the same time the requirements of SanPiN 2.2.1./2.1.1.1278-03 “Hygienic requirements for natural, artificial and combined lighting of residential and public buildings"(approved by the Chief State Sanitary Doctor of the Russian Federation on 04/06/2003), where Table No. 2 shows the standardized indicators of natural, artificial and combined lighting depending on the purpose of the premises. For example, for the sales floors of furniture and sports stores, the minimum level of artificial illumination is 200 lux.
After the premises have been found and a lease agreement has been concluded, you need to obtain the conclusions of the fire inspection and sanitary inspection. The presence of a conclusion from the sanitary and epidemiological service is the main condition for obtaining permission to operate a store by local governments and executive authorities. To obtain a fire safety certificate, an entrepreneur must install fire protection systems in the store premises, provide a sufficient number of fire extinguishers, as well as an emergency exit.
An ordinary furniture store does not require any design delights. It is enough to have fresh renovations and maintain cleanliness in the sales area. An additional advantage of furniture stores is that there is no need to buy additional commercial equipment. It will be enough to have a counter for the seller and cash register. The latter, by the way, must be registered. In addition, if you plan to hang a sign on the facade of the building where your store is located (and you cannot do without it), you will need to obtain permission from the landlord. Please note: a sign on the facade of a building containing the name of the company and its type of activity is not advertising, and therefore it can be placed without any permits or contracts. But if your sign is located at a different address, then its placement must be agreed upon with the authorized body.
Choosing a furniture supplier for a store
When searching for suppliers of goods for your point, consider several basic requirements for future partners and the products they offer. First of all, the furniture you purchase must be of good quality and affordable prices. Pay attention to reviews about the company you have chosen and its working conditions. Reviews can be found on various websites and forums on the Internet. Of course, you shouldn’t trust them blindly, since many of them are custom-made (that is, they are advertising in nature), but they can still give a certain idea about the supplier. Try to work only with trusted suppliers who have been in the market for a long time. You should not get involved with new companies, even if they offer extremely favorable working conditions. Due to currency fluctuations and consumer preferences, it is best to work with domestically produced furniture. Goods can be taken from suppliers for further sale or purchased at wholesale prices. Don't forget to ask the supplier for certificates for the products they provide.
If you prefer a specialized store, then you will have more suppliers, because you will need to ensure a variety of assortments, despite the limited number of product groups. Of course, it is difficult to find in the middle price segment original options furniture by design and execution. But there are Russian manufacturers who produce transformable furniture in small quantities, as well as various designer models. The prices for such furniture are slightly higher than average, but you can offer those who wish to choose the option they are interested in from the catalog and bring it to order. Such a service will be in demand, since original and, most importantly, compact furniture (transformable and built-in) is in high demand.
Take time to plan the arrangement of furniture in the sales area. Try to ensure that all models are clearly visible and that price tags are readable from any distance. At first glance, these are small things. But cluttered furniture makes it difficult for people to move around the store and causes them irritation. As studies show, when store visitors do not find what they are looking for, in most cases they immediately leave the store without turning to a sales consultant for help.
Furniture store staff
By the way, since we’re talking about sales consultants, let’s say a few words about the furniture store staff. The success of your business and your profits directly depend on it. Preference should be given to people who have experience in this field, but newcomers should not be neglected. After a little training, which you can do yourself, as well as a careful study of the store's assortment, many of them are in no way inferior to experienced sellers. Many furniture chains conduct entire exams for newly recruited workers, asking them questions about the assortment, selection of furniture for a specific interior, materials used in production, colors, etc. Small stores do not have the means to hire trainers, but you can control it yourself work as sales consultants, visiting the sales floor from time to time. As a rule, a salesperson's salary consists of a salary and a percentage of sales, the amount of which depends on the fulfillment of the established sales plan. This is the best option for financial incentives for employees.
Expenses and profits of a furniture store
The total cost of opening a specialized furniture store is from 3.5 million rubles. Don’t forget to budget for advertising costs – your profits directly depend on them. Print media is suitable for promoting a furniture store mass media(specialized publications), radio, television and outdoor advertising.
The revenue of a furniture store in a small town with a population of up to 500 thousand people, according to various sources, ranges from 2.5-3 million rubles per month. The average markup in the furniture business on products sold is 30-40%, and net profitability is estimated by experts at 7%. Accordingly, it is possible to recoup all expenses in 2-2.5 years.
It is widely believed that the furniture business is not subject to factors such as seasonality. In fact, it is not true. According to the sales results of individual furniture stores and retail chains, peak sales occur in the period from September to December. Then there is an increase in consumer interest in furniture between March and June. Summer is a “low season” both for the furniture segment and for other stores in general.
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The success of any enterprise is related to certain circumstances. What is important is how interesting the company’s products are for consumers and how competitive they are.
At the same time, when starting a business from scratch, the main thing is to do this 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.
In terms of development prospects and profitability levels, the furniture business from scratch occupies one of the first places. According to studies of consumer activity, the volume of furniture purchases over the past two years has not only not decreased, but also increased.
There is a decline in sales of luxury furniture. And even then, this decrease is very insignificant. And sales of mid-range and economy-level furniture have increased. 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 a car. Buying furniture is more affordable. Therefore, investments in the furniture business seem correct and economically justified.
Starting your own business is always a responsible decision. Therefore, every entrepreneur wants to insure themselves. In the case of this business, some of its features act as such insurance:
Furniture sales do not fall depending on the time of year. They do not depend on foreign currency rates and costs natural resources. Along with clothes, furniture is an item that will always be needed. Therefore, she is a sales leader.
A market snapshot taken at any time of the year will show that the level of furniture sales remains stable.
Wherein, important point is the availability of offers. Furniture prices have increased, but not critically. It is still accessible to the 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 newcomer to the furniture business. It's highly competitive.
However, it is surmountable. There are hundreds of furniture options. Therefore, you can always find your niche and work within it, receiving stable decent money;
Furniture production requires 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, the good thing about own production is that it can be gradually developed. You can introduce new technologies, purchase equipment and obtain more interesting and varied products;
To start a furniture business, you don’t need to complete a lot of paperwork. He will be able to organize his own enterprise and individual entrepreneur. At the same time, there are no special requirements for production premises. It is enough to comply with general fire safety and sanitary standards;
Thanks to a large number of suppliers upholstery materials, various fillers, accessories and other things, everyone will be able to choose the most profitable options.
Of course, starting a new business from scratch requires investment. However, the volume of these investments depends on the capabilities of each businessman. 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 costs of this procedure are small and limited to several thousand rubles. At the same time, use the services various companies, completely optional;
You will need to choose a tax system. The most acceptable is the imputed income tax system. Thus, the entrepreneur will pay a fixed amount annually. Nothing more will be required from him.
Everything is done with the help of multifunctional centers that prepare all the necessary documents. To do this, you only need an application and a receipt for payment of the state fee.
Will need production room. In order to save money, it can be rented on the outskirts. After all, this is not a place of sales. Therefore, such premises should not be located in the city center or in close proximity to it.
We must not forget that such a room must meet fire safety requirements. Otherwise, this is fraught with large fines and suspension of the enterprise.
It is necessary to provide methods for removing waste and delivering products to retail outlets. Thus, the location of the production facility should be convenient, and the room itself should be spacious.
A competent choice of suppliers of fittings and upholstery materials will save you good money. Each of these suppliers strives to find a new client and cooperate with him indefinitely. Therefore, it always makes sense to negotiate the terms of discounts and other privileges.
Also, it will be necessary to hire assemblers and other personnel. In order to reduce the cost of paying them, you should set them a minimum wages. Its level is established by law and the salary cannot be less than it. And the rest of the income, the employees will have to earn.
The point is to tie the level of earnings of employees of an enterprise that is opened from scratch to the level of productivity of their labor.
The more an employee completes in a day, the more money he will receive at the end of the month. This approach seems to be the most justified. Subject to good faith, 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 increased productivity and, consequently, increased sales. In addition, performance discipline will increase, and interest in the results of work 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 market segment is constantly evolving, new models and new developments are appearing.
The quality of services and final products improves. Therefore, being inside and understanding the ongoing processes and following them means creating a full-fledged, effective and profitable business.
At the same time, the level of investment is determined by each investor independently. However, in order to reduce risks, it is not advisable to use all your capabilities at once. It makes sense to let the business and the conditions in which it will develop prove itself.
At the moment, all areas of small business are developing very actively. Businesses related to furniture production are considered especially productive and profitable. In order to be aware of all the intricacies of this production, you do not need to undergo special training. To successfully conduct business, you must have basic knowledge, concepts and some experience in this area. Luck and patience are not the last components of your success in this business.
Not only mass production, but also piece manufacturing of furniture today has become a simple matter, accessible to everyone. Assembly processes are sometimes called construction for adults. If you have basic understanding of what and how to do, then assembling modern furniture that is sold in expensive stores will not be difficult for you.
In fairness, it is worth noting the fact that furniture market in Russia today it faces great competition. About three thousand large medium-sized enterprises are actively fighting for their potential clients. Is there even the slightest chance small business to occupy your niche in this market segment? In this article we will try to address issues related to this topic.
If the company is not very large, it should pay great attention to the development of its production base, otherwise it may lose its competitiveness and go bankrupt.
In big cities, people are picky and very demanding about the quality of furniture. They are not satisfied with low quality products. Consumers are increasingly making complaints about poorly made furniture. He looks not only at appearance goods, but is also interested in how long the furniture will last.
It is very difficult for small manufacturers to compete with large firms, which have much more opportunities to produce products of better quality and in a larger range.
Many experts are inclined to think that the share of small and medium-sized enterprises in the furniture business will increase every year. This trend is quite understandable and predictable. In a few years, the share of small enterprises is expected to increase to 75–80%.
One of the most promising areas is the production of kitchen and office furniture. There is a real excitement in this industry. Over the past 10 years, profits in this sector have increased by 20% every year. Small businesses are increasingly turning their attention to built-in furniture - it is a top seller. Inexpensive, quality furniture, which costs almost half as much as a similar one made abroad, is in great demand among the population of our country.
It is worth knowing that investors are happy to invest their money in this type of business, because they know that with a successful investment they can count on 40% profit.
For small and medium-sized furniture businesses, the main task is to occupy a specific niche. This means producing a specialized product. Increasingly, companies are appearing on the market that produce unusual furniture made of glass, plastic, and rare wood.
Do not forget that recently it has become very fashionable to make custom-made furniture that will have non-standard shapes, colors and designs. Manufacturers of wicker furniture have virtually no competition. Their goods are sold out with pleasure.
Instructions for those who decided to open a pawnshop, but do not know how best to do it:
You can organize the production of furniture various types and purpose. This could be a business producing built-in furniture, cabinet furniture, upholstered furniture, kitchen furniture, office furniture, garden furniture and specialized furniture.
Selecting premises and purchasing necessary equipment for furniture production - this is one of the most important components of the entire process. At first labor activity An inexpensive tool will be enough for you. An approximate list of what you cannot do without:
After production moves to a new, high level, it will be possible to take care of purchasing a higher quality and more expensive tool. The cost of purchasing a tool can range from 40 thousand rubles and more. Professional machines They are expensive, and they need to be purchased only when sales volumes and the number of orders reach an economically justified level.
The main role in implementation belongs to retail trade. You can negotiate the sale of your products in large shopping centers and stores. Large manufacturers create their own branded showrooms in which they sell goods of their own production.
Retail outlets must have large area so that the furniture is placed freely and is clearly visible. In small towns, furniture sells well in markets. To sell specialized furniture, you need to send booklets and leaflets to company managers.
Selling furniture online is currently popular. The only disadvantage of promoting a product in this way is the buyer’s inaccurate understanding of the product.
To open store medium scale you will need from 2.5 to 3 million rubles. The main amount will go towards renting premises, purchasing goods and wages to staff. The business will pay off in 1.5 - 2 years with a markup on the goods of 20 - 40% of the cost.
Budget and profitability of a furniture workshop:
A furniture workshop can pay for itself in 2 – 2.5 years. Profit per month will be about 80,000 rubles.
Furniture factory– ideal profitability is 10 – 25%.
This is a calculation for a factory that specializes in the production of cabinet office furniture made from chipboard. In this case, the sales volume must be at least 10,000 products per month.
The furniture manufacturing business has always been and remains promising. People have changed and will continue to change furniture according to the degree of wear and tear. Manufacturers will never be left without work. And you can safely plunge into manufacturing process. The main thing that needs to be done is to plan everything exactly and organize it correctly.
In the modern Russian market, the production of cabinet furniture occupies a quarter of all furniture production. Small and medium-sized businesses consider this industry profitable and profitable - the demand for quality products is stable. Let's consider how much investment it will take to organize your own furniture workshop, how difficult it is to lead the market and whether it is worth it for novice entrepreneurs to try themselves in this field.
The demand for cabinet furniture is currently very high. In general, it is always quite high, but the current increase in interest is due to the revival of the market for new housing construction.
At the time of buying new apartment or repairing an old one, purchasing new cabinet furniture is almost inevitable. This is the basis of any interior.
Cabinet furniture is all furniture made from solid modules installed and fastened horizontally and vertically. This type includes:
At the same time, in modern conditions one cannot complain about the lack of supply. Both small workshops and huge corporations actively sell their furniture. The furniture manufacturing business exists in a highly competitive environment- This is the main reason for the closure of most start-up businesses. Therefore, before trying to realize yourself in this area, it is worth drawing up a business plan, analyzing costs and taking into account all the pros and cons.
Cabinet furniture is all furniture made from solid modules.
How to start a furniture business from scratch? First you need to find out what modern cabinet furniture is made from. The most common material is particle board (chipboard) or wood panels medium density(MDF). Solid wood furniture is less common: it costs significantly more, which is why the demand for it is lower.
Furniture made from chipboard is much cheaper, as it is essentially made from laminated wood chips. Modern decoration methods make it possible to give it a more expensive and solid look, while maintaining a low cost.
If you are planning to start producing cabinet furniture from chipboard, you definitely need a reliable supplier of materials who will provide you with workpieces for work at the right time and in the required volume. It is better to enter into a supply contract with the chipboard manufacturer rather than purchasing materials on demand yourself.
As for related accessories and other materials, it is also necessary to conclude contracts for their supply with reliable contractors in order to avoid a situation where it is impossible to complete the order within the required time frame due to the lack of components.
Before you begin compiling a list of necessary equipment and other costs for your enterprise, it is important to obtain at least general idea O technological process manufacturing of cabinet furniture. Simplified, it can be described by the following cycle:
Any furniture production workshop one way or another reproduces this technological cycle. Its minor changes depend on the equipment available at the enterprise, production optimization, and employee qualifications.
The speed and comfort of work depends on the quality of machines and other equipment.
Now let’s look at what equipment a start-up enterprise needs for furniture production. First of all this different types machines for furniture production:
For small productions, manual ones are suitable - they allow you to service the required volume and at the same time are cheaper. When an enterprise enlarges and switches to mass production, it is reasonable to replace them with semi-automatic or automatic machines. The price for such machines starts from 200 thousand rubles.
In addition to machines, a modern furniture workshop should be equipped with:
Thus, only for furniture manufacturing equipment and related tools you will have to spend at least 1,200,000 - 1,500,000 rubles. There are several ways to save money. For example, purchase used equipment or lease it first.
When purchasing machines, new or used, carefully consider all associated warranties. A good sign There will be warranty service available. Read customer reviews first. The speed and comfort of work, and therefore the quantity and quality of products, depend on the quality of machines and other equipment.
The production of cabinet furniture for business purposes requires quite a lot of space. Conventionally, the entire space can be divided into zones:
For a small enterprise, an area of about 100 square meters is required. It is better to rent it in the industrial part of the city: it will cost much less. Make sure that the rented premises have convenient access roads for the delivery of materials and supplies, as well as loading of finished products. The cost of renting a room varies significantly depending on the region, but on average it will cost 100-200 thousand rubles.
For a small enterprise, an area of about 100 square meters is required.
The predominant part of furniture manufacturers, especially from the small business sector, prefer to manufacture and assemble products to order. This approach is beneficial to both parties: buyers receive furniture of the right size, color and configuration, and the manufacturer spends exactly as many resources as necessary and does not work at a loss.
With this approach, one sample is made, which is displayed in the store with an indication that the sample for sale will be made taking into account the wishes of the client. The main thing with this approach is to produce furniture quickly enough and offer customers the maximum number of options.
The core of the furniture enterprise will be workers, mainly carpenters, whose task is to directly produce samples and custom-made products. The number of workers depends on the volume of production; for a small workshop, 2-4 people are enough.
A sales manager is needed to find channels for selling products, interact with customers and collect orders. This specialist negotiates with furniture stores and looks for clients in real life or via the Internet. Can serve as a marketer and work on the company's sales strategies. The purchasing manager does the opposite work - looks for suppliers, ensures timely delivery of components for production.
It’s very good if you have the opportunity to hire a furniture and interior designer (albeit at half the rate), who will develop sample designs and recommend a variety of solutions to clients.
When a company assembles furniture according to the customer’s measurements, an employee is needed to take orders and, if necessary, go to the site and take measurements (for example, for the manufacture of cabinets, “walls,” kitchen units and shelving). This function can be taken on by a designer or sales manager.
How profitable will such a business be? Furniture is always in demand, but it is very difficult for start-up businesses to gain an upper hand over their competitors. Therefore, before investing money and effort into organizing your own furniture business, carefully evaluate all the pros and cons of this business.
Furniture is always in demand, but it is very difficult for start-up businesses to gain an upper hand over their competitors.
The main disadvantage of the cabinet furniture production business is very high competition. Small private workshops and huge factories engage in such activities. Start-up businesses find it difficult to compete, many close after a year and a half of work, having suffered losses.
Why do some workshops successfully work in the cabinet furniture market for years, while others close after working for 12-16 months? The reasons may vary, but there are several characteristics that successful companies have in common:
The cabinet furniture production business requires an initial capital of 1.2 million rubles and a set of specific knowledge. A small enterprise requires 4-6 employees. Competition in this area is very high and is explained by strong demand among a wide variety of customer categories.
