When planning to invest money in a business, entrepreneurs are looking for the most profitable production for a small business. This means fast payback, high returns and low risk.
The most cost-effective production for small businesses
Which production is profitable to open in terms of profitability? Obviously, the product must be popular, and the cost of its production is minimal. It is desirable that the business idea has the following characteristics:
- originality;
- low competition;
- demand for goods;
- small investment;
- simplicity in organization;
- small staff.
The highest possible profitability is possible only in the case of production automation.
The most promising in this regard are two directions:
- Food: mushrooms, greenhouse vegetables, honey, dumplings, convenience foods, etc.
- Hygiene products: napkins, toilet paper, etc.
- Production of concrete fences, tiles and other options.
Consider the top three most cost-effective ideas for manufacturing as a small business.
Mushrooms are a popular meat substitute due to their excellent taste and low price. Mushroom production is simple in technology and does not require large investments. For growing oyster mushrooms or champignons, any room with cheap rent is suitable.
Investments:
- Purchase of 30 tons of compost and mushroom mycelium - 100 thousand rubles.
- Mushroom shop equipment - 200 thousand rubles.
- Rent of 100 m 2 and salary of 3 employees for 1 month - 70 thousand rubles.
- Utility and other expenses for 1 month - 20 thousand rubles.
Total: 390 thousand rubles.
The sale of mushrooms can be both independent - on the market, and sale to wholesalers and shops.
The productivity of 1 kg of compost is equal to 1 kg of mushrooms per year, and 30 tons of compost will produce about 30 tons of mushrooms per year ≈ 3 million rubles per year. The expected monthly profit is 250 thousand rubles, net - 100 thousand rubles. Profitability 66%.
toilet paper production
Toilet paper is a very hot commodity. Volumes of toilet paper consumption are high, product quality requirements are not strict. Unlike napkins, which require the highest quality raw material, low-cost toilet paper is made from cheap bases.
Investments:
- Machine for winding and cutting wide rolls (used) - 300 thousand rubles.
- Packaging equipment - 50 thousand rubles.
- Purchase of raw materials - 100 thousand rubles.
- Rent of premises of 40 m 2 and salary of 2 employees - 50 thousand rubles.
- Other expenses - 20 thousand rubles.
Total: 520 thousand rubles.
Since the line is fully automated, the production of toilet paper is not only profitable, but also the most cost-effective. The specified budget is designed for the purchase of 6 tons of raw materials≈60 thousand rolls finished products. The expected income is 300 thousand rubles per month, and the net income is about 90 thousand rubles. Profitability 43%.
Production of concrete products
The production of paths, fences, decorative concrete stone will always find its own market. These may be sites free ads, market and shops, as well as your online store.
A little experimentation with the composition and pigment and you will get a tile that imitates natural stone, pebbles or paving stones. For production, you need to purchase:
- molds for pouring;
- concrete mixer;
- ejection;
- table for stripping and racks for curing products;
- tool, film, etc.
You can even start production in a garage with a partner - this is how most large firms started.
Investments:
- Purchase of equipment - 150 thousand rubles.
- Purchase of consumables - 100 thousand rubles.
- Utilities and other expenses - 20 thousand rubles.
Total: 270 thousand rubles.
The cost of production of 1 m 2 of tiles is 250 rubles, and the price is 350 rubles. Net profit from the sale of 1 thousand m 2 per month - 100 thousand rubles, profitability 40%.
How much does it cost to start a profitable production?
From the above projects, we can conclude that cost-effective production can be started with 300 thousand rubles. The profitability of projects is over 40%, which is considered an excellent indicator.
During a crisis, many aspiring entrepreneurs, in order not to risk their money, are looking for an opportunity to start from scratch with minimal capital. If you carefully analyze the manufacturing sector, you can find many profitable areas that do not require large financial investments. Which production is profitable to open in 2020, we will try to figure it out in this publication.
Frames for pictures and photos
On these simple decor elements you can build a profitable successful business. If you cannot decide which small production can be opened at home, try to implement this simple and quite promising idea in 2020.
Picture frames are always in demand on the market, since sales of such products do not depend on seasonality. To open such a business, you do not need to issue special permits or purchase equipment. The easiest way to organize such production on the basis of an existing carpentry workshop or in your own garage.
Most profitable option– manufacturing baguette frames under the order. In this case, you do not have to invest in the purchase of material. The production of frames is a rather labor-intensive work, since some operations, such as gilding and varnishing, are carried out manually. It can take from 1 hour to 4 days to make one frame. The cost of the product largely depends on its size and complexity of work. To make this bring additional profit, you can offer customers the decoration of finished products or the manufacture of various boxes and souvenirs.
Inflatable boat
Many modern people prefer outdoor activities, so the demand for inflatable boats has recently begun to grow. They are bought by lovers of fishing, hunting, athletes and ordinary tourists. Production inflatable boats- this is a great option for people who are interested in which mini-production is profitable to open in 2020. Inexpensive, high-quality, easy-to-use products are in the greatest demand.
At the moment, the market for inflatable boats is not completely saturated, but despite this, there are still competitors. Such products are supplied by domestic and foreign manufacturers. To open the production of inflatable boats, you will need certain investments. Investments pay off very quickly, since such a business is highly profitable. In addition, it is necessary to hire qualified specialists with extensive experience in this field.
The most important advantage of this line of business is that it does not require large capital investments. To organize production, you will need about 50 thousand rubles. To save money at the start, special equipment can be made by hand.
Pottery can be mastered in special courses or with the help of video tutorials on the Internet. This is excellent. In order for it to bring a good profit, you need to find reliable distribution channels for finished products. This is very important point which must be taken into account when developing a business plan for an enterprise.
Paper bags
According to experts, production paper bags is considered the most stable and promising type of entrepreneurial activity. This new business an idea from scratch for a small business in 2020, with the right approach, will allow you to make a decent fortune. In order to achieve success in this business, it is necessary to purchase special equipment. Its cost largely depends on the performance, power and economy of the installation. An ordinary machine costs about 140-160 thousand rubles. Since the business is characterized by a quick payback, if financial opportunities allow you, you can immediately purchase an automated line that produces about 200 blanks in 1 hour.
In addition to machines, you also need to purchase a mechanism for stitching the bottom of bags, a printing machine with multi-color printing and a punching machine. As a rule, all beginners buy used equipment. Over time, when the company reaches a net profit, you can re-equip production and purchase an expensive automatic line. This profitable one allows you to quickly promote your business and reach serious profits.
Antifreeze
The production of antifreeze liquid can be organized by anyone in their own garage. This is the most The best way, . To do this, it is enough to buy a small installation for mixing ingredients and a plastic container.
The production technology of non-freeze is very simple. It can be mastered by anyone without special education and any experience. The initial investment pays off in the shortest possible time. It reaches the break-even point in just 1 year. Profit largely depends on the volume of output of finished products. The prime cost of antifreeze is 40% lower than its wholesale price. This opens up great prospects for beginners. If things go well, after a certain time you can open a small enterprise for the production of automotive technical fluids and significantly increase your income.
Pasta
During the crisis, many novice businessmen are thinking about what profitable production can be opened with minimum investment. in difficult economic conditions the demand for inexpensive food products, and in particular for pasta, is increasing significantly. Such a product can be found in any store, but despite this, experts believe that the market is not yet oversaturated with these products, so beginners can safely open their own business in this segment.
For the production of pasta, you will need special equipment. If your budget does not allow for an imported production line, buy a few used domestic units and get to work. They can be found in advertisements on the Internet.
It is more profitable to sell finished products in bulk to shops, canteens, supermarkets, etc. At first, the goods will be taken in small batches. If the product is of good quality, the demand for it will grow, and over time you will be able to sell pasta in large volumes. This will significantly increase the profitability of the enterprise. You no longer have to think about what kind of production to open in the city, since a small pasta shop will fully provide for your entire family.
cinder blocks
The difficult economic situation and financial instability make many people think about what kind of production can be opened in a private house in order to improve their financial situation. The most affordable option is the production of cinder blocks. Such a case can be organized in just 2-3 days. It is enough to purchase raw materials and install special equipment. Before starting work, you need to find channels for marketing finished products. This is a very important point, because without established sales, you will not be able to achieve a stable income.
As for equipment, you will need:
- cinder block machine;
- Concrete mixer;
- Forms;
- Construction wheelbarrow;
- Shovels.
For all this you will spend 1-2 thousand dollars. The initial investment will be returned after the first 3-4 batches of products are sold. As you can see, this is not a very costly production for a small business, so if you have the desire and free money, try to do such a profitable business.
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Dumplings
The popularity of dumplings is only growing every year. Almost all citizens of our country love this tasty and satisfying dish. But, unfortunately, not everyone knows how to sculpt homemade dumplings on their own. In addition, this process takes a lot of time. It is much more convenient to buy frozen dumplings in the store, cook them quickly and serve them at the table for lunch or dinner.
Such semi-finished products are always in great demand, so if you have not yet decided what kind of production you can open at home, organize a small dumpling shop. This is a great option for people who do not have a large start-up capital. At first, you can start producing handmade dumplings. The most important thing is to produce a product that consumers will like. There is a huge range of such products from different manufacturers on the market, so if you produce a low-quality product, it will remain unclaimed, and your company will suffer losses.
findings
Now you know which production can be opened with minimal investment. All the ideas collected in this article are workable, since they have already been repeatedly implemented by other entrepreneurs. Choose the right model and get to work. If you treat your business responsibly, it will bring a decent profit.
Many people, mostly young people, dream of how to get away from doing daily, already rather boring work, not to see their boss anymore. But, in most cases, such dreams remain just dreams because of self-doubt and laziness. Some do not have the necessary initial capital, others are afraid of responsibility, and still others have no business idea at all.
What is the best way to start and what is the best thing to do? It would seem that everything has been taken apart a long time ago, there is constant and great competition in business, and there is no need to stick out at all if there are no necessary connections and big money. In fact, there are a large number of different options for how to open a small production. With the right approach, it can give its owner independence, money, and the opportunity to enjoy their work.
1. Find a suitable idea and choose the appropriate direction for your activity. The most suitable for small production are the directions for manufacturing food products or building materials.
2. Find what you need initial capital. If there is the entire starting amount or part of it, then this is very good. If not, then you need to borrow from relatives, friends, acquaintances. Don't rely entirely on banks. After all, getting a loan at good interest, a beginner individual entrepreneur very difficult. In addition, there are some other government programs aimed at assisting in the development of small and medium-sized businesses, but the amounts they provide are small.
3. Draw up a business plan. This can be done on your own, ordered or purchased from specialists, as well as consulting with specialists in this matter, carefully studying the issue of small-scale production using the relevant literature or the Internet for this. The main requirement here is that the plan must be realistic. Analyze carefully the sales market and the presence of competition.
4. If you have not registered yet entrepreneurial activity, then you need to register your individual entrepreneur or LLC, but first you need to study in detail all the positive and negative sides each form of activity. When processing documents, you need to be patient. You need to find out what permits, licenses, documents you need to obtain.
5. Next, you need to determine what kind of room you need. You can start small production at home. Provided that you do not live in an apartment, but in a private house. To do this, you can use your own garage as a production room. You can also rent a suitable room, but you must proceed from the characteristics of your activities.
6. When there is a room, you can start purchasing the necessary equipment and raw materials. If personnel is needed, then it is worth approaching this process with all responsibility.
In principle, and everything, you can start working. While preparations are underway, you need to think about advertising. Outdoor advertising, Internet, radio, newspapers and so on - you must use all existing options.
Building materials production business idea
A good idea for a small business is to open a foam concrete or aerated concrete production. The process of their manufacture is simple, but these materials are in great demand. You can start the production of such building materials even in an ordinary garage. Whole necessary inventory It does not take up much space and can be easily placed in a small room. Firms that manufacture equipment for such small factories install, configure and run production lines themselves, and train personnel. Such work does not require highly skilled workers.
Foam concrete is a new, budgetary and material that has already gained popularity. It is harmless and durable, used in the construction of walls, partitions in the house, roofs, as well as in the thermal insulation of the house. Due to their low cost and high consumer qualities (fire resistance, low density), foam concrete blocks have changed the construction process. According to its characteristics, this material is close to wood, such blocks can be processed (drilled, sawn, milled). Finishing or other materials can be nailed to them.
To open your own production, you must:
- Installation for the manufacture of foam concrete, its average cost ranges from 5 to 10 thousand dollars.
- Forms for blocks, ten to twenty pieces. Depending on the volume, one form costs 1 thousand dollars.
- Raw materials: cement, foaming agent - several thousand dollars.
As a result, for 30-35 thousand dollars it is possible to organize production with a capacity of 20 cubic meters per shift. The profit from one cube is equal to 30 dollars. The amount is quite impressive. If you suddenly do not have such a sum of money, but you have a persistent desire, skillful hands, then you do not need to immediately abandon the idea of opening your own production of building materials.
Today, the necessary equipment for the production of foam concrete can be made independently at minimal cost. All the information necessary for this: drawings, characteristics of the material, equipment, production technology can be easily found on the Internet or on bookshelves in specialized stores.
In this case, all the necessary expenses for the manufacture of equipment will be about $ 500, and the payback period will be several days. There is no need to purchase expensive forms. You can also make them yourself and the size you need. The technology costs about $40. You can resort to an intermediate option: buy some of the equipment and machines, and make some yourself. Whether it will be necessary to save and on what materials depends entirely on you.
Features of the production of aerated concrete
Opening a workshop and setting up the production of aerated concrete is much more difficult. The manufacturing technology of aerated concrete has slight differences from the manufacturing process of foam concrete. But, at the same time, it is necessary to take into account the possible danger both for the workers themselves and for people living nearby. For example, cases of poisoning of people and animals are known. To open the production of aerated concrete, you must have a special permit to work with hazardous waste. You need to have special equipment and quality materials available.
So, before you open your own small plant for the production of building materials, you need to take into account all the nuances and calculate everything well, include in the plan both the cost of equipment and the cost of materials. Only after all the positive and negative sides have been calculated, is the most best option. The workflow itself is not complicated and can be organized at home. small production, whichever one you open, will serve as a good opportunity for you to organize your own, albeit small, but profitable business.
The business of producing goods is a rather complicated phenomenon. It is difficult to organize it, it requires a large number of permits and investments, it does not bring profit immediately and can pay off for years.
If after such words you decide to close this section and go in search of easier business ideas, stop and think about this: no one would “get involved” with production if it were not profitable.
Varvara Labutina
Art Director of LeDiLe Charm Jewelry Company
Production in Russia is a double-edged sword. On the one hand, it is much more profitable to produce in our country than abroad, especially in times of crisis. Excludes the cost of customs duties and risks with non-delivery of products on time. On the other side, own production associated with many difficulties.
First of all, organizing production is a costly business. Even if we are talking about a small family business, and not a giant plant. Therefore, if you have few savings, the idea of \u200b\u200bproduction should be dismissed immediately. You will have to spend money not only on the equipment for production itself, but also on renting premises for storing products, renting premises for work and arranging it in accordance with all safety norms and standards. By the way, with the coordination of the latter, certain difficulties may arise. For example, a number of norms necessary for building technologies according to international standards are still missing.
In addition, not all materials are cheaper to produce in Russia, many simply do not have Russian analogues, as a result of which the cost of production also largely depends on the exchange rate.
The second difficulty is legal registration business. It is not enough just to register an individual entrepreneur or LLC to start producing products. Get ready for your production facility to be at least checked by SES and fire inspection. And if it does not meet all the necessary standards, you will not be issued a hygiene certificate, which means you will not be able to work legally. In addition, you will have to confirm that your products are manufactured in accordance with industry standards and meet GOST standards. You will also have to prepare a technological instruction.
In individual areas of production, their own special documents may be required. For example, if you intend to produce alcoholic products, you will have to issue a special license, without which it is illegal to work.
It is also worth noting that production can be unprofitable in the first months of its existence, when you will not only pay workers, purchase raw materials, pay rent for premises and utilities, but also pay loans for equipment, etc.
A manufacturing business has a lot of fixed costs, and unlike the service sector, it is necessary to constantly load production with work, otherwise it will not be able to exist.
It is much easier to sell someone else's products, especially if they are well known.
A manufacturer, especially one working under its own brand, must promote it, and this is very costly and time consuming. However, production also has a lot of advantages. The first of these is to create a serious competitive advantage. You can make a unique product. Compared to the service or retail sectors, own production clearly provides a powerful foundation for business.
Also, manufacturing is more stable compared to a sales or service business. In fact, you are not dependent on suppliers of finished products, and therefore you are not afraid of a decrease in quality, an increase in prices or a sudden refusal to cooperate. For all this, especially for quality, only you yourself are responsible to the client.
Well, besides what is very important, small productions more mobile. If the demand for your products rises sharply or vice versa decreases, you can always “tweak” the volume of products.
Also, a business built on the basis of its own production may well gain an advantage in a crisis. For example, clothing brands whose production is concentrated in Russia were able to keep prices for pre-crisis level. As a result, their sales volumes practically did not decrease, unlike brands whose clothes are imported from abroad.
In a word, having your own production is an ambiguous point that has enough pluses and minuses. Everyone who is going to open their own business should take them into account. In the meantime, let's get acquainted with the motives of those people for whom the advantages of production turned out to be more significant than the disadvantages.
Igor Frolov
I wanted not just to earn money, but to make things that you can touch. Clothing is comparatively easier to produce than cars or food. Also, at first I worked with fur, and therefore I had experience with outerwear, I just changed fur coats for jackets.
Julia Ignatieva
CEO"Ewald Mebel"
I am a third generation furniture maker. To produce means to create, and this implies knowledge of the market, its gaps and the ability to fill them. I know other brands of furniture, especially sofas. We do not follow the path of copying, but supplement.
Angela Yankovskaya
General Director "Workshop Angel"
In 2001, my youngest son was 3 years old, I decided to buy him a suit for a family new year holiday. As it turned out, nothing decent was offered in Russia: the quality of the costumes was terrible. They were only meant to be photographed once. I don't like low-quality things, so I had to sew the suit myself, but the entrepreneur's eyes fell on the unmet need of the market. I couldn't sleep anymore.
By May, I had a collection of thirty suits that I myself designed, designed and sewn by a seamstress I knew. Then I called everyone large chains children's goods, they willingly made an order. After that, I opened production and shipped the first batch to these stores by the New Year.
Rail Khismatullin
President of the group of enterprises "Tentorium"
The motives that force businessmen to establish their own production are very different. But the main thing is always one thing. Business is business - it must generate income. Last but not least are the ambitions of businessmen. I personally wanted to create a production that could work for the whole world.
Production in Russia
The business of producing anything remains in demand even in times of crisis. Although the manufacturing sector itself is quite extensive, and its different branches have different degrees of development, they also react to changes in the economy in different ways.
Over the past 2015, Russian production as a whole decreased by 3.4% according to Rosstat. The reason for this is the depreciation of the Russian currency, the demand for part of the production, as well as the lack of investment and the debts of enterprises. The manufacturing industry and the fuel and energy complex were especially affected by these factors.
Although there were factors that influenced production positively. For example, the ban on the import of certain products from abroad led to an increase in the production of cheese, meat, poultry, fish and medical equipment. These areas have grown the most. But the volumes of production of jackets, as well as televisions and monitors, experienced the largest decline.
But anyway, the decline in Russian production won't last forever. At the end of 2015, economists predicted that its growth would begin closer to the end of 2016.
However, the manufacturing sector surprised experts. According to Rosstat, it showed an increase of 1% already in February of this year. The value, of course, is by no means large, but the trend towards a constant decline was nevertheless broken for the first time since January 2015.
Import substitution is still relevant. Therefore, if you are thinking about setting up your own production, pay attention to various products whose import into Russia is prohibited, or which have risen in price significantly due to a jump in the exchange rate.
Another option for working on import substitution is the creation of innovative products that are ahead of existing Western technologies. This is especially true in the field of IT.
Igor Frolov
CEO of Northwestfur
If the decline continues, it is possible that producers of cheap and expensive goods goods for the middle class will simply disappear. Both manufacturers and sellers of such products must decide which of these two niches they should go. People will save money, more money is spent on food, so entertainment, clothing, cars will experience difficulties. And it is important to understand that this is not a temporary phenomenon that can be waited out, you need to start looking for your niche in the new reality and economy. Ideally, if it will be the best product or service for little money.
So, the manufacturing business has a number of advantages, despite its high cost and complexity. That is why there are a lot of entrepreneurs starting a business in this area. At the same time, for many, the question “Should we open production?” not even worth it.
If you are not one of those purposeful creators, carefully weigh the pros and cons, evaluate the trends and needs of the market. And after that, with a clear conscience, start your own business.
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