Window business business plan: cost calculation and equipment for the production of plastic windows
The production of plastic windows is a business that is rapidly gaining popularity due to the high demand for products. When developing a business plan for this production, it is important for an entrepreneur to take into account many nuances on which profit and the number of customers depend. The costs of opening a production are quite impressive, therefore, even before opening, you should find out how strong the competition is in this segment of entrepreneurship, what pitfalls are encountered and how to organize a business so that it is profitable.
Is it profitable to open your own business?
Metal-plastic structures are very popular with consumers, because they are durable, convenient, they perfectly retain heat, do not let moisture through, and their care is minimal and simple. Accordingly, these products are always relevant and in demand among consumers.
The production of plastic windows as a business is a very profitable and profitable enterprise. With the correct organization of its work, the profitability of production can reach 30%. At the same time, entrepreneurs do not have any particular difficulties with opening, registering and running a business.
The disadvantages of production include:
- there is a lot of competition - today many firms producing metal-plastic structures are open, so an entrepreneur will have to offer customers something special (for example, make a minimum mark-up on products in order to supply windows to customers as much as possible cheap or organize a campaign for free installation of structures);
- a high threshold for entering the business - to make a profit, you should purchase high-quality equipment, a sufficient amount of materials, invest in employee training, and conduct a marketing campaign.
Business organization algorithm
When starting production, a certain algorithm should be followed. So, first of all, a business plan is drawn up, where costs are prescribed, even minor costs, the estimated profitability and possible profit. It should also reflect the additional services provided by the company, which will increase the demand for manufactured products and attract customers.
Then you need to formalize the company officially with the tax authority as a legal entity or individual entrepreneur. As a rule, it is more profitable to issue an individual entrepreneur - it requires less time and financial costs, and further simplifies reporting.
Even before the start of production, it is necessary to carry out tests that will confirm the compliance of products with certification requirements. This procedure is called declaring. In addition, you will need to obtain an opinion from Rospotrebnadzor and Gosstroy. It is impossible to conduct activities without these regulatory documents, as it will be recognized as illegal.
Selecting a location for production
As a rule, companies engaged in the production of plastic windows also independently sell their products. For this reason, two premises should be rented:
No construction today can do without PVC windows. In addition, more and more people are trying to replace old wooden windows with new and beautiful energy-efficient double-glazed windows.
This has generated a great demand for this type of product, and many entrepreneurs open their own production of plastic windows. Such companies can compare favorably with competitors due to the fast delivery time of the order. In this article, we propose to calculate the economic feasibility and develop a business plan for the window business. The aim will be to organize a small company for the production of plastic insulating glass units.
To start the production of plastic double-glazed windows, you must create a legal entity. The first step is to submit an application to EGRIP. Then register the UTII payer with the tax service. The activity for the production of PVC windows will be accounted for under the general taxation system, and the entrepreneur must calculate and pay VAT and personal income tax.
This is a confirmation of the high quality of the product and makes it possible to use it in certain climatic conditions.
Tests can be carried out both in Russia (compliance with the requirements of Building Codes, SNiP and GOSTs), and in Germany (compliance with the RAL color palette and DIN standard).
Several years ago (from 2021 to 2021) obtaining a certificate of conformity was a mandatory procedure. It has now been replaced by a declaration. The tests are carried out in accordance with the mandatory clauses of the regulatory documentation. In addition, the entrepreneur must attend to obtaining a license from the State Construction Committee and the conclusion of the sanitary and epidemiological commission.
Technological stages of production of plastic windows
The production process of PVC windows production consists of several stages.
Market niche production of plastic windows - developing and promising. But if we consider that the manufacture of PVC structures is associated with strict quality control of products, it is necessary to think over the business strategy in such a way as not to incur losses and maintain the reputation of a reliable company.
The article describes the nuances of the industry, the possible risks, the required tools, and also talks about what profitability can be achieved.
The business idea for the production of plastic windows is far from new. However, only 30% of the total number of potential consumers use double-glazed windows in our country. Consequently, the prospects for the development of private production, sale and installation of windows are quite tempting. In addition to the installation of double-glazed windows, other services are in demand within the industry - finishing balconies / loggias, production of door modules, individual structures. Potential clients of companies producing PVC products are:
- Owners of apartments, houses, other private property - the main number of clients.
- Municipal facilities that are on the balance sheet of a city or settlement.
- New buildings, production facilities and infrastructure facilities.
The ratio of the named categories of consumers is 50%, 30% and 20%, respectively.
Required Business Tools
So, where to start the production of plastic windows? Let's decide on the tools. By "tools" we mean not only the equipment used. Everything should be taken into account - from paperwork to the selection of premises and personnel, work and office.
Legal form of business
Depending on the scale of the business, the future owners register the enterprise as an individual entrepreneur or LLC. What's the difference?
Demand for the manufacture of PVC structures has been high for nearly two decades. These products are used for installation in both private houses and city apartments. Therefore, the production of plastic windows continues to be a fairly profitable enterprise. To launch a small workshop, you need to draw up a detailed business plan for the production of plastic windows. We will talk about how to do this in this review.
If you decide to engage in the production of plastic windows, the business plan should include a description of the concept of the idea, the relevance of this type of activity, a brief description of the business object and services provided, analysis of the window structures market, organization plan, legal support, production plan, features of personnel management, marketing strategy, financial plan, risks and insurance.
Characteristics of this type of activity
Many people today are interested in how to draw up a business plan correctly? Plastic windows are a pretty lucrative business. The advantage of a small enterprise is small production volumes and the ability to find an individual approach to any customer. Large companies can pose a serious threat to small businesses because they are able to sell products at lower prices and also provide significant discounts to their customers. Therefore, in this type of business, it is extremely important to work out all stages of production. Installation, delivery and installation should be added as additional services.
What are they? The main feature of the window business is seasonality. This is especially true for regions with cold winters. To minimize losses at this time of the year, it is necessary to master the technology of installing plastic windows in winter. Also, it will not be superfluous to work out a special system of discounts for installation in the cool season.
Modern windows are quite complex. Materials for the manufacture of plastic windows can be different, but the basic principles of operation remain unchanged. Double-glazed windows are installed in profiles equipped with tilt-and-turn fittings. During installation, they are also additionally reinforced with metal. The space between the glasses is filled with rarefied air. It is less humid and therefore does not form condensation drops. To keep the air dry, a special moisture-absorbing powder is placed between the glasses. Also, in modern high-tech structures, the space between them is filled with argon.
According to the method of opening, plastic windows are divided into:
- swivel: the most common type of construction among all PVC windows;
- hinged at the top;
- deaf, without rotation axes;
Plastic windows have long gained popularity, but so far only 30% of the population have managed to replace old double-glazed windows. It is clear that the field of activity in this area of business is wide enough for the full development and functioning of enterprises for the production, installation and sale of plastic windows, balcony modules and other plastic structures.
General provisions in the plastic windows business
If the company plans to install, sell, and also manufacture plastic windows, the business plan should be drawn up with a focus on further development, namely the growth of the working area and the number of personnel. This circumstance is explained by the continuous demand for such types of work and the universal use of plastic windows in the construction of both residential buildings and industrial buildings and structures.
When making an assessment of competitiveness, it is necessary to take into account all the subtleties in the work of companies engaged in such a business, and determine their strengths and weaknesses. This approach will help to reduce financial and strategic losses, and will also allow it to take a leading position among competing firms, which will provide the company with a constant flow of customers and demand in the market.
When registering a company with the tax authorities, it is better to indicate individual entrepreneurship as a form of doing business, this will give some advantages when registering, and also simplify reporting. The conditions for the existence of the company for the installation of windows have already been said more than once - the success of business is very high, even despite the impressive number of competitors. The main thing is to stay afloat at the very beginning of the company's existence, and by strengthening your position and following the correct business policy, you can achieve excellent results in this area.
Selection of premises for window production
When choosing a room for doing business, it is worth considering both the production part of the business and the implementation of ready-made window structures. These two components of a successful business can be combined in one room, but it is better to locate the sales office in a more lively area of the village, and the shop for the production of plastic windows in the countryside.
Also, when choosing premises for rent or when designing a production workshop for construction, it is advisable to calculate the possibility of expanding the business, and focus on the case of an increase in the planned volume of production. With the expected production of 15 to 20 window structures per shift, the room may meet the following requirements:
- at least 200 m 2 with a ceiling height of 3-4 m;
- mandatory availability of warehouse space;
- in the production of plastic windows, air temperature should not exceed 18 ° С, so the room should be well ventilated;
- for the stable operation of the equipment, a stable supply of electricity is required (with a voltage of 380V and a frequency of 50Hz);
- proper lighting of workplaces;
- for machines with pneumatic type of clamps, a compressor is installed in a separate room;
- a first-aid kit, a fire shield and an evacuation plan must be found in the workshop.
After meeting all the requirements for the premises, you can proceed to the registration of the necessary documents - licenses, certificates of conformity and other permits and certificates. At this stage of business development, you can spend from 40 to 100 thousand rubles of initial capital. In addition, it can take quite a long time, so it is recommended to deal with the issues of paperwork in parallel with providing the premises with everything necessary for work, including equipment.
Purchase of equipment for production