Business plan for the production of designer furniture. Business plan for a furniture factory. Performing market analysis in your city

11.09.2023

The demand for furniture products has been and remains quite high. Human society is developing, new families are appearing who are planning to create their own home, which is unthinkable without furniture. And families with experience periodically update it.

How to open a business?

The furniture business is divided into two components: sales and production. Ideally, when a businessman first chooses the first option, then the accumulated experience in studying demand motivates him to start producing. Therefore, first is better.

If you already have sales experience and are only interested in production. To open a furniture manufacturing enterprise, to register it and become a full-fledged manufacturer within the framework of the law, you will need documentation:

agreement on the establishment of an enterprise indicating the form ();
statutory documentation containing information on the size of the authorized capital;
copies of personal documents of the head of the company, chief accountant and other employees;
Bank details;
receipt of payment of state duty for opening a business.

So, the entire package of documents has been collected. The next step is to go to tax office, where you should register a legal entity or individual entrepreneurship.

Next you need to contact fire department And sanitary service for special permissions. They are issued if the premises of the future enterprise provide for safe working conditions regarding sanitary standards and fire safety measures.

The final step is to contact Rospotrebnadzor for obtaining permission to do business.

Main principle of business

The very concept of production carries the mission of developing the economy as a whole for the country, which is proof of not only benefits, but also benefits to society. This objective factor covers a global scale.

As for the direct effect for a particular enterprise, its success directly depends on competent planning, correct calculations and constant analysis of the results obtained.

An important element of obtaining benefits is the production of quality products. The level of training of the personnel involved in furniture production plays an important role here. This is the main principle of successful business development. Without a responsible attitude to business, the most expensive advertising will not help.

An example of this is the world-famous brands of manufacturers who have conquered the market solely due to high quality.

Before moving on to planning, it is necessary to study the consumer market, work out issues such as the behavior of competitors, and decide on the range of suppliers.

Selecting a room

What should the room be like? It can be owned or rented. There are basic building parameters recommended for starting a furniture business:

The room for direct furniture production should be spacious (area approximately 550-650 sq. m). The production building is located on the first floor. It is necessary to provide an access platform for loading raw materials and shipping finished furniture.
The client area may be located in a different location, preferably one that is more crowded. Its appearance and interior decoration should help attract buyers. It is also worth equipping a hall where models of manufactured products will be presented.
The room must have acceptable temperature conditions and the presence of communications (water supply and sewerage).
Conditions have been created to prevent fire (relevant documentation, evacuation plan, fire-fighting equipment, treating the building with anti-flammable agents).

Such requirements for the premises are justified by the fact that they guarantee a normal atmosphere for productive work.

Definition of assortment

The production volume of various types of furniture should be compared with the level of demand. This analysis is carried out Association of Furniture and Woodworking Industry Enterprises. According to their data, the demand for furniture is as follows:

cabinet furniture – 28-30%;
upholstered furniture – 18-20%;
kitchens – 20-22%;
bedrooms – 12-15%;
furniture for offices – 22-23%.

Based on this data, you can orient the direction of your business, pre-plan your own list of products and record it in a business plan.

Client base

It is necessary to identify the target group of consumers or client base and make an appropriate entry, devoting a separate section to this issue. This group includes:

retail consumers;
wholesale clients;
intermediary companies (furniture stores, design agencies, suppliers).

Organization of sales of furniture products

A separate chapter of the business plan is the problem of product sales. It is necessary to outline forms and methods for solving it:

Through our own service. The manager carries out recommendation conversations with visitors to the showroom, deals with mailings, calls to potential clients.
Concluding cooperation agreements with retail chains. In the near future there are plans to expand beyond the region, and in the future to the foreign market.
Cooperation with private and public enterprises, hotels, catering establishments.

Advertising activity

One of the most effective forms of product promotion is advertising. The issue of its development should also be allocated a separate section in the plan. Advertising activities include:

opening your own website, promoting it, promptly updating the catalogue;
use of media for advertising;
Internet advertising.

Dissemination of information about your products must be done in all possible ways, including word of mouth.

Production plan

This is a significant part of the main plan, which provides for the main positions of the enterprise’s activities:

production of prefabricated furniture;
ready-made cabinet furniture;
custom-made furniture;
delivery of products to the consumer - finished furniture or with on-site assembly.

Necessary equipment

For furniture production you will need special machines, tools, devices, the purchase of which is recorded in the business plan:

machines for modeling pieces of furniture with program control;
milling and turning machines;
electrical and mechanical tools - hammer drill, industrial hair dryer, electric miter saw, jigsaw, hand router, etc.;
freight vehicles for transporting materials and finished products.

Personnel composition of the enterprise

A furniture production company is specific and requires professionals in this field:

wood processing specialists (6-8 people);
a foreman with special education and work experience whose responsibilities include organizing the entire production cycle;
driver.

To run any business, in particular furniture, you need not only professional furniture makers. It is also necessary to have a good economist, accountant and advertising agent on your team.

In addition, when working with clients or partners, controversial issues may arise that only a professional lawyer can resolve. If it is not possible to have such a specialist on staff, you can contact a law firm that provides services of a similar nature.

The selection of personnel must be approached responsibly, because the state of the business depends on their professional level.

Supply of raw materials

To successfully organize a furniture business, it is necessary to thoroughly study the market for raw materials and establish contacts with suppliers. The sequence of this work is recorded in the business plan.

Agreements are necessary with supplier companies in terms of deferred payments, obtaining materials on credit, and various forms of payment.

To guarantee quality materials, the supplier must have certificates.

Complex machines and units are used in furniture production

Today no one can imagine a cozy, comfortable home without furniture. Everything that is connected in our life with home comfort and luxury is, first of all, associated with good quality and high-quality pieces of furniture. Kitchen, living room, bedroom, children's room - can we imagine them without wardrobes, sofas and beds?

Business in the furniture industry involves two ways - to sell furniture already made by someone or to produce your own. Often, businessmen who have worked in furniture sales for several years decide to open their own production, knowing the needs and specific needs of their consumers.

To open such a line of business, you need to calculate a business plan for furniture production.

Project Summary

The calculation will be made for a furniture workshop that produces cabinet furniture in the mid-price segment. These are office furniture, kitchens, cabinets, etc. The enterprise will be organized on the principle of an incomplete cycle, that is, suppliers will prepare raw materials, the enterprise will produce ready-made panels for assembly according to the developed drawings. To launch the project, our own funds will be used, which will provide an additional advantage in shaping the pricing policy and a shorter payback period.

Furniture business: how to build a furniture manufacturing business.

Project marketing

Market Review

A business plan for furniture production requires a thorough study of the market - suppliers, competitors, consumers.

According to the Association of Furniture and Woodworking Industry Enterprises, the volume of furniture production in Russia is distributed as follows:

Cabinet furniture (hallways, sets, sets) – 25%;
Office furniture – 23%;
Kitchens – 22%;
Upholstered furniture – 17%;
Bedrooms – 13%.

If we list the entire domestic furniture range presented on the Russian market, it can be conditionally divided into the following groups according to the following parameters:

By functional purpose: cabinet furniture for storage - cabinets, chests of drawers, cabinets, shelves; for sitting or lying - chairs, armchairs, sofas, beds, chaise lounges, etc.; for eating and working - dining tables, desks, coffee tables, etc.
Constructive: universal-prefabricated - which can be repeatedly assembled and disassembled; sectional; non-removable; built-in; transformable; bent; wicker
Based on materials: made of wood and wood materials; made of metal; made of plastic.

Planned assortment

Preliminary list of the range of products produced (with further study of demand, these data will change):

Kitchens, facades for kitchens;
Cabinets, cabinets, shelves, drawers, dining tables, chairs, stools;
Office furniture - computer desks, shelves, filing cabinets.

Target group

End consumers (retail) are active business people with an average income who update furniture every 2-3 years;
End consumers (wholesale) – large state-owned enterprises, hotels, restaurants, office centers, etc.
Intermediaries - specialized stores of furniture, interior items, design studios.

The production of frameless furniture is a profitable business.

How and to whom sales are organized

We will sell our products in several ways:

Through our office, which is also a showroom.
Through a network of stores in which partnership agreements have been concluded, including in other regions, including deliveries to the CIS countries.
Direct sales, government agencies, large private companies. To do this, the office worker – the order taker – makes mailings and calls to the database of potential clients.

Advertising

Creating and promoting your website on the Internet - this will allow you to geographically expand your circle of consumers, with weekly catalog updates and newsletters to regular subscribers.
Placement of advertising blocks in specialized press - furniture magazines, design and interior publications, etc.
Placement of advertising banners on Internet resources on similar topics.

Required documents

It is better to register an enterprise as a limited liability company. In this case, this is the optimal form of ownership and taxation, which makes it possible to work with legal entities (suppliers and large consumers) and other enterprises. In order to register an LLC, you will need the following documents:

Information about the name of the company - it is better to immediately think about the name of the company associated with the main activity;
Agreement on the establishment of an LLC, decision to open;
Charter documents, list of types of activities, amount of authorized capital - at least 10,000 rubles, which can be contributed in money or property, for example, office equipment, office furniture, etc.
Information about the director and chief accountant (copy of passport, identification number, address, contact phone number);
Bank details where the company opens its current account;
State duty payment documents.

Drawing up a production plan must be taken very seriously, because this is one of the most important parts of a business plan

Production plan

Production will be built on the principle of incomplete cycle. We will produce popular models of prefabricated cabinets, cabinets, tables and kitchens and other cabinet furniture to order according to the required sizes and configurations. The production will process purchased ready-made chipboards and MDF boards according to specified patterns with the installation of appropriate fittings, delivery to the consumer and assembly on site.

Premises requirements

You will need two premises: for production and for receiving clients. It's good if they are nearby. In terms of requirements, they differ from each other, because designed for different functions:

Production premises – area of at least 500-600 m2. Requirements - a spacious heated room on the ground floor, with the possibility of organizing storage space and installing equipment. You also need an equipped entrance and platform for unloading raw materials and materials, and shipping finished products.
The office must be located in a place accessible to clients, preferably in the center of business and trade activity. It would be optimal to equip a showroom in the office space where product samples will be displayed. Area – 50-60 m2, preferably on the first floor. Mandatory requirements - availability of communications, cosmetic repairs.

Equipment

To produce cabinet furniture parts, you need to purchase the following equipment:

Machines that are integrated with computer programs for modeling and manufacturing furniture. These are “Astra-Cutting”, “Astra-Furniture Designer”.
Jigsaw;
Milling machine;
Lathe.
Other small tools.

Dmitry Kuprienko, an experienced entrepreneur in the field of furniture production, shares practical advice on how to start and organize a business in furniture production, what you need to organize your first workshop, how to get up from scratch and where to start in this business.

Many companies that started their business by manufacturing cabinet furniture in small workshops several years ago have become quite successful and expanded their business. Today, some of these organizations, in addition to the production of kitchens, wardrobes and other interior items, provide a number of other services to the population. Typically this involves cutting laminated chipboard and manufacturing MDF facades according to customer sizes, gluing the ends of parts with PVC and melamine edges, assembling doors from aluminum profiles and selling furniture fittings with accessories.

Having some experience and initial knowledge in this area, you can organize your own small business, which has every chance of success. Moreover, you will not need any serious capital investments or large production areas at the initial stage. With a skillful approach, rational use of earned funds and a certain amount of luck, you can literally have a decent income in 1-2 years.

How to start a furniture manufacturing business?

Kuprienko Dmitry(author of the material) - has been producing custom cabinet furniture for more than ten years:

“The presence of a huge number of players in this market segment should not stop you. In any business, as elsewhere, the evolutionary process never stops - someone goes bankrupt, and a more efficient entrepreneur takes his place.”

Since, as already noted, starting a small business producing cabinet furniture does not imply large financial expenses, there can be no talk of any expensive advertising campaigns or other promotions. Finding your clients can be much easier and cheaper. It is enough to order business cards and distribute them to everyone you can, or publish several advertisements in special newspapers.

Also try to negotiate cooperation with small construction stores, since the chances of finding a customer in such a place are quite high. People making renovations most often plan to purchase new furniture. If you can convince the owners of these outlets that they will benefit from a certain percentage of your orders, then customers will soon appear.

In addition to traditional methods, you need to start preparing your website or blog, since every year more and more orders, especially in large and medium-sized cities, are received by craftsmen via the Internet. Of course, promoting your own virtual store will require financial and material costs from you, but not everything is done at once. Gradually developing your main production, at the same time develop an Internet resource, which, if the circumstances are successful, will provide you with many orders - the dream of all entrepreneurs without exception.

How to choose the right materials supplier?

Fairly high competition in this sector forces firms providing this type of service to pursue approximately the same financial policies. Therefore, choosing an organization based only on prices will be completely wrong. Some may sell some products cheaper than competitors, while others are more expensive; as a result, the average cost of components for furniture production will be approximately similar everywhere. Naturally, we are talking about the same level of quality, since materials and accessories from different manufacturers have different prices.

The maximum possible range of goods and services offered by the organization to its customers. In such a place you should be able to buy almost everything you need without spending additional time and money on trips to other stores for some little thing. Moreover, it is highly desirable that components be sold in different price categories, since clients have different income levels, and not everyone will be able to pay for expensive luxury materials, and some only need those. Therefore, you should have freedom of choice in one place.

Equally important are the timing of your orders and the discounts provided to regular customers. Duplicate the information received from the company’s employees with experienced clients. It is from them that you can learn important nuances.

The location of the organization plays a significant role; it is better to start working with a company that is located as close as possible to your workshop. Voyages through the entire city with the current congestion of roads during the daytime take up a lot of precious time.

The territory must have convenient access to the workshops and properly equipped areas for loading parts into your vehicles. It’s good when such places have canopies that guarantee the safety of parts in any bad weather.

Search for premises and purchase of equipment

To make cabinet furniture, at the initial stage you will need a room with an area of about 20-25 square meters; it will be good if it turns out to be one large room. Please note that there will be a small warehouse here for both recently imported blanks and finished products. In the same room you will need to drill and process parts, as well as assemble furniture, so choosing a room smaller than 20 square meters is not recommended.

In addition, pay attention to the possibility of maintaining its temperature at 10-15 degrees in the autumn-winter period. Immediately calculate how much it will cost you. Sometimes cheap rent is completely offset by expensive heating. There was no need to remind you at all that the room should be dry, since this is one of the main conditions, and by neglecting it, you risk a lot.

Confidence in the safety of all property is also important, since over time, if the business develops successfully, the workshop may simultaneously contain components and equipment worth several thousand dollars. Do not forget here about ensuring convenient loading of finished furniture and unloading of brought parts with fittings.

When purchasing equipment, many cannot decide on the class of hand-held power tool. There are very opposite opinions on this matter: some prefer to purchase inexpensive goods and replace them as needed, others work only with expensive products from world-famous brands.

There is also a tool that is in the middle price range, and this is probably worth choosing at the very beginning. In addition to production needs, it will always be useful for other matters. To ensure that you do not have any problems while fulfilling orders, you must have in your arsenal:

Electric drill - 2000 rubles;
Cordless screwdriver - 2500 rubles;
A powered screwdriver - 2000 rubles;
Jigsaw - 2200 rubles;
Manual milling machine - 2500 rubles;
Grinding machine - 2500 rubles;
Electric miter saw - 7,000 rubles;
Industrial hair dryer - 1600 rubles;
Hammer - 2200 rubles.
A set of cutting tools: drills, cutters, knives and crowns - 3000 rubles;
A standard set of hand tools for a home craftsman - 1000 rubles;
Clamps - 1000 rubles;
Miter box - 800 rubles.

Over time, having gained more experience and saved up money for production development, you will purchase more complex equipment that provides a higher level of production. In the meantime, it is quite possible to get by with what is listed in this section, since this is quite enough to produce cabinet furniture from ready-made parts. Your costs when purchasing the mentioned tool will be about 30 thousand rubles, and prices may deviate in both directions by about 20%.

Software

No, we are not talking about expensive CNC machines, but only about two programs that can significantly facilitate your work at the stages of furniture design and when ordering cutting of laminated chipboards. One way or another, you will have to do this in any case, until good business allows you to hire an employee for these purposes. Without using software, this entire process will take a lot of time and effort, and errors in calculations are also possible. Therefore, it is worth paying attention to very simple and useful programs:

PRO 100- a program created for designing and constructing furniture. With its help, you can easily visualize the object and calculate the parts required for assembly. Today there are several versions of PRO 100, as the program is constantly being improved. The latest development allows you to create quite realistic 3D images.

Cutting- a program whose purpose is to provide assistance in drawing up the optimal option for cutting laminated chipboard and MDF sheets. Using it, you will quickly find out how much material is needed to make a particular product, and you will also be able to minimize unclaimed waste. Cutting saves both time and money.

In addition, it is advisable to have a laptop. Your future work will involve frequent visits to homes, offices and other facilities where measurements will be taken. Almost all clients in this case are childishly impatient; they want to immediately see what their furniture looks like. With a laptop and PRO 100 you can render in 45-70 minutes. By the way, this greatly increases your chances of receiving an order.

Prospects for the development of the furniture business

By following our recommendations and setting aside part of the money you earn for business development, you will be able to reach a new quality level within 2-3 years. In the process of fulfilling orders, acquaintances are made with construction teams, since repairmen and furniture makers, in fact, are inseparable. Such connections, like an Internet project, will allow you to increase the number of clients and increase your income.

An important factor guaranteeing success of endeavors, is the constant expansion of the production base, both in terms of increasing space and purchasing new equipment.

From the first days of work you will dream about format-cutting and edgebanding machines. They provide independence, allow you to quickly correct errors on site and save money.

But you can’t rush to buy them; many craftsmen, turning to a bank or private individuals ahead of time for a loan to purchase them, incorrectly assessed their capabilities and subsequently suffered losses. Therefore, it is better to make such serious purchases with your own money or borrow a small amount.

Expensive machines justify themselves only with the appropriate volumes of processed material; only then are they effective.

Their cost is approximately:

Format cutting machine (made in China) - about 200,000 rubles.
Curvilinear edge banding machine (made in Russia, China) - about 50,000 rubles.

There is equipment that is both slightly cheaper and much more expensive than the listed prices. But even familiarizing yourself with the average cost of machines that are usually purchased for small workshops is enough to avoid making impulsive decisions. Without a carefully verified business plan, which is confirmed by an increase in the number of orders, you should not start this event. Delay in such a purchase may be just as undesirable for effective development. You will simply waste money and time.

Furniture manufacturing has always been considered a promising occupation, especially in our country, since a huge percentage of the population still uses old furniture and dreams of new ones. People who bought a kitchen, wardrobe or hallway about 5-8 years ago are already starting to think about replacing them, so furniture makers will always have work to do. You just need to organize it correctly.

New business idea: Production of fences and enclosures for private households under the FenceLego franchise (new product, lack of competition, high demand even in current market conditions).

In this article:

A furniture business can be developed in two ways - to sell furniture already made by someone or to produce your own. But it is much more profitable to combine these two currents into one channel. And the simplest option for organizing your own furniture production is considered to be opening a workshop for the production of cabinet furniture.

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 for drawers and half-drawers.
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 presence on the market is not important - offer a lower price with decent quality - and the buyer is yours.

If we arrange consumer requirements in the form of a pyramid, then the lowest and most “weighty” tier will be the price, then the materials used, build quality, original design, and only then the manufacturer’s brand. Therefore, despite the huge competition in the cabinet furniture production business, there is a place for everyone who can understand the desires of the consumer and predict fashion trends.

Who is he, a potential buyer?

According to the analysis of age characteristics, the target audience of cabinet furniture buyers is divided into two groups:

young people under the age of 30 who are purchasing furniture for the first time;
older age category (40-50 years), who buy new furniture to replace old ones.

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 (wide supply), it is possible to negotiate favorable delivery terms (with deferred payment, discounts for large quantities, etc.). Thirdly, the use of laminated chipboard significantly reduces the cost of production, since it reduces one stage - veneer or laminate cladding in the manufacture of furniture, which requires additional investment and makes sense only for large production volumes.

To select raw materials, you must be guided by the following indicators:

thickness of 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 for the technological process of manufacturing 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 is the best option for mass and serial production, allowing to significantly reduce the cost of materials, but 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;
Cutting out the necessary materials for the parts 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 the automation of production and the percentage of use of manual and mechanized labor. The most progressive (and, accordingly, expensive) production is considered to be one equipped with automated machines (CNC). The operator only needs to enter the dimensional data into a special computer program, design the desired product and give the “start” command.

In just a few minutes, a CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, and drill holes according to the development plan. All that remains is to trim the edges and assemble the finished furniture. But it is profitable to buy such lines if there are constant serial orders. It makes no sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let us consider, as an example, the “golden mean” - the operation of a semi-automatic line of several machines with partial use of manual labor.

To start such production you will need the following equipment:

1. format-cutting machine with manual supply of materials;

2. edge banding machine for finishing straight edges, concave and convex elements;

3. drilling and filler machine for making blind and open holes for fittings, hinges, dowels;

4. grinding machine;

5. screwdrivers;

6. hammer drill;

7. cutting tools (mills, drills, knives).

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 defects and inconsistencies and eliminate them in the finished product. After which, the furniture is disassembled (if necessary), packaged and sent to the finished goods warehouse.

Estimated business plan for organizing the production of cabinet furniture

1. Project goals

The company plans to open a furniture workshop for the production of cabinet furniture in the mid-price segment.

Range: cabinets, tables, racks, bedside tables. Production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboards and fiberboards, as well as fittings, will be purchased from suppliers for further cutting into finished panels, processing and assembly of furniture according to the developed drawings.

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 the legal registration of the business, it was decided to create a Limited Liability Company (LLC) on the general taxation system. This form makes it possible to work with both large wholesale suppliers and consumers, and retail buyers.

To register the activities of a company, you will need the following documents:

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 trade of furniture
- 52.44.1 Retail sale of 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.

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

Premises: workshop and office;
Employees: designer-technologist and furniture assembler;
Suppliers of materials and accessories;
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.).

Products are sold through three channels:

Retail sales to end consumers;
Sale of furniture through intermediaries;
Wholesale sales to organizations and large institutions.

Initial Investment amount to 1,104,500 rubles.

average cost order is 80,000 rubles.

Extra charge for finished products ranges from 40 to 50%.

Time to reach break-even point is 2 months.

Payback period project from 5 months.

2. Description of the business, product or service

According to enterprises operating in the market, the demand for cabinet furniture is distributed between office furniture and home furniture.

The range of products offered includes:

Office furniture: racks, cabinets, chairs, tables, cabinets;

Furniture for home: kitchens, dining tables, chairs, stools, cabinets, storage boxes, shelves, benches.

Due to seasonality, the assortment may change. For example, in the summer they order large quantities of furniture for relaxing in the country: benches, stools, tables. In autumn, the demand for school desks and chairs, racks for papers and documents increases. Demand for kitchens remains consistently high throughout the year.

The production of cabinet furniture can be carried out in three different ways, depending on the duration of the production cycle.

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 the release of the 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:

Forming applications through our own office, which is also a showroom;
Through intermediaries: furniture stores, design studios. This method of cooperation will allow you to cover a geographically larger market;
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:

Young working people from 25 to 30 years old who are purchasing furniture for the first time;
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.

Advantages of cabinet furniture production

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

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

Creating your 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 or 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 desired material, but also its cutting to size and edge. You can place an order from one supplier, or you can purchase separately: sheets from one supplier, and processing from another.

Facades. Kitchen fronts, as well as cabinet doors, are separate furniture elements. Their main function is decorative, so the range on the market is huge. You can choose to work with several suppliers by comparing prices for specific products.

Countertops. They can be made from laminated chipboard sheets, as well as from natural and artificial stone.

Back walls and bottom of drawers. These elements are made mainly from HDF, the color is selected to match the main material of the furniture.

Furniture fasteners. These are metal products that act as connecting elements: furniture corners, wooden dowels, eccentric couplers, Euroscrews, etc.

Accessories and guides. This category includes furniture hinges, lifting mechanisms, door handles, furniture legs, as well as guides for sliding wardrobe doors.

To compare material suppliers, you should be guided by two criteria: price and production and delivery time. Typically, lower prices come with longer lead times. It is fundamentally important for the company that all individual elements are produced within the same deadline, and that the entire order as a whole is completed as quickly as possible.

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:

Working personnel - increase in employees to 3 workers and a production manager;

Administrative staff - customer service manager, 2 designer-technologists, manager.

Let us describe the work of the main employees in more detail.

Manager

At the first stages, he performs the duties of a manager and manager. The work can be divided into two areas:

External activities of the organization.
The inner workings of production.

The first direction includes:

Working with clients. Accepts applications from clients, concludes contracts, signs acceptance certificates.
Work with providers. Conducts market analysis of suppliers, concludes contracts, negotiates terms of cooperation.
Working with intermediaries. Looks for ways to sell products through specialized stores and design studios.

The second area of activity concerns the organization of internal work in the company.