Manufacture of hardware and fasteners: how to translate a business plan into reality

The production of fasteners (hardware) as a line of business does not lose its popularity among entrepreneurs due to its high profitability and constant demand for products. Hardware products are in demand both by construction companies and individuals. Not a single repair and not a single construction site is complete without the use of various fasteners.

The general concept of hardware products includes hundreds of names and positions, the production of which requires specialized expensive equipment. In the general list of hardware, perforated fasteners occupy an advantageous position, which are in great demand in the construction market and require relatively small investments to start production in comparison with other hardware.

Perforated fasteners and their production

The production of perforated fasteners is a line for the production of products of various shapes, in which a special machine makes a lot of holes. The most popular among consumers are corners, mounting tapes and plates. When launching production, an entrepreneur needs to decide from which raw materials the fasteners will be made. Builders give preference to products that have a high class of zinc coating, thanks to which the product becomes universal and suitable for both external and internal decoration.

An entrepreneur should think about whether he will buy already galvanized raw materials or carry out the galvanizing procedure in his workshop. To do this, you need to compare the cost of raw materials with and without coating, and then, based on the difference in price, calculate the benefit from installing equipment for galvanizing in your workshop. As a rule, it is more profitable to apply the coating on site, but the purchase of raw materials already prepared for production from the official dealers of metallurgical plants is accompanied by the provision of certificates of the coating class and guarantees the high quality of the perforated fasteners.

In general, the whole process of manufacturing perforated fasteners can be divided into 3 main parts:

  • preliminary preparation of raw materials (steel sheets);
  • marking and cutting of steel strips;
  • perforating and shaping the strip.

To ensure the release of quality products, special attention should be paid to the choice of equipment for the production of hardware.

Equipment

The demand for fasteners gives rise to a large number of proposals on the market for professional equipment, offering new and used machines at a variety of prices. Used equipment, of course, will cost a businessman cheaper than new, but how long it will last and how much money will have to be invested in repairs in the event of a breakdown cannot be predicted in advance. That is why we recommend purchasing a new machine that has a warranty service and does not require preliminary repair.

A machine for the production of hardware, depending on the production capacity and the country of origin, an entrepreneur can purchase at a price of 800,000 to 3,000,000 rubles. Do not rush to immediately buy a heavy-duty expensive machine and invest more than one million in the shop: the hardware market is distinguished by seasonality and a large number of competitors. To get started, stop your attention on machines up to 1 million rubles. In addition to the machine, to create an automated production line, you will need to purchase an decoiler, a guillotine, a receiving table and a roll forming machine. The purchase of additional equipment from the entrepreneur's wallet will take another half a million rubles. In total, the creation of a production line will cost about 1,300,000 rubles.

We open our own production of hardware

Starting your own business with the production of hardware is a fruitful and promising idea.

The market for construction, production of electrical and furniture products, fittings - quality fasteners are required everywhere.

What is the best way to start a project

Finding out as precisely as possible a region's need for fasteners is the first step of an entrepreneur.

For example, if there is a production of electrical fittings nearby, then low nuts of small diameter (M1.5 ... M4) and screws for them will be in demand.

Construction companies will be interested in the production of anchor bolts, plates, studs, and furniture makers will need self-tapping screws and screws.

A wide range of products is always a big plus for its subsequent implementation.

The production of hardware in this sense is very favorable, since the equipment for the production of this type of product - cold heading machines (HVA) - is quite easy to readjust.

It is important to at least roughly determine the required production capacity. The production of fasteners pays for itself already with M programs from 4000 pieces per month. Further, it all depends on the standard sizes of bolts, nuts, rivets, etc.

For example, for medium-sized hardware, the weight of one product is 10-15 g. Therefore, the total minimum productivity of such a mini-plant should be at least 50 tons, and the annual capacity should be about 6000 tons. For small hardware, this value will be reduced to 1000-1500 tons.

It makes no sense to produce large hardware at small enterprises: the cost of purchasing equipment and materials will be very large, and large consumers will prefer to order fasteners from specialized industries or produce them on their own.

The production of fasteners (hardware) as a business line does not lose its popularity among entrepreneurs due to its high profitability and constant demand for products.

Being well-versed in the construction industry, a professional can start to implement almost any business project - many of the areas are characterized by high profitability. But beginners also have every chance to launch a profitable enterprise by choosing a low-cost direction characterized by high consumer demand for final products. If you buy equipment for the production of hardware and establish sales contacts, you can quickly get used to the market and start earning good money.

Starting investments - from 1,500,000 rubles.

Market saturation - medium.

Difficulty starting a business - 6/10.

How to start a hardware plant? What does an entrepreneur have to consider?

Correct business design

It's great if you draw up a clear business plan at the start of your business development. On the pages of the project, you will analyze the sales market and competitors, calculate costs and potential profits.

Are you going to borrow funds from banks or private investors for the production of construction fasteners? Then you can't do without a business plan! You must prove to the lenders that the business is profitable.

And the first point of the business plan is registration of an enterprise. To open the production of hardware and fasteners in Russia, register as an individual entrepreneur or LLC. In parallel, you will need to register with the tax office. There is also a long work to be done on registration of technical conditions, according to which the manufacture of fasteners will be carried out in the future, which will entail both money and time costs. You cannot do without obtaining permits from the sanitary and fire services - but this will be already at the stage of commissioning the line and starting the shop.

If you plan to manufacture and sell hardware and fasteners under your own trademark, you should also consider this point by registering the brand and developing the original design of the product packaging. But a novice entrepreneur can refuse from this - it will take a long time to wait for the approval of government agencies (up to a year) and will have to invest a lot of funds.

Being well-versed in the construction industry, a professional can start to implement almost any business project - many of the areas are characterized by high profitability. But beginners also have every chance to launch a profitable enterprise by choosing a low-cost direction characterized by high consumer demand for final products. If you buy equipment for the production of hardware and establish sales contacts, you can quickly get used to the market and start earning good money.

Starting investments - from 1,500,000 rubles.

Market saturation - medium.

Difficulty starting a business - 6/10.

How to start a hardware plant? What does an entrepreneur have to consider?

Correct business design

It's great if you draw up a clear business plan at the start of your business development. On the pages of the project, you will analyze the sales market and competitors, calculate costs and potential profits.

Are you going to borrow funds from banks or private investors for the production of construction fasteners? Then you can't do without a business plan! You must prove to the lenders that the business is profitable.

And the first point of the business plan is registration of an enterprise. To open the production of hardware and fasteners in Russia, register as an individual entrepreneur or LLC. In parallel, you will need to register with the tax office. There is also a long work to be done on registration of technical conditions, according to which the manufacture of fasteners will be carried out in the future, which will entail both money and time costs. You cannot do without obtaining permits from the sanitary and fire services - but this will be already at the stage of commissioning the line and starting the shop.

If you plan to manufacture and sell hardware and fasteners under your own trademark, you should also consider this point by registering the brand and developing the original design of the product packaging. But a novice entrepreneur can refuse from this - it will take a long time to wait for the approval of government agencies (up to a year) and will have to invest a lot of funds.

How complex is the hardware production technology?

Hardware production technology, considering that all the "work" is taken over by machines and devices, is not difficult. But without knowing the basics at all, you still can't cope on your own - to start a smooth process, it is better to invite a specialist in this field.

Despite the economic crisis in Russia, the construction industry is growing and developing. Metal fasteners are used in private housing construction, when finishing facades, in interior work, installation of roofs and floors. They remain in demand, and their price is only growing. The production and sale of hardware can bring a good income if you approach the business correctly.

Demand creates supply

Hardware is metal fasteners. Products include self-tapping screws, nuts, screws, anchors, washers, nails. The price of hardware is not high, but the goods are sold all year round and in large quantities. Private traders buy self-tapping screws, screws and nuts in kilograms, and large construction companies - in tons. A manufacturer of high-quality fasteners can receive net profit from 1 million rubles per year.

Production pays off quickly, because if you reach large customers, you will have to work in two shifts. The markup for retail sales is 100-200%, for wholesale 30-50%.

The target audience for the production of hardware will be large construction companies, private traders and specialized stores. To carry out retail sales yourself, you need to open several outlets or a specialized store. This will add another 20-30% to the total cost, which will be noticeable for a beginner.

The company offers its clients the following services:

  • Wholesale of fasteners.
  • Sale of wire, rods, mesh.

To organize sales and production, it is necessary to formalize the business with documents, purchase the necessary equipment and hire personnel. Let's talk about each stage in more detail.

Prepare documents

A legal status is acquired to organize the production of hardware. If your goal is the wholesale of fasteners to small shops and the market, then individual entrepreneurship is enough. For cooperation with serious construction organizations, you need an LLC. To register a company, it is necessary to prepare a charter and write an application to the tax office. The application specifies the activity code 28 - manufacturing of finished metal products.

To register with the tax office, you must submit the following documents:

  • Charter of the future company.
  • Application for registration of LLC.
  • Receipt of state duty payment.
  • Extract from the personal account on the availability of authorized capital.
  • Certified copies of the passport, TIN (if there are several founders, then each one).

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