The increased demand for high-quality and inexpensive furniture is one of the main reasons for the emergence of a significant number of new manufacturers on the Russian market. Today they account for over 70% of all furniture sold in the country. The profitability of the furniture industry quite often causes novice entrepreneurs to be misled into thinking that this business is simple and does not require much effort to create and further develop. In fact, even to organize the simplest furniture production, which involves the production of frameless and cabinet furniture, requires a high level of responsibility and a sober assessment of one’s capabilities.
One of the main motivating factors for opening a small enterprise for the production of simple furniture from the most common materials is the relatively small financial expenses. Using a business plan for a furniture workshop with calculations, the founder of the enterprise will be able to imagine all the upcoming work and procedures that he will have to perform, and compare his financial capabilities with the expected scale of the future company.
For the initial stage of organizing furniture production the best solution will focus on the production of cabinet furniture made from chipboard. Financial investments in this direction are not so large, the production technology is simple and can be mastered by low-skilled workers.
Before you start directly creating an enterprise, you need to familiarize yourself with the general situation in this market in your region. If it is saturated with companies that produce furniture from chipboard, then perhaps it is worth focusing on the idea of organizing the production of custom-made furniture. The competition in this segment is not so high, but this option will require a search for qualified craftsmen, who are not so easy to find now. But if you manage to find such specialists, then your company will become in demand among lovers of exclusive furniture manufactured according to unique designs. Such production will not be massive, but the cost of completed orders will fully compensate for the lack of production volumes.
The enterprise is expected to be launched within two months from the start of the project. To do this, you must complete the following steps:
- Study the state of affairs in this industry and analyze the regional market for furniture production.
- Get advice from representatives if necessary of this business.
- Compose detailed business plan with calculations specifically for your own version of business organization.
- Conclude an investment agreement and receive a loan.
- Register a business.
- Conclude agreements for the purchase of materials, furniture fittings and other components for furniture.
- Select the required production premises and conclude a lease agreement.
- Purchase technological equipment, install and configure it.
- Select and, if necessary, train company personnel.
- Establish markets for products.
- Organize an active advertising and marketing campaign.
These activities are planned to be completed within the following time frames:
| Stage/month, decade | 1st month | 2nd month | ||||
| 1 Dec | 2 Dec | 3 Dec | 1 Dec | 2 Dec | 3 Dec | |
| Registration of a company, opening a current account | + | + | + | |||
| Signing a lease agreement | + | + | ||||
| Purchase of technological and auxiliary equipment | + | + | + | |||
| Room renovation | + | + | + | |||
| Registration of permits and approvals | + | + | ||||
| Installation, adjustment and testing of production equipment | + | + | + | |||
| Preparation of documents for the range of products | + | + | ||||
| Selection of specialists | + | + | + | |||
| Concluding agreements with consumers of products and suppliers of materials and components | + | + | + | + | ||
| Starting a business | + | |||||
Participants in this market testify that those entrepreneurs who have already gained experience in selling furniture have the greatest chance of success.
Market analysis
According to economic statistics, the world last years There was some stagnation in the development of furniture production. At the same time, the data of the State Statistics Committee of the Russian Federation and real indicators for the industry differ significantly. They are corrected by information about chipboard production, supplied to furniture factories as source material for the manufacture of final products. In addition, official statistical information does not always correctly reflect the state of affairs in individual sectors and individual enterprises in the industry.
Annual volume of domestic furniture market is approximately 590-600 billion rubles. Of this amount, 54% comes from products domestic producers. According to a number of experts, this figure can easily be doubled, because a significant proportion of furniture is sold using “gray” schemes. The Russian market for furniture manufacturers is a huge number of medium and small enterprises that regularly pay taxes, but work according to the simplified tax system, thus not being included in statistical reports.
Over 50% of the furniture sold in the country is imported illegally and sold at inflated prices. As a result, official companies It is difficult to maintain margins while maintaining high quality products. The resulting product niches in this situation are easily filled by Western competitors.
In the country, the fastest growth is observed among office furniture manufacturers. Sales of these products are growing annually by 15-20%. This is due to the fact that enterprises, when opening production, start with inexpensive cabinet furniture made from laminated chipboard. Gradually improving technology and gaining experience, they then become significant market players in this segment. An additional advantage for them is a sufficient amount of chipboard produced in Russia and sold at quite affordable prices. Chipboard and MDF board also remain the main materials for the manufacture of built-in kitchen furniture in small businesses. Such products cost on average 50% cheaper than foreign analogues, practically not inferior to them in quality.
In the production segment upholstered furniture Exactly the same situation is observed for kitchen sets. It is believed that an average-income Russian changes chairs and sofas in the kitchen once every 3-4 years. Domestic upholstered furniture accounts for a 70% market share, and it is noted that consumers follow fashion changes, and this practically guarantees demand for these products. For small businesses, the production of upholstered furniture is attractive from the point of view of eliminating the need to purchase expensive technological equipment, because Most operations in furniture manufacturing are performed manually. The profitability of enterprises here is supported mainly by the production of small batches of specialized furniture. According to analysts, this niche of the Russian furniture market is practically free.
According to reports from the Association of Furniture and Woodworking Industry Enterprises, the most profitable area in furniture production is work on individual orders, where the profitability is 130%. In mass production of wooden furniture, profitability does not exceed 10%. This figure increases noticeably (up to 170%) only for enterprises that were able to establish mass production of products.
Today, the country has the following prices for the main types of furniture:
| View | Cost range (in rub.) |
| Hull | 1 560 – 2 000 |
| Made from laminated chipboard | 975 – 1 300 |
| From glass | 3 900 – 5 500 |
| Made from bog oak and plastic | 4 550 – 6 000 |
| Specialized furniture | 13 000 – 20 000 |
| Furniture restoration services | from 500 |
| Furniture restoration services | from 39 000 |
According to leading market experts, domestic producers have great prospects. They are associated, first of all, with the growing demand for furniture from natural materials. It is noted that the segment of chipboard use will gradually narrow.
Technical and economic description of the object
The creation of a furniture production enterprise is financed from a commercial loan in the amount of 8,360,000 rubles. This amount represents the full cost of the project in question. The loan is provided with a two-year repayment period at 14% per annum. During the investment period, the bank will receive a profit in the amount of RUB 537,939.83. The payback period of the project is 2 years.
Repayment of the loan and payment of interest on it begins from the first month of operation of the enterprise. This condition will significantly simplify the calculation methodology and regulation of cash flows.
The company will reach break-even operation in the 5th month from the date of opening. The first amount of profit is estimated at RUB 3,120,492.29.
The monthly cost of implementing the project will be 847,493.33 rubles.
The annual cost structure is presented in this table:
Gross profit of the project for billing period will amount to 313,440,000 rubles.
Organizational and legal form and taxation system
Business registration is carried out in the form of an LLC (limited liability company). This will make it possible to enter into transactions with legal entities and will significantly expand the company’s capabilities to sell manufactured products and expand production.
Main taxes paid:
| Tax | Applicable tax base | Periodicity | Bet amount |
| By the amount of profit | Amount of profit received | Mts | 20% |
| VAT | Amount of accrued VAT | Mts | 18% |
| For property | The amount of the cost of the acquired property | According to schedule | 2,2% |
| Income | Payroll | Mts | 13% |
| Social payments | Payroll | Mts | 34% |
It is important to keep in mind that some regions of the country may have different requirements for the list of necessary documents for registering an enterprise, so you need to find out about this in advance.
Industrial premises
To create an enterprise for the production of furniture products, you need to rent:
- Production workshop with an area of about 200 sq. m.
- Premises for a warehouse of finished products (area - about 250 sq. m).
- Office space with an area of 80-100 sq. m.
- Premises for locating a company's retail facility (area - about 30-40 sq. m).
The company's office space and store are located in the central part settlement, which will improve the sales of manufactured products.
Selection and acquisition of equipment
To equip the newly created enterprise, it is necessary to purchase domestic machine tools (CNC machines) of the following models:
- "KZ-Furniture".
- "Astra Furniture Designer"
- "Astra Reveal."
This equipment is practically not inferior in its technological characteristics to foreign analogues, and costs much less.
In addition, to equip the enterprise, the following are purchased:
- Retail store equipment.
- Jigsaws.
- Lathe and milling machines.
- Format-cutting complex.
- Drilling and filler machines.
- Veneer-groove router.
- Edge banding machine.
- Glueless fastener.
- Computers.
- Office furniture.
Thanks to this equipment, the company will be able to produce furniture not only from tile material, but also from solid wood. All equipment must comply with applicable safety standards and requirements.
Staff
The furniture manufacturing industry has high requirements for the training of specialists. This primarily applies to CNC machine operators. For the stable operation of the enterprise, the following full-time specialists are involved:
- CNC machine operators.
- Fitters-assemblers.
- Designers.
- Glaziers.
- Drivers.
As administrative support personnel, it is necessary to involve:
- Administrator.
- Store salesperson.
- Courier.
- Accountants.
- Programmers.
- Technical specialists.
Recruitment of employees in basic specialties is carried out on a competitive basis using industry-specific criteria for professional suitability.
Marketing and advertising
The marketing policy of a furniture manufacturing enterprise is aimed at forming an opinion among consumers that the manufactured products have excellent performance characteristics, has a cost lower than that of its main competitors, and that the company is ready to consider any options for long-term cooperation with consumers based on providing them with significant price preferences.
For this purpose, the following events are organized:
- Preparation and publication of messages about the enterprise in local media.
- Development of a targeted advertising scheme by sending letters to specialized furniture stores and salons.
- Development of the company’s own website with the ability to order products online.
- Activating consumer demand by developing attractive commercial offers and holding promotions.
The main marketing resource of the enterprise is the high quality of its products, which can be purchased profitably directly from the manufacturer’s store.
Eventually
An example of this business plan shows that with proper planning, the enterprise will be able to fully recoup all expenses within 2 years of operation when performing the following volumes of furniture production:
| Period | Products | Physical volume of sales in mc (pcs.) | Price (in rub.) | Revenue from (in rub.) |
| 1-12 mc (investment period) | Cabinet and office furniture | 6 000 | 1 560 | 9,360,000 rubles |
| 7-12 mc (investment period) |
Furniture made from laminated chipboard | 4 000 | 975 | 3,900,000 rubles |
| 13-24 mc (production period) |
Cabinet and office furniture | 7 000 | 1 700 | 9 000 000 |
| 13-24 mc (production period) | Furniture made from laminated chipboard | 5 000 | 1 050 | 5 250 000 |
The profitability of this business after reaching the break-even point will be 125%. This will bring profit to the founder, which can be used for further expansion of the enterprise.
According to experts, today the average profitability in the domestic furniture industry is 10-15%. How profitable is it to invest in furniture production in Russia? What is the profitability of various areas of the industry, what does it consist of, and are there hidden reserves to increase it?
First of all, from three main components - equipment, personnel, raw materials.
The furniture industry is a high-tech production that requires large investments and in which it is not worth saving on equipment. Correct operation and competent maintenance of reliable machines is a guarantee of increased productivity and high quality of manufactured products, and therefore the profitability of the enterprise. The more efficiently machines and technologies are operated, the higher the profit. Of course, provided proper organization and strategies for the development of production and use of high-quality modern materials.
And materials and raw materials are the most expensive segment in furniture production (50-60% of all expenses). This is followed by wages, budget accruals (20-25%), development and implementation of models (8%) and overhead costs (approximately 10%). Transport costs range from 3 to 10%, energy – about 5%, investments in advertising, marketing and PR – from 5 to 10%. Particularly worth highlighting are transport costs, which partly explain the fact that Russia, being one of the largest suppliers of wood, still cannot bring the level of development of its own furniture industry to the world level. According to statistics, approximately 70-80% of furniture industry enterprises are located in the central and European parts of Russia, while logging is carried out mainly in the Asian part of the country. The costs of raw materials, materials, transport and energy are constantly growing, and taking into account inflation, at such a rate that they outstrip the growth of welfare and purchasing power of the population. Hence the low profitability of furniture production (with the exception of certain segments, such as the production of office furniture).
It should be noted that domestic furniture companies currently practically do not use such competitive advantages as cheap raw materials, energy-saving technologies and relative low cost. work force. Instead, furniture makers constantly talk about the problem " rapid growth prices” for the same technologies, raw materials and increased personnel costs. The numbers on price tags in furniture stores are directly dependent on the euro exchange rate: over the past three years, due to its growth Russian furniture overall the price has risen by an average of 20%. And this is understandable. After all, approximately 30% of the total volume of materials and components used in production is purchased abroad. About 80% of the volume of MDF boards required by Russian furniture makers, approximately 15% of chipboard and about 50% of fittings are purchased abroad. Russian furniture makers are also forced to pay an import duty, which amounts to 15-20% of the cost of the goods, and bear transportation costs. It turns out that for domestic manufacturers the cost of components and equipment is now much higher than for their foreign colleagues. This accordingly affects the cost of furniture, making it more expensive, and reduces the competitiveness of domestic sofas and tables, making prices directly dependent on import substitution, that is, on the organization in Russia of the production of the above components for furniture production. Since materials account for the largest share in the price structure, manufacturers are constantly experimenting with them, as well as with finishing, trying to save on the cost of raw materials.
A larger company equals a more profitable business?
Ideal furniture factory
Production profitability: 10-25%
Enterprise area: from 1200 m
Staff: 50 people
Equipment: imported, allowing the production of a wide range
range of furniture, as well as solid wood facades
Partners: Western manufacturers supplying
components with deferred payment
Sales: own showrooms, showrooms,
recognizable brand
How much can you earn:
The factory can count on this result,
specializing in the production of cabinet office furniture
from laminated chipboard. At the same time, the sales volume is
10 thousand products per month. Calculation based on survey
entrepreneurs.
But to achieve success, it is not enough just to produce a lot quality furniture. We still need to sell it. This means there must be a demand for it. As studies of the Russian market show, prices for high-quality domestic furniture are rising fastest. However, today, due to the crisis, consumer interest is shifting to a segment where products are presented at a price below the average level.
Such products are manufactured mainly by medium and small furniture companies, which account for the majority of furniture produced in Russia. In total, 2.5-3 thousand companies are represented on the Russian furniture market. Of these, no more than 15 are major players (with a production volume of more than 1 billion rubles per year); several hundred more companies produce products worth from 0.3 to 1 billion rubles. per year, and the rest are considered small.
According to some experts, for such small companies It becomes more and more difficult to enter the furniture market every year, this is especially noticeable against the backdrop of the declining profitability of “line” manufacturers, the growing competition of foreign companies and large Russian chains. But, despite everything, there are still plenty of furniture newcomers on the market. They are attracted by the deceptive simplicity of the market and the fact that the barrier to entry is considered relatively low. However, a closer look reveals that the market is quite small, concentrated, and highly competitive. Small enterprises account for one tenth of the total market volume of the Russian furniture industry. Rest of the market − large productions, who assemble furniture from imported components and are firmly entrenched in occupied niches. First place in terms of sales volumes on the market household furniture in cabinet furniture for rooms and hallways (approximately 35%). In general, the cabinet furniture segment, according to RBC, is the most capacious and accounts for about half of the total market volume. The process of producing cabinet furniture for bedrooms, as well as for living rooms, is one of the most technologically complex, with high costs and relatively low profitability (10-15%). Office and special furniture, according to the Center for Development of the Furniture Industry, makes up about 25% of the total volume of the furniture market in Russia, and according to the State scientific center timber industry complex (GNTsLK), office furniture now accounts for 17% of the furniture market. The profitability of production in this sector reaches 25%.
According to industry analysts, the most favorable development forecasts can be given for the following segments of the furniture industry: office furniture produced by large enterprises, as well as specialized furniture produced by small and medium-sized businesses. According to the State Scientific Center for Lending and Lending, by 2015 the demand for office furniture will increase sixfold, the share of this segment in the furniture industry will be about 35%, and the volume of similar imported products will begin to decline. To support small and medium-sized furniture businesses in our country, it seems logical to switch to the Italian work scheme. This scheme involves targeting individual clients in a narrow segment and a limited (at first) geographical market, as well as a developed furniture production infrastructure, including affordable high-quality fittings and components.
The crisis makes adjustments
In the context of the ongoing global crisis, the main problems hindering the development of the Russian furniture industry and increasing its profitability lie outside the industry.
One of the main concerns of experts who forecast market development is that a drop in furniture production volumes will inevitably lead to a drop in the production of wood-based panels. There is also a serious risk of disruption to the distribution network. At the very least, it can be assumed that the formation of a progressive network trading system, which began in recent years, will be suspended in the current situation. And finally, widespread layoffs that are gaining momentum could leave production without skilled workers.
Thus, from answering the questions “Will there be a sufficient number of slab manufacturers in the country by the time the crisis ends?”; “Will the sales network remain viable?” and, most importantly, “Will furniture companies be able to recruit employees again in order to restore production volumes?” a lot depends. Time will tell whether Russian furniture makers will find the right answers.
Regina BUDARINA
It's hard to imagine a comfortable and cozy home without furniture. Starting your own business in the furniture industry proper preparation and taking into account all the nuances can bring considerable profit. In this article we will look at a business plan for furniture production with calculations from scratch on how to open it and not go broke.
Business plan for furniture production
Furniture business There are two options: selling manufactured furniture or producing your own. Often businessmen start with sales, and then, having studied the specifics of consumer requests, open their own production. In this direction of activity it will be necessary furniture production business plan.
We will make the calculation for a furniture shop that produces cabinet furniture on average price segment. This includes kitchens, office furniture, cabinets, etc. The organization of the enterprise will be carried out on the principle of an incomplete cycle: suppliers will prepare raw materials, and the company will manufacture ready-made panels for assembly using the developed drawings. For additional benefit in the formation pricing policy and a shorter payback period, own funds will be used when launching the project.
Before drawing up a business plan, it is important to carefully study the market - suppliers, consumers, competitors. The volume of furniture production in the Russian Federation, according to data from the Association of Furniture and Woodworking Industry Enterprises, is distributed as follows:
- Office furniture – 23%;
- Cabinet furniture (sets, hallways, suites) – 25%;
- Kitchens – 22%;
- Bedrooms – 13%;
- Upholstered furniture – 17%.
The range of domestic furniture is presented according to the following parameters:
- Functional purpose: cabinet furniture for lying or sitting: armchairs, chairs, chaise lounges, beds, sofas, etc.; for storage: chests of drawers, cabinets, cabinets, shelves; for work and eating: desks, dining tables, coffee tables, etc.
- Design: non-dismountable, sectional, universally prefabricated (it can be repeatedly disassembled and reassembled), built-in, bent, transformable, wicker.
- Materials: made from wood materials and wood, plastic, metal.
Planned assortment
We will first compile a list of the range of products we produce (data will change as demand is studied):
- Facades for kitchens, kitchens;
- Cabinets, cabinets, drawers, shelves, chairs, dining tables, stools;
- Office furniture - shelves, computer tables, filing cabinets.
Target group
- End consumers (wholesale) - hotels, restaurants, large government agencies, office centers, etc.
- End consumers (retail) are business people with average incomes who update furniture every 2-3 years.
- Intermediaries are design studios, specialized stores of interior items and furniture.
Business plan for furniture production: sales organization
Ways to sell products:
- Through your office, which is also a showroom.
- Using a network of stores, concluding partnership agreements with them (including stores from other regions and CIS countries).
- Direct sales government agencies, hotels, large private companies, using mailings and calls to the database of potential clients.
Advertising
- Your own website on the Internet, its creation and promotion, weekly updating of the catalog, sending news to regular subscribers - contributes to the geographical expansion of the circle of consumers.
- Placement of advertising blocks in interior and design publications, furniture magazines and other specialized press.
- Posting on Internet resources similar topics advertising banners.
Required documents
In terms of taxation and working with legal entities, it would be preferable to register an enterprise in the form of a limited liability company.
Documents for LLC registration:
- Information about the name of the company should be associated with its field of activity.
- Agreement on the establishment of an LLC with a decision to open;
- Charter documents with a list of types of activities and the amount of authorized capital not less than 10,000 rubles (contributed in money or property - office furniture, office equipment, etc.).
- Details of the director and chief accountant - copy of passport, identification number, contact phone number, address.
- Documents confirming payment of state duty.
- Details of the bank where the current account is opened.
Production plan
Business plan for furniture production includes one of its most important parts - the production plan. Production will be organized according to the principles of incomplete cycle. We will produce popular models of cabinets, prefabricated cabinets, kitchens, tables and other cabinet furniture according to the configuration and required dimensions. Provides for the processing of purchased finished chipboard and MDF boards to the given patterns. The furniture is delivered to the consumer and assembled on site.
Premises requirements
You will need 2 premises: for furniture production and for receiving clients. It is advisable to locate them close to each other. The premises have different functionality, therefore the requirements for them are different:
- Square production premises– at least 500-600 m², you need heated spacious room on the ground floor, the possibility of arranging warehouse space and installing equipment, an equipped entrance with a platform for unloading materials and raw materials and shipping finished products.
- Accessibility for the client is important for the office. Its location is preferable in the center of trade and business activity, on the ground floor, with an equipped showroom for displaying product samples. Area – 50-60 m². Communications and cosmetic repairs are required.
Equipment
List of equipment for the production of cabinet furniture parts:
- Machines controlled by computer programs for the manufacture and modeling of furniture - “Astra-Furniture Designer”, “Astra-Cutting”.
- Milling machine.
- Electric jigsaw.
- Lathe.
- Some small tools.
Staff
List of workers with special skills and knowledge:
- Workshop workers – 5-7 people. Requirements: experience working on the main types of furniture machines chipboard processing and MDF boards.
- Production foreman – 1 person. Bears financial responsibility for machines, raw materials and supplies. Requirements: knowledge of the features of production processes for the assembly and manufacture of cabinet furniture, experience in organizational work.
- Driver – 1 person.
Raw material suppliers
Raw materials for use in production are chipboards (chipboards), MDF boards. You will need domestic or foreign suppliers of slabs, consumables (glue, paints, coatings, hinges, handles, drawer guides, hinges, locks, fasteners, etc.).
Requirements for suppliers: company fame, certificates, delivery, possibility of deliveries with deferred payment. The search for suppliers is carried out in specialized publications, on the Internet, several offers are selected and compared.
Financial plan
To calculate a business plan for furniture production, we take into account all the initial costs of launching and promoting the project, fixed costs, compare with cash receipts. We analyze the main financial indicators: profitability, size of investment, payback period of the project.
Initial costs:
- Purchase of equipment – 1,000,000 rubles;
- Registration of a company – 30,000-40,000 rubles;
- Purchase of consumables – 150,000 rubles.
Total for launching the project is 1,200,000 rubles.
Type of funds raised – own, borrowed. In the second case, additional costs for interest on the loan are taken into account. With average interest rate 22-25% per year, production profitability requires at least 30-35%. The payback period depends on the profit after paying all taxes, interest on loans and other costs.
We will consider the option of using our own funds to start production.
Variable costs (per month):
- Workers' salary – 100,000 rubles;
- Raw materials and materials - 150,000 rubles.
Fixed costs (per month):
- The salary of office workers is 20,000 rubles.
- Rent of premises – 50,000 rubles.
- Advertising costs – 10,000 rubles.
The planned sales revenue is expected to be about 400,000 rubles per month. Intensive promotion will contribute to revenue growth per year by 20%.
Taking into account 30% profitability, the monthly income will be 150,000 rubles. Monthly fixed costs – 80,000 rubles. Profit after deducting fees, taxes and expenses – 70,000 rubles. If the profitability is 30%, the payback period will be 14 months.
Business risk analysis
The main risks include the smuggling of cheap, low-quality furniture from China and Poland. Such furniture is short-lived and can be harmful to health.
Every person strives to ensure that his home is cozy, harmonious and unique. The latter is usually achieved through furniture that no one else has, made to order according to an individual drawing. That is why the production of cabinet furniture is a business that will always be in demand and profitable. Investments in it are not too large, but depend on some factors and aspects.
Investments in business
Firstly, register your business. How exactly is up to you. It is usually more profitable and cheaper to open an individual entrepreneur, because the package of documents for it is smaller, and registration is faster. On average across the country, it costs about 10-15 thousand rubles to register.
Secondly, the premises. There are possible options here. Do you want large-scale production? Buy or rent premises for special workshops. Do you want to open a small workshop in personal plot? Get all the necessary permits and go for it. The last option is most convenient in middle lane, in small towns. Manufacturing cabinet furniture is profitable in any type of city, provided that you have thoroughly studied the competitors and the price threshold for the products. Price for initial stage It's better not to overestimate. It is important to focus on quality, gradually increasing the price. You can indicate in advance the moment that your individual projects are more expensive.
Thirdly, this consumables. It is better to purchase it at a wholesale price from those manufacturers who are closest to your workshop. This way, less money will be spent on transportation.
Fourthly, this is equipment. This can be either expensive automated or intended for self made. The latter is relevant when your workshop is small and your plans are to work only on individual orders. This is beneficial only when the population of the city does not exceed 300-500 thousand people. Equipment for the production of cabinet furniture in minimum set includes:
- jigsaw;
- plane;
- Fraser;
- lathe machine;
- electric saws;
- machine for cutting material.
On average, high-quality equipment will cost about 50-70 thousand rubles. This only applies to small production. If the plans include a huge workshop, then automated lines with software will cost about 300-400 thousand rubles.
In addition, if two workers are enough to work in a small workshop, then about 5-7 workers are required for a large production. Then you should also include in your monthly expenses wages. This is about 10-13 thousand rubles for each.
Total investments will be:
- documents (15 thousand rubles);
- premises (from 10 to 100 thousand rubles depending on size and location);
- consumables (each region has its own price threshold);
- equipment (from 50 to 400 thousand rubles depending on the type of production).
Income, profitability, payback
Manufacturing cabinet furniture pays off depending on the scale of production. A large one can pay for itself in 1-3 years, or maybe in six months. This is determined by the number of orders, sales and price. The more unique and original the sketch, the higher the price. Typical cabinet furniture is cheaper, although the demand for it is consistently high. A small workshop can pay for itself in either six months or a couple of months. It is important that your work is always stable. Ideally, you should take into account the wishes of potential customers even before they contact you. So, you can study the many models presented on the markets.
Don't forget that it's worth putting a little money and effort into advertising. Without it, it is quite difficult to stand out from other manufacturers. In addition, it is advisable that you have an office where there will be
Your own business: production of cabinet furniture
orders accepted. Ideally, all office furniture should be the result of your workshop. You will also need a portfolio, customer reviews, and a motto. The latter should be bright and memorable.
Large-scale production can generate net profit from 150 to 300 thousand rubles. It is important that you have regular large and wholesale customers who will always provide you with work.
In a small workshop, it is more logical to produce custom-made furniture. This way you won't work at a loss. Although it’s worth making a couple of orders and putting them up for sale so that clients can evaluate your work, quality and originality. You can earn from 10 to 80 thousand rubles.
The good thing is that this work is not seasonal. You can sell and make furniture at any time of the year. In addition, you can hire a creative young specialist who will help with the design of your projects.
In this article:
A furniture business can be developed in two ways - to sell furniture already made by someone or to produce your own. But it is much more profitable to combine these two currents into one channel. And most simple option To organize your own furniture production, it is considered to open a workshop for the production of cabinet furniture.
What is included in the category “cabinet furniture”
Cabinet furniture is furniture that has a “box” design and is designed to be placed along the walls. This category includes: tables, shelving, cabinets, cabinets, walls and other types of furniture made from separate rigid parts.
The production of cabinet furniture is regulated by the following standards:
- GOST 16371-93: Furniture. General technical conditions.
- GOST 19882-91: Cabinet furniture. Test methods for stability, strength and deformability.
- GOST 28105-89: Cabinet furniture and tables. Test methods drawers and half boxes.
- GOST 13025.1-85: Household furniture. Functional dimensions of storage compartments.
- GOST 28136-89: Wall-mounted cabinet furniture. Strength testing methods.
- GOST 26800.4-86: Furniture for administrative premises. Functional dimensions of cabinet compartments.
Analysis of the cabinet furniture market
According to Rosstat, the manufacture of cabinet furniture is the most popular type of furniture business, which occupies about 25% of the niche of all furniture production. Today's consumer is well aware of what cabinet furniture is and what it is needed for. At the same time, even the brand or the company’s long stay on the market is not important - offer more low price with decent quality - and the buyer is yours.
If we arrange consumer requirements in the form of a pyramid, then the lowest and most “weighty” tier will be the price, then the materials used, build quality, original design, and only then the manufacturer’s brand. Therefore, despite the huge competition in the cabinet furniture production business, there is a place for everyone who can understand the desires of the consumer and predict fashion trends.
Who is he, a potential buyer?
According to the analysis of age characteristics, the target audience Buyers of cabinet furniture are divided into two groups:
- young people under the age of 30 who are purchasing furniture for the first time;
- older age category (40-50 years old) who buy new furniture to replace the old one.
The most popular “representatives” of cabinet furniture are kitchens and walls for the hallway and living room.
Raw materials for the production of cabinet furniture
Cabinet furniture can be made from chipboard, MDF, solid wood. To reduce the cost of production and the final cost of the product, companies often combine these materials, for example, replacing expensive furniture panels on the wall area and partitions with chipboard or laminated fiberboard.
The simplest option to start production is to make furniture from double-sided laminated chipboards (LDSP). Why?
Firstly, there will never be any problems with the supply of such raw materials - laminated chipboards are produced in abundance by both domestic and foreign manufacturers. Secondly, for the same reason (broad offer) it is possible to agree on profitable terms deliveries (with deferred payment, discounts for large quantities, etc.). Thirdly, the use of laminated chipboard significantly reduces the cost of production, since it reduces one stage - veneer or laminate cladding in the manufacture of furniture, which requires additional investment and makes sense only for large production volumes.
To select raw materials, you must be guided by the following indicators:
- thickness laminated chipboards(16-18 mm for external walls and 12 for internal partitions);
- density – compliance with GOST 10632-89;
- emission class according to 16371-93 – E1.
For the back walls of furniture, you can use fiberboard (GOST 4598-86).
Features of the technological process for the production of cabinet furniture
There are several options technological process manufacturing of cabinet furniture. They can be divided into chains of different lengths:
- complete technological process - from the manufacture of material for the cabinet base (chipboard, MDF, furniture board) to the finished product. This best option for mass and serial production, which allows to significantly reduce the cost of materials, but is very expensive from the point of view of small businesses;
- medium - furniture manufacturing, where the raw materials are ready-made sheets of chipboard, fiberboard, MDF - essentially, only cutting and assembly;
- short (assembly only) - the production of cabinet furniture is carried out from already cut to order chipboard, laminated chipboard, MDF. This is the most popular option for starting a small business from scratch, which involves working on a specific order without purchasing expensive cutting equipment. Then, after developing an appropriate customer base and receiving serial orders, you can think about purchasing your own cutting and edge banding machines in order to “lengthen” the technological process chain and expand production. This explains the relative ease of entering the furniture manufacturing business - in fact, it can be plan in any sequence of the production cycle.
The manufacturing technology of any cabinet furniture is divided into five main stages:
- Drawing up a project of the finished product in various planes;
- Uncover necessary materials for details of future furniture;
- Drilling sockets for fasteners;
- Finishing of cut edges (laminated edge, veneer, PVC film);
- Assembly of the finished product.
A detailed description of the technological process depends on production automation and percentage use of manual and mechanized labor. The most progressive (and, accordingly, expensive) production is considered to be one equipped with automated machines (CNC). The operator only needs to enter the dimensional data into a special computer program, design the desired product and give the “start” command.
In just a few minutes, a CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, and drill holes according to the development plan. All that remains is to trim the edges and assemble the finished furniture. But it is profitable to buy such lines if there are constant serial orders. It makes no sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let us consider, as an example, the “golden mean” - the operation of a semi-automatic line of several machines with partial use of manual labor.
To start such production you will need the following equipment:
1. panel saw with manual feed materials;
2. edge banding machine for finishing straight edges, concave and convex elements;
3. drilling and filler machine for making blind and open holes for fittings, hinges, dowels;
4. grinding machine;
5. screwdrivers;
6. hammer drill;
7. cutting tools(cutters, drills, knives).
Description of the production technology of cabinet furniture
1) After the design has been developed and approved by the customer, a model of the future product is created using a computer program , which can be installed on a regular laptop.
For example:
- Cutting– a program for selecting the optimal cutting of chipboard, laminated chipboard, MDF sheets with the least loss;
- PRO 100– a program for visualizing a sketch of a model in 3D, drawing up a design, constructing and calculating the necessary materials, parts and accessories for assembly.
But manufacturers of automatic and semi-automatic machines also offer other types of programs already installed on their equipment, for example “UCANCAM V9″, “ArtCAM”, etc.
2) The slab of material from which the product will be made is fixed on the machine and cut into individual parts in accordance with the cutting charts.
If furniture is made from fiberboard, this is where the preparatory work ends - the parts are sent for assembly. If we are talking about furniture made of chipboard or laminated chipboard, the rough blanks are subject to mandatory mechanical processing of the sawn edges;
3) Furniture parts made from chipboard are fed to an edgebanding machine, where they are used with glue and a pressure press slab sections are lined with laminated edges , PVC film, melamine or other edge materials;
4) Depending on the configuration of the machine, holes for fasteners are done:
- semi-automatically– on additive machines;
- manually, using rotary hammers and electric drills, using drawings with additive diagrams.
6) After adding holes, the product is ground along the edges (to smooth, remove overhangs of the edge material in height and length) and sent for assembly;
7) Test assembly using hand tools helps to identify shortcomings and inconsistencies and eliminate them in finished product. After which, the furniture is disassembled (if necessary), packaged and sent to the finished goods warehouse.
Estimated business plan for organizing the production of cabinet furniture
1. Project goals
The company plans to open furniture workshop for the production of cabinet furniture in the middle price segment.
Range: cabinets, tables, racks, bedside tables. Production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboards and fiberboards, as well as fittings, will be purchased from suppliers for further cutting into finished panels, processing and assembly of furniture according to the developed drawings.
2. Financing
To launch production, it is planned to attract the own funds of the LLC founders, which will reduce the payback period and give an advantage in shaping the pricing policy.
3. Target group of buyers:
- intermediaries - specialized furniture stores, repair and design studios;
- end consumers (retail) - people with average incomes who prefer to update furniture every 3-4 years;
- end consumers (wholesale) - state-owned enterprises and government institutions, office centers, hotels.
4. Ways of implementation:
A) through a warehouse store, in which samples of work will be displayed and an office will be equipped to receive customers;
B) direct deliveries of furniture to private companies and government agencies; C) through dealer networks (including in other regions).
5. Advertising campaign
Advertising will be built with the target group of consumers in mind, for which the following will be used: media (advertising in the press of relevant topics), creation and promotion of your own website on the Internet, placement of advertising banners on sites dedicated to interior design and renovation of premises. It is planned to allocate 60,000 rubles/month for advertising purposes.
6. Organizational issues
For legal registration of the business, it was decided to create a Limited Liability Company (LLC) on common system taxation. This form makes it possible to work with both large wholesale suppliers and consumers, and retail buyers.
To register the activities of a company, you will need the following documents:
- information about the name of the enterprise;
- decision of the founders (protocol) on opening;
- information about the director and accountant;
- details of the account opened for the contribution of the authorized capital (if the contribution is in cash) and the current account for conducting business activities;
- confirmation of payment of state duty;
- charter, indicating the size of the authorized capital (at least 10,000 rubles) and the following types of activities:
- 36.12 Production of furniture for offices and trade enterprises
- 36.13 Production of kitchen furniture
- 36.14 Manufacture of other furniture
- 51.47.11 Wholesale furniture
- 52.44.1 Retail furniture
- 52.44.5 Retail sale of wood, cork and wickerwork
- 52.61.2 Retail trade carried out directly through television, radio, telephone and the Internet.
7. Requirements for premises for the production of cabinet furniture
- First floor,
- availability of all communications,
- three-phase electricity 380 W,
- access roads and loading platforms,
- absence of dampness and high humidity.
It is planned to rent a premises of 500 m2 at a price of 240 rubles/m2, divided into 3 parts:
- office with a showroom with an area of 50 m2;
- workshop for the production of cabinet furniture, with an area of 350 m2;
- warehouse for raw materials and finished products – 100 m2.
Total – 120,000 rubles/month (1,440,000 rubles/year).
8. Staff
To work one shift (21 working days/month, including holidays and weekends), the following staff is required:
- director – 40,000 rubles/month;
- accountant – 35,000 rubles/month;
- customer service manager – 20,000 rubles/month;
- designer - 25,000 rubles/month;
- production foreman - 30,000 rubles/month;
- workshop specialists - workers with knowledge of the main types of furniture machines and the features of working with chipboard, fiberboard and MDF boards (5 people for 20,000 rubles / month);
- auxiliary workers - (2 people, 12,000 rubles / month).
Total: 12 people.
The estimated wage fund is 274,000 rubles/month.
Salary taxes (37.5%) – 102,750 rubles/month.
Total salary expenses – 376,750 rubles/month.
9. Main and auxiliary equipment
Total cost - 423,950 rubles
10. Performance
It is planned to produce products in the following volumes:
- cabinets – 100 pieces/month,
- tables – 100 pieces/month,
- cabinets – 100 pieces/month,
- racks – 100 pieces/month.
11. Calculation of product costs
According to the calculated data from the table of material consumption for production
and prices for materials,
The cost of production will consist of the following material costs:
- consumption of materials,
- electricity,
- advertising,
- salary,
- depreciation,
- rent
Cabinets – 18,354 (material costs) + 207.59 (electricity) + 94,187.5 (payroll + unified social tax) + 21,197.5 (depreciation) + 45,000 (other costs: rent, advertising) = 178,946.59 rubles /month.
Tables – 27,550 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 188,142.59 rubles/month.
Cabinets – 44,647 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 205,239.59 rubles/month.
Racks – 19,210 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 179,802.59 rubles/month.
Total: 752,131.36 rubles/month.
12. Price
Calculation of the wholesale selling price per unit of production (cost per unit of production + profit margin):
Cabinets – (RUB 178,946.59: 100 pieces/month)+25% = RUB 2,236.83.
Tables – (RUB 188,142.59: 100 pieces/month)+25% = RUB 2,351.78.
Cabinets – (RUB 205,239.59: 100 pieces/month)+25% = RUB 2,565.49.
Shelving – (RUB 179,802.59: 100 pieces/month)+25% = RUB 2,247.53.
13. Revenue and profit
Revenue: 2,236.83 * 100 pieces + 2,351.78*100 pieces + 2,565.49*100 pieces + 2,247.53*100 pieces = 940,163 rubles/month.
Cost: RUB 752,131.36/month.
Balance sheet profit: 940,163 – 752,131.36 = 188,031.64 rubles/month.
Income tax (20%): RUB 37,606.33/month.
Net profit: 940,163 – 752,131.36 – 37,606.33 = 150,425.31 rubles/month.
14. Financial analysis
Expenditure part
- material costs - 752,131.36 rubles;
- capital costs - 423,950 rubles.
Total: 1,176,081.36
15. Product profitability
(Book profit: Cost) * 100% = (188,031.64: 752,131.36) * 100% = 25%
When producing 400 units of cabinet furniture per month, the payback of the project will be 8 months.
