In this material:
How to start a furniture business from scratch? You can also find enterprises that make furniture without equipment and some serious production facilities. But the consumer is already tired of cheap walls and tables, chipboard furniture, which falls apart in a few years. Now more requirements are imposed on the product being produced. To meet them, you will have to open a full-fledged furniture production workshop.
Market Review
Where to start furniture production? Before you open a furniture shop, tune in that small and medium-sized businesses in this direction are characterized by specialization in something specific. You should not grab onto the production of 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 strategy of survival in the furniture industry. You can focus on your own production of the following furniture:
- body;
- soft;
- advertising;
- for trade organizations.
Advertising furniture is used to decorate points of sale and attract as many customers as possible to a product or service. For trade organizations, such as shops, pharmacies, shopping centers, salons, special shelves and showcases are required, on which the assortment will be displayed.
Furniture manufacturing involves a large number of specializations. Efforts can be focused on collecting any products with limited functionality, such as, for example, euro pallets or computer tables, or you can make glass tables and cabinets, make furniture from a certain material - plastic, natural wood.
Manufacturing furniture as a business does not just mean creating goods. Services for the restoration of cabinet and upholstered furniture are also popular. These services are especially in demand among citizens with a low level of income, and there are a lot 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 is the production of wicker furniture. It can be mastered by a small enterprise, but wicker chairs, sofas, wardrobes continue to be imported from abroad, leaving them in a 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 meet individual customer requirements.
To see if it makes sense to start a furniture business, look at the trend in related areas. If the real estate market is developing, foreign cars are being purchased, the antiques and advertising services market is developing and this dynamics can be observed in the next two or three years, you 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 location. The minimum required area is 200 m2. Its rent will cost 1300-6500 rubles per year for 1 m 2. This range of prices depends on the region.
In Moscow and St. Petersburg, you need to tune in to the cost of 1 m 2 in 5-6.5 tons. per year, and in regions, especially economically undeveloped ones, it is quite possible to count on the lowest prices. The average indicator is 3300 rubles per year for 1 m 2. Total rent will cost 650-660 rubles. in year. If you manage to rent a room for a long-term lease cheaper, that will be very good.
For equipment, depending on the specialization, it is necessary to spend from 350 rubles. up to 1.5 million rubles. This does not include the purchase of office equipment, software, a truck, which will deliver furniture to the consumer or to points of sale. You can buy both standard machines and entire production lines, which are made to order.
Pay attention to the purchase of quality components. Immediately, take into account that it is impossible to produce furniture that will be of high quality and competitive, while relying only on parts and accessories of domestic production. We'll have to establish contacts with distributors of foreign companies that offer everything you need for furniture production.
Decide in advance and make a list of suppliers of components, conclude supply agreements:
- MDF boards;
- laminated boards;
- films on plates;
- paints and varnishes;
- fittings;
- aluminum profiles;
- sliding systems.
At the initial stage, it is necessary to duplicate suppliers for each position. Diversify your assortment so that it is not only the production of furniture from chipboard. During the course of work, some of them will be eliminated, cooperation will continue only with some of them, which proved to be reliable and profitable in the price range.
Next, it remains to resolve the issue with the staff. The level of training of employees must be high, but it also requires high payment. You can organize your training according to your specialty, if you have experience and qualified personnel for this.
The staff of the furniture shop should include:
- master;
- assembly fitter;
- joiners;
- glazier.
The production workshop can accommodate from 10 to 50 people, depending on the volume of production.
In addition to them, you also need:
- driver;
- Sales Manager;
- Courier;
- storekeeper;
- designer.
The general payroll (payroll), if there are no more than 15 employees, is from 350 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 consider specific examples on niches for the production of cabinet and upholstered furniture.
Manufacture of cabinet furniture
The technology for the production of cabinet furniture includes the following:
- preparation of a project of a conceived product in different planes;
- work on cutting materials, forming parts of the future product;
- work on drilling holes and sockets for fasteners;
- work on facing cut 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 the automation of the process. The operator of such a machine only needs to enter dimensions data into the program, create the required product and the machine, after starting, 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 it is considered unprofitable to constantly reconfigure the program for an individual order. Therefore, for work with individual orders, the use of CNC machines is not suitable. The best option is the organization of furniture production on several machines, which form a semi-automatic line with combined manual labor.
For such a workshop for the manufacture of furniture, you will need to purchase the following equipment and tools:
- panel saw with manual feed of materials;
- edge banding machine, with which straight edges, concave and convex elements are faced;
- drilling and filler machine, which allows you to make holes - both blind and open;
- grinding machine;
- screwdrivers and hammer drills;
- cutters, drills, knives.
With all this, you can count on a simultaneous monthly release of 100 units:
- cabinets;
- tables;
- pedestals;
- shelving.
A total of 400 units of finished products. The expenditure side must include the costs:
- for materials;
- for electricity,
- for advertising;
- for depreciation.
In addition, the cost of furniture production is formed by the payroll and rent. The payroll together with taxes on wages is about 400 thousand rubles, rent - 50-55 thousand rubles. The prime cost of these 400 products will be about 500 tons.
The cost of a table or cabinet varies from 2.3-3.3 tons, and the cost of cabinets and shelves is 3.5-5 tons. The approximate income will be 1160-1660 tons. The profit will be 590-1060 tons. per month. This is the perfect calculation. To get real numbers, the final values can be halved, even if labor efficiency is high.
Production of upholstered furniture
The demand for upholstered furniture among the population forms one sixth of the total furniture market, which makes this niche very promising and attractive for both medium and small businesses.
There is a trend towards custom-made sofas and armchairs, which enables small businesses to compete successfully with large businesses that will not chase individual customers. It is convenient for small and medium-sized businesses to produce small batches of armchairs and sofas.
For small and medium-sized businesses, this niche is also attractive 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, 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 release 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 gaining from exclusivity.
The production of upholstered furniture requires the acquisition of the following machines:
- combined - for wood processing;
- multi-saw edged;
- turning;
- milling;
- trimming;
- grinding.
Their total cost is 150-160 tons. In addition to machine tools, you will need drying equipment and pneumatic clamps, as well as hand tools, a sewing machine and cutting tables. This is another 40 tons. In total, the technology for the production of upholstered furniture will require about 200 tons of equipment and tools.
In addition to equipment for the production workshop, it will be necessary to purchase office equipment - office equipment and furniture with a total cost of 60-90 tons. This equipment allows the production of up to 100 sofas monthly, each of which can be offered for sale at a price of 7.5 tons. The income of the enterprise will be from 750 tons.
The costs of its production of upholstered furniture are:
- Payroll - 150-250 rubles;
- rent - 50 thousand rubles;
- materials - 150 tons;
- electricity, utilities, internet, communications - 20 t. p .;
- advertising - 30-50 rubles;
- unforeseen expenses - 40-60 tons.
Total total production costs are 440-580 tons. The profit of the enterprise before taxes is 170-310 tons, and after that - 160-290 tons. The real value of profit will be 1.5-2 times lower. The average payback period for investments in equipment and tools in this type of activity, if the efficiency is high, is considered normal from 4 months.
Consider the production of facades. The number of enterprises that specialize in this is growing every year, but for many manufacturers these products are not of high quality. Buyers are ready to spend more money on high-quality facades, therefore, if the emphasis is on the quality of products, and not to seek to reduce the cost at the expense of it, then the production of facades can be a very profitable enterprise.
To open its own production, it will take 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 tons.
One person can work on the equipment, so the payroll will be small. In a month, such a workshop for the production of furniture gives 400-500 m 2 of MDF facades. The cost of 1 m 2 reaches 1 t. R. The income of such an enterprise is 400-500 tons. Consumable part - up to 200 tons. 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 imperative that safety precautions are followed. 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 raise the motivation of workers and improve labor efficiency.
After the work is adjusted in the shop, engage in 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 there is an online store for the sale of manufactured furniture. If you invest in its promotion and contextual advertising, it allows you to increase sales several times, while advertising costs will be low.
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First of all, a beginner must take into account that the furniture market has already taken shape. And if 15-20 years ago it was possible to bring any furniture and find a buyer for it, now it is difficult to guess the needs of the client. Therefore, you need to study the market and focus on those segments of the population that you want to serve. Farid Safin, general director of the chain of furniture stores "Vash Byt", told about the intricacies of this business to the BIBOSS portal.
Where to start?
To begin with, experts advise to conduct market research. See what competitors are selling, what are their advantages and disadvantages. Entrepreneurial intuition should work. First of all, you need to understand what niche you want to occupy. There is a strong stratification of the target audience. There are those who buy expensive imported furniture. There are those who proceed only from the functional features of furniture - design and manufacturer are not important for them.
Aspiring entrepreneurs, as a rule, do not have a lot of capital and the opportunity to occupy large retail space for samples. Therefore, it is advised to start working with the economy and middle class, where the bulk of buyers are concentrated.
You can consult with those who have been working in this market for a long time. They can be manufacturing partners who produce furniture and know what is in demand. In Russia, such manufacturers are established companies that maintain marketing services, constantly study demand, and travel to exhibitions.
By the way, visiting furniture exhibitions is a good way to study the market. Manufacturers there exhibit existing and new furniture samples and monitor the reaction of visitors. There are a lot of both ordinary buyers and representatives of retail chains at the exhibition; they conclude contracts with manufacturers for the supply of furniture.
Working with a supplier, you can find out what kind of furniture is in demand in the region. Because depending on the region, the demand differs. Somewhere one color and model is popular, somewhere another. For example, in Tatarstan, where there are many Muslims, calm green tones are held in high esteem. But furniture models throughout Russia are basically the same. Only Moscow and St. Petersburg stand apart - there is a demand for advanced models. The most ultramodern modern trend is first mastered in Moscow and St. Petersburg, and then goes to the regions. Therefore, if you open a store not in these capitals, then it is better not to immediately bring unusual furniture here - it is unlikely that it will find a buyer.
How to get around the competition? It is necessary to find those models that, in terms of price and quality, can compete with those already on the market.
Farid Safin
If we talk about us, we have been working on the market for a long time and cover all categories of clients - from economy class to VIP clients. In our salons you can look through catalogs of expensive furniture, we exhibit some samples of high quality Italian, Belarusian furniture. The client places an order and we contact the manufacturer. Orders for expensive furniture are infrequent, so keeping all models in the store is unprofitable, since renting retail space is not cheap.
Investment size
Farid Safin
CEO (founder) of the Vash Byt group of companies
As for the search for funds for the launch, it is better not to count on state support. Today in Russia, first of all, they support producers and agribusiness. It is believed that trade is already sufficiently developed and organized, so this industry is not subsidized. The only hope remains for banks that participate in programs to support small and medium-sized businesses. They lend to businesses at reasonable interest rates.
Farid Safin
CEO (founder) of the Vash Byt group of companies
But there are nuances. Based on personal experience, I can say that all banks require a deposit - a room, an apartment, a car. At the same time, today the direction of trade in furniture is considered a risky business. Recently we wanted to take out a loan, everything seemed to suit the bank, there was a pledge, but later we were told that the furniture business was risky, and the loan was refused. Therefore, not everything is so simple. It is better to find an investor, partners who are ready to invest in business and develop together.
What are the running costs of the business? It is necessary to have a warehouse stock of furniture, rent and maintain warehouses, where loaders work for the acceptance and release of furniture, storekeepers. Accounting systems are now computerized, so programmers are needed. Plus transportation costs, including the delivery of furniture from the manufacturer - from factories and plants.
How to optimize costs? You can transfer something to outsourcing - for example, the services of programmers, rent warehouses with a ready-made staff of loaders, or generally work with "wheels" - take furniture straight from the factory and immediately deliver it to customers. The advantage of small businesses is that there is no need to maintain a large office staff: dispatchers, commercial service, accounting, management. At the initial stage, many entrepreneurs perform all these functions themselves - he is a freight forwarder, a manager, a dispatcher, and an accountant. But as you grow, it is better not to inflate the staff, this will optimize costs.
On average, the operating costs of a furniture salon at the initial stage, with a minimum number of attendants, amount to 100-150 thousand rubles per month. But this amount does not include rent - it depends on the area. In large Russian cities on average - from 800 to 1500 rubles per sq. M.
Step-by-step instruction
In your activities, you will have to interact with a number of counterparties and suppliers. First of all, these are furniture manufacturers. You can go directly to them. But when the volume of sales is small, it is difficult, because manufacturers are interested in large orders. Therefore, it is easier for small companies to work with dealers, wholesalers.
Farid Safin
CEO (founder) of the Vash Byt group of companies
Our company has a wholesale department. We bring furniture from all over Russia, as well as from China, Belarus, the Baltic states and release it from our central warehouse in small batches for small entrepreneurs - they take the assortment they need. This is convenient for novice entrepreneurs, especially since they can take into account our trading experience, because we know in which region which furniture is in demand, and we give our recommendations.
If a person once bought furniture in one trade network and was completely satisfied with the quality and price, the next time he tries to contact the same store. There is a bond between the seller and the buyer that has been maintained for years. In our network there are regular customers who have been buying furniture from us for many years and bringing their children.
The main quality for the seller is the desire to work. If a person thinks that the furniture will sell himself, but he can sit on the couch and read, waiting for the buyer to come up and place an order, then you do not need him. Today there is a wide selection of furniture in different salons. And the seller must interest the buyer himself. Most often, after 2-3 months of internship, a person masters the assortment and can already cope well with sales. Developed companies have their own HR department, which deals with the recruitment and training of personnel.
Farid Safin
CEO (founder) of the Vash Byt group of companies
We try to make people work in our company stably, constantly. And so it happens. Most of our employees have been working, if not from the day the company was founded, then on average 10-15 years. To do this, we constantly use a motivation system and periodically review it so that it is attractive to our employees. We have a 13th salary, there is a trade union organization that maintains contacts with many institutions - for example, sanatoriums, and you can get preferential vouchers. People can get vacation pay, sick leave. We hold corporate parties - both New Year's holidays, and on March 8 and May 1. In the New Year, we summarize the work results and announce the best workers, give gifts and certificates of honor.
In shopping malls, you will be forced to adhere to the established work schedule. In freestanding salons, focus on the mode acceptable for a particular area of the city.
Documentation
You do not need to obtain special permits. Hygienic quality certificates are needed, but they are usually supplied by the manufacturer.
Today, there are two main types of taxation used by entrepreneurs engaged in retail trade - the Unified Imputed Income Tax and the simplified taxation system. UTII is charged depending on the area. "Simplified" depends on the turnover, that is, the tax is paid depending on how many goods are sold. And the choice of the type of taxation depends on the traffic of the outlet. There are retail outlets with high traffic, where the rent is high, but also the return per sq. M. the turnover is also high. In this case, it is better to pay UTII. If the areas are large, but the traffic is low, the rent is low - a simplified system works better here.
Opening checklist
The opening of a store in a detached building must be covered as an event. If the store is designed for the scale of the area, it is necessary that its residents know about the opening. Usually, when a store opens, they create a beautiful exposition of furniture, hang balloons at the entrance, attract animators who will meet and entertain guests and children. Such events cannot do without gifts - even if they are small, so that when they come home, people tell their family and neighbors about your store.
Finding a niche in a multitude of opportunities is not easy. Collecting information, as well as statistics on the most profitable and actively developing areas of business will help you navigate and find the area of application of your abilities.
Now there is a tendency to an increase in the volume of construction and an increase in mortgage lending, so the demand for furniture in the near future will be at a high level. If you have ever thought about starting your own business, you will not fail by trying yourself in the furniture business.
Today on the market of offered goods, works and services one can observe a tendency towards narrow specialization. By developing some types of furniture models, entrepreneurs can focus on unique properties, original designs and specialized applications.
Manufacturers focus on a specific type of product and try to find their consumer who would provide constant profit.
Business specialization
Small and medium-sized businesses focus on a narrow market niche. Having established themselves in one direction, entrepreneurs are already making a choice in favor of stability or expansion of production, capturing more and more new profiles.
There is a large set of firms that specialize in the production and sale of furniture for pharmacies, restaurants and workshops, car services, supermarkets, etc.
The number of potential specializations is extremely large. Absolutely any kind of activity requires furniture. Experts are confident that in the near future the use of specializations will only intensify.
Now innovators are already appearing on the market, offering glass, plastic, frameless and multifunctional furniture from rare tree species.
The direction of restoration and restoration of furniture is also developing. This type of business thrives exclusively in big cities and is imprisoned for antiques. Like a business, furniture restoration also meets the needs of its customers.
Range
When choosing a sphere, you should decide on the range of products. Among the furniture, there are such groups as:
Operation
- household;
- for common areas.
For those. properties
- collapsible;
- sectional;
- bent;
- wicker;
- built-in;
- non-separable.
By appointment
- case;
- for sitting or lying;
- furniture for work;
- furniture for meals.
Domestic manufacturers strive not only to provide the population with furniture, but also to provide a range of additional services for delivery, assembly and selection of individual designs.
There is both serial production of identical models and custom-made furniture. In the latter case, clients can provide for everything - from the size and purpose of the model, to design and selection of materials.
Choosing a place for furniture production
The choice of a place to locate your production must be treated with great care. For the first time, it is best to rent a commercial space. In the future, if the business develops steadily, you can move on to buying your own space or building a production building on your own.
When choosing a location, be guided by the following characteristics:
- Convenient transport interchange;
- General condition of the structure;
- Indoor temperature;
- Humidity level.
All these components are necessary to maintain the optimal storage regime for materials. The recommended temperature should not exceed 18 degrees Celsius, while the required indoor relative humidity is 55 to 70%.
With these characteristics, the raw materials will not be damaged and will be stored in the warehouse for a long time.
Otherwise, the wood will swell and paint and varnish products will fade.
Often, if the regime is not observed, mold and stains appear on the raw materials, indicating that the wood is prone to decay.
For initial production you will need:
- Workshop premises;
- Warehouse for finished products;
- Trade premises;
- Administrative office or central office.
Equipment for the enterprise
High-quality furniture production requires high-tech equipment and components.
To produce furniture parts, you will need the following types of equipment:
- CNC-machines, with simulation programs;
- Jigsaw;
- Milling machine;
- Lathe;
- Other tools.
It is almost impossible to create competitive furniture by working only with domestic suppliers. This problem is solved only if the company itself provides the necessary equipment of the required quality or resorts to the use of foreign technological products.
Staffing
Workshop work requires specialized knowledge of furniture manufacturing. For hiring, you will need masters with the appropriate qualifications. Select personnel wisely, because the quality of products and the efficiency of order execution will depend on their work.
For the first time, for a standard workshop of a start-up furniture business, you should hire:
- 5-7 workshop specialists with experience in the main types of machines when processing wooden blanks, chipboard and MDF;
- 1 production master with experience in organizing production activities;
- 1 driver with a driving category for cars and trucks.
Remuneration for labor takes place in accordance with the Labor Code. Respect for the rights of workers for a businessman is one of the priority areas.
For the first month of work, the total salary of all employees must occupy a special expense item and be at least 150,000 - 200,000 rubles.
The average pay depends on the region where the business is being implemented. In big cities, you need to take the maximum amount threshold.
Purchase of raw materials
There are a number of distributors in the capital who will help you purchase equipment from foreign manufacturers.
Start-up companies quite often order the following components abroad:
- Laminated boards;
- Films;
- MDF boards;
- Fittings;
- Paints and varnishes;
- Sliding systems;
- Aluminum profiles, etc.
Preference is given to Western companies, especially Germany, Latvia, Great Britain and Sweden. Manufacturing companies from these countries guarantee durability and, of course, excellent product quality.
If you are guided by the estimated volume of production, it is quite possible to plan the volume of purchases. You will need to choose reliable suppliers who will provide your business with the required raw materials, accessories and related products for production.
Sales and promotion
Even if your company produces unique and high-quality furniture, sales of products will be very difficult without the right sales mechanisms. The main thing is to competently build a sales policy, keep the business in stable positions and, as far as possible, continue its development.
Experts in the business world advise to be guided by the following components when building sales tactics and, of course, promotion:
- Products;
- Price policy;
- Promotion;
- Place of sale.
Do not get hung up on your products, try to navigate the world of furniture, visit exhibitions, participate in competitions, be on the wave of new products and current trends.
Remember about your competitors, set an average market price based on a flexible policy of discounts and bonuses to attract new customers.
At the moment, there are two main ways of implementation: sales of products through our own outlets and work through distributors.
The first way will build the name and reputation of your new company, as well as make the entrepreneur more independent. However, this path is complicated by considerable financial losses.
A more effective way would be to sell your own product through existing distributor stores. You can sell furniture in bulk, rent it out for interest, or rent one of the halls. The distributor will take the risk of the sale, which will require you to prove your competitiveness.
It is worth considering that the furniture business can be promoted through an online store. Create a convenient website with an up-to-date product catalog and price list, register in the catalogs of furniture companies, open pages on social networks and organize a newsletter for potential customers.
Internet marketing is the most suitable route for a start-up business. It is inexpensive and can produce real results.
The financial analysis
To calculate the initial business plan, you need to take into account all the initial and recurring investments. This includes the costs of launching the project, promotion, sales of goods and advertising. It is necessary to compare them with the financial indicators of the project: profitability, investment and payback period.
Main expense items
Focus on such expense items as:
- Purchase of equipment and related tools (1,000,000 rubles);
- Purchase of consumables (150,000 rubles);
- Registration of an enterprise (30,000 - 40,000 rubles);
- Raw materials (150,000 rubles);
- Remuneration for workers (150,000 - 200,000 rubles);
- Rent of premises (50,000 rubles);
- Advertising (20,000 rubles).
Prices are approximate, there is a reasonable margin of error. 1,600,000 rubles - this is the approximate cost of starting a furniture business.
Business profitability
The furniture business differs from other areas of entrepreneurial activity with a high percentage of profitability - 40% per year. Therefore, even in the early stages of a business, amazing results can be achieved.
With a profitability of 30%, the expected profit will be 400,000 rubles per month. With intensive business development, this amount will increase by 20% every year. The payback period for such a project will be 14 months.
Pros and cons of furniture business
Advantages:
- High profitability up to 40%;
- Constant demand for products;
- Relatively short payback period;
- Expanded choice of ways to sell goods;
- Possibility of narrow specification for one type of furniture;
- A large number of suppliers of raw materials and low prices for materials;
- Governmental support.
Flaws:
- Quite high requirements for personnel;
- Lack of high-quality equipment in our country;
- The high cost of the initial business project;
- Special conditions for keeping raw materials in warehouses;
- Sanitary and other requirements for the materials used.
conclusions
In view of the fact that in Russia one of the priority areas for many years has been the construction of apartment buildings and cottages, it should be assumed that in the next decades, the furniture business will remain afloat.
Over the past few years, the demand for furniture has increased significantly. At the same time, the number of Russian companies in this area is incredibly small. This is due to the high level of competition with Western manufacturers and poorly developed strategies of bankrupt companies.
If you correctly build a furniture business, the profitability of production can reach 40% per year. But in order to achieve such results, you will need to carefully approach the matter.
Dmitry Kuprienko, an experienced entrepreneur in the field of furniture production, shares practical advice on how to start and organize a business in the production of furniture, 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 with the manufacture of cabinet furniture in small workshops a few years ago have become quite successful and have expanded their business. Today, some of these organizations, in addition to the production of kitchens, wardrobes and other interior items, provide the population with a number of other services. Usually it is sawing laminated chipboard and making facades from MDF according to customers' sizes, pasting the ends of PVC parts and melamine edging, assembling doors from aluminum profiles and selling furniture fittings with accessories.
With 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 and the presence of large production areas at the initial stage. With a skillful approach, rational use of earned money and a certain amount of luck, you can literally have a decent income in 1-2 years.
How to start a furniture manufacturing business?
Dmitry Kuprienko(author of the material) - for more than ten years engaged in the production of custom-made cabinet furniture:
"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 agile entrepreneur takes his place.".
Since, as already noted, starting a small business for the production of cabinet furniture does not imply large cash costs, there can be no talk of any expensive advertising campaigns and 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 hardware stores, since the chances of finding a customer in such a place are quite high. Renovators often plan to purchase new furniture as well. 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 masters via the Internet. Of course, promoting such your own virtual store will require financial and material costs from you, but not everything is done at once. Gradually developing the main production, at the same time, be engaged in the development of an Internet resource, which, with a successful combination of circumstances, will provide you with many orders - the dream of all entrepreneurs without exception.
How to choose the right supplier of materials?
Sufficiently high competition in this sector forces firms providing this kind of services to pursue approximately the same policy in relation to finance. Therefore, choosing an organization based only on prices would be fundamentally wrong. Some may sell some products cheaper than competitors, while others - 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 the components are sold in different price categories, since customers have unequal income levels, and not everyone will be able to pay for expensive elite materials, and some only need such materials. Therefore, you must have the freedom of choice in one place.
The timing of the execution of your orders and the discounts that are provided to regular customers are no less important. Duplicate information received from company 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 across the city, with the current traffic congestion in the daytime, take up a lot of precious time.
The territory should have convenient entrances to the workshops and properly equipped areas for loading parts into your vehicles. It's good when in such places there are sheds that guarantee the safety of parts in any bad weather.
Search for premises and purchase of equipment
For the manufacture of 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 delivered 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 less than 20 squares is not recommended.
In addition, pay attention to the possibility of maintaining the temperature in it at the level of 10-15 degrees in the autumn-winter period. Calculate immediately how much it will cost you. Sometimes cheap rent is completely offset by expensive heating. There was no need to remind the room that the room should be dry, since this is one of the main conditions, and neglecting it, you risk a lot.
It is also important to be confident in the safety of all property, because over time, if the business develops successfully, the shop may simultaneously contain components and equipment worth several thousand dollars. Do not forget here about ensuring convenient loading of finished furniture and unloading of the brought parts with fittings.
When buying equipment, many cannot decide on the class of hand-held power tools. Opinions on this matter are very opposite: some prefer to purchase inexpensive goods and change as needed, others work only with expensive products of world famous brands.
There is also a tool in the middle price range, so it is probably worth stopping your choice on it at the very beginning. In addition to production needs, it is always useful for other things. In order for you not to have any problems during the execution of orders, you must have in your arsenal:
- Electric drill - 2000 rubles;
- Cordless screwdriver - 2500 rubles;
- Mains-powered screwdriver - 2,000 rubles;
- Jigsaw - 2200 rubles;
- Manual milling cutter - 2500 rubles;
- Grinding machine - 2500 rubles;
- Electric face saw - 7,000 rubles;
- Industrial hair dryer - 1600 rubles;
- Perforator - 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 accumulated money for the development of production, you will acquire more sophisticated equipment that provides a higher level of production. In the meantime, it is quite possible to do 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 instrument will amount to about 30 thousand rubles, and prices can deviate in both directions by about 20%.
Software
No, we are not talking about expensive CNC machines, but just two programs that can significantly facilitate your work at the stages of furniture design and when ordering cutting laminated chipboard. One way or another, but you will have to do this anyway, until well-going affairs allow you to hire an employee for this purpose. Without the use of software, this entire process will take a lot of time and effort, and errors in calculations are also possible. Therefore, you should pay attention to very simple and useful programs:
PRO 100- a program created for the design, as well as the construction of furniture. With its help, you can easily carry out both the visualization of the object and the calculation of 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 fairly realistic 3D pictures.
Cutting- a program, the purpose of which is to assist in drawing up the optimal option for cutting sheets of laminated chipboard and MDF. 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 unnecessary waste. Cutting saves both time and money.
Besides, it is advisable to have a laptop. Your future work is associated with frequent visits to homes, offices and other objects where measurements will be made. Almost all clients in this case are childishly impatient, they want to immediately see how their furniture looks. With a laptop and PRO 100, you can render in 45-70 minutes. By the way, this greatly increases your chances of getting an order.
Prospects for the development of the furniture business
Following our recommendations and putting aside some of the money earned for business development, you can reach a new quality level within 2-3 years. In the process of fulfilling orders, acquaintances are made with construction crews, since repairmen and furniture makers, in fact, are inseparable. Connections such as the Internet project will allow you to increase the number of clients and increase your income.
An important factor in guaranteeing success of undertakings, is the constant expansion of the production base both in terms of increasing areas and purchasing new equipment.
From the first days of work, you will dream of panel saw and edge banding machines... They provide independence, quick on-site error correction and cost savings.
But you can't rush to buy them, many craftsmen, turning ahead of time to a bank or to individuals for a loan to purchase them, incorrectly assessed their capabilities and subsequently suffered losses. Therefore, it is better to make such serious purchases for your own money or borrow an insignificant amount.
Expensive machines only justify themselves with the appropriate amount of material to be processed, only then are they effective.
Their cost is approximately:
- Panel saw (made in China) - about 200,000 rubles.
- Curved 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 given prices. But even familiarization with the average cost of machine tools, which are usually purchased for small workshops, is enough to avoid making impulsive decisions. Without a carefully calibrated business plan, which is confirmed by an increase in the number of orders, it is not worth starting this event. The delay in such a purchase may be just as undesirable for effective development. You will simply be wasting money and time.
Furniture making has always been considered a promising occupation, especially in our country, since a huge percentage of the population still uses old headsets 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 be with work. You just need to organize it correctly.
New business idea: Production of fences and fences for private households under the FenceLego franchise "(novelty, lack of competition, great demand even in the current market conditions).
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