Business idea: Production of kitchen furniture
Despite the fall in real incomes of Russians and the economic crisis in the country, furniture sales continue to grow. Many Russians replace their furniture sets just a few years after the purchase. Despite the fact that the supply is large, the demand remains stable, it is not fully covered, and the industry is open to new participants.
Our business plan for the production of furniture will tell you in more detail how to open a business, what to look for when starting and developing a company. The article provides approximate payback calculations that will allow the reader to assess the prospects for earning money in this industry.
Brief analysis of the market and target audience
Medium and small companies produce about half of the total volume of furniture in Russia. Experts believe that the share of such enterprises will only increase.
Large enterprises also operate in the Russian market. One of the most famous companies is the IKEA Group of Companies, which occupies about 20% of the Russian market capacity.
Furniture sales continue to grow even in times of crisis. The segments of cabinet furniture, economy class furniture are especially promising.
The furniture market depends on the construction market - the higher the volume of new housing, the more sales of interior items.
The buyers are both individuals and companies: resellers (furniture stores, hypermarkets) and entrepreneurs (for cafes, shops, offices). In addition, online furniture sales are growing.
What kind of furniture can be produced?
Before starting a business from scratch, it is important to define a specialization. It is necessary to proceed from financial possibilities: you can open a universal production, you can - production with a narrow specialization.
There are several classifications of furniture, let's choose one of the main ones - by design. Furniture happens:
- soft ;
- body ;
- built-in ;
- folding, folding;
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 goods produced. To meet them, you will have to open a full-fledged furniture production workshop.
Where to start furniture production? Before you open a furniture workshop, tune in that small and medium-sized businesses in this area 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:
- corpus ;
- soft ;
- advertising ;
- for trade organizations.
Advertising 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 showcases are required on which the assortment will be displayed.
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, however, wicker chairs, sofas, wardrobes continue to be imported from abroad, leaving them in a high price segment.
An excellent specialization for small and medium 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 market for antiques and advertising services 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
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, 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.
Equipment, depending on the specialization, must be spent 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.
A comfortable home today is inseparably associated with furniture. All our concepts of comfort and grace are invariably reduced to various interior elements. Children's room, kitchen, living room and even bathrooms - all these rooms in the modern world are not complete without various wardrobes, beds, armchairs or at least shelves.
The development of the furniture business has two main solutions: to open an independent production, or to sell finished products made by someone else. As a rule, those who have worked in the furniture industry for a certain number of years come to the decision to open their own business, having certain skills in this segment.
And at this stage it is necessary to develop a business plan for the furniture business.
As the best illustrative example, we should consider the option of producing cabinet furniture aimed at the average price niche. The main range in this case will include office and kitchen furniture, wardrobes, etc.
An incomplete production cycle will be taken as a basis: the purchase of the necessary raw materials is made from suppliers, and the company manufactures finished products aimed at selling to a client audience. Available personal funds will be considered as start-up capital, which will significantly reduce the payback period of the entire enterprise.
Project Marketing Policy
Furniture manufacturing market analysis
When developing a business plan for the production of furniture, first of all, a qualitative analysis of the market should be carried out. Here the consumer audience, suppliers and competitors should be studied in detail.
The furniture sector in Russia is subdivided into the following main areas:
Administrator "over a year ago
In order to be aware of all the intricacies of this production, you do not need to undergo special training. To successfully conduct business, you must have basic knowledge, concepts and little experience in this area. Luck and patience are not the last ingredients for your success in this business.
I'll tell you how to open a profitable business from personal experience. In 2021, he was left without work, as it is fashionable to say now, he was sent on an indefinite leave, and then the idea of working "for himself" appeared. Due to salary delays, there is no money to launch something 100% profitable. I don’t really believe about making money on the Internet, but I stressed for myself that in reality, like on the Internet, you can make good money on resale. Having studied the demand market in my region, I understand that products, coffins, furniture are always in the top five most bought products. So where did I start?
Finding a place for a custom furniture business
The first thing to start with is choosing the place where your furniture will attract the most attention. In my city there was such a shopping center - three floors of furniture and only furniture from one company was located in it.
I came to the trading floor and under the guise of buyers, began to ask the manager that, for example, this wardrobe is good, but it will not suit me because I need not a sliding wardrobe, but a sliding wardrobe; but there is a wider bed that would just fit into my niche, of course this was not the case and I asked, is there any furniture to order? The answer was no, since the furniture was all from the same factory and no one would change the size because of one client.
Then a conversation with the director. With a proposal to make custom-made furniture. He liked my idea, apparently the managers have already said that they often ask, and he agreed to give me an area of 14m2 for 30,000 rubles.
For me, it was not money that was lifting at that time, and I suggested that he just place his advertisement - a stand with a clearly visible readable advertisement and brochures on each table of the order. He argued that it is worth first seeing how people will be interested, and then I will take off the square.
Advertising and customer acquisition
So when I ran home, I started with brochures. It's simple - a black and white printer, creative ideas from the Internet. My slogan is "All people love to buy, but many do not want to be sold." This means that a person must make a decision himself, and all catchy, bright advertising only leads to a rise in price.
The next day I posted these advertisements in the mall. People began to call ... I just politely answered everyone that there was a lot of work and that we would have to wait a month or two, when we would be a little freer. After analyzing the situation, I realized that on average I would have about 20 potential customers a day. And having examined all the pros and cons, I realized that a profit of 5000 per person would approach 100,000 per week.
How to find and work with order executors
You are an entrepreneurial person and want to start your own business. Why not take advantage of the widespread desire of people to get rid of annoying old furniture and renew the environment! One of the most promising small business areas is the production of kitchen furniture. This is a great business idea that can generate good income for an entrepreneur. Provided that the investment is done correctly.
Why is the production of kitchen furniture preferred?
The production of kitchen sets occupies a significant share of the furniture market (about 22%). Moreover, in this area all categories of entrepreneurship coexist peacefully and calmly: both large corporations and private business. This is due to the fact that for quite objective reasons the sales market was divided between them. Piece-production is not a sphere of interest for furniture factories. They deal with bulk orders and don't readjust production to make a single small batch order, no matter how expensive. Representatives of small and medium-sized businesses, on the contrary, are happy to take on such work. Individual orders are their main bread.
Kitchen Business Competitive Analysis
The level of competition in the furniture industry is extremely high. However, a newcomer has a chance to gain a reliable competitive position in the market by occupying a niche, the demand for which is not satisfied by the existing supply.
For example, you can capitalize on the widespread trend of purchasing kitchen sets from local manufacturers. Kitchens of the "economy segment" and the middle price category are not transported from afar. It is unreasonably expensive. Therefore, buyers' choice is limited to the assortment of regional production. A novice entrepreneur can take advantage of this and not invent something new, not come up with innovative design models of kitchens. It is enough to study the capabilities of competitors and occupy a narrow niche that is still empty or almost undeveloped.
You can start solving the problem in a different way. In most cases, private entrepreneurs make solid, but uncomplicated, simple pieces of furniture. These are products that meet the requirements for products sold at a low price. Many manufacturers do not have at their disposal the entire list of equipment and inventory required to create original furniture. Their products are in demand due to their cost effectiveness. In this case, a good idea and creativity can help a beginner. He will be able to compete with experienced firms, applying fashionable "chips", technological know-how, new colors, contemporary design, covering the segment of rarely used materials.
Step-by-step instructions for starting a kitchen furniture business
The organizational and legal form (OPF) of the company being opened is determined based on the planned client segment and resource capabilities. If the circle of your clients will be limited to individuals, then it is enough to issue an individual entrepreneur (IP). If you plan to include state institutions and legal entities in the list of your clients, then an LLC or CJSC will be suitable for your activity. The optimal solution for opening a small manufacturing enterprise is to choose the form of legal registration of an individual entrepreneur.
So, your initial steps:
- select the legal status of the organization being established;
- indicate the type of activity according to OKVED. Our code is 36.3, called the production of kitchen furniture;
- open a current account with a financial institution;
- register with the tax office;
- decide on the tax regime ... The most suitable taxation system is the simplified tax system;
- to draw up contracts for additional services: garbage collection, cleaning, etc.;
- in the case of starting a serial production, prepare project documentation agreed with such federal services such as Rospotrebnadzor, Rospozharnadzor and MUE "Gosenergo".
This type of activity does not require licensing. However, in order to obtain a quality certificate for finished products, you need to have certificates of conformity to GOSTs for fittings, components and materials from which the product is made.