In order to organize your own successful furniture business the first thing to do from scratch is to do it right choice its focus and format. Therefore, an entrepreneur must become familiar with the peculiarities of furniture production in Russia, as well as study supply and demand in the intended operating market. At proper organization furniture making will become a source of high profit for its owner and will not lose its relevance for many years.

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Services provided and business formats

List of main services provided by the furniture company:

• mass production of furniture in accordance with the catalogue;
• piece production of furniture to order, taking into account the individual wishes of each client;
• exclusive furniture design;
• sale of furniture;
• transportation and lifting to the floor;
• Furniture assembly;
• restoration/repair of old furniture.

Depending on what kind of furniture is produced, all enterprises are divided into universal and specialized.

Furniture business specialization options:

• furniture for kitchen arrangement;
• upholstered furniture (sofas, armchairs);
• beds;
• furniture for children's room;
• tables and chairs;
• office furniture;
• bar counters;
• retail store equipment(showcases, shelving, reception, etc.);
• wooden furniture;
• glass furniture;
• wicker furniture;
• built-in furniture, etc.

In order for a novice businessman to gain a foothold in the market, he needs to choose the right market niche.

Recently, companies engaged in the production of non-standard furniture from:

• wood;
• glass;
• plastic;
• laminated chipboard;
• MDF, etc.

Experts note that today the most promising areas for budding entrepreneurs are those related to the production of kitchen and office furniture.

The idea of ​​starting your own business in the furniture industry can be implemented in one of the following ways:

• a full-fledged furniture factory (for example, for the production of upholstered furniture);
• furniture workshop;
• furniture repair/restoration salon;
• traditional furniture store;
• furniture online store;
• a company engaged in the delivery, assembly and installation of furniture.

A classic furniture company provides:

• designing furniture and creating your own product catalog;
• production of components;
• furniture assembly (if necessary);
• sale of finished products through branded outlets.

However, quite often there are small furniture workshops that assemble furniture from ready-made components. For example, when purchasing MDF boards, they will be cut directly in the warehouse according to the required dimensions. Facades, countertops and fittings can be ordered from furniture factories that are ready to make custom-made elements with certain parameters. To assemble the furniture, all that remains is to drill the necessary holes for fasteners and install all the parts. Such a business requires a minimum of investment.

Relevance

Reasons for the relevance of the furniture business:

1. High yield and profitability. When organizing a small furniture workshop You can achieve profitability of 60 percent or higher.
2. Perspective. There is always a demand for furniture, since few people can make interior items themselves. Furniture is a general consumer product with a wide target audience. Despite high competition, the market is not saturated; any entrepreneur who is serious about his business can gain a foothold in it. Sales rates are consistently high and are not seasonal.
3. You can open your own furniture workshop with minimal investment. This business option is suitable for people with a limited budget. Having become familiar with the market, the entrepreneur, if necessary, will be able to expand the business to a factory format.
4. A furniture business can be organized either by a person with experience in this field of activity or by a beginner. The latter will not need to undergo special training; he will be able to figure everything out on his own with the help of the Internet and specialized literature.
5. The procedure for registering a business is not particularly complicated. It can be registered as an individual entrepreneur. For the successful operation of an enterprise, it is necessary to comply with the sanitary and fire safety requirements of supervisory services.
6. There are many market segments, among which you can choose the closest, simplest, most understandable and promising. For example, the production of furniture for a children's room or sofas made of genuine leather.

Market description and analysis

Characteristics of Russian furniture market:

• high competition, there are about three thousand medium and large furniture enterprises on the market, there are a total of five thousand workshops/factories;
• according to marketers of large furniture manufacturers, in 2019 the share of domestic companies will reach 70 percent of the market capacity;
• the ten largest furniture enterprises in Russia account for 30 percent of the total market capacity (the leader is IKEA, 22 percent);
• in the near future, an increase in the number of small and medium-sized enterprises is expected (their total share will be 70-75 percent);
• the maximum number of furniture manufacturers is concentrated in the Central Federal District and the Volga Federal District (about 25 percent of the total number of market participants);
• the market sector where kitchen furniture is produced is promising (in the last 10 years, the annual market growth has been about 20 percent);
• The market sector where custom built-in furniture is produced is popular among entrepreneurs;
• The most promising segment of economy class interior items is therefore predicted to reduce the share of the premium segment and increase the standard/budget segment;
• the furniture market stimulates an active growth in the pace of housing construction and purchases, since any apartment/house needs interior items;
• rising exchange rates lead to a reduction in the number of furniture suppliers from abroad;
• It is more profitable for small furniture manufacturers to sell products in their region, thus reducing transaction costs;
• It is easier for market participants to sell products in settlements of up to 500 thousand people, since there are often no chain retailers here;
• according to statistics, today every fifth Russian orders furniture from an online store (in 2016, 12.5 percent of interior items were sold via the Internet);
• 50 percent of furniture manufacturers have their own website;
• New models/developments regularly appear on the furniture market; it is constantly in motion, and for successful functioning it is necessary to monitor the latest trends.

Photo gallery

Dynamics of housing commissioning in the Russian Federation from 2000 to 2019 Dynamics of furniture market capacity in the period from 2009 to 2016 Results of Russians' answers to the question about where to purchase furniture Dynamics of revenue from wholesale and retail trade of household and office furniture (2011-2015), thousand rubles

The target audience

Depending on the format of the business and its orientation, target consumers may be:

• people with average income;
• people with low incomes;
• people with high incomes;
• resellers (traditional and virtual furniture stores, hypermarkets, etc.);
• entrepreneurs (when purchasing commercial furniture, for example, a bar counter, cafe tables, shop windows, computer desks to the office, etc.).

Buyers can be both men and women, Internet users and not, large enterprises or small, wholesale and retail chains. The average age of the target audience is from 18 to 60 years.

Competitive advantages

In order for a furniture company to stand out from numerous competitors, it must have the following features:

• reasonable price corresponding to the quality of the finished product;
• prompt and high-quality performance of work on furniture production;
• using only proven and high-quality materials;
• existence of agreements with suppliers of fittings, components and other materials;
• a well-thought-out product catalog, including a variety of furniture options for different tastes (providing many variations of colors, textures, materials, fabrics, etc.);
• when designing furniture, a professional designer and/or engineer must be involved;
• a close-knit team of competent specialists;
• the use of modern equipment that allows you to obtain an exclusive and/or very high quality product;
• a successfully functioning online store;
• the ability to produce furniture according to the client’s order;
• the ability to design exclusive furniture in accordance with the client’s wishes;
• friendly customer service;
• organizing the delivery and assembly of furniture;
• providing a guarantee;
• replacement of goods or refund of money if a manufacturing defect is detected.

The business idea of ​​a furniture enterprise will be successfully implemented when the entrepreneur correctly determines the specialization of the business and forms the necessary competitive advantages.

Sales channels

Methods of marketing the products of a furniture factory/workshop:

• own department in a furniture shopping center/hypermarket;
• own network of furniture stores;
• own store in a multi-departmental shopping center;
• non-chain furniture stores;
• resellers;
• direct sales to corporate clients (for example, personal meetings, telephone communications and catalog mailings);
• own online store.

Advertising campaign

To stimulate sales, the following activities must be carried out:

• installation of stands/boards with information about the company’s products on the street in busy places, for example, near metro stations, public transport stops;
• creating your own high-quality website and online store;
• opening a company profile on social networks;
• promotion of the company's website on the Internet;
• development of catalogs, brochures, booklets, business cards, leaflets, etc., for distribution among potential clients and partners;
• establishing connections with partner companies for mutual marketing, for example, with construction stores and design studios;
• development of a program to increase customer loyalty (including promotions, discounts, bonus program, etc.);
• placement of advertisements in thematic print media;
• participation of the company in exhibitions and fairs dedicated to furniture topics.

In the furniture industry, it is very important not to lose your reputation. If the product produced is of poor quality, then no amount of advertising will force buyers to purchase it. Therefore, the entrepreneur must pay special attention to working with the client, quality control of purchased materials and components, as well as the production process.

Step-by-step opening instructions

To open a furniture workshop and organize the production process you will need:

1. Analyze the furniture market in the proposed region of location of the enterprise and sales of products.
2. Determine the direction of the business, its scale, production technology and resolve other key issues.
3. Select a location and room for the workshop.
4. Calculate the performance indicators of a furniture production business project from scratch.
5. Register the enterprise in accordance with the legislation of the Russian Federation.
6. Conclude long-term lease agreements for industrial premises or buy it.
7. Find equipment suppliers and purchase it.
8. Find suppliers of raw materials (boards, chipboard, MDF), materials (paints, adhesives, fabrics), accessories, etc., and also agree on their supply.
9. Select specialists with the required qualifications.
10. Develop furniture projects.
11. Carry out work on manufacturing parts, cutting material and processing them.
12. Carry out furniture assembly work.
13. Create a catalog of company products.
14. Determine product sales channels.
15. Start implementing your marketing plan.

Documentation

Key points of the furniture business registration process:

1. Optimal forms for registering the activities of furniture production: individual entrepreneur, LLC. The choice in one direction or another is largely determined by the scale of the enterprise’s activities and the number of founders. When opening a small workshop by one entrepreneur, the option of creating an individual entrepreneur is more suitable.
2. When registering, indicate the OKVED code – 31 “Furniture production”. In the case of the manufacture of furniture for offices and commercial enterprises, code 31.01 is selected, and for kitchen furniture - 31.02. For the production of other types of furniture, clause 31.09 is suitable, which in turn may involve work on an individual order or not. In order to be able to sell products independently at retail, code 47.59 is indicated, and via the Internet - 47.91.2.
3. A license is not required for the manufacture of interior items, but it is recommended to certify the products produced. This measure will confirm the quality of manufactured furniture. Products made according to an individual project are not subject to certification. In this case, there must be documents confirming the quality of the materials used.
4. When determining the taxation system, your choice should be UTII or simplified tax system.

The main current norms and standards that must be observed at a furniture enterprise planning to obtain quality certificates for manufactured products:

• GOST 16371 - 93 “Furniture. General specifications";
• GOST R 50051 - 92 “Furniture. Chairs";
• GOST 19917 - 93 “Furniture for sitting and lying. General specifications";
• GOST R 54208 - 2010 “Protective and decorative coatings on furniture made of wood/wood materials”;
• GOST 19194 - 73 “Furniture. Method for determining the fastening strength of furniture legs";
• GOST 30255 - 95. “Furniture, wood and polymer materials.”

To obtain an opinion from the State Fire Supervision, the following papers are prepared:

• statement;
• company registration certificate;
• BTI floor plan;
• contract for the installation of fire alarms;
• premises insurance policy.

To obtain an opinion from Rospotrebnadzor, the following documents are prepared:

• statement;
• certificate of establishment of the company and its registration with the Tax Inspectorate;
• a lease agreement for industrial premises or a document confirming ownership of it;
• list of manufactured goods;
• sanitary passport of the premises;
• contracts for the removal of waste and garbage.

Room

Classic furniture manufacturing medium size includes the following workshops and premises:

1. The office of a designer/engineer who designs furniture and improves existing models.
2. Manufacturing facility. This is the place where the woodworking equipment is located. Here the production of parts for future furniture takes place.
3. Assembly shop. This room is intended for the assembly of furniture from manufactured parts and purchased components.
4. Paint shop. Paintwork work is carried out here.
5. Sewing factory. It is necessary in the production of upholstered furniture and beds; it cuts fabric and sews upholstery for interior items.
6. Dryer. This room allows you to preserve raw materials and prepare them for further processing/use.
7. Warehouse of finished furniture, raw materials, consumables, accessories, etc.
8. Room for quality control of finished products.
9. Utility room for staff.
10. Bathroom equipped with shower.
11. Administrative premises.

Requirements for production premises:

• status non-residential premises industrial purposes (due to high noise levels);
• low rent or cost (if purchasing);
• location - on the first floor (maximum - second), possibly on the outskirts of the city;
• number of entrances - two entrances (one for production purposes, and the second for working with partners and clients, in the office);
• availability of three-phase electricity (380 W), ventilation, water supply, heating;
• convenient access roads (for personnel, suppliers of raw materials, buyers);
• a platform for loading and unloading raw materials, materials, finished products, etc.;
• moderate humidity and absence of dampness, since most materials used for furniture production are afraid of moisture;
• correspondence SES requirements and against fire safety;
• possibility of expanding production in the future.

The area of ​​the room is determined based on the fact that:

• all equipment of the technological chain must fit into it;
• it was possible to organize several separate workshops;
• the necessary supply of raw materials and materials was placed;
• a warehouse stock of finished products was placed.

The minimum area for organizing a furniture workshop is 150-200 square meters.

If the business idea for furniture production involves organizing your own sales system, then the entrepreneur needs to find premises/premises to open a store or a chain of salons.

When choosing a suitable trading platform, emphasis should be placed on:

• high traffic of the target audience;
• minimum number of direct competitors;
• affordable price.

Equipment and inventory

An approximate list of equipment for a small furniture workshop for the production of upholstered furniture:

Equipment	Approximate prices, rub.
Jointer-reimus machine	23 000
Lathe	62 000
Milling machine	125 000
Miter saw	15 000
Jigsaw	5 000
	15 000
	8 000
Clamps	2 000
Vise	5 000
Painting equipment	120 000
Screwdriver, hammer drill	15 000
Sewing machine	30 000
Cutting table	20 000
Chisels, knives, cutters	15 000
Office furniture, office equipment	50 000
Auxiliary equipment, tools	20 000
Gazelle car	350 000
Total	880 000

The video talks about machines used in furniture production. Filmed by the channel: "Hao Zhang".

Photo gallery

Disc grinding machine Desktop drilling machine Jointer-reimus machine Miter saw Milling machine Wood lathe

Staff

Staffing schedule for a small furniture shop:

№	Job title	Salary of one employee, rub.	Number of persons
1	Director (performs the functions of accountant and sales manager)	25 000	1
2	Design engineer	20 000	1
3	Production workshop specialist	20 000	1
4	Assembly shop specialists	20 000	1
5	Paint shop specialist	20 000	1
6	Sewing shop specialist	15 000	1
7	Production Master	23000	1
8	Handyman (performs driver functions)	12 000	1
Total		155 000	8

Requirements for the main personnel of furniture production:

• availability of professional knowledge and skills in the field of the position held and functions performed;
• technical education;
• experience;
• ability to operate professional equipment;
• responsibility;
• absence of bad habits.

To motivate staff to work, their wages should be tied to the amount of work performed.

Financial plan

The profitability of the furniture business in each specific case is individual and depends on many factors underlying the implementation of the business project.

Further financial planning business ideas for organizing furniture production are based on the following data:

Index	Description
Business format	Small furniture workshop
Business focus	Cushioned furniture
Main assortment items	Sofas and armchairs in the middle price segment
Organizational form of business	Individual entrepreneur
Placement	Russian Federation; a city with a population of up to 500 thousand people; premises in an industrial zone on the outskirts of the city
Ownership of premises	Long term rental
Room area	200 square meters
Adjacent area	100 square meters
State	8 people
Sales	Through intermediaries (resellers, furniture stores, online stores)

How much does it cost to start furniture production?

Investments in opening a furniture workshop:

Expenditures
Registration of business activities	5 000
Obtaining permits to start production	20 000
Rent for industrial premises (for 4 months)	200 000
Design, redevelopment, construction and repair of production premises, as well as laying communications	100 000
Purchase of equipment and its installation	880 000
Payroll with accruals	250 000
Marketing expenses (including creation of a business card website)	30 000
Purchase of raw materials, materials, components	100 000
Other costs	15 000
Total	1 600 000

Regular expenses

Regular expenses of a furniture workshop:

Expenditures	Approximate prices in rubles
Rental fee for production premises	50 000
Utility payments (water supply, sewerage, gas, electricity, waste removal)	20 000
Payroll fund with accruals	196 500
Purchase of raw materials	50 000
Advertising	3 000
Depreciation (based on 7 years)	10 500
other expenses	5 000
Total	335 000

Income

The profitability of the furniture business was calculated based on the following initial data:

Financial indicators of the project, allowing you to estimate how much you can earn on furniture:

Index	First year	Second year	Third year
Monthly revenue, rub.	600 000	720 000	864 000
Monthly profit, rub.	265 000	385 000	529 000
Annual revenue, rub.	7 200 000	8 640 000	10 368 000
Annual profit, rub.	3 180 000	4 620 000	6 348 000
Business profitability, %	44	53	61

Calendar plan

Furniture production project implementation schedule:

Stages	1 month	2 month	3 month	4 month	5 month
Furniture market analysis	+
Solving basic issues regarding business organization (format, specialization, assortment, technology, etc.)	+
Selection of premises	+
Drawing up a business plan	+
Preparation of papers for registration of a furniture workshop	+	+
Enterprise registration		+
Purchase/rent of premises for an enterprise		+
Preparing the premises		+	+
Searching for suppliers of raw materials, materials, components and concluding supply agreements with them		+	+
Hiring staff		+	+
Purchase of equipment (installation, installation, commissioning) and inventory		+	+
Registration of permits		+	+
Website development			+
Carrying out promotional events			+	+
Purchase of raw materials, materials, components			+	+
Furniture catalog development		+	+	+
Determination of distribution channels			+	+
Launch of production					+

Risks and payback

External risks of a furniture workshop business project:

1. Rising prices for materials, raw materials, components and their transportation, as well as rental premises. In such a situation, the cost of manufactured products increases. If the market situation does not allow an increase in the cost of finished products, then the increase in costs will be compensated by part of the entrepreneur’s profit. Reducing this risk is possible by concluding an agreement with a supplier who will guarantee constant prices over a certain period of time.
2. Low quality of raw materials, materials and components. The entrepreneur must carefully select reliable suppliers of the components from which the finished product is made.
3. High market competition. In order for a company to function in the market for many years, the manager needs to take care of creating competitive advantages. He must monitor the behavior of other representatives of the furniture business, customer needs, fashion trends, etc.
4. Decreased demand. To increase sales, it is necessary to carry out marketing activities and develop a loyalty program.
5. Force majeure circumstances. To prevent a fire in the premises of a furniture factory, a modern specialized alarm system must be installed, and established norms/rules must be observed. In addition, the risk of force majeure can be insured.
6. Refusal to extend the rental period of the premises. To prevent this from happening, it is necessary to analyze the proposal suitable premises to organize production, choose the most suitable one and conclude a long-term lease agreement.
7. Economic/financial crises. They lead to a decrease in the solvency of potential buyers. In such a situation, it would be logical to reorient the enterprise to the production of goods in a lower price segment.

Internal risks of a furniture workshop business project:

1. Failure to fulfill the sales plan. A competent marketing campaign will help solve this problem. It is also worth paying attention to the catalog of products offered to the buyer; it may be outdated and does not correspond to the latest fashion trends and customer needs.
2. Failure to fulfill production plan. The reasons for this phenomenon may be: interruptions in the supply of raw materials, equipment breakdowns, low qualifications of personnel, etc. For the smooth operation of the enterprise, the entrepreneur must establish supply logistics, organize monitoring of the condition of the equipment and its timely maintenance, and carefully select personnel.
3. Staff turnover. To motivate employees to work, it is recommended to use a bonus tool (for example, a percentage of profits) and organize decent working conditions.
4. Finished product defects. Its reputation depends on how high-quality furniture a company produces. It is important to organize internal quality control of manufactured furniture and prevent the sale of goods with low performance characteristics.

The payback of the project will be 6-7 months, since the workshop’s monthly earnings (minus expenses) in the first year are 265 thousand rubles.

Video

Key points in drawing up a business plan for furniture production are presented in the video. The presenter talks about how to open a profitable and profitable furniture business. Filmed by the channel: “Business Support Center”.

First of all, a beginner needs to take into account that the furniture market has already taken shape. And if 15-20 years ago it was possible to bring any furniture and find a buyer for it, now it is difficult to guess the client’s needs. Therefore, you need to study the market and focus on those segments of the population that you want to serve. The luminary of the market with many years of experience, the general director of the Vash Byt furniture store chain, Farid Safin, spoke to the BIBOSS portal about the intricacies of this business.

Where to start?

To begin with, experts advise conducting marketing research. See what your competitors are selling, what their advantages and disadvantages are. Entrepreneurial intuition must work. First of all, you need to understand what niche you want to occupy. There is a strong stratification of the target audience. There are those who buy expensive imported furniture. There are those who come only from functional features furniture - design and manufacturer are not important for them.

Beginning entrepreneurs, as a rule, do not have large capital and the opportunity to occupy large retail spaces for samples. Therefore, it is advisable to start working with the economy and middle class, where the bulk of buyers are concentrated.

You can consult with those who have been working in this market for a long time. They can be manufacturing partners who produce furniture and know what is in demand. In Russia, such manufacturers are established companies that maintain marketing services, constantly study demand, and go to exhibitions.

By the way, visiting furniture exhibitions is a good way to study the market. Manufacturers display current and new furniture there and monitor the reactions of visitors. There are a lot of ordinary buyers and representatives of retail chains at the exhibition; they enter into contracts with manufacturers for the supply of furniture.

Working with a supplier, you can find out what furniture is in demand in the region. Because demand varies depending on the region. Somewhere one color and model is popular, somewhere else another. For example, in Tatarstan, where there are many Muslims, green, calm tones are held in high esteem. But furniture models throughout Russia are basically the same. Only Moscow and St. Petersburg stand apart - there is a demand for advanced models there. The most cutting-edge modern trend is first mastered in Moscow and St. Petersburg, and then goes to the regions. Therefore, if you are opening a store not in these capitals, then it is better not to immediately bring it here unusual furniture- It is unlikely that it will find a buyer.

How to beat your competitors? We need to find those models that can compete in price and quality with those already on the market.

Farid Safin

If we talk about us, we have been working in the market for a long time and cover all categories of clients - from economy class to VIP clients. In our showrooms you can view catalogs of expensive furniture; we display some examples of high quality Italian and Belarusian furniture. The client places an order and we contact the manufacturer. Orders of expensive furniture are infrequent, so keeping all the models in the store is unprofitable, since renting retail space is expensive.

Investment size

Farid Safin

General Director (founder) of the Vash Byt group of companies

As for finding funds for the launch, it is better not to count on government support. Today in Russia, producers and agribusiness are primarily supported. It is believed that trade is already sufficiently developed and organized, so this industry is not subsidized. There is only hope for banks that participate in programs to support small and medium-sized businesses. They lend to businesses at reasonable interest rates.

Farid Safin

General Director (founder) of the Vash Byt group of companies

But there are nuances. Based personal experience, I can say that all banks require collateral - premises, apartment, car. At the same time, today the direction of furniture trade is considered a risky business. Recently we wanted to take out a loan, the bank seemed to be happy with everything, there was collateral, but later they told us that the furniture business was risky and they refused the loan. Therefore, not everything is so simple. It’s better to find an investor, partners who are ready to invest in the business and develop together.

What are the running costs of the business? You need to have a warehouse supply of furniture, rent and maintain warehouses where loaders work for the acceptance and release of furniture, and storekeepers. Nowadays accounting systems are computerized, so programmers are needed. Plus transportation costs, including delivery of furniture from the manufacturer - from factories and factories.

How to optimize costs? You can outsource something - for example, programming services, rent warehouses with a ready-made staff of movers, or even work with “wheels” - pick up furniture directly from the factory and immediately deliver it to clients. The advantage of small businesses is that they do not need to maintain a large office staff: dispatchers, commercial service, accounting, management. Many entrepreneurs at the initial stage perform all these functions themselves - he is a freight forwarder, a manager, a dispatcher, and an accountant. But even as you grow, it is better not to overstaff, this will allow you to optimize costs.

On average, the operating costs of a furniture showroom at the initial stage, with a minimum number of service personnel, amount to 100-150 thousand rubles per month. But this amount does not include rent - it depends on the area. In large Russian cities, on average - from 800 to 1500 rubles per sq.m.

Step-by-step instruction

In your activities you will be required to interact with a number of contractors and suppliers. First of all, these are furniture manufacturers. You can contact them directly. But when sales volumes are small, this is difficult, because manufacturers are interested in large orders. Therefore, it is easier for small companies to work with dealers and wholesalers.

Farid Safin

General Director (founder) of the Vash Byt group of companies

Our company has a wholesale department. We bring furniture from all over Russia, as well as from China, from Belarus, from the Baltic states and release it from our central warehouse in small quantities for small entrepreneurs - they take the assortment that they need. This is convenient for beginning entrepreneurs, especially since they can take into account our trading experience, because we know in which region which furniture is in demand, and we give our recommendations.

If a person once bought furniture in one trading network and was completely satisfied with the quality and price, next time he tries to go to the same store. A connection is created between the seller and the buyer that is maintained for years. Our network has regular customers who have been buying furniture from us for many years and bringing their children.

The main quality for a seller is the desire to work. If a person thinks that the furniture will sell itself, and he can sit on the sofa and read, waiting for the buyer to come up and place an order, then you don’t need him. Today there is a wide selection of furniture in different showrooms. And the seller himself must interest the buyer. Most often, after 2-3 months of internship, a person masters the assortment and can already cope well with sales. Developed companies have their own personnel department, which recruits and trains personnel.

Farid Safin

General Director (founder) of the Vash Byt group of companies

We try to ensure that people work in our company stably, constantly. This is what happens. Most of our employees have been working, if not since the founding of the company, then on average for 10-15 years. To do this, we constantly use a motivation system and periodically review it so that it is attractive to our employees. We have a 13th salary, there is a trade union organization that maintains contacts with many institutions - for example, sanatoriums, and you can get discounted vouchers. People can receive vacation pay and sick pay. We hold corporate events - and new year holidays, and March 8, and May 1. On New Year's Day, we sum up the work and announce the best employees, giving gifts and certificates of honor.

In shopping centers, you will be forced to adhere to a set work schedule. In free-standing salons, focus on the mode acceptable for a particular area of ​​the city.

Documentation

There is no need to obtain special permissions. Hygienic quality certificates are needed, but usually they are supplied by the manufacturer themselves.

Today, there are two main types of taxation used by entrepreneurs engaged in retail trade - the Unified Tax on Imputed Income and the simplified taxation system. UTII is calculated depending on the area. “Simplified” depends on turnover, that is, the tax is paid depending on how many goods are sold. And the choice of type of taxation depends on the traffic of the outlet. There are retail outlets with high traffic, there are high rents, but also returns per sq.m. turnover is also high. In this case, it is better to pay UTII. If the areas are large, but the traffic is low, the rent is low - a simplified system works better here.

Opening checklist

The opening of a store in a separate building must be covered as an event. If the store is designed for the scale of the area, its residents need to know about the opening. Usually, when opening a store, they create a beautiful display of furniture, hang balloons at the entrance, and attract animators who will welcome and entertain guests and children. Such events are not complete without gifts - even if they are small, so that when they come home, people will tell their family and neighbors about your store.

The production of cabinet furniture is a fairly profitable business, since the demand for this type furniture is stable throughout the year. For of this business you will need:

1. Premises: workshop and office;
2. Employees: designer-technologist and furniture assembler;
3. Suppliers of materials and accessories;
4. Intermediaries to increase sales: furniture showrooms and design studios.

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:

• Full cycle production;
• Mid-cycle production;
• Short cycle production.

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.).

Initial investment - 640,000 rubles.

Average monthly profit is 86,615 rubles.

Break-even point - 4 months.

The payback period of the project is 11 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 summer time Furniture for relaxation in the country house is ordered in large quantities: 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.

• First way implies a full cycle: from the manufacture of the material that serves as the basis for cabinet furniture (chipboard, laminated chipboard, MDF) to production finished product.
• Second way eliminates the material manufacturing process, i.e. Ready-made sheets of chipboard, fiberboard, and MDF are purchased. All that remains is to cut them, make an edge and assemble them until ready.
• Third option production is organized on the principle of a short cycle and includes only the process of furniture assembly. The furniture is assembled from custom-cut chipboard, laminated chipboard, and MDF.

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:

1. Forming applications through our own office, which is also a showroom;
2. Through intermediaries: furniture stores, design studios. This method cooperation will allow you to cover a geographically larger market volume;
3. Sales through an online store. Delivery in this case may be carried out by a third-party transport company.

3. Description of the sales market

Consumers of this type of business can be divided into three target groups:

Retail end consumers. These are the people who will use your furniture. They can be divided by age and frequency of purchases:

1. Young working people from 25 to 30 years old who are purchasing furniture for the first time;
2. People from 30 to 50 years old who update cabinet furniture in their home and office every 4-5 years.​​​​​​​

​​​​​​​Wholesale clients. As a rule, these are private and public organizations that buy similar products in large quantities. This type of consumer includes schools, kindergartens, hotels, office centers, etc. Typically, depending on the volume of the order, they are given a certain volume discount.

Intermediaries. These include interior showrooms and furniture stores. They are interested in long-term cooperation and work with you for a certain percentage of the order. Many of them exist in the format of showrooms, which allows them to display exhibition samples of their own products.

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.

Let us highlight the main advantages that will allow your company to occupy a stable niche in the cabinet furniture production business:

1. Work to order. There is no need to organize a warehouse and store large stocks of materials;
2. Minimum set of tools. At the first stage, you do not need to invest in the purchase of expensive equipment;
3. Small staff. To get started, you will only need to hire two permanent employees;
4. Availability of our own showroom and exhibition samples in interior and furniture salons;
5. Possibility of changing the product range depending on demand trends;
6. Large selection of materials and accessories for clients with different income levels;
7. Creation of an online store with delivery throughout the region;
8. Production of designer furniture according to author's drawings.

4. Sales and marketing

Market promotion channels

5. Production plan

Stages of creating a cabinet furniture production business

Creation own production consists of the following steps:

• State registration

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.

• Rent of premises for workshop and office

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:

• Non-residential premises

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.

• First floor, two entrances

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.

• Three-phase electricity 380 W.

Some equipment has high power consumption. This needs to be thought out in advance.

• No dampness and high humidity.

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:

• Client contacting the company

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.

• Cost calculation, ordering

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.

• Purchasing materials from suppliers

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 required material, but also sawing it 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, legs for furniture, as well as guides for sliding doors of wardrobes.

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.

• Main work: assembling furniture frames

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.

• Delivery and installation of the finished product

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.

Room.

Staff.
Director.
Working staff.
Designer.
Sales Manager.

Marketing.
Advertising.
Types of advertising.
Sales of products.

Financial plan.
Investments.
Payback.

Production options.

Production of furniture according to customer sizes.
Business development prospects.

Despite the fact that furniture production has long ceased to surprise anyone, the demand for these products is not falling. There is no oversupply in Russia, but production operates in conditions of fierce competition.

Not everyone can withstand the competition; some work long and fruitfully, constantly delighting customers with new models and design solutions. Some are unable to maintain a business in a strong flow and crash without having time to really find their place in the market.

Starting a furniture manufacturing business is serious business. Requires mandatory legal registration, clear calculations of investments and plans for the sale of finished products. And in order for the business not to become history, it is extremely necessary to comply with all points and make every effort to implement them.

When registering a business, it is best to assign it LLC status. The status itself already indicates the seriousness of intentions and will help attract investors from outside or as founders. The amount of planned investments is not small and it is unlikely that it will be possible to do without additional investments. LLC status makes it possible to receive additional income using the registry additional activities and expand the business in the future.

Also, this legal status provides prospects for participation in profitable tenders and cooperation with major furniture supermarket chains, which has a positive impact on the reputation and income of the enterprise.

Room.

After all the design steps, it is necessary to organize the premises where the workshop will be located. The industrial zone of the city is best suited. The room you need is not small - about 300 m2. Hangar structures are perfect.

The problem of finding suitable premises is quite pressing, so you need to start dealing with this in advance. It is best to seek help from companies that specialize in this particular area. They already have ready-made proposals. They know for what purpose, what room is suitable, what technical specifications must be met and what standards must be present.

When concluding a lease agreement, be sure to pay attention and stipulate the terms of the lease. You need a long-term lease agreement in order to avoid future troubles with moving and re-registering the production address. Sometimes premises are rented with some equipment already there. If you have this option, that's great.

The rental agreement includes the rental of production equipment - and you have fewer costs, and the owner has less headaches about where to put it and what to do with it.

Equipment for furniture production.

To start production you will need special machines. Buying them is not a problem.

Edge banding machines necessary for processing synthetic (melamine, PVC, ABS) and natural materials (veneer, paper).

The process of edge cladding occurs after the process of cutting the material on a cutting machine. We'll talk about it a little below. It is imperative that equipment for finishing edges be selected depending on what kind of furniture you intend to make.

For more understanding here short description machine operating process:
- Glue heated to the required temperature is applied to the surface manually or using an automatic module.
- The machine applies an edge to the dimensions of the workpiece. It is possible to cut the edge with a technological reserve.
- Next, using a machine, the edge material is pressed against the surface being processed.
- After operation of the machine, the applied edge is finished - removing excess glue, processing the edge, grinding and polishing lines and corners.

It is worth repeating that the configuration of the machine must be selected according to the type of furniture being manufactured.

They are produced in various formats - both for small-scale production and for industrial-scale batches. Direct purpose - cutting furniture parts from sheet materials (plywood, chipboard, fiberboard).

To ensure that the work is carried out without chipping, two cutting units are used - the main one and the scoring one. They make excellent cuts of laminated material with high precision thanks to the body of the saw unit installed at an angle. The presence of a scoring saw in the machine ensures absolutely clean cutting, without chips or nicks.

The machines are produced in several types, each of them has its own characteristics and special purposes. Your task is to choose from a wide range of offers exactly the one that is ideal for production. The main difference is the method of placing the workpiece - horizontally or vertically, that is, by transverse or longitudinal cutting. And another difference is the type of carriage. The machines are produced with either a ball or roller carriage.

Regardless of what equipment you choose, pay attention to the availability of additional tables. They are indispensable when cutting full sheets of material. An important point is the upper clamping beam and the upper pneumatic clamp. They will ensure reliable fixation of small workpieces, which is necessary in the production of furniture of exclusive design with small details.

The main purpose of the equipment is more thorough preparation of the part. The machine cuts the material to the required thickness.

The workpiece is placed flat on the workbench with a pre-processed base surface. The workpiece being processed is fed automatically to the rotating knives. Main technical characteristics:
Rated supply voltage - 220 W;
The rated power consumption of the commutator motor is from 1500 W;
The rotation speed of the planing shaft with planing knives is 8000 rpm (idling);
The average height of the workpiece processed on the machine is 15 cm, the width of the work table is from 25 to 50 cm, with the corresponding width of the workpiece being processed up to 45 cm.
The average speed of automatic workpiece feeding is 8 meters per minute.
The average planing depth is 2.5 mm. Depends on the width and properties of the workpiece.

Thicknessing machines are distinguished into single-sided and double-sided. Single-sided have one blade shaft located at the top, above the work table. Double-sided ones, respectively, have two knife shafts. The second one is built into the work table and performs the function of processing the lower part of the part. The work table itself is movable; with its help, the required height is set for processing the material to the required thickness. The machines are also distinguished by power and maximum lifting of the working table, its width and planing depth.

A fairly wide price range is convenient for choosing the necessary equipment depending on the buyer’s budget. The price depends on the country of origin and technical parameters.
Choosing thickness planer, pay attention to the safety features. The design must be protected from overloads by a power interrupt unit. If an overload occurs, the thermal relay must be activated and the power supply to the machine must be interrupted.

Choose machines with quiet operation, which can be ensured by a belt drive. It also protects the machine motor from overloads.

For additional security During operation of machine tools, network switches are often used. In addition to direct functions, they are equipped with a protective function against unauthorized activation when the operator is absent.

In the production of furniture, wood or any other material goes through many technological processing processes, and the four-sided machine is the basic equipment for many of them.

The main function is profiling molded products, cutting boards into lamellas for furniture board. For a furniture production workshop, you need sufficiently powerful equipment large throughput. When choosing a four-sided machine, first of all you need to pay attention to its dimensions. For example, in order to process a workpiece measuring 40 cm, you need a milling cutter with the appropriate parameters (about 80 mm). In order for the equipment to cope with the processing of large materials, a reinforced feed function is required. The workbench must be durable and wear-tested for stable operation under constant load.

The best strength is shown by machines with cast iron tables. The function of increasing the serving and receiving tables is very convenient and often necessary. To do this, the characteristics of the machine must indicate the presence of a manual or automatic control function. If you are planning serious production, then your four-sided processing machine must have a high feed speed - up to 30 linear meters per second.

Some manufacturers produce universal four-sided machining machines. That is, with the possibility of resuscitation and profiling functions. By easy movement planing knives in the desired direction, the working function can be easily changed. Such a machine will help to significantly save money on startup investments. But for the workshop to fully operate with maximum output, you will still have to pay special attention to each process - this will increase quantitative indicators, which is important.

To fully support a furniture production workshop, there is a fairly large number of different machine tools, but the four most important and mandatory ones are described above. The purchase of such a kit will cost approximately $40 thousand.

Staff.
The enterprise in the LLC statue has obligations of mandatory staffing.

Director.
Appointed by the meeting of founders. The candidate may be one of them, or an outsider who meets the requirements of the position held.
Full-time accountant. A person with financial responsibility. He can easily perform the functions of a personnel department employee. Must be familiar with the articles of the Labor Code. Maintain personnel records and related reporting.

Working staff.
Operators are needed to maintain production equipment. One for each machine. Workers are also needed to assemble furniture. This is 3 more employees. In general, to fully staff the work force, you need seven people - this is quite enough for the full-fledged process of the workshop. Workers performing assembly functions can travel to the customer’s home to install finished orders.

Designer.
The enterprise definitely needs such a specialist, but he does not necessarily have to be full-time. Design may well perform the function of “coming”. Cooperation is formalized through an agreement stipulating the number of working hours per week or month and the corresponding salary. A designer can collaborate with several companies at once, have several projects and easily implement them. It would not be amiss to include in the cooperation agreement a clause not to disclose plans and the concept of the enterprise’s work in order to withstand fair competition and without violating its interests.

Sales Manager.
Do not be skeptical about such necessary personnel. In the first stages of launching production, an employee who will be responsible for sales is more than necessary. Try not to save money and look for an experienced manager with his own client base and a good reputation. This will greatly help in promoting your business. Moreover, the manager also performs the function of an advertising medium. And you need advertising like air.
There are several algorithms for calculating wages for a sales employee:
Fixed amount (rate).

As a rule, a fixed rate is quite rare and is usually accompanied by official registration labor activity. Often the amount of the rate is equal to the minimum wage established by law. This option suits someone, we wish them good luck.

Rate + % of sales;
This payroll algorithm is very common among companies. It is actually very convenient for both the owner and the employee. The rate, again, is minimal and the percentage is small because the monthly sales volume (or planned volume) can be very large. With such volumes, the salary is not higher than 0.5% of this amount, but mostly 0.2-0.3%. The rate, as in the previous paragraph, is minimum or lower than the minimum. There are companies that offer a bet of $100. and add to this money a slightly higher percentage than usual.

Rate + % of cash receipts for the current month;
In this case, the guaranteed payment amount may be different. The % figure is no more than 1. But, pay your attention to one “BUT” - the manager earns his hard-earned % from the amount of money coming into the company, that is, from the amount that the accounting department sees in the account at the end of the current month. Many newcomers confuse or simply do not pay attention to this condition when applying for a job. Naturally, then problems begin.

% of sales;
One of the most common algorithms. The maximum profitable % of sales is calculated. Depends on the amount of planned sales for reporting period. The higher the amount, the lower the percentage. Furniture is an expensive product, so the maximum salary level for a manager is 3%.

% of the company's income for the current month.
Accrual is based on the same principle as in point No. 3, only without a guaranteed rate. In this case, the % depends on the planned sales volume - the higher it is, the lower the %. Not the worst algorithm if the manager came to an already established client base, that is, there were already sales in the previous period and the money for the sold goods will be received this month. This is important because the majority of clients work with deferred payment, especially for large retail outlets - where the deferment can reach up to 3 months.

Basically, according to this algorithm, a sales agent begins to receive a salary no earlier than the third month of work. Don’t let this surprise you, if you agreed to such an algorithm, accept it for what it is, nothing can be done about it. Until the money for sales begins to flow into the company, you can offer a fixed rate, but it will be minimal or increased - this algorithm is described in point No. 2.

% of profit;
This algorithm is probably the most difficult for an employee to understand, but very beneficial for the owner.

The bottom line is to pay a commission of 10% on the net profit received from sales. It is important to pay attention to the fact that profit is calculated from the price at which the products entered the sales department, and not from the cost price.

Employee salaries are determined based on the average salaries of employees of the corresponding categories and the profile of the region in which production is planned to be launched.

Marketing.

Advertising.
Advertising is the most important process in promoting furniture production. It is important that a potential client knows about you before the finished product hits the market. There is a lot of competition in this type of business, and if you want to make yourself known, you need to do it in advance.
If you are seriously thinking about fruitful and long-term work, forget about “black” and “gray” production. Develop and register your own TM in Rospatent Russian Federation. The registered trademark of the promoted brand is strongly protected from counterfeiting and, if something happens, you can always defend your rights.

To do this, you must submit an application and pass a designation check for similarity. The advantage of registration is obvious - the right to use the trademark for 10 years (after which it is successfully renewed), has a positive effect on the company’s image and, accordingly, on the reputation and degree of trust on the part of a potential client. For illegal use of your trademark, you can demand compensation for material damage through the court.

If you don’t have time to do this, there are companies that will take on all administrative responsibilities for a fee and register the technical assignment as quickly as possible. The cost of such services is about $500.

After entering the TM into the general register of the State Patent, immediately begin advertising the enterprise and its products.

The very first thing to do is to clearly define the market segment and have a clear idea of ​​who your customers will be. Who do you want in your client base?
An advertising campaign is an expensive business, but it makes no sense to save on it. It is necessary to direct it as accurately as possible to the segment that you identified as potential in the first place.

In order for advertising to be of high quality and work correctly, you must study the market and your competitors. Carefully analyze the pros and cons of their work and products. Analyze the pros and cons of your production. Why is this necessary?
First of all, such an analysis will allow you to clearly identify the advantages that you will use in developing advertising campaigns. It can be quality materials, natural wood of valuable species, high-quality fittings, qualified staff, the latest equipment and production technologies. Be sure to indicate the work of the designer during development. Often it is this fact that can quickly and permanently form a customer base. Among potential clients there are many connoisseurs of design work. Moreover, who but a designer constantly monitors the latest global trends in the furniture industry.

In addition to “black” and “gray” manufacturers, your competitors remain Chinese manufacturers of furniture and components. This is another serious niche in furniture production and occupies a significant place in the market. There is no point in underestimating such a competitor and not paying attention to him.

Companies representing Chinese manufacturers have fairly cheap offers, but not always high quality. In your advertising campaigns aimed at similar customers, you can take advantage of the advantages of type, quality, and the possibility of individual ordering according to the sizes specified by the customer.

What are the options:
Production of cabinet furniture;
Children's furniture;
Cushioned furniture;
Office furniture;
Bathroom furniture;

In any production direction, advertising must best meet the needs of a potential client and attract his attention.

Types of advertising.
Advertising on billboards ranks first in terms of memorability. It is expensive, but at the beginning of the production journey, a business definitely needs it. Place information about yourself in several places, or at least in one, but as effective as possible. Advertisers know the intricacies of placements. Don't be afraid to trust them. It is in their interest to make your advertising effective.

The next step in promoting your business should be the creation of a company website or professional landing page. This is a must. As Bill Gates said: “If your business is not on the Internet, it is not at all.”

Actively promote your website and landing pages online - this will bring more clients to your company.
Creating a good website costs about $500. Create an accessible interface and make it understandable even to inexperienced users. The website must contain information about the company, its data, and contacts. Create a colorful, attractive catalog and order button. Describe all the advantages of the offers and customers will not keep you waiting long. Create a wide range of payment forms.

Use printing services. Colorful booklets, flyers, Business Cards. These are mandatory advertising attributes for starting any business.

You can place information about the new company in the media. It would be better if these were specialized publications. Don't skimp on the best parts - this is the first and last spread of the magazine. It's expensive, but justified by the results.

Create a beautiful catalog. It will be useful for the manager and in several other sales options.

Sales of products.

As mentioned above, the sales manager will be involved in product sales. It may be one or several. But the owner must be directly involved in the development of the action plan.

You have already implemented advertising that attracts potential clients to you. You can, of course, stop there and fulfill those orders that come to you from these sources.
But if possible, do not miss the opportunity to increase sales.

One of the best options is to open your own store. Or better yet, a small network. If the production is located in a metropolis, then several districts of the city can be used for the operation of stores. If the production workshop is located in the region, a regional center is perfect. This could be completely small room, with an area of ​​20 square meters. You can place several types of products there and work according to the catalogue.

Cooperation with furniture supermarkets can be called a very profitable type of sales. This option is ideal for young companies. Because supermarkets fully support the work of the workshop according to the entire price list presented by the production.

Undoubtedly, such cooperation has not only advantages, but also disadvantages. The main disadvantage is the clause in the agreement regarding exclusive rights to representation in the regions where supermarkets are located. That is, you will not be able to sell your products in parallel with them. The second disadvantage is the price. All networks try to negotiate the lowest prices from the supplier and, by the way, they are not bad at it.
In principle, if you cooperate with them on the basis of exclusive sales rights, then this is not a problem. They will not be your competitor in territory. And in the price list you can enter any price that you agree on. A significant disadvantage of cooperation with networks is the payment by installments. This is a mandatory condition for cooperation. If it is unacceptable to you, refuse and do not offer yourself as a supplier at all. Installment plans in different networks sometimes reach up to six months. But mostly - three months.
Despite the disadvantages of working with such networks, they are justified by great advantages. A serious and undeniable positive point is its wide representation in many regions. As a rule, chains are very developed or rapidly developing and open their stores wherever possible.

Another important positive point is advertising through representation. Supermarket and hypermarket chains release their catalogs of seasonal offers. Catalogs are distributed free of charge. Thousands of potential clients will know about you. Another advantage of cooperation can be considered from the logistics perspective. Customer demand will direct your production in the right direction. You will always be aware of new trends and bring new ideas to technology and design solutions.

Dealers.

These are the companies that will sell your products in their regions. This is a great way to promote and reach the widest possible area. The dealer search process is similar to general sales. It is imperative to create a beautiful, viewable commercial proposal. Describe the benefits, proposed terms of cooperation and send it to all relevant companies. A sales manager can handle this very well.

The two methods described above are only possible if the status of your company is not lower than LLC. Because your status indicates the seriousness of your intentions. It is rare when dealers agree to cooperate with companies of a lower status. In this case, there is no need to talk about networks. They don't even consider such proposals.

Tenders.

Regardless of what kind of furniture you produce, there will always be customers potentially interested in the products you produce. For example, if production operates in a resort area, these are sanatoriums and recreation centers.

If you simultaneously produce a line of children's furniture, these are kindergartens, various kinds of children's institutions that need constant furniture renewal. Don’t be afraid to express yourself, participate in tenders. There are sites that specialize in collecting complete information about all ongoing commercial tenders separately for each region. Subscribe to the newsletter of such a site, connect industry and regional settings and you will constantly receive by e-mail all information related to this issue. Information is constantly updated.

You will always be aware of current events in this area. The newsletter is absolutely free.

You can unsubscribe from it at any time if you don’t need it. Of course, it’s up to you to make the decision, but you shouldn’t refuse such opportunities. Again, LLC status can greatly help you with this. In addition, if you need high-quality consumables for production, you can place your tender. Conditions for participation and placement of tenders are freely available. Don't miss any opportunity to make your business even more profitable.

Financial plan.

Investments.

It's time to carefully calculate the required investment.
LLC registration ________________________________________ $110;
TM registration with Rospatent ______________________________ $500;
Rent of premises ________________________________________________ $1000/month;
Purchase of equipment _____________________________________ $40,000
Consumables _____________________________________ $40,000;
Advertising ________________________________________________ $10,000;
Office equipment ______________________________________________ $1000;
Taxes, salaries __________________________________________ 30% of profit;
Total at the start _________________________________________________ $100,000.
The total investment in launching a production workshop is about $100,000.

Payback.

The payback time of such an enterprise directly depends on the profit that you will receive as a result of the sale of finished products.

Even if we assume that the difference between the cost and price of finished products is 100%, it will take months and years to recoup the investment. It will take at least three months to produce the first batch of furniture, from development to the date of receipt of funds from sales.
Summing up the monthly expenses and minus them from the profit received, it is clear that to pay off only the consumables, you will need at least two full-fledged sales of all products made from the entire batch of consumables.

Ideally, if the workshop is fully loaded and the finished product is fully sold, taking into account installment payments for the products supplied to the buyer, it will take at least 8 months to pay back the consumables. And besides this amount, there is also the remaining $60,000 of invested money. If $40,000 paid off in 8 months, then the rest will pay off in proportion for another 2 years.

We can conclude that the full payback of the $100,000 investment will occur no earlier than in 2.8 years or 32 months.

Production options.
There are several options for furniture production at your disposal and each of them is worthy of attention.

A very common type of business in the Russian Federation and beyond. This includes the production of dressing rooms, wardrobes, sliding wardrobes (a type that is very popular for its characteristics), children's rooms, hallways, etc.
The equipment that has already been described above is used. Therefore, it is not worth dwelling on this point separately. You can supplement this list with an ultra-modern line of serigraphy. The equipment is designed for applying patterns to PVC film. It is used as decoration in the manufacture of wardrobes, kitchen furniture, hallways, cabinets and many others.

Materials: laminated chipboard (laminated chipboard), covered with a decorative protective layer. It is used in the manufacture of furniture facades and cabinets.
PVC edge— finishing edge based on polyvinyl chloride. The material has increased wear resistance and protects the ends of chipboard parts from various types of damage. Perfectly blocks moisture from entering exposed material during operation.

PVC film is a film based on polyvinyl chloride. They are used for vacuum membrane pressing on facades. Advantages: heat resistance, withstands household scratching well, retains the original color well (does not fade). There are film materials with antibacterial and antifungicidal treatment.

MDF is a specialized environmental material made from small dried wood fibers. Treated with binders. It has a finely dispersed structure over the entire cross-section and is easy to machine, shape milling and various types finishing.

The production process is in many ways similar to the manufacture of cabinet furniture. That is, children's furniture is also mostly cabinet furniture. The same equipment and many similar materials are used.
A special feature of furniture for children should be the use of natural materials in production. You can use solid wood, MDF, veneer, chipboard or tambourate. Metal, glass or plastic - furniture for children can also often be found from these materials. Without a doubt, the most suitable material for such furniture is solid wood. It is natural, environmentally friendly, durable. Wood is very difficult to process, so products made from it are quite expensive, but it allows you to make real masterpieces of designer fantasy.

Children are subject to rapid growth. Therefore, the production of children's furniture is often profitable due to the increased demand for it due to frequent replacement. If you manage to secure even a few clients, this can be a good start for the further development of children's furniture lines.

It is also worth adding that materials should be used that are easy to hygienically process the finished product. The reasons are clear - the child’s health comes first!

This is a separate category of furniture. The peculiarities of such production lie in the widest range of finishing materials and design possibilities. Sofas and loveseats, poufs and ottomans. A wide variety of chairs. In such a production, design abilities will be able to show themselves in all their diversity.

According to GOST, the definition of “upholstered” furniture includes structural elements with flooring materials at least 20 mm thick.
materials for bases - boxes, panels and frames made of wood, plywood and fiberboard. The main element that gives the product softness is springs. “Snake” springs, tapes made of rubber and rubber fabrics, tapes twisted from rubber threads in a cotton winding are used.

If you plan to produce expensive upholstered furniture, then use an elastic timber beam for the frame. If not, then there is no need to invent a bicycle - materials such as plywood and chipboard are perfect. They are cheaper and easier to process. They are quite durable and there are no complaints about low quality.

To create soft elements, foam rubber or polyurethane foam are used. What exactly to use is up to you. They differ in production technology and density.
The upholstery uses both woven materials (natural and artificial fiber), as well as leather and leatherette. For the production of inexpensive upholstered furniture, it is not practical to use leather as upholstery. Use fabric - it is cheaper, more practical and easier to process.

Nothing new can be added to production aspects. The process almost completely duplicates the described item “cabinet furniture”.

The only thing you can pay attention to is the simplicity of the manufacturing process. It couldn't be simpler. Decorative elements are almost completely absent. Strict appearance. Classic colors of materials, a high level of convenience and practicality - these are the main criteria for office furniture.

Only high-quality materials should be used in production. Mainly used are laminated chipboard, MDF, decorative plastic, glass and some others. But the use of metal is unacceptable. In conditions of high humidity, it will quickly begin to rust, regardless of any treatment or preparation. It is also not advisable to use wood - it practically does not tolerate constant temperature fluctuations and high humidity in room.

In such conditions, wooden furniture quickly delaminates and warps. MDF and chipboard use special coatings that guarantee long-term operation. Using MDF you can make furniture of almost any shape. This can even be called an advantage, because such furniture, compared to office furniture, is more suitable for design executions and experiments.

Another material that is used every day in the production of bathroom furniture is plastic. It's not expensive. Equally easy to play various forms. But its difference from MFD in a wide range of colors makes it a favorite both in production and in operation.
There are also some fashion trends in furniture design, especially when it comes to glass products. This is art toning and sandblasting. All this is done using special equipment. For tinting glass elements Tinted vinyl film is used.

Sandblasting designs are applied to glass using a stencil. Most often, the stencil material used is Oracle. Sandblasting machines are used to apply such decorative elements. You can apply drawings not only on glass, but also on mirrors and any other glass surface. There are entire catalogs of designs for sandblasting that are freely available on the Internet. There are so many of them that you can draw new ideas from there and not be afraid of being unoriginal.

Most of this furniture also belongs to cabinet furniture. But production is easier due to the fact that the needs of a summer house differ from a full-fledged residential building in their simplicity. We mainly produce various tables, chairs, and shelves. Sliding walls, built-in and external, are very popular.

Popular due to its practicality in use. Easy to install from a niche. At the peak of popularity are models in which you can install a sleeping bed. For a day it folds up, becomes almost invisible and frees large space for household chores. And there are quite a lot of such examples. In principle, such a business will always be relevant, but its seasonality may be alarming.

Production of furniture according to customer sizes.

As an additional service and to increase the interest of a potential client, the company needs a service such as manufacturing furniture according to the customer’s measurements. A very relevant service for the simple reason that residential and commercial construction has long moved away from the standards of layout, size and shape of premises. If you want more interest from customers, be sure to include this service in the general register of offers.

Business development prospects.

In the future, when you fully recoup your investment, you can think about expanding your business. What could it be? For example, you can set up the production of consumables and furniture fittings (hinges, screws, screws, nails, handles, films, laminates and everything that production cannot do without. Of course, this additional investments, but they will significantly reduce the cost of furniture. And this will directly proportionally increase the income and profit of the enterprise.

We wish you success and prosperity in this complex but creative business!

* 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, the domestic furniture market (primarily upholstered furniture) 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 was 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 is a large number Russian companies, whose furniture is in great demand in a certain price category(mainly low and middle 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 were helped, oddly enough, by 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 customers not only the optimal combination of affordable prices and good quality products, but also single standard services 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 noticing a sharp decline in demand for expensive products and an increase in 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 manufacturers, choosing proven ones trade marks, 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. The classification of such outlets is rather arbitrary. 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 there cover all major product groups (furniture for the bedroom, kitchen, office, upholstered 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 the starting capital and the characteristics of the regional market. Assess the level of competition in your city, identify direct and indirect competitors, paying special attention to the 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. A showroom is not the best option in a looming economic crisis. The cost of renting premises for it may be too high given the relatively small selection and considerable 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 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. So called legal status subject economic activity and their choice of how to use the 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 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 wholesale trade agents household furniture;

51.47.1 - Wholesale household furniture, flooring and other non-electrical appliances;

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: an application for state registration of an individual as an individual entrepreneur in form P21001, a receipt for payment of the state fee for registration of individual entrepreneurs, an application for transition to a simplified tax system according to form No. 26.2-1 (optional), copy of the applicant’s passport. Registration documents can be submitted either personally or through a representative by proxy. In addition, you can send all the necessary 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);

sanitary and epidemiological conclusion, issued for a specific period by Rospotrebnadzor employees, determines the compliance of the premises of the facility current standards and the rules that apply to this type of enterprise;

agreements on the removal of solid 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. When inspecting 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 the ground floor, then take into account that according to the standards, it is allowed to place shops in premises without natural light, but the requirements of SanPiN 2.2.1./2.1.1.1278-03 must be observed. Hygienic requirements to natural, artificial and combined lighting of residential and public buildings"(approved by the Main State sanitary doctor RF 06.04.2003), 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. Additional benefit furniture stores – no need to buy additional retail 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, in the middle price segment it is difficult to find original furniture options in design and execution. But there is Russian manufacturers, which 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 (specialized publications), radio, television and outdoor advertising are suitable for promoting a furniture store.

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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