Metallurgical enterprise business plan
After the 2021 crisis, the industry has again seen a noticeable growth. Today, in industrial production, metallurgy accounts for 18% of the total volume, and in the export volume - 14%. At the same time, 10% of the production volume falls on ferrous metallurgy. But 80% of all capacities are provided by nine large enterprises. The main products manufactured in this industry are pipes, for the export of which Russia ranks third in the world. Modernization of production and installation of new advanced equipment helps to create competitive products.
The share of non-ferrous metals production in the country's production is just over 10%. At the same time, the country occupies a leading position in the world export market, yielding in some indicators only to China.
Favorable for the opening of production is the internal policy of the state in relation to metallurgical enterprises. It is important that now the country has launched a strategy for the development of the metallurgical industry, calculated until 2021. All this suggests that, in general, the climate in the country for starting such a business is quite favorable. You just need to figure out how to correctly open production.
To get started, a business plan should provide a form for registering an enterprise. As a rule, registration of an individual entrepreneur is not suitable for such production - you will have to work mainly with large enterprises supplying raw materials. Large companies will also purchase your products in bulk, so it makes sense to register a metallurgical enterprise as a legal entity.
There are several forms of it that can be used depending on the attraction of investments, the number of founders and their role in shaping production. So, if several persons combine their capital, but the actual management will be carried out by one person, register a limited liability company (LLC). Also, an LLC can be established by one person, but he, too, will be responsible only for the amount of capital invested in the company.
If the founders of the company plan to take an active part in its work, it makes sense to register a partnership. With such an organization, all income and losses are distributed among all participants in proportion to the invested capital. In doing so, they are responsible for their property. You can appoint one or more of them who will bear the risks of their contributions, but not participate in the activities of the enterprise. In this case, it will be a question of organizing a limited partnership.
Another form in which a business can be registered is a joint stock company. Its authorized capital is split into a certain number of shares, which investors receive in proportion to the invested capital. They bear risks within the limits of the value of these securities.
To work with metals, you need to issue an appropriate license. This permission simultaneously applies to non-ferrous and ferrous metals. Each region has its own licensing authority, whose activities are related to the development of the economy, trade and industrial policy in the region. To obtain a license, a business plan must include at least 60 thousand rubles. The document is issued 45 days after the submission of documents for registration and has no expiration date.
The license allows you to collect, receive, transport, process, sell metal and other related activities. To obtain a license, the following papers must be submitted to the licensing authority:
- receipt of payment of the fee;
- the corresponding statement;
- diplomas of specialists and manager;
- documents for equipment ;
- documents confirming the right to use the site, office;
- decision on the appointment of the general director;
- certificates of INN, USRLE, OGRN;
- Memorandum of Association, Articles of Association;
- Previous license, which must be renewed (upon renewal).
The desire to produce any product arises among many; beginners and experienced craftsmen create do-it-yourself metal products for sale. Some people get quite interesting designs.
Where can you focus your attention? How to start making products from steel and non-ferrous materials? What is in demand today? What products will be in demand in the near future? What tool do you need to have on hand? There are many questions. It is rather difficult to answer all of them. But the questions of finding their place in the market will still worry many potential entrepreneurs.
From idea to market
The peculiarities of the market are such that a very tiny product may be in demand, and large products, in which a lot of thought, labor and talent are invested, will turn out to be unnecessary. There are enough paradoxes in free trade.
Hardware is still in greatest demand.
- Nails are bought in kilos. They are used in construction, the manufacture of other goods, in the production of containers.
- Self-tapping screws came to replace nails. The advent of cordless screwdrivers changed construction technology and furniture production. It is much easier and easier to assemble any spatial structure on self-tapping screws than to use disposable fasteners.
- Screws (bolts) and nuts are fasteners that connect individual parts to each other. The demand is enormous. It is difficult to imagine any production that does not use threaded hardware.
- Wire staples are used together with staplers. Mechanical, electrical and pneumatic staple drivers are used in all walks of life. A small box with staples is found in every home. The product is not stale on the shelves.
- Blind rivets and threaded rivets with the advent of a tool for quickly connecting parts into finished products help in the production of complex one-piece assemblies. The assortment of rivets is constantly expanding.
- Welding electrodes are soft steel wire coated with protective compounds. Even ordinary clay on the surface of the wire rods allows you to weld parts together with electric arc welding.
To start the production of hardware, it is enough to purchase automatic machines, for example, a nail machine. All that remains is to thread the wire from the next roll into the machine and adjust it to the desired size of the nail. All further work goes on without human participation.
Equipment for production and other hardware is not much more complicated. In a small workshop and even in a garage, entrepreneurs organize completely modern mini-factories that produce popular goods.
Those who managed to set up the production of hardware in the early nineties of the last century still continue to produce them. Small factories export staples, nails, screws, screws, bolts and nuts to dozens of countries. Electrodes in the retail network are purchased in tons.
What can an amateur manufacturer offer?
Cold forging is a method of metal processing without preliminary heating. Because of this, it does not require expensive and energy-intensive forging furnaces and forges, which are used in hot forging. There is also no need for a manual or pneumatic hammer. The main advantage of this method over casting or stamping is the high strength of the products. As a rule, equipment for cold forging of metal consists of several machines that, by means of mechanical force, bend bar metal, that is, a square, a bar, a profile pipe, a strip or reinforcement, in one way or another.
- Shaped fences, gates and fences;
- Decor elements of building structures, that is, brackets for lanterns, curly fences for stairs, verandas and balconies, sets for awnings and the like;
- Decorative elements of small building forms, such as gazebos and garden furniture;
- Various grilles.
The manual cold forging business has several features that make cold forging very attractive as a starting point for starting a business from scratch. To understand what these features are, you should get a clear idea of what stages the manufacture of products consists of and what kind of forging equipment is required for cold forging.
Manufacturing technology of products by cold forging
- Next, you need to bring the sketch in accordance with the actual dimensions of the product. This is necessary in order to remove the parameters of the elements from which it will be assembled.
- Then the amount and assortment of the required metal is calculated, as well as the calculation of what sections of high-quality metal will be required in order to make certain elements.
- Before starting to make elements, the metal must be cleaned of rust. To do this, use a turbine with an appropriate nozzle.
- Next, the rods, circle, strips, square and other profiled metal are cut into pieces of the required size. For this, a cutting saw or a grinder with a mill is used.
- The elements of the product are made by bending and twisting pieces of metal, for which the standard forging equipment for cold forging is used.
- Finished elements are assembled into a finished product, for example, a fence section or the like, by welding. It is also possible to fasten them together with clamps or in a lock, but this method of fastening is used much less often.
- After that, the tack and welded seams are cleaned of scale with a turbine, after which the product is primed and painted.
All that remains is to deliver it to the installation site.
Required equipment and tools
Do-it-yourself cold forging is carried out using a standard set of equipment, consisting of the following machines:
- Gnutik is used for bending a steel square, circle or bar at an angle. It can also be used to bend metal with an arc with a given radius of curvature.
- The wave gives a wave-like shape to a piece of metal, its equipment allows you to get a wave of the required size and curvature.
- The snail is used to twist the bar into a spiral.
- Twister is used to twist the bar along its longitudinal axis with a set period.
- A flashlight is a device that works on the same principle as a twister, but it additionally makes it possible to intertwine pieces of a twisted bar or other high-quality metal with each other.
- Circular saw or powerful grinder with a cutter for cutting pipes, bars, circles and squares.
- Welding machine.
- Two or three impellers with a set of nozzles for cleaning metal from rust and cleaning welded seams.
- Spray gun for painting finished products.
For any type of business, profitability is the top priority. The metal trading business will not be an exception, since it is for this that an entrepreneur invests money and spends his energy. The main thing in this matter is to choose the most suitable field of activity for yourself, draw up a clear business plan and take into account various factors that can negatively or positively affect further work and income. If a businessman decides to tackle such a complex business as metal trading, first of all, he will have to take care of drawing up a clear business plan, a room with the necessary equipment and the selection of qualified employees.
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How to start your own metal business?
Metal trading is a complex area of business and you need to prepare carefully before investing money. First of all, you need to study the market and understand which products are most widely represented, and which ones are in the greatest demand. This will allow you to analyze the competition and calculate the return on investment.
Obtaining information about companies that occupy a given niche is an important condition, since the product must be competitive in order for the entrepreneurial activity to bring proper profit.
Seasonality plays an important role in any type of trading. Metal sales are no exception. It is important to take into account that at certain times of the year, the sale of metal products (for example, metal siding) will be more active. This is due to the fact that in the warm season, construction is opened much more often.
An important issue is the markup that an entrepreneur can set on his product. In order to understand the approximate cost of a metal, you need to monitor prices taking into account all the closest competitors. It is also worth looking at data from the worldwide web. On the websites of metal sellers, you can find a lot of interesting information that will be useful when organizing a business.
After these points are resolved, you can start looking for a room. It should be large and best of all if it is an industrial area. It is necessary to immediately select qualified personnel. A large part of the success of the entire enterprise depends on the work of hired employees, therefore everyone, from the loader to the manager, must do their job with high quality.
Think before you decide to start a business, weigh the pros and cons. You may be better off with another activity, such as opening a coworking center. We suggest that you familiarize yourself in more detail with the correct investment of money and make money on it.
Registration and execution of a metal sale business
You need to register with the tax office and the FIU. In the Federal Tax Service, it is better to choose the organizational and legal form of an individual entrepreneur, which will minimize tax reporting. It is imperative to register with the Pension Fund and the FSS, since without this it will not be possible to officially hire employees.
It may seem that the metal business is unattractive for most merchants due to low profitability, but the reason for their loss of interest lies in another nuance - the launch of a project requires serious preparation and careful calculations. If you understand the specifics of this business and can apply theoretical skills in practice, then the results from such activities will be more than satisfactory.
Stages of implementation of a metal business idea
The simplest and most profitable way of earning money will be the resale of metal purchased from the population or firms at low but competitive prices.
First of all, you need to find out if there is a scrap metal collection point in your city that offers high prices for raw materials accepted. In the presence of an already "untwisted" point, opening your own recycling center will be a waste of time - people will go to their usual place by inertia. And if you try to outbid your competitors, you are likely to get serious losses.
Another option is to create several collection points at once in small settlements that competitors have not yet reached, and to transport the collected scrap metal to a warehouse in your city. The implementation of this idea will allow you to set the best prices without looking back at the prices of your business colleagues, because the residents of the town or village will only come to you. Ultimately, a profitable purchase of raw materials will compensate for the fixed costs of renting premises and transport.
In some cases, even the presence of a large reception point does not prevent a merchant from opening a business on metal, because the point may be located in another area of the city or purchase raw materials only from wholesale suppliers bringing tons of metal. This situation will make it possible to organize reception centers focused on single suppliers - ordinary residents of microdistricts. And having accumulated the required amount of metal, reaching several tons, it will be possible to transport raw materials to a company engaged in wholesale purchasing.
Choosing a place to conduct a "metal" business
Your level of income will largely depend on the correct location of the scrap metal collection point. Therefore, if you do not want to waste time and money, first consider all possible options for suitable premises, determine the advantages and disadvantages of each of them, and then purchase equipment and form a staff.
The owner of a private house, as an option, can organize a workplace in his yard and purchase metal at any time of the day. On the one hand, it is convenient - you do not need to spend extra money on the purchase of premises or on monthly payments of considerable amounts to the landlord. But on the other hand, do not forget about the neighbors living nearby, who may not like your activity. Air pollution from approaching cars, noise from dismantling and sorting metal - all this can lead not only to a deterioration in good neighborly relations, but also to the imposition of a monetary penalty by the regulatory authorities.
It is quite difficult to find an absolutely ideal place to receive scrap metal, because each option, in addition to obvious advantages, has its own disadvantages. By opening a collection point in a garage or a summer cottage, you can solve the problem with your neighbors, but the business owner will have to face other challenges. The first step is to resolve the issue with the watchman and look for a reliable person who can ensure the safety of the received raw materials. At the same time, an employee hired to work must not only protect scrap metal from other people's encroachments, but also personally not take what does not belong to him.
It will be quite difficult to recognize the fact of theft of several kilograms, because tons of metal will be stored in the warehouse. Another problem may be a lack of storage space or an inconvenient approach to the location of the collection point. Even in a large garage, it will be difficult to fit tons of metal, let alone sort it. Plus, the roads leading to garages or summer cottages are often unsuitable for large trucks.