Who is in demand in the labor market today? Sellers and managers. What about the production workers? Much less of them are required, and in the conditions of the Russian market today, it is profitable to increase production, especially the construction industry.
Every second city dweller dreams of owning their own home or, at worst, a suburban plot for a vegetable garden. This means that many of our fellow citizens are starting construction. At a construction site there are a lot of materials that are constantly needed: nails, screws, boards, cement, sand, crushed stone, paint - but you never know what other things will be needed on the farm even after the main construction is completed.
For example, you need to build a fence quickly and inexpensively; you can’t find a better chain-link mesh for this. What to do: go to the market and buy from the same sellers, or take a machine and make the net yourself in order to provide for your village and enter the market. Here's an idea for production. If you don’t want to join the numerous ranks of sellers of other people’s goods, you should try to make your own.
How profitable this business is will become clear if you carefully study the demand in the area. There is not much competition in the market, the mesh is sold not of the best quality, not in assortment or is not available at all, it is worth hurrying to open your own workshop for the production of chain-link mesh. You don’t need a large room for a workshop: 15 meters for one machine and that much for a warehouse for finished products.
By the way, about machines. It is better, of course, to choose automatic ones: they produce high-quality products and require minimal human effort, but cost at least two hundred thousand rubles. Semi-automatic machines are almost an order of magnitude cheaper, but the mesh is not the most even, and the worker has to do many operations manually. The payback on an automatic machine, if well implemented, can be about a year, and the income is small, about thirty thousand per month. But this is from one machine, provided that you have to support workers, and not work yourself.
We know that mesh can be made of different materials (metal, plastic) with cells of different diameters. For each type of mesh you can purchase your own machine. If sales go well, then the profit from each new machine will add up and can become significant. Then the question will arise about finding an excellent manager and salespeople who will help you reach decent incomes and, over time, establish wholesale trade.
Construction is a field of activity that continues to exist even in an economically unstable environment. The demand for building materials is seasonal, but the average annual indicators remain very impressive. Thus, the production of chain-link mesh is a promising business. The advantage is the low entry threshold. However, we should not forget that this is accompanied by high competition. In order to successfully enter the market and recoup your investments within the first 2-3 months, you need to draw up a business plan that will take into account all the nuances of this business. This project is designed for a city with a population of more than 1 million people.
Key Success Factors:
The initial investment amount is 340 000 rubles
The break-even point is reached at first month of work.
The payback period is from 3 to 6 months.
Average net monthly profit 64 000 rubles
Return on sales 16% .
Chain-link mesh is a building material whose scope of application is very wide:
The main advantage of this material is that the chain-link mesh does not create shading of the fenced area, unlike solid fences made of wood or concrete .
To produce the mesh, galvanized steel wire is used, which is twisted in a certain way on special equipment.
To start a project, it is enough to rent a production facility with an area of 20-25 m2, buy 1-2 machines and hire 2 operators. At first, you can work one shift. With an increase in the customer base, it is necessary to organize the work of the workshop 24/7, hire 2 more employees, and also purchase an additional machine.
This type of business is seasonal; in spring and summer, during construction, there is an increase in sales; in autumn and winter there is a decline, for which you need to be prepared and have financial reserves.
Chain-link mesh is classified according to the following criteria:
According to the material from which it is made;
According to the size of the cells on the grid;
By wire thickness;
According to the size of the finished rolls.
The most popular is galvanized chain-link mesh in rolls measuring 1.5x10 m with square cells of 50x50 mm and a wire width of 1.6 mm.
Thus, in this business plan we will carry out all calculations taking into account the production of exactly this type of mesh.
For production we choose an automatic machine. It has high productivity and quality of manufactured products, minimal dependence on the qualifications of the employee.
To maximize profits, as additional services, you can fulfill orders according to individual customer sizes.
In general, the sale of finished products in this business area can be carried out in the following ways:
In this work, we will consider retail and wholesale sales. However, in the process of activity you can significantly expand the scope of implementation.
Recently, we have seen a constant growth in the construction sector. Thus, this niche has great potential. The graph shows the growth in the number of construction organizations from 2012-2016 (official statistics website gks.ru)
The number of operating construction organizations in the Russian Federation.
The key goal is to open the production of chain-link mesh and maximize profits.
Room characteristics:
Preparation of documents:
Equipment selection:
For our project, we choose an automatic machine for the production of chain-link mesh ASU-174M.
Types of mesh produced on this machine:
Selection of raw materials:
For the production of chain-link mesh, wire is used in accordance with GOST 3282-74, uncoated, galvanized. It is most profitable to use raw materials in rosettes, since the unwinding of such wire on a machine occurs without the formation of loops. For uninterrupted production, it is necessary to cooperate with several suppliers of raw materials.
To start this business at the initial stages, it will be enough to hire one competent manager and two operators who will work in 2/2 shifts for 12 hours.
The main responsibilities of the manager include general management, sales of products, and purchase of raw materials. He also performs the functions of a storekeeper and supervises the workers. Consequently, the range of responsibilities is quite wide, so for this position you should hire a person to whom you can completely trust the above powers. At the start, the business owner himself can become a manager.
The production process is quite simple: the worker inserts a spool of wire into the machine, selects the necessary parameters for the mesh on the control panel (cell size, length and width of the web), and presses start. The machine pulls the wire to the desired location, where it is wound onto the auger in spirals, which are then cut, and one end of the wire is bent into a hook. Then such workpieces are put on a shaft attached to the cutting device; it constantly rotates. The spring is stretched and another spring is wound onto it, and so on, until the desired length of the mesh is obtained. The finished mesh is wound into a roll, and the end of the wire is cut off. After which the rolls are treated with technical oil, packed in paper and stored on racks.
Thus, the main requirements for an employee are attentiveness, accuracy and precision; experience in this field is welcome.
The staff receives a fixed salary: manager - 30,000 rubles; operators - 20,000 rub.
Payroll fund, rub.
Amount of workers | Wage | Total: |
|
Manager | |||
Operator | |||
Insurance premiums (30% payroll) | |||
Total: |
In terms of sales, we will consider 2 main sources of income: wholesale sales and retail. The average market price of one roll of chain-link mesh at retail is 900 rubles, wholesale - 600 rubles. The machine's output is 22 rolls per 12-hour shift. That is, in the scenario under consideration, we can produce a maximum of 660 rolls per month. The market price of wire is 40 rubles/kg. To produce one roll you need 10 kg of wire. Consequently, the consumption of raw materials per roll in monetary terms is 400 rubles.
Demand will grow gradually over the first 5 months and will return to its normal levels by the 6th month. Peak sales will occur in the spring and summer. Thus, the scenario under consideration is realistic, and with a successful entry into the market, the project has a reserve for increasing profits.
Sales plan for the 1st year of project implementation, rub.
Implementation method | Indicators | 1 month | 2 month | 3 month | 4 month | 5 month | 6 month |
Retail sales | Price of one roll, rub. | ||||||
Total quantity, pcs. | |||||||
Total, rub. | |||||||
Wholesale | Price of one roll, rub. | ||||||
Total quantity, pcs. | |||||||
Total, rub. | |||||||
Total: |
Implementation method | Indicators | 7 month | 8 month | 9 month | 10 month | 11 month | 12 month |
Retail sales | Price of one roll, rub. | ||||||
Total quantity, pcs. | |||||||
Total, rub. | |||||||
Wholesale | Price of one roll, rub. | ||||||
Total quantity, pcs. | |||||||
Total, rub. | |||||||
Total: |
Monthly costs include both fixed and variable costs (direct costs), depending on sales volumes.
The table below shows fixed monthly costs, independent of sales volume.
Variable costs are presented in the following table.
Variable costs of the 1st year of project implementation, rub.
Implementation method | Indicators | 1 month | 2 month | 3 month | 4 month | 5 month | 6 month |
Retail sales | Price 10 kg of wire, rub. | ||||||
Total, rub. | |||||||
Wholesale | Price 10 kg of wire, rub. | ||||||
Total number of rolls produced, pcs. | |||||||
Total, rub. | |||||||
Total: |
Implementation method | Indicators | 7 month | 8 month | 9 month | 10 month | 11 month | 12 month |
Retail sales | Price 10 kg of wire, rub. | ||||||
Total number of rolls produced, pcs. | |||||||
Total, rub. | |||||||
Wholesale | Price 10 kg of wire, rub. | ||||||
Total number of rolls produced, pcs. | |||||||
Total, rub. | |||||||
Total: |
The financial result for the first year of operation is presented in the following table. The average net profit for the first year of operation is 64 671 rub. If you start activities in January, then the payback period will be about 6 months; if the project is launched in the spring-summer period, then it will pay off in the first 3-4 months.
Financial result of the 1st year of project implementation, rub.
1 month | 2 month | 3 month | 4 month | 5 month | 6 month |
|
Revenue | 516 000 |
There are types of businesses that do not suffer during any crises or market downturns. One of these types of entrepreneurship is the production of chain-link mesh. It is bought at any time of the year and in large quantities, so if you set up the production of high-quality building materials, you can sell it wholesale to bases and stores, so as not to have to deal with retail sales. In this article we will look at a shortWe’ll tell you what equipment is needed and what investments will be needed to get started.
It is believed that mesh is bought only in warm weather, but in reality this is not so. It is used for the manufacture of aviaries and poultry houses, fences in dachas, fences in car parks, for concrete work, etc., so the main thing is to correctly prioritize its implementation.
Chain-link mesh in the warehouse does not take up much space
The advantages of this type of business include several points:
Today in Russia there are several large manufacturers of mesh and, in general, there is no shortage of it, but you can still start a business for its production in almost any region of the country. This material is used in agriculture, in everyday life, in livestock farming, and in mining for sifting ore or crushed material, for fastening slopes, for concrete and plastering work, creating protective screens, heating mains, etc. Therefore, you should decide on what , to whom exactly you can sell your products, study the offers available on the market and calculate the profitability of your idea, and then begin selectingequipment for mesh production. The cost of finished raw materials depends on the following factors:
Attention:Call existing databases and wholesale stores to find out the range offered and price levels. Ask at what price it would be profitable for them to buy products from you.
Chain-link mesh is very popular both in everyday life and at industrial facilities
Selling chain-link can be done in several ways:
Ideally, one should work in all four areas, but in practice it turns out that first implementation goes to private individuals. Then you can negotiate with stores and markets, then you can go to wholesale and tenders, gaining experience and the necessary knowledge.
Before you buy, you should think about how to work more correctly and efficiently. For such production, the easiest way is to open a classic individual entrepreneur, but if you want to do business with a partner or in shares with relatives, then it is better to create an LLC. As OKVED, you can use 28.73, which is called “Production of wire products”. To choose the right tax system, you should think and calculate the numbers you plan to work with. To work with private traders and markets, it is quite possible to use a simplified system. To work with enterprises, shops, bases, it is better to register a legal entity or act as an individual entrepreneur - a VAT payer. As an example, when calculating a business plan, we will assume that we work according to the simplified tax system - 15%, and the tax base includes income minus expenses.
Attention:the requirements for the chain-link are specified in GOST 5336-80. At the same time, frequent buyers, markets and stores usually do not require quality certificates for products, but we recommend that you undergo voluntary certification and obtain the appropriate papers - this will make wholesale sales easier for you and will eliminate a number of questions from regular customers.
Chain-link mesh with polymer coating
In fact, all the necessary equipment for the work of the workshop is a machine that bends wire and produces a chain-link of the required cell diameter. Today on the market there is a large assortment of similar machines of domestic and foreign production. There are materials on the Internet that you can use to assemble such a structure yourself, but we will not consider such exotic things - it is better to purchase a ready-made machine, even a used one, than to waste time and money on construction.There are two main types of machines:
Semi-automatic machines take up little space, are easy to install and maintain, have an affordable price (30-60 thousand) and a long service life. But they also have disadvantages - partial automation does not allow work to be carried out completely autonomously - the operator will have to do a lot manually, including the initial bending of the mesh. This leads to the fact that the cells are heterogeneous and uneven (with the proper experience of the operator, this disadvantage can be reduced to zero). We recommend purchasing such a machine only if you are seriously limited in finances.
Automatic devices operate completely autonomously and do not require human intervention. Their advantages include the absence of a human factor: they are more productive, have equal cells, have increased weaving accuracy and bending accuracy. Maintenance personnel only need to load the wire in a timely manner and remove the finished rolls for storage. The cost of such installations starts from 200 thousand rubles, and the disadvantages include the high complexity of maintenance and setup.
In our example, we will calculate the numbers based on the fact that a high-quality automatic device ACP15/2 will be purchased, which as of 2017 costs 300,000 rubles. It comes complete with unwinding equipment, additional equipment for curling, instructions and a passport (warranty for the machine is 3 years). It is capable of automatically producing chain-link with a mesh diameter from 20 to 60 mm, which fully meets the requirements of GOST. In addition, the cost of the equipment includes delivery of the device to the workshop, its installation, commissioning, training of workers and maintenance of the device for one year. This allows you to reduce possible costs and immediately begin production.
You should also purchase or assemble several racks for storing and warehousing finished products and think about record keeping (for small volumes, you can get by with manual records; for large volumes, you will need a computer with the appropriate software). In total, all production costs will cost a maximum of 400,000 rubles - you will spend 300,000 on the machine, 50 on setting up the workshop and workplace, 50 on other expenses such as design, initial advertising, etc.
Automated production machine
We will separately consider the requirements for the premises. To install the machine and work with it, you need approximately 15 m2, another 15 for storing products, that is, a total of 30 square meters (at a minimum). Another 10-15 m2 will be needed to accommodate staff and for the order receiving table. At the first stage, you can work on your own - production takes a minimum of time, as well as issuing orders for retail or small wholesale.
Attention:Before purchasing a machine, ask whether it requires connection to a three-phase network. Some devices work from a regular outlet, some require a 380 volt connection.
Let's look at how the chain-link manufacturing process generally occurs. To do this, the operator needs to place a coil or coil of wire into the receiving device, insert one end into the machine, set the cell size and roll size and click on “Start”. After this, the machine turns on and begins to produce wire, stretching it using guide bushings. The material is wound onto a screw, after which it is chopped using a guillotine, bent into half a cell and passed through the grooves. Then the procedure is repeated and the bent wire is inserted one into another, twisting in a spiral and stretching under the influence of gravity.
The cycle is repeated the required number of times until the roll is completely formed. Upon completion, the finished network is treated with oil, which protects the metal from rust, wrapped in thick paper or cellophane, and laid in stacks on the floor or on racks.
Several unique building materials are so widely used that the level of demand for them never falls. Chain-link mesh is a prime example of this.
This material is characterized by the concept of seasonality, but it still brings the owners a high and stable income. An equally important advantage is the following point: the start does not require a large amount of financial investment, the size of the production machines is quite compact, and the finished mesh can be easily rolled into a roll, therefore, a huge production area will not be needed. To open a mini-workshop, only 300 thousand rubles are required.
Despite the small size of capital investments, the need to develop a business plan and its own development strategy has not been canceled.
Without the following actions, it is impossible to achieve success in any type of activity, including the production of chain-link mesh:
An assessment of consumption showed that almost all of the manufactured mesh (90%) is purchased in order to equip a fence or other fencing at a construction site, garden and summer cottage, as well as for the manufacture of enclosures. The remaining 10% is needed to meet the remaining needs in construction, agriculture and engineering.
The price of the chain link is affected by:
Before opening your own production, you should analyze the existing demand: approximate sales volume, demanded assortment, prices set at the wholesale construction base and in the retail store.
The main distribution channels include:
It is difficult to determine the exact amount of costs, but the approximate amount of monthly expenses includes payment for:
The optimal organizational form for opening a mini-workshop is the status of an individual entrepreneur. But you need to choose a taxation system based on the target audience of buyers the activity will be aimed at.
If the end consumers are individuals, then a simplified taxation system is suitable, and if organizations and enterprises, then a system that requires payment of VAT is needed.
The production of chain-link mesh is regulated by GOST 5336-80. Current legislation does not provide for obligations for the manufacturer in the form of confirmation of product quality by providing a certificate or declaration of conformity. But practice shows that voluntary certification makes a business successful.
The main expense is the purchase of machines necessary for production. Types and manufacturers can be sorted endlessly, but there are 2 main industrial options:
An example of the operation of semi-automatic equipment is shown in the following video:
Drawing up any business plan involves developing an effective advertising campaign. After all, it is the basis of a successful business start.
1-2 months before the official opening of the activity, you should post information about the new production in the media, as well as print leaflets and distribute them on the street to passers-by, or even better, post advertisements at public transport stops. The presence of bright and colorful signs is unusual for this type of activity, but if a person needs to purchase material, he will find your company without it.
All you need to open such a business is to find a suitable place, purchase a machine and hire an employee who will monitor its operation: load the reel, program the process in accordance with the necessary parameters and start the machine.
Stage name | Planned time |
---|---|
Completing the registration procedure for a legal entity or individual entrepreneur | January 2016 |
Drawing up a business plan and developing a strategy | January 2016 |
Finding suitable premises | January 2016 |
Purchase of a machine for mesh production | February 2016 |
Recruitment of staff | February 2016 |
Conducting an advertising campaign | January-February 2016 |
Operator training | February 2016 |
Official opening | March 2016 |
As was said at the very beginning, opening a mini-workshop requires about 300 thousand rubles. Now you need to figure out how feasible such investments are, and over what period of time they will pay off.
One machine is capable of producing about 50 m 2 /hour. If we take into account single-shift work and a five-day work week, we get 8800 m 2 /month. A standard size roll is 15 m2 (length 10 m, width 1.5 m). That is, the monthly production volume will be 586 rolls.
Sales prices:
Total income will be: (176 rolls * 750 rub.) + (410 rolls * 550 rub.) = 357,500 rub.
Now let's calculate the cost:
Net profit amount: 357,500.00 - 207,092.40 = 150,407.60 rub.
After deducting wage costs, utility bills, rent, taxes, etc., approximately 40 thousand rubles will remain.
Based on this level of income, we can conclude that the mini-workshop will pay for itself in 6-8 months. One cannot help but mention seasonality - the demand for mesh increases from April to October.
If there is a permanent wholesale sales or retail network, then you should think about increasing production capacity (one operator can easily handle 3-4 automatic machines) and expanding the product range depending on demand needs.
This machine for the production of chain-link mesh (China) was chosen as the main equipment as part of our business plan for organizing the production of chain-link mesh.
Production characteristics of the machine:
Cost 1,450,000 rubles. However, there is a lot of other equipment on the market for weaving mesh with a more reasonable price range (for example, the ASU-174 machine). It should also be noted that equipment for manual weaving will cost less than automatic weaving. So a semi-automatic machine for weaving mesh netting, with a capacity of up to 150 sq.m. per work shift (cell 55*55) will cost only 34,000 rubles. (Price valid as of April 2015).
To operate the workshop during single-shift work, 4 people are enough
The need for chain-link mesh is experienced by both individuals and legal entities (enterprises of all forms of ownership)
Products can be sold through the following channels:
Equipment | Price, rub. |
Basic equipment | |
Equipment delivery costs | |
Working capital (purchase of raw materials, monthly payroll, others) | |
With a single-shift workshop and an 8-hour working day, the maximum output (minus the time for technical breaks and lunch breaks) per month (22 shifts) is 15,400 square meters of finished products.
The price depends on the size of the mesh cell and the material from which it is made, so the wholesale price for a mesh made of galvanized wire with a cell size of 35*35*2 starts from 80 rubles per 1 square meter.
Name of product | Daily output, sq.m. | Cost, per 1 sq.m. | Output per shift, rub. | Monthly output/22 shifts |
chain-link mesh 35*35*2 (galvanized) | ||||
Based on the price for 1 sq.m of mesh is 80 rubles and with a monthly output of 15,400 sq.m. monthly revenue is 1,232,000 rubles.
To produce 1 square meter of chain-link with a mesh size of 35 mm * 35 mm, 1.5 kilograms of wire are needed.
In addition to wire, the cost includes electricity; consumption is 6 kW/hour or 48 hours per shift.
Monthly expenses are 174 thousand rubles.
The expenses include the following items:
According to the calculations, the payback period for the chain-link mesh production workshop is 2 years. If you can find sales markets, then the equipment can operate in 2 shifts and 30 days, then with this option the payback will occur much faster.
For a workshop for the production of chain-link mesh, the most optimal organizational form is: “Individual Entrepreneur”.
The most suitable form of taxation is the simplified taxation system (income minus expenses). The tax return is submitted once a year.
The following taxes are paid under this taxation system: profit tax 15%, unified social tax (32%) and income taxes (13%).