Production of cabinet furniture business plan. Business for the production of cabinet furniture from scratch. Market and competition analysis

This business plan for the production of upholstered furniture will enable entrepreneurs to create and competently organize the work of a small workshop. The increased demand for high-quality and inexpensive upholstered furniture is one of the main reasons for the emergence of a significant number of new manufacturers on the Russian market, which today account for over 70% of all products sold. And upholstered furniture occupies about 15% of the entire furniture market; its production is an attractive niche, especially for small and medium-sized businesses, and does not require significant start-up investments.

General concept of the project

The popularity of upholstered furniture is explained by several factors.

Firstly, its production is increasingly oriented towards “production to order”. Small enterprises engaged in the mass production of large quantities of cabinet furniture and solid wood products find it difficult to compete in the market, while the production of small quantities of upholstered furniture can provide quite acceptable profitability.

Secondly, in small private workshops engaged in the manufacture of custom-made upholstered furniture, a significant part of the work is performed manually, which does not require the purchase of high-performance and expensive production and technological equipment.

Thirdly, furniture production in small enterprises is easily and quickly restructured to produce new products due to changes in consumer tastes and fashion trends.

Fourthly, creating a small furniture manufacturing enterprise is an excellent experience in building a large-scale profitable business in the future.

Fifthly, on the Russian market the niche for making custom-made furniture in small towns and rural areas is practically free, so here the prospects for successful work for small furniture workshops are greatest.

Description of the object

Our business plan for the production of upholstered furniture with calculations is designed to assist in the creation and launch of a small workshop that will produce custom-made products. The most productive use of the document is to organize production in small towns. The enterprise must provide a full technological cycle for the production of upholstered furniture and its sale to consumers.

Main range of products:

Sofas.
Banquettes.
Ottomans.
Armchairs.
Sun loungers.
Chairs.

Surprisingly, there is no definition of “upholstered furniture” in the regulatory and technological documentation. The current standards use concepts such as “sitting furniture” and “lying furniture”. Moreover, these products can be made with both soft and hard elements. Therefore, in the generally accepted understanding, upholstered furniture means products whose design contains traditional elements of “softness”: pillows, springs, various fillings, etc.

Upholstered furniture market analysis

Statistics show that an average-income Russian changes a sofa or armchair approximately once every 3-4 years. Most of the current upholstered furniture market in the country is products in the mid-price range. They occupy 60% of the market. The share of premium upholstered furniture is relatively small and amounts to about 13%. This is due, first of all, to the high cost of such products. In addition, in this price range, consumers more often choose branded products from foreign manufacturers.

Today, the domestic furniture market is characterized by a decrease in the number of production facilities operating “on stream”. An increasing number of enterprises are moving to producing custom-made products.

It often happens that consumers, following fashion, order furniture that, in terms of its performance characteristics, is significantly inferior to “in-line” products. An example of this is the production of original soft corners with silk or white upholstery. It goes without saying that such furniture is extremely impractical and that when ordering it, the consumer expects a change in “scenery” within one, maximum two years.

This trend is also supported by a financial factor: the activities of enterprises with mass production require significant investments. These resources are directed not only to the start-up needs associated with the purchase of equipment, but also to the current ones, due to the need to purchase large quantities of material, components, upholstery fabrics, etc. If necessary, it can be very difficult to withdraw money from the business in this case, because the funds remain “frozen” in the form of loans, finished products, debts to suppliers of components and materials.

As practice shows, the seasonal factor has a great influence on this business. For example, during a period of decline in demand, out of 1000 products put up for sale, no more than 200-250 pieces are actually sold. To ensure the profitability of the enterprise, it is necessary to target the sales of finished products in the region where it is located. This will not only reduce transportation costs, but also more sensitively respond to changes in the preferences of the main consumers of products, thereby optimizing overall production costs. It will be profitable to supply only premium furniture over long distances.

Description of the object

The most popular types of upholstered furniture in our country remain transforming models. The newly created enterprise will provide a full technological cycle for their production, which includes the following stages.

Cutting lumber in a carpentry shop. Here operations are carried out for cutting boards and plywood into blanks and assembling wooden furniture frames.
Upholstery of frames. This technological operation is carried out in the upholstery segment of the production facility. During this process, the frame is covered with dornite, then with foam rubber, on top of which the upholstery material is fixed.
Installation of soft elements. The main element in most types of upholstered furniture are springs. They perform an orthopedic function and are mounted on products in the form of blocks, which are installed in the center and perimeter of the product. Then the spring blocks are covered with foam rubber.
Pasting with protective materials. Dense woven material and spunbond are sequentially fixed on top of the spring block by adhesive, which protect the upholstery from abrasion on the springs.
Laying foam rubber or padding polyester. Another soft element about 40 mm high is placed on top of the spacers. The presence of synthetic padding in it will allow the foam rubber to “breathe”.
Cutting upholstery materials in the sewing workshop. Here, special equipment is used to perform operations with various types of upholstery: from ordinary fabrics to genuine leather. After cutting the upholstery to the dimensions of the product design, it is “targeted” to the multilayer base.
Manufacturing and fastening of covers. Covers are manufactured in strict accordance with the dimensions of the product. They are worn over a frame with a fixed base.
Control assembly of the finished product. This operation is carried out in order to check the functionality of all elements of the product’s design and subsequently correct any detected deficiencies.
Product packaging in polyethylene and cardboard.

These technological operations differ little in the manufacture of sofas or armchairs. These products only use different transforming mechanisms (if provided for by the design).

It is planned to launch an enterprise that fully implements the technology described above 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.
If necessary, obtain advice from representatives of this business.
Draw up a detailed business plan with calculations for your business organization option.
Conclude an investment agreement and receive a loan.
Register a business.
Conclude agreements for the purchase of materials, furniture fittings and other components for the manufacture of upholstered 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
Stage/month, decade	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						+

The terms are approximate and depend on the specific conditions of production organization.

Organizational and legal form, taxation system and enterprise registration

The enterprise is created within the framework of the organizational and legal form of LLC (limited liability company). This choice is due to the advantages that this form of business provides: first of all, the ability to work with legal entities and broader opportunities for selling finished products.

The upholstered furniture production workshop will operate under a general taxation system, which provides for the payment of the following taxes:

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%

Registration of a business entity is carried out in the following areas of activity:

Production of other furniture – OKVED 36.14.
Retail trade in furniture – OKVED 52.44.1.
Wholesale trade of furniture - OKVED 51.47.11.

The production of upholstered furniture does not require a license. Certification of products is carried out at the request of the manufacturer in order to increase the competitiveness of manufactured products.

Selection of premises

The production of upholstered furniture is located in rented premises with a total area of at least 440-450 square meters. m. It will contain:

carpentry (80 sq. m);
sewing (35 sq. m);
upholstery (70 sq. m);
prefabricated (25 sq. m);
packaging (25 sq. m).

Warehouse and retail premises:

Warehouse for components and raw materials (50 sq. m).
Finished products warehouse (100 sq. m)
Trade and exhibition hall (70 sq. m).
Company office premises (30 sq. m).

The estimated rent will be 81,000 rubles per month (with an average price of 1 sq. m – 180 rubles).

Enterprise equipment

To ensure the normal operation of the upholstered furniture manufacturing workshop, the following equipment is purchased:

Type of equipment	Quantity	Price (in rub.)
Circular saw	1	19 900
Combined machine KSM 1A	1	20 000
Drying unit	1	11 000
Multi-rip edger TsDK-5	1	32 000
Lathe	1	8 500
Tenoning milling machine	1	15 000
Cross-cutting machine (TsKB-40)	1	21 000
Grinding machine	1	38 000
Pneumatic Wire Set	1	4 500
Sighting pistols	2	3 800
Sewing machine	1	5 800
Set of hand power tools	Drills, hammer drills, screwdrivers	10 000
Cutting tables	2	8 000
Cutting tool	Scissors, knives	2 000
Measuring and marking tools and devices	Rulers, protractors, meters	500
Total	200 000

In addition, the company purchases a computer, software for a furniture designer, office furniture and accessories, and consumables. Thus, the initial cost of equipping the workshop will be 300,000 rubles (excluding the cost of renting premises).

Recruitment

To work in a workshop for the production of upholstered furniture, the following specialists are required:

Job title	Number of full-time employees	Salary (in rubles)	Expenses for staff salaries per month (in rub.)	Annual wage fund (in rubles)
Director	1	30 000	30 000	360 000
Accountant	1	15 000	15 000	180 000
Reception designer	1	15 000	15 000	180 000
Sales manager	1	15 000	15 000	180 000
Production Master	1	20 000	20 000	240 000
Joiners-assemblers	2	15 000	30 000	360 000
Seamstress-cutter	1	10 000	10 000	120 000
Helper workers	2	8 000	16 000	192 000
Furniture upholsterer	1	15 000	15 000	180 000
Total			166 000	1 992 000

For the main production specialties (designer, upholsterer, carpenter, craftsman), recruitment is carried out according to professional suitability criteria accepted in the industry.

Marketing and advertising

The company's marketing policy is aimed at forming the opinion among consumers that the upholstered furniture produced has excellent performance characteristics, has a lower cost than its main competitors, and that the company is ready to consider any options for long-term cooperation with the provision of significant price preferences.

To this end, the following promotional activities are planned:

Preparation and publication of messages about the enterprise in local media.
Development of a targeted advertising scheme by sending letters to specialized stores and companies.
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.

Financial plan

At the initial stage of the enterprise's activities, it is expected to accept up to 100 orders for furniture production per month. In this case, the maximum cost of the product (sofa) will be:

Name of materials	Amount of material consumed	Price (per unit)	Cost, rub.
Edged board	0.08 cu. m	600	48
Plywood	1 sq. m	59	59
Fiberboard	2 sheets	70	140
Tapestry	8.4 l.m	220	1 848
Textile	1m	90	90
Batting	4 p.m	28	112
Nails	0.7 kg	12	8,40
Foam rubber	0.3 kg	45	13,50
Screws	0.2 kg	20	4
Threads	0.1b	6	0,6
Bolts	0.5 kg	20	10
Accessories			30
Glue	0.2 kg	15	3
Pillows	6 pcs.	28	480
Cardboard	2 kg	12	24
Polyethylene	13 sq. m	9	117
Total	RUB 2,987.50

The current expenses of the enterprise will be:

Taking into account the calculations performed, the total cost of products manufactured in 1 month will be 5788.26 rubles. With a profit rate of 25%, the average cost of products upon sale will reach 7235.33 rubles.

Taking into account the payment of taxes, the workshop will receive a profit for the 1st month of operation in the amount of 115,765.78 rubles. The profitability of the enterprise will be 25%, which will make it possible to recoup the costs of its opening no later than four months from the start of work.

Conclusion

Opening a workshop for the production of custom upholstered furniture is a profitable business with an average level of potential risks. With proper planning, low costs and a favorable situation on the consumer market, the founder will have the opportunity to consistently receive profit from a sustainable enterprise with the prospect of its expansion.

Using the proposed sample business plan for the production of furniture as a starting template, you can easily create your own business plan for furniture production to suit your specific conditions.

Despite the fact that in any city there is now a huge number of furniture stores, there are many people who want the furniture in their home to be individual, unique, and, sometimes, made according to their personal sketch. It is for this reason that starting your own furniture production can be a good idea for starting your own business.
However, a furniture manufacturing business (like any other business) should only be started if there is a clear plan of action. Therefore, if you are planning to open your furniture manufacturing business You absolutely need to draw up a business plan for the production of cabinet or upholstered furniture, which will answer all your questions related to organizing this business.
The business plan for organizing furniture production described below describes in detail how to start a furniture production and what is needed for this.

Let us note that in the furniture production business plan proposed to you, the organization of a furniture production business is considered in all aspects, which is called “from” to “to”. There are also financial calculations here that are not available on other sites.

Business plan for furniture production

Overview section
This business plan involves opening a furniture production workshop.
The organizational and legal form of doing business is an individual entrepreneur. This is due to the fact that the end consumers of services are private individuals. However, if it is planned that a sufficiently large percentage of customers will be among legal entities and government agencies, you can additionally register a limited liability company.
The success rate of the project is assessed as high, since the demand for furniture since 2000 has shown a steady growth trend of 15-20% per year.
Description of the enterprise
It is planned to open a furniture production facility that will accept orders from the public and furniture stores for the production of cabinet, office, kitchen and other furniture.
Description of services
This business plan provides for the creation of furniture production, working on orders from individuals, shops and institutions.
Market analysis
In this section it is necessary to characterize the furniture production market in your city. Consider the level of competition, as well as identify shortcomings and shortcomings in the business of existing workshops in order to eliminate them in your own business.
In the same section, you can outline marketing strategies for promoting furniture production in your region to the market.

Production plan
The first step in implementing a business plan to create your own furniture production will be the search and selection of premises necessary for running this business. Please note that there will be at least two such premises. The first room is the order receiving office, where orders will be accepted and approvals will take place with the customer. The second room is a furniture production workshop.
The first premises must be located within walking distance for potential clients, and the production workshop can be moved outside the city if this will reduce rental costs.
However, the best option would be when all production is concentrated in one place. Often in this business you can find such a model, when not only an order acceptance point and a furniture production workshop are concentrated in one place, but also a store selling finished furniture is organized.
Which business option to choose is, of course, up to you to decide.
The next step will be the purchase of equipment and software for the workshop. Currently, there are many domestic and foreign manufacturers represented on the market for equipment for furniture production, and all machines are freely integrated with the most well-known computer programs for modeling and manufacturing furniture. The most well-known furniture production programs are “Astra Cutting”, “Astra Furniture Designer”, “KZ-Furniture” and a number of others.
Equipment you will need is a jigsaw, a milling machine, a panel saw and a lathe. This is the minimum set of equipment required to get started.
Another important step is the selection of personnel for production. It is necessary to place a person at the order receiving point who has experience in the most common programs for modeling and furniture production. It is advisable that he be sociable and educated in order to find a common language with any clients.
In a furniture production and assembly workshop, you need competent, non-drinking workers who can work with the main types of furniture machines and materials. Today, the main materials for furniture production are chipboard (chipboard) and MDF board.
Well, if you combine a furniture store or a showroom of finished products with production, you will also need a salesperson.
So, let's summarize how many workers are needed for the full functioning of furniture production:
- designer-order taker – 1 person
- workers in the workshop – 2-8 people (depending on the size of production)
- salesperson in the showroom – 1 person
- driver – 1 person
Sales plan
This business plan provides for the following sources of sales of finished products - clients, furniture stores and your own store or showroom.

Financial plan
In this section we will consider in detail all the financial aspects of running a furniture business.
Expenses:
- workshop space (300,000 rubles per year)
- premises for an order receiving point (100,000 rubles per year)
- premises for a showroom (200,000 rubles per year)
- equipment (200,000 – 1,500,000 rubles)
- consumables (300,000 rubles per year)
- staff salary (minimum 1,200,000 rubles per year)
Total: 2,300,000 – 3,600,000 rubles needed to start
Income:
- sale of finished products (400,000 rubles per month)
Total: 4,800,000 rubles per year
As can be seen from the calculations, the minimum payback period for furniture production is about six months. However, a lot depends on how competently you approach the issue of organizing your business. As practice shows, many furniture manufacturers earn much larger sums.
In general, focus on the following data on sales of different types of furniture in Russia:
- cabinet furniture – 25%
- office furniture – 22%
- kitchen furniture – 19%
- upholstered furniture – 12%
- bedroom furniture – 12%
- other types of furniture – 10%
As the figures show, the greatest demand in Russia is for cabinet, office and kitchen furniture, so when organizing a business and purchasing equipment, be guided by these figures.

We hope this one furniture production business plan will help you organize your own profitable furniture business.

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

[Hide]

Services provided and business formats

List of main services provided by the furniture company:

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

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

Furniture business specialization options:

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

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

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

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

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

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

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

A classic furniture company provides:

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

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

Relevance

Reasons for the relevance of the furniture business:

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

Market description and analysis

Characteristics of the Russian furniture market:

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

Photo gallery

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

The target audience

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

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

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

Competitive advantages

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

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

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

Sales channels

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

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

Advertising campaign

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

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

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

Step-by-step opening instructions

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

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

Documentation

Key points of the furniture business registration process:

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

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

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

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

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

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

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

Room

Classic medium-sized furniture production includes the following workshops and premises:

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

Requirements for production premises:

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

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

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

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

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

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

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

Equipment and inventory

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

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

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

Photo gallery

Disc grinding machine Bench Drilling Machine Jointer-reimus machine Miter saw Milling machine Wood lathe

Staff

Staffing schedule for a small furniture shop:

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

Requirements for the main personnel of furniture production:

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

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

Financial plan

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

Further financial planning of the business idea for organizing furniture production is based on the following data:

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

How much does it cost to start furniture production?

Investments in opening a furniture workshop:

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

Regular expenses

Regular expenses of a furniture workshop:

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

Income

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

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

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

Calendar plan

Furniture production project implementation schedule:

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

Risks and payback

External risks of a furniture workshop business project:

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

Internal risks of a furniture workshop business project:

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

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

Video

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

Rising exchange rates and import substitution have had a positive impact on the Russian furniture market. The production of domestic furniture is growing, becoming a promising area for investment. Below is a business plan for furniture production with estimates for 2018-2019.

Brief summary (calculation for Irkutsk)

Start-up investments: 2043913 rubles. Of these, 1,230,000 rubles are funds raised for purchases, 813,913.4 rubles are the private equity capital.

Payback period: 14 months

Market: kitchen furniture

Annual net profit: 1,301,464.64 rubles

Project Description

The main idea is to create kitchen furniture of high quality at minimal production costs. Organizational form – individual entrepreneur.

Niche in the market

Taking into account the high competition in this area, it is very important to display in the business plan of a furniture factory those features that will distinguish the products from those of competitors.

In this case, the distinctive feature was the possibility of selecting an individual design of finishing materials and the use of decorative stained glass. Transparent and opaque stained-glass windows of smoky glass not only decorate the furniture, but also facilitate the design. Purchasing ready-made stained glass also allows you to avoid making facades, save on production and build a more flexible pricing policy.

The target audience: Young families on a budget and older people looking to change up their kitchen decor on a budget.

Location: this business plan for a furniture workshop assumes that the industrial site is owned by an individual entrepreneur. Consequently, the cost of renting the premises is not shown in the plan.

The required area is about 180-200 square meters. meters. Non-residential premises are zoned into a workshop, a bathroom, a warehouse for materials and workpieces, and an office. Requirements - two separate entrances, soundproofing, heating, water supply, one floor, access and loading areas, voltage 380 Volts.

The site with the workshop premises must meet several requirements:

convenient for buyers of finished products and placement of equipment;
has convenient access roads;
located close to consumers;
has a developed infrastructure;
connected to power supply and water supply networks.

Marketing strategy

At the start, it is important to include advertising campaigns in your furniture business plan. Good marketing campaigns will allow you to quickly occupy a niche in a highly competitive market.

The main trading platform will be the showroom, as well as Istagram, Facebook, and other social networks.

In addition, outdoor advertising (stretchers, boards, pillars around the city) is an effective marketing tool.

For example, renting an 18 sq.m. billboard. meters will cost 3,000 rubles per month. Distribution of printed leaflets, a catalog of works and materials - 5,000 rubles in construction stores, as well as advertising in the press will also help attract customers, as well as in cooperation with interior and design studios, participation in thematic exhibitions and fairs.

Production plan

Kitchen furniture is made from ready-made MDF, fiberboard, chipboard, and laminated chipboard sheets, cut on the side to order.

Income planning

A business plan for furniture production is drawn up taking into account the fact that the furniture workshop is a micro-enterprise. The annual revenue at full utilization of the fixed and working capital of such an enterprise does not exceed 11 million rubles, and the number of personnel is 8 people.

This meets the criteria for a micro-enterprise: the organization must simultaneously have no more than 15 employees and no more than 120 million rubles in income from business activities for the previous calendar year.

Organization of production

The kitchen furniture production workshop will operate in a single shift, from 09.00 to 18.00, lunch break for production personnel from 12.00 to 13.00, for office staff from 13.00 to 14.00.

Days off: Saturday, Sunday. Holidays: in accordance with Article 112 of the Labor Code of the Russian Federation. Type of working time recording: timesheet.

Necessary raw materials and equipment (forecast prices for the planning period 2018-2019)

The cost of purchased machines for the production of kitchen furniture is 1.23 million rubles.

Based on the fact that kitchen furniture belongs to the fourth group, the service life is 5-7 years. Let us assume a service life of five years. 1/5 of the cost of the equipment will be depreciated annually, that is, 246 thousand rubles per year, or 20.5 thousand per month.

Costs for technological organization of production and environmental protection.

We must take into account in the business plan that furniture production is an area associated with high fire risks. In the first two months of work, it is expected to allocate 205,000 rubles for labor protection and fire safety, including:

Type of occupational health and fire safety event	Amount (in rub.)
Special assessment of working conditions	24 000
Mandatory preliminary and periodic medical examinations	18 000
Training, instructions, testing of knowledge on labor protection of workers	12 000
Publication of labor safety instructions	1 000
Purchase of special clothing, special shoes and other personal protective equipment	30 000
Purchase of flushing and neutralizing agents	2 000
Storage and care of PPE	2 000
Purchase and installation of installations to provide workers with drinking water	6 000
Purchasing first aid kits	1 000
Equipping premises for medical care or creating sanitary posts	1 000
Organization and conduct of production control	7 000
Construction and modernization of collective protection equipment	10 000
Applying signal colors and safety signs to production equipment, structural elements and other objects	9 000
Installation of protective barriers against the impact of moving parts and flying objects	20 000
Fire safety	30 000
Construction or reconstruction of rest areas, heating for workers when working outdoors, shelters from sunlight and precipitation	10 000
Arrangement of sanitary facilities (meal room, PPE dressing room).	20 000
Organization of events for the development of physical culture and sports in the team	2 000
TOTAL	205 000

Organizational plan

Number of employees and labor costs

Job title	Salary, rub.	Quantity, pcs.	Payroll, rub.	Phot prod.	Payroll is not produced.
Administrative
Accountant-cashier	40000	1	40000		40000
Industrial
Head master	47000	1	47000	47000
Production Master	40000	3	120000	120000
Designer-technologist	45000	1	45000	45000
Industrial cleaner	20000	0,5	10000	10000
Trade
Sales Manager	40000	1	40000		40000
Auxiliary
Cleaner	20000	0,5	10000		10000
Total:			312000	222000	90000
Social Security contributions:			94224	67044	27180
Total with deductions:			406224	289044	117180
Pension Fund			68640	48840	19800
FSS (non-labor and maternal)			9048	6438	2610
FSS (injuries)			624	444	180
Compulsory Medical Insurance Fund			15912	11322	4590
Total social contributions			94224	67044	27180

Social contributions do not include personal income tax; payment of this tax is made from accrued wages. Social contributions include insurance contributions for compulsory pension, social and health insurance, calculated according to basic tariffs, and reduce the tax base for income tax.

Financial plan

Fixed and variable costs for the production and sale of furniture products are formed at the expense of the entrepreneur’s own funds.

Risk analysis

The main risk factors at a furniture enterprise include:

price changes or interruptions in the supply of raw materials. In the case under consideration, this issue is resolved by using domestic raw materials and equipment. To eliminate possible interruptions in raw materials, it is recommended to enter into long-term contracts with several suppliers at once;
high competition. Solved by developing a USP, establishing a client base and a well-thought-out marketing policy;
problems with renting premises, refusal to provide rent. Entering into a long-term contract with a landlord or purchasing industrial premises will help reduce the risk.
fire, damage, theft, other force majeure. It is impossible to eliminate this factor, but you can minimize the consequences with the help of insurance.

In this material:

How to start a furniture business from scratch? You can also find enterprises that make furniture without equipment or any serious production facilities. But the consumer is already tired of cheap walls and tables, furniture made of chipboard, which falls apart after a few years. Now more demands are placed on the manufactured product. To comply with them, you will have to open a full-fledged furniture production workshop.

Market Review

Where to start furniture production? Before opening a furniture shop, be aware that small and medium-sized businesses in this area typically specialize in something specific. You should not grab hold of producing everything in a row, but you should try to make every effort to gain a foothold in some narrow niche. This is a fundamental rule in the survival strategy in furniture production. You can focus your efforts on your own production of the following furniture:

hull;
soft;
advertising;
for trade organizations.

Promotional furniture is used to decorate points of sale and attract as many buyers as possible to a product or service. For trade organizations, such as shops, pharmacies, shopping centers, salons, special shelves and display cases are required on which the assortment will be displayed.

Furniture manufacturing involves a large number of specializations. You can focus your efforts on collecting any products with limited functionality, such as, for example, Euro pallets or computer tables, or you can make glass tables and cabinets, or produce furniture from a specific material - plastic, natural wood.

Furniture manufacturing as a business does not only mean creating goods. Services for restoration of cabinet and upholstered furniture are also popular. These services are especially in demand among citizens with low incomes, and there are many of them in the country. The opposite direction is the restoration and restoration of antiques. In this case, services will be in demand in regions that are economically developed.

An unoccupied niche in this market includes the production of wicker furniture. A small enterprise can master it, but wicker chairs, sofas, and cabinets continue to be imported from abroad, leaving them in the high price segment.

An excellent specialization for small and medium-sized businesses is built-in furniture. In this case, an individual approach to each client is required. Large enterprises cannot satisfy individual customer requirements.

To understand whether it makes sense to start a furniture manufacturing business, pay attention to the development trends in related fields. If the real estate market is developing, foreign cars are being purchased, the market for antiques and advertising services is developing, and this dynamics can be observed in the next two to three years, we can start in this direction. On the other hand, there will always be demand for furniture: after its decline, the upward trend returns very quickly.

Organization of production

Where to start making furniture? Once you have decided on your specialization, you need to find a suitable room. The minimum required area that will be required is 200 m2. Its rent will cost 1300-6500 rubles per year per 1 m2. This price range depends on the region.

In Moscow and St. Petersburg, you need to adjust to the cost of 1 m 2 at 5-6.5 thousand rubles. per year, and in regions, especially economically undeveloped ones, you can quite count on the lowest prices. The average is 3,300 rubles per year per 1 m2. Total rent will cost 650-660 tr. in year. If you can rent a room for a cheaper long-term, that will be very good.

Depending on the specialization, you need to spend from 350 thousand rubles on equipment. up to 1.5 million rubles. This does not take into account the purchase of office equipment, software, or a truck with which the furniture will be delivered to the consumer or to points of sale. You can purchase both standard machines and entire production lines that are made to order.

Pay attention to purchasing quality components. Please immediately note that it is impossible to produce furniture that will be of high quality and competitive, while relying only on domestically produced parts and fittings. You will have to establish connections with distributors of foreign companies that offer everything you need for furniture production.

Decide in advance and make a list of component suppliers, enter into supply agreements:

MDF boards;
laminated boards;
films on slabs;
paint and varnish materials;
accessories;
aluminum profiles;
sliding systems.

At the initial stage, it is necessary to duplicate suppliers for each position. Diversify your assortment so that there is more than just the production of chipboard furniture. During the work, some of them will be eliminated, cooperation will continue only with some of them, which turned out to be reliable and favorable in the price range.

Next, it remains to resolve the issue with the staff. The level of training of employees must be high, but they also require high pay. You can organize your training in your specialty if you have the experience and qualified personnel for this.

The staff of a furniture workshop should include:

master;
assembly fitter;
carpenters;
glazier.

The production workshop can accommodate from 10 to 50 people, depending on the volume of production.

In addition to these, you also need:

driver;
Sales Manager;
courier;
storekeeper;
designer.

The general wage fund (payroll), if there are no more than 15 employees, is from 350 thousand rubles.

These calculations are valid for the general case. Depending on the specialization and scale of the region, they can change both downward and upward. For example, for economically underdeveloped regions the wage fund will decrease, but for Moscow and St. Petersburg it will increase several times. Let's look at specific examples in the niches for the production of cabinet and upholstered furniture.

Production of cabinet furniture

The production technology of cabinet furniture includes the following:

preparation of a project for the intended product in different planes;
work on cutting materials, forming parts of the future product;
work on drilling holes and sockets for fasteners;
work on trimming edges;
final assembly of finished furniture.

This process depends on how automated it is. It is believed that the use of CNC machines reduces the percentage of manual labor and increases process automation. The operator of such a machine only needs to enter the size data into the program, create the required product, and once the machine is started, it will cut out everything that is needed in a few minutes. This manufacturing method is considered advanced and high-tech.

The disadvantage of such production is that constantly reconfiguring the program for an individual order is considered an unprofitable exercise. Therefore, the use of CNC machines is not suitable for working with individual orders. The best option is to organize furniture production on several machines, which form a semi-automatic line with combined manual labor.

For such a furniture manufacturing workshop you will need to purchase the following equipment and tools:

format-cutting machine with manual supply of materials;
edge banding machine, with which straight edges, concave and convex elements are lined;
drilling and filler machine, which allows you to make holes - both blind and open;
grinding machine;
screwdrivers and hammer drill;
cutters, drills, knives.

With all this, you can count on a simultaneous monthly production of 100 units:

cabinets;
tables;
cabinet;
shelving.

A total of 400 units of finished products. The expenses must include the following:

for materials;
for electricity,
for advertising;
for depreciation.

In addition, the cost of furniture production is formed by payroll and rent. The payroll together with wage taxes is about 400 thousand rubles, rent is 50-55 thousand rubles. The cost of 400 of these products will be about 500 thousand rubles.

The cost of a table or cabinet varies from 2.3-3.3 thousand rubles, and the cost of cabinets and racks - 3.5-5 thousand rubles. The approximate income will be 1160-1660 tr. The profit will be 590-1060 tr. per month. This is the perfect calculation. To obtain real numbers, the final values can be divided in half, even if labor efficiency is high.

Production of upholstered furniture

The population's need for upholstered furniture forms a sixth of the entire furniture market, which makes this niche very promising and attractive for both medium and small enterprises.

There is a trend towards the production of sofas and armchairs to order, which makes it possible for small enterprises to successfully compete with large industries that will not pursue individual customers. It is convenient for small and medium-sized businesses to produce small batches of armchairs and sofas.

This niche is also attractive for small and medium-sized businesses because it does not require the purchase of expensive equipment.

Basic operations are performed manually. Finally, such small and medium-sized businesses easily adapt to fashion trends and are ready to quickly fulfill an order, even if a new product has just appeared on the market. For this, the factory needs a quarter to transfer the equipment and technological process to the production of some specific models. A small workshop can only provide the customer with a whole line of models through combinations of upholstery, fittings and materials, thereby benefiting from exclusivity.

Your production of upholstered furniture requires the purchase of the following machines:

combined - for wood processing;
multi-saw edger;
turning;
milling;
crosscut;
grinding.

Their total cost is 150-160 thousand rubles. In addition to machines, you will need drying equipment and pneumatic clamps, as well as hand tools, a sewing machine and cutting tables. This is another 40 tr. In total, the technology for producing upholstered furniture will require about 200 thousand rubles for equipment and tools.

In addition to equipment for the production workshop, you will also need to purchase office equipment - office equipment and furniture with a total cost of 60-90 thousand rubles. This equipment allows us to produce up to 100 sofas monthly, each of which can be offered for sale at a price of 7.5 thousand rubles. The enterprise's income will be from 750 thousand rubles.

The costs of producing upholstered furniture are:

Payroll - 150-250 rubles;
rent - 50 thousand rubles;
materials - 150 tr.;
electricity, utilities, internet, communications - 20 thousand rubles;
advertising - 30-50 t.r.;
unforeseen expenses - 40-60 tr.

In total, the total production costs are 440-580 thousand rubles. The enterprise's profit before taxes is 170-310 thousand rubles, and after - 160-290 thousand rubles. The real profit value will be 1.5-2 times lower. The average payback period for investments in equipment and tools in this type of activity, if efficiency is high, is considered normal from 4 months.

Take into account the production of facades. The number of enterprises that specialize in this is growing every year, but many manufacturers’ products are not of high quality. Buyers are willing to spend more money on high-quality facades, therefore, if you focus on product quality and do not strive to reduce costs due to it, then the production of facades can turn out to be a very profitable enterprise.

To open your own production, you will need 1.5 million rubles. One equipment, its purchase, delivery and installation will cost 1 million rubles. You also need to provide for the purchase of raw materials for a month of furniture production, which will cost another 250-300 thousand rubles.

One person can operate the equipment, so the payroll will be small. Such a furniture production workshop produces 400-500 m2 of MDF facades per month. The cost of 1 m2 reaches 1 thousand rubles. The income of such an enterprise is 400-500 thousand rubles. Consumables - up to 200 tr. The initial investment will pay off in 8-12 months.

What to focus on?

How to organize your furniture manufacturing business to achieve high labor efficiency? First: it is necessary that safety precautions are observed. Second: the staff must have a personal interest in high-quality production. Therefore, establish that the salary is formed from a fixed rate and a percentage for the work performed, and the marriage is deducted from the salary. This will increase employee engagement and improve labor efficiency.

After the work in the workshop has improved, begin an active search for customers. You can sell products both through retail chains in your city and in other cities.

It is very good if you have your own online store to sell manufactured furniture. If you invest money in its promotion and contextual advertising, it allows you to increase sales several times, while advertising costs will be low.

Order a business plan

	Investment: Investment 350,000 ₽ The company, as a furniture manufacturer, was founded in 2009. Today it is a dynamically developing manufacturing enterprise. We produce more than 20 thousand products per month. More than 100 stores. The brand “HALF PRICE Furniture” was created in 2014 for a retail network of furniture stores in the format of a furniture discounter. The first store was opened that same year. As expected, the project...

	Investments: Investments 1,000,000 - 2,000,000 ₽ In 2016, the company carried out a full launch of automated production of the First Furniture Factory-ALNO joint venture, rebranding of the factory, a new model range for various segments and the premium kitchen brand Bruno Piatti. A joint venture with the Piatti Factory made it possible to produce kitchens according to Swiss quality standards. Today, the First Furniture-ALNO is: -52,000 m2 of production and warehouse space. -Capacity – 50,000 sets of furniture...
	Investments: From 500,000 rubles. We will reimburse 50% of your costs for repairs and store decoration. Low investment risks. 40% of investments are exhibition samples, which remain a liquid asset in case of problems. Any business starts to make a profit. With frendom sofas you will also get a lot of positive emotions from your business. Selling this furniture is a pleasure! Your partner is a manufacturing factory, the history of which begins in 2006 in the city of Engels, Saratov region. The company is a regular participant in international exhibitions. Residents of eighty-nine regions of Russia and neighboring countries...
	Investments: Investments 3,350,000 - 5,500,000 ₽ New Chicken is a new project of the BCA restaurant holding, which has experience opening more than 150 establishments in 8 countries around the world. The company is actively growing, developing new directions and knows what consumers need tomorrow. The company promotes a network of establishments using a franchising model. Franchise description The franchise package includes: production/trade/assembly equipment, furniture. The New Chicken franchise has…
	Investments: Investments 600,000 - 1,200,000 ₽ The HiLoft hostel chain is a project that meets the high standards of the international association Hosteling International. Our hostels reflect Hosteling International's eco-concept: * Provide a framework for maintaining and continuously developing social and cultural connections within the community. Contribute to the popularization of safe tourism that does not cause damage to the environment. Promote the development of accessible tourism. We provide our franchisees’ hostels with high occupancy rates in…
	Investments: Investments 2,700,000 - 3,500,000 ₽ We are a team of professionals with more than 10 years of experience in the food market. During this time, we have implemented more than 40 regional and federal projects in 15 different concepts. In 2017, we launched the “Bakery No. 21” project and now we manage a network of cafe-bakeries, which we want to expand, because we believe that our product is a new level in the world...
	Investments: Investments 499,000 - 1,500,000 ₽ The Avista Module Engineering group of companies has been introducing innovations and creating trends in the prefabricated construction market for 11 years. Founded by Vadim Ravilievich Kulubekov. The company specializes in providing comprehensive services for the design, production, delivery, construction and completion of prefabricated buildings for administrative, domestic and industrial purposes. The products are manufactured at a plant in Novosibirsk. The company’s product range includes prefabricated cabins, modular dormitories, modular canteens,… IceBox franchise Investments: Investments 670,000 - 1,400,000 ₽ The LLC UK "ICE BOX" company appeared in Tolyatti in 2015 and began its activities with a delivery service for natural homemade ice cream. The main advantage of the brand is its 100% natural composition, which excludes the presence of any dyes, flavors, industrial pastes, vegetable fats and E-components. IceBox ice cream is made exclusively from fresh farm cream and milk, natural berries, fruits, nuts,…
	Investments: Investments 330,000 - 376,000 ₽ The network of Sharpening Centers "TSEKH" is one of the leading networks in the field of sharpening and selling hairdressing and manicure instruments. Working directly with all leading manufacturers of hairdressing and manicure instruments, we provide our franchisees with the best prices for stores at TSEKH Sharpening Centers. “TSEKH” is also an official dealer of many manufacturers of sharpening equipment, thanks to which our…	Investments: Investments 1,500,000 - 10,000,000 ₽ The FinLine company, the Auto Pawnshop brand, was founded in 1999 and is one of the market leaders in the segment of secured lending and investment. The company's main specialization is loans secured by liquid assets: vehicles, vehicle titles, real estate, equipment and precious metals. Over nineteen years of work, we have learned to manage and scale the pawnshop business as efficiently as possible and are now ready to share our…

It might be useful to read: