Business plan
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We bring to your attention a business plan for furniture production, thanks to which you will be able to launch the production of high-quality furniture at affordable prices for the population and enterprises. Putting a furniture workshop into operation is quite a complicated matter, because furniture manufacturing includes the selection of the necessary premises, the purchase of equipment, that is, real carpentry production, where highly qualified specialists will work in a semi-automated mode. Personnel must be able to handle equipment, use appropriate patterns and high-quality materials, then the carpentry shop will develop further.
A high-quality business plan for organizing furniture production will allow you to understand what stages await you in this business venture and what to pay special attention to. Thus, it will be necessary to clearly think through the range of products that will be produced in the future. You can start producing only upholstered furniture: sofas, canapés, armchairs, soft chairs, or you can produce cabinet or frameless furniture, which are in high demand everywhere nowadays.
The presented furniture manufacturing business plan will reveal to you the secrets and secrets of your future furniture factory. How to organize the work cycle, where to start a marketing policy, what kind of personnel should be selected for this endeavor? In this detailed document you will find professional answers to all your questions. To produce office furniture, completely different materials and patterns are required than for the production of kitchen products. Therefore, technical and economic data will be not only interesting for you, but also useful.
Having received information from the business plan for creating a carpentry workshop, you can take it as a basis and prepare your calculations. Good and inexpensive furniture is needed by consumers, especially in the periphery, where furniture is supplied at a significant markup. You can specialize in specific models, for example, produce sliding wardrobes, or you can commission a workshop for the production of a huge range of furniture products. In any case, the profitability of production is quite high.
Demand, as we know, creates supply. This factor is responsible for the emergence of a large number of new manufacturers on the Russian furniture market. According to statistics, more than 70% of the furniture sold on the market is manufactured by domestic entrepreneurs, and the most popular products are those in the middle price range.
The simple technology for manufacturing cabinet and frameless furniture often misleads novice businessmen, who think that organizing a business from scratch and starting to make custom-made furniture is not at all difficult. And at this stage, many of them make annoying mistakes, which subsequently lead to serious failures.
The first question that worries any businessman is where to start producing frameless furniture, how to open your own furniture business and turn it into a stable source of income. One of the factors favoring the opening of furniture production is the relatively low financial investment in this business. Having decided that he will produce furniture, the entrepreneur must also decide in which premises he can open furniture production.
Renting a special furniture workshop is certainly one of the best options. But, by and large, costs at the initial stage of business development can be minimized and you can rent a small room for furniture assembly.
But even this option should be considered for optimal benefits. It is important that the organization of a furniture workshop takes into account how convenient its location will be, whether it will be possible to avoid unnecessary transportation costs, as well as the costs of maintaining the premises in good condition. For example, a semi-abandoned production workshop or an empty spacious room in a municipal institution may be suitable for this purpose.
The cost of renting furniture production will depend on various nuances, but you should not rely on minimum prices. If you are offered to rent a room at obviously ridiculous prices, you should suspect some kind of trick in this. Perhaps his roof is not able to withstand even the most modest precipitation, or problems with regulatory authorities are inevitable.
The main areas of expenses for a furniture business are the costs of purchasing the necessary equipment, which is also not worth saving on, and wages for the company’s employees, even if there are only a few of them at the initial stage of business development.
In an effort to achieve your goals, it is advisable to rely on a professionally drawn up example of a business plan for opening the production of cabinet and upholstered furniture with ready-made calculations - the main financial document that guarantees the stability of your enterprise. With its help, it will be much easier to get acquainted with the features of the furniture business, determine the volume of furniture sales, and find out what problems the opening of furniture production may be associated with. If it is necessary to use borrowed funds, it is a competent business plan that will allow you to organize a profitable line of credit in the furniture business. Using this document, you can easily achieve a result where the gross sales volume of your furniture factory will exceed even your wildest expectations.
How to open a furniture shop, where to start, whether partners are needed in the furniture business - these questions invariably bother novice entrepreneurs who decide to create their own business producing upholstered, cabinet or frameless furniture. Having focused on the global aspects of creating furniture production, such as finding suitable premises and purchasing quality equipment, many businessmen forget how important the professionalism of the company’s employees plays in the organizational structure of furniture production.
For any furniture maker, owning a business is, first of all, a source of stable profit. But wanting to save on employee salaries, a businessman takes a significant risk. Of course, at first it is quite possible to hire inexperienced furniture assemblers, who will be attracted by the relatively low wages. Many people are now ready to become furniture assemblers - former engineers, managers, lawyers, as well as people without any specialization at all. But are people who have never worked in this field before able to ensure the high quality of their work? Very doubtful. Therefore, you should think very seriously about where to look for employees for your company.
According to the Association of Furniture and Woodworking Industry Enterprises of Russia, the market capacity today is quite large, which indicates quite significant competition in this segment. Pay attention to the organizational structure of the enterprise using the example of any well-known furniture factory: as a rule, in large furniture factories, upholstered and cabinet furniture are manufactured exclusively by qualified specialists. They consider it unacceptable to risk the quality of products in pursuit of savings, since we are talking about significant capital investments.
Organization of production at a furniture factory, where production volumes are not yet so large, does not always take into account the importance of this point. Meanwhile, by relying on highly qualified specialists, a businessman obviously finds himself in an advantageous position. An experienced worker will not tarnish the reputation of your business by producing frameless or cabinet furniture that is defective. Remuneration in furniture production should not only correspond to labor costs, but also not allow the employee to think about moving to another company, whose manager is more generous.
Where can you find such professionals? Finding a professional sample business plan for furniture production with ready-made calculations will help you answer this question. It contains a detailed description of the furniture company, its organization and development opportunities, with special attention paid to staff problems. In addition, from this document you will learn what a competent organizational structure of a furniture factory joint venture should be, how to evaluate an investment project in furniture production, and how an analysis of product sales using the example of an existing furniture company will help you.
Furniture shortages in our time do not occur as often as in Soviet times, however, a certain shortage of high-quality, reliable, and, most importantly, inexpensive furniture still exists. But even this fact does not guarantee novice businessmen opening furniture production the presence of stable demand for their products, on which, as we know, the most important thing in business depends - profit.
Sales volumes of furniture products directly affect net profit volumes. Of course, any businessman wants these numbers to be solid and, importantly, stable. But where to find clients? As experience shows, the organizational structure of a furniture company must necessarily include the elaboration of various options that will allow your business to quickly “expand”, for which you will need to take appropriate steps.
Problems with selling their own products are acute for many entrepreneurs. The ideal option is to sell furniture through your own stores, but such opportunities are practically unavailable to small and medium-sized businesses. The easiest way is to place advertisements for the sale of inexpensive but high-quality furniture in printed publications. This may not be enough, and your ad risks being lost among others.
Standing out from competitors is one of the most important tasks for an entrepreneur. This could be, for example, a lower price or additional services, such as a surveyor visiting your home, free assembly of furniture on site, in which case things can quickly go smoothly. On the other hand, an excessive pursuit of lowering prices will help you increase sales of cabinet or upholstered furniture, but the payback period for furniture production and carpentry will increase significantly in this case. The relevance of such a topic as the size of working capital at a furniture enterprise is quite high, but it is sometimes very difficult for a novice businessman who does not have a team of experienced economists to understand this.
Optimizing business processes in furniture production will help you spend your initial capital as efficiently as possible, and analyzing competitors in furniture production, analyzing your own furniture production enterprise, as well as analyzing the sales of finished products will allow you to determine your strengths and weaknesses. This, in turn, will prevent you from wasting your time on trifles, but will teach you to focus on the most important nuances of business development.
A competent sample business plan for a workshop for a carpentry workshop for furniture manufacturing must include a description of the image of the furniture company. Focusing on it, it will be easier for a businessman to decide on the organizational structure of furniture production. After reading this document, you will understand what the work of a supplier is in a furniture company - one of the key figures in the staffing table of your enterprise. In addition, it will become clear to you how different variations of the names of furniture companies influence the fate of the enterprise. A business like furniture production definitely needs careful planning. By paying serious attention to this point, you can count on an influx of new customers and, accordingly, high profits.
In this article:
A furniture business can be developed in two ways - to sell furniture already made by someone or to produce your own. But it is much more profitable to combine these two currents into one channel. And the simplest option for organizing your own furniture production is considered to be opening a workshop for the production of cabinet furniture.
Cabinet furniture is furniture that has a “box” design and is designed to be placed along the walls. This category includes: tables, shelving, cabinets, cabinets, walls and other types of furniture made from separate rigid parts.
The production of cabinet furniture is regulated by the following standards:
According to Rosstat, the manufacture of cabinet furniture is the most popular type of furniture business, which occupies about 25% of the niche of all furniture production. Today's consumer is well aware of what cabinet furniture is and what it is needed for. At the same time, even the brand or the company’s long presence on the market is not important - offer a lower price with decent quality - and the buyer is yours.
If we arrange consumer requirements in the form of a pyramid, then the lowest and most “weighty” tier will be the price, then the materials used, build quality, original design, and only then the manufacturer’s brand. Therefore, despite the huge competition in the cabinet furniture production business, there is a place for everyone who can understand the desires of the consumer and predict fashion trends.
Who is he, a potential buyer?
According to the analysis of age characteristics, the target audience of cabinet furniture buyers is divided into two groups:
The most popular “representatives” of cabinet furniture are kitchens and walls for the hallway and living room.
Cabinet furniture can be made from chipboard, MDF, solid wood. To reduce the cost of production and the final cost of the product, companies often combine these materials, for example, replacing expensive furniture panels on the wall area and partitions with chipboard or laminated fiberboard.
The simplest option to start production is to make furniture from double-sided laminated chipboards (LDSP). Why?
Firstly, there will never be any problems with the supply of such raw materials - laminated chipboards are produced in abundance by both domestic and foreign manufacturers. Secondly, for the same reason (wide supply), it is possible to negotiate favorable delivery terms (with deferred payment, discounts for large quantities, etc.). Thirdly, the use of laminated chipboard significantly reduces the cost of production, since it reduces one stage - veneer or laminate cladding in the manufacture of furniture, which requires additional investment and makes sense only for large production volumes.
To select raw materials, you must be guided by the following indicators:
For the back walls of furniture, you can use fiberboard (GOST 4598-86).
There are several options for the technological process of manufacturing cabinet furniture. They can be divided into chains of different lengths:
A detailed description of the technological process depends on the automation of production and the percentage of use of manual and mechanized labor. The most progressive (and, accordingly, expensive) production is considered to be one equipped with automated machines (CNC). The operator only needs to enter the dimensional data into a special computer program, design the desired product and give the “start” command.
In just a few minutes, a CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, and drill holes according to the development plan. All that remains is to trim the edges and assemble the finished furniture. But it is profitable to buy such lines if there are constant serial orders. It makes no sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let us consider, as an example, the “golden mean” - the operation of a semi-automatic line of several machines with partial use of manual labor.
To start such production you will need the following equipment:
1. format-cutting machine with manual supply of materials;
2. edge banding machine for finishing straight edges, concave and convex elements;
3. drilling and filler machine for making blind and open holes for fittings, hinges, dowels;
4. grinding machine;
5. screwdrivers;
6. hammer drill;
7. cutting tools (mills, drills, knives).
1) After the design has been developed and approved by the customer, a model of the future product is created using a computer program , which can be installed on a regular laptop.
For example:
But manufacturers of automatic and semi-automatic machines also offer other types of programs already installed on their equipment, for example “UCANCAM V9″, “ArtCAM”, etc.
2) The slab of material from which the product will be made is fixed on the machine and cut into individual parts in accordance with the cutting charts.
If furniture is made from fiberboard, this is where the preparatory work ends - the parts are sent for assembly. If we are talking about furniture made of chipboard or laminated chipboard, the rough blanks are subject to mandatory mechanical processing of the sawn edges;
3) Furniture parts made from chipboard are fed to an edgebanding machine, where they are used with glue and a pressure press slab sections are lined with laminated edges , PVC film, melamine or other edge materials;
4) Depending on the configuration of the machine, holes for fasteners are done:
6) After adding holes, the product is ground along the edges (to smooth, remove overhangs of the edge material in height and length) and sent for assembly;
7) Test assembly using hand tools helps to identify defects and inconsistencies and eliminate them in the finished product. After which, the furniture is disassembled (if necessary), packaged and sent to the finished goods warehouse.
The company plans to open a furniture workshop for the production of cabinet furniture in the mid-price segment.
Range: cabinets, tables, racks, bedside tables. Production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboards and fiberboards, as well as fittings, will be purchased from suppliers for further cutting into finished panels, processing and assembly of furniture according to the developed drawings.
To launch production, it is planned to attract the own funds of the LLC founders, which will reduce the payback period and give an advantage in shaping the pricing policy.
A) through a warehouse store, in which samples of work will be displayed and an office will be equipped to receive customers;
B) direct deliveries of furniture to private companies and government agencies; C) through dealer networks (including in other regions).
Advertising will be built with the target group of consumers in mind, for which the following will be used: media (advertising in the press of relevant topics), creation and promotion of your own website on the Internet, placement of advertising banners on sites dedicated to interior design and renovation of premises. It is planned to allocate 60,000 rubles/month for advertising purposes.
For the legal registration of the business, it was decided to create a Limited Liability Company (LLC) on the general taxation system. This form makes it possible to work with both large wholesale suppliers and consumers, and retail buyers.
To register the activities of a company, you will need the following documents:
It is planned to rent a premises of 500 m2 at a price of 240 rubles/m2, divided into 3 parts:
Total – 120,000 rubles/month (1,440,000 rubles/year).
To work one shift (21 working days/month, including holidays and weekends), the following staff is required:
Total: 12 people.
The estimated wage fund is 274,000 rubles/month.
Salary taxes (37.5%) – 102,750 rubles/month.
Total salary expenses – 376,750 rubles/month.
Total cost - 423,950 rubles
It is planned to produce products in the following volumes:
According to the calculated data from the table of material consumption for production
and prices for materials,
The cost of production will consist of the following material costs:
Cabinets – 18,354 (material costs) + 207.59 (electricity) + 94,187.5 (payroll + unified social tax) + 21,197.5 (depreciation) + 45,000 (other costs: rent, advertising) = 178,946.59 rubles /month.
Tables – 27,550 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 188,142.59 rubles/month.
Cabinets – 44,647 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 205,239.59 rubles/month.
Racks – 19,210 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 179,802.59 rubles/month.
Total: 752,131.36 rubles/month.
Calculation of the wholesale selling price per unit of production (cost per unit of production + profit margin):
Cabinets – (RUB 178,946.59: 100 pieces/month)+25% = RUB 2,236.83.
Tables – (RUB 188,142.59: 100 pieces/month)+25% = RUB 2,351.78.
Cabinets – (RUB 205,239.59: 100 pieces/month)+25% = RUB 2,565.49.
Shelving – (RUB 179,802.59: 100 pieces/month)+25% = RUB 2,247.53.
Revenue: 2,236.83 * 100 pieces + 2,351.78*100 pieces + 2,565.49*100 pieces + 2,247.53*100 pieces = 940,163 rubles/month.
Cost: RUB 752,131.36/month.
Balance sheet profit: 940,163 – 752,131.36 = 188,031.64 rubles/month.
Income tax (20%): RUB 37,606.33/month.
Net profit: 940,163 – 752,131.36 – 37,606.33 = 150,425.31 rubles/month.
Expenditure part
Total: 1,176,081.36
(Book profit: Cost) * 100% = (188,031.64: 752,131.36) * 100% = 25%
When producing 400 units of cabinet furniture per month, the payback of the project will be 8 months.
The production of cabinet furniture is a fairly profitable business, since the demand for this type of furniture is stable throughout the year. For this business you will need:
Depending on the planned volume of investment and experience in this field, you need to choose a method of organizing production. Production can be organized in three ways, depending on the length of the technological process and the size of the investment:
A complete description of the technological process is presented in other sections of this business plan.
To organize a private business from scratch, you do not need to try to cover all stages of furniture manufacturing. It is better to start with assembly from ready-made components in your own workshop. In this case, you will have time to build a system of working with clients, establish relationships with suppliers, research the market, and also develop a customer base. And as soon as the flow of customers becomes stable, you can consider expanding the business to cover other technological processes.
The range of cabinet furniture consists of office furniture (chairs, tables, shelving, etc.) and home furniture (pedestals, wardrobes, chests of drawers, tables, chairs, stools, benches, etc.).
Products are sold through three channels:
Initial Investment amount to 1,104,500 rubles.
average cost order is 80,000 rubles.
Extra charge for finished products ranges from 40 to 50%.
Time to reach break-even point is 2 months.
Payback period project from 5 months.
2. Description of the business, product or service
According to enterprises operating in the market, the demand for cabinet furniture is distributed between office furniture and home furniture.
The range of products offered includes:
Office furniture: racks, cabinets, chairs, tables, cabinets;
Furniture for home: kitchens, dining tables, chairs, stools, cabinets, storage boxes, shelves, benches.
Due to seasonality, the assortment may change. For example, in the summer they order large quantities of furniture for relaxing in the country: benches, stools, tables. In autumn, the demand for school desks and chairs, racks for papers and documents increases. Demand for kitchens remains consistently high throughout the year.
The production of cabinet furniture can be carried out in three different ways, depending on the duration of the production cycle.
For organizing a small business from scratch, the best option is to work on the short-cycle principle. In this case, there is no need to purchase expensive equipment, and the workshop works under a specific order.
Once you have built up a customer base and the company has a stable flow of orders, you can expand production to cover other cycles. By this time, you will already have enough accumulated funds to purchase sawing and edge banding machines, which will allow you to increase the technological process chain.
Sales of finished products will be carried out in several ways:
3. Description of the sales market
Consumers of this type of business can be divided into three target groups:
Competition in the cabinet furniture production market is quite high, so you should not initially invest a lot of money in this type of business. The demand for your products will mainly depend on the quality, delivery time, as well as the price of the finished products. An important factor will also be the provision of warranties for products for a year from the date of installation and start of operation.
The high level of competition is due to the fact that your competitors are not only the same private workshops, but also large companies. For example, the international chain IKEA offers a large selection of cabinet furniture. However, a favorable factor is that with the increase in the dollar exchange rate, prices for Swedish furniture have increased significantly.
Advantages of cabinet furniture production
Let us highlight the main advantages that will allow your company to occupy a stable niche in the cabinet furniture production business:
4. Sales and marketing
Market promotion channels
5. Production plan
Stages of creating a cabinet furniture production business
Creating your own production consists of the following steps:
To open a small workshop with short-cycle production, you can register as an individual entrepreneur. In this case, you do not need to open a current account and create authorized capital.
However, if you intend to soon expand production and work with large suppliers and customers, then it is better to immediately register as an LLC. The optimal taxation system when working with orders coming from individuals is the simplified tax system (15% income minus expenses). In this case, you will need to install a CCP.
Since in the first stages you will not need to install large-sized equipment, it will be enough to rent a room of 200 sq.m. At the same time, 150 sq.m. accounts for the workshop and warehouse, and 50 sq.m. for an office space where exhibition samples will be presented, as well as workplaces for the designer and manager.
An additional advantage when choosing premises will be the opportunity to increase the rental area to 300 sq.m. during a year. Subsequently, as you increase production, you will need additional square meters to organize a warehouse for materials and finished products, as well as space for machines and equipment.
Premises requirements:
The most suitable premises for this type of activity would be industrial premises. This is due to the fact that the work of the workshop is accompanied by a high level of noise.
You will need to organize two separate entrances: to the office and to the workshop. In the second case, it is necessary to have access roads for trucks.
Some equipment has high power consumption. This needs to be thought out in advance.
This is a fundamentally important factor. Since the main material for work is wood, increased humidity will immediately affect the quality of the finished products.
Stages of working with a client
The order is carried out in several stages:
At this stage, the manager or supervisor identifies the client’s needs and draws up a list of pieces of furniture that he needs. Next, the designer-technologist begins to work with the client. He helps the client decide on the design of the product, the number and size of drawers, material, color and texture of the facade, etc.
After agreeing on the type and composition of products with the client, the designer-technologist calculates the cost of the order. Then the manager or supervisor agrees on this cost with the client, places an order, and takes an advance payment. The order period is standard and ranges from 30 to 45 working days. In this case, it is possible to manufacture furniture ahead of schedule.
At this stage, the manager or supervisor orders individual components from suppliers.
Main material. Its role is played by laminated chipboard, MDF or solid wood. You need to order not only a sheet of the desired material, but also its cutting to size and edge. You can place an order from one supplier, or you can purchase separately: sheets from one supplier, and processing from another.
Facades. Kitchen fronts, as well as cabinet doors, are separate furniture elements. Their main function is decorative, so the range on the market is huge. You can choose to work with several suppliers by comparing prices for specific products.
Countertops. They can be made from laminated chipboard sheets, as well as from natural and artificial stone.
Back walls and bottom of drawers. These elements are made mainly from HDF, the color is selected to match the main material of the furniture.
Furniture fasteners. These are metal products that act as connecting elements: furniture corners, wooden dowels, eccentric couplers, Euroscrews, etc.
Accessories and guides. This category includes furniture hinges, lifting mechanisms, door handles, furniture legs, as well as guides for sliding wardrobe doors.
To compare material suppliers, you should be guided by two criteria: price and production and delivery time. Typically, lower prices come with longer lead times. It is fundamentally important for the company that all individual elements are produced within the same deadline, and that the entire order as a whole is completed as quickly as possible.
This work is performed by a furniture assembler in a workshop. He accepts delivery of components and assembles the main body of products. Small-sized and mobile products are fully assembled. These include bedside tables, chairs, and small tables. Large furniture requires partial assembly in the workshop and final installation on site.
This is the last stage, which requires the presence of an assembler and a supervisor. The manager accepts the finished work, transfers it to the client and receives full payment. The order is considered completed.
6. Organizational structure
To start the organization, you will need three people: a manager, a designer-technologist, and a furniture assembler.
As the scale of production increases, the staff will be replenished. In the future, the composition of the staff:
Working personnel - increase in employees to 3 workers and a production manager;
Administrative staff - customer service manager, 2 designer-technologists, manager.
Let us describe the work of the main employees in more detail.
Manager
At the first stages, he performs the duties of a manager and manager. The work can be divided into two areas:
The first direction includes:
The second area of activity concerns the organization of internal work in the company.
Furniture production. Let's consider a plan for organizing a medium-sized enterprise that specializes in furniture for the home and office.
Analysis of the furniture market segment shows that with proper organization of the factory, the owner can receive 40-50% profit per year. The profitability of the business is quite high and reaches 40%. Demand for medium-priced goods always remains stable. With established sales channels, an enterprise can increase its turnover and, after 4-5 years, grow from a medium to a large one.
Most often, furniture manufacturers choose a narrow specialization.
A company producing mid-priced office and home cabinet furniture can find buyers among businesses of all sizes and people with low and moderate incomes.
The business plan for furniture production involves selling to order through the office, as well as selling finished products through retail outlets.
The company must be known to customers, so advertising will first be aimed at brand recognition, increasing consumer loyalty and stimulating demand.
For a workshop measuring 250 sq. m. the optimal amount of equipment would be 2 machines of each type. This will allow for a high speed production process.
The production of cabinet furniture according to a business plan requires hiring 7-10. The process will be effective if you select highly specialized workers for each stage of production.
To operate the office and sales area, 4 employees are enough to perform administrative tasks, advise customers and organize product sales.
To deliver furniture to customers, you need to hire one driver and buy a suitable sized truck.
A business plan for furniture production can only be implemented if reliable suppliers of raw materials are found. When choosing suppliers you should be guided by the following aspects:
A business plan for the production of custom-made furniture includes approximate calculations of the cost of initial investments. They may differ depending on the region of business organization, the size of the enterprise and the financial capabilities of the entrepreneur.
So, in order to implement a business plan for creating a furniture workshop, you need to have about 3 million rubles. This amount is needed for a medium-sized enterprise. It is simply unprofitable to organize a small production enterprise.
Every person strives to ensure that his home is cozy, harmonious and unique. The latter is usually achieved through furniture that no one else has, made to order according to an individual drawing. That is why the production of cabinet furniture is a business that will always be in demand and profitable. Investments in it are not too large, but depend on some factors and aspects.
Firstly, register your business. How exactly is up to you. It is usually more profitable and cheaper to open an individual entrepreneur, because the package of documents for it is smaller, and registration is faster. On average across the country, it costs about 10-15 thousand rubles to register.
Secondly, the premises. There are possible options here. Do you want large-scale production? Buy or rent premises for special workshops. Do you want to open a small workshop on your garden plot? Get all the necessary permits and go for it. The last option is most convenient in the middle zone, in small towns. Manufacturing cabinet furniture is profitable in any type of city, provided that you have thoroughly studied the competitors and the price threshold for the products. It is better not to inflate the price at the initial stage. It is important to focus on quality, gradually increasing the price. You can indicate in advance that your individual projects are more expensive.
Thirdly, it is a consumable item. It is better to purchase it at a wholesale price from those manufacturers who are closest to your workshop. This way, less money will be spent on transportation.
Fourthly, this is equipment. This can be either expensive automated or intended for manual work. The latter is relevant when your workshop is small and your plans are to work only on individual orders. This is beneficial only when the population of the city does not exceed 300-500 thousand people. Equipment for the production of cabinet furniture in the minimum set includes:
On average, high-quality equipment will cost about 50-70 thousand rubles. This only applies to small production. If the plans include a huge workshop, then automated lines with software will cost about 300-400 thousand rubles.
In addition, if two workers are enough to work in a small workshop, then about 5-7 workers are required for a large production. Then it is worth including wages in your monthly expenses. This is about 10-13 thousand rubles for each.
Total investments will be:
Manufacturing cabinet furniture pays off depending on the scale of production. A large one can pay for itself in 1-3 years, or maybe in six months. This is determined by the number of orders, sales and price. The more unique and original the sketch, the higher the price. Typical cabinet furniture is cheaper, although the demand for it is consistently high. A small workshop can pay for itself in either six months or a couple of months. It is important that your work is always stable. Ideally, you should take into account the wishes of potential customers even before they contact you. So, you can study the many models presented on the markets.
Don't forget that it's worth putting a little money and effort into advertising. Without it, it is quite difficult to stand out from other manufacturers. In addition, it is advisable that you have an office where there will be
Your own business: production of cabinet furniture
orders accepted. Ideally, all office furniture should be the result of your workshop. You will also need a portfolio, customer reviews, and a motto. The latter should be bright and memorable.
Large-scale production can generate net profit from 150 to 300 thousand rubles. It is important that you have regular large and wholesale customers who will always provide you with work.
In a small workshop, it is more logical to produce custom-made furniture. This way you won't work at a loss. Although it’s worth making a couple of orders and putting them up for sale so that clients can evaluate your work, quality and originality. You can earn from 10 to 80 thousand rubles.
The good thing is that this work is not seasonal. You can sell and make furniture at any time of the year. In addition, you can hire a creative young specialist who will help with the design of your projects.
