Business plan for furniture production
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Unlike the previous business plan for the production of furniture, the business plan proposed below is designed to organize a larger furniture production. Using the proposed sample business plan for organizing the production of furniture as an initial template, you can easily draw up your business plan for furniture production for your specific conditions.
Furniture manufacturing is an excellent investment option, provided that you have chosen the right specialization and have drawn up a detailed business plan for the furniture production. Domestic furniture is in steady demand due to the relatively low cost and the ever increasing quality of products in recent years. In addition, given the relative simplicity of the furniture manufacturing process itself, organizing furniture production is a very attractive idea for creating your own business.
Built-in furniture has been in constant demand in recent years, which is manufactured for any room according to the wishes of the client. Built-in wardrobes can be found in almost every home today.
An interesting and promising direction of furniture production is the manufacture of children's furniture. Every parent wants to surround their child with the best, environmentally friendly and beautiful things, but imported furniture is expensive. In this niche, there is an active growth in consumer demand today.
As for the production of office furniture, there are also good prospects here, since new firms are constantly being created, and high-quality and inexpensive furniture will certainly be in demand.
Of course, the choice of specialization will depend on your marketing research, since each region has its own characteristics, demand and the presence of competitors. It is rather difficult to supply products for export, since foreign consumers buy mainly materials and components, and they are very reluctant to buy Russian furniture.
So, if you have decided on the choice of your niche in the furniture business, then you need to draw up a business plan for furniture production.
Furniture production business plan
The production part of the furniture manufacturing business plan
Premises. For the manufacture of furniture, production (from 200 sq.) and warehouse (from 200-250 sq.) premises are needed. In addition, an office is needed, the area of which can be any, but usually at least 50-70 sq. . to present some product samples.
Equipment. High-quality equipment for furniture production is still imported, the equipment will depend on the chosen specialization and financial capabilities.
Personnel. In addition to the manager, accountant, sales managers, you will need a designer, craftsmen, carpenters, fitters, glaziers, drivers, storekeepers. Small furniture production usually requires a staff of about 40 people.
Cabinet furniture is used by a fairly wide target audience - both budget and wealthy buyers purchase structural elements for home or office furnishings, as well as enterprises. Unambiguously, if we consider such a business idea as a startup, then there is a rational grain here - there will be customers, too much development costs are not needed, and the product is in demand. Therefore, further we will talk about how to open a furniture production, draw up a business plan and what income can be expected.
How to develop a furniture business?
Today, most of the niche in this direction of entrepreneurship is occupied by medium and small businesses, as well as small workshops and workshops. If we analyze consumer demand, then the demand for furniture is as follows:
- Upholstered furniture.
- Children's upholstered and cabinet furniture.
- Furniture for a summer residence.
- Specialized custom-made furniture - for factories, enterprises and similar places
The main target audience of the furniture shop products is as follows:
- Young families, including those with schoolchildren.
- Elderly people, citizens of pre-retirement age.
- Small and medium business owners - for office furnishings, workshops, and so on.
And since the people of these categories are in the majority, it is possible, subject to good work, to ensure a stable influx of clients.
Starting a Business - First Steps
In order for the furniture manufacturing business to be effective, you need to thoroughly think over and prepare everything beforehand, and only then launch your project. In this case, we are talking about the following specific features:
- In most cases, small or medium-sized businesses do not have finished goods warehouses, at least large areas, and therefore the best option would be to work on order. But, on the other hand, you need to provide yourself with a stable flow of orders, so as not to work at zero and not pay employees for idle time.
- Advertising must be there, even if we are talking about a small workshop, or medium-scale production. But, immediately into the business plan for the production of cabinet furniture, large sums of money should not be put into it - it is better to put most of the budget into production.
- It would not be superfluous to open your own small store for the sale of ready-made samples. But, it is better to do it a little later, after you have studied well the preferences of your target audience.
- A huge plus will be the presence of its own delivery service and a team of assemblers. Thus, you will, in fact, provide a full range of services, and this is an advantage over competitors.
Furniture manufacturing as a business requires a mandatory preliminary analysis of competitors and the market as a whole. Preliminary works include the following:
- Evaluation of the work of major competitors. This will help you to identify their weaknesses and "play" on this - what they do not have, maybe you (of course, in a good way).
- Analysis of the solvency of your target audience - this will help you build a flexible pricing policy, and therefore provide the most favorable conditions on the market.
- Analysis of start-up costs as well as monthly costs.
Please also note that a business plan will be a necessary document if you intend to take out a bank loan for the development of your business.
Reviews of the furniture store business plan ()
The main thing about the business plan of a furniture store in the year
Organization of a furniture store: trade format
Unlike Soviet times, now there is no shortage of furniture in the Russian market, on the contrary, it is overflowing with products from various manufacturers, and not always it is about high-quality furniture. There are less and less vacant niches in this sector of the economy, but a competent businessman always has a chance to take his place and make a furniture store a profitable project.
Due to the decline in the profitability of this business, some entrepreneurs who decided to open a furniture showroom are forced to sacrifice their reputation, turning a blind eye to the quality of the furniture they sell. As a rule, such an unpopular decision sooner or later comes back to the businessman himself. More experienced merchants go to meet the buyer, developing loyalty programs, lowering prices for goods, arranging promotions and providing discounts to regular customers.
According to statistics, a little more than half of the furniture sold falls on domestic products, 40-45% - on the share of imported manufacturers, among which Italy and Germany are leading. Recently, sales of Chinese furniture have sharply increased, and, judging by the reviews of buyers of furniture stores, the quality of such products leaves much to be desired.
Opening a furniture store can turn you into a successful businessman, or leave you with nothing, penniless. It all depends on how competent will be the organization of the business - the furniture store. First of all, this concerns the format of the outlet. Taking into account the peculiarities of the market segment that your project is guided by - your own furniture salon, there are several ways to enter the furniture business.
The first and perhaps the most popular option is to join the ranks of dealers of major furniture manufacturers. The minimum capital required for this is approximately 25-30 thousand dollars. It is important to carry out a thorough analysis of the furniture supplier in advance in order to select a truly reliable partner. The second method, which is also popular among entrepreneurs, is the acquisition of a franchise of well-known trade and manufacturing brands. The costs are about the same as in the first case, but at the same time you will not need to invest huge amounts of money in promoting your business. But the organization of the furniture showroom is under the control of the franchisee.
By deciding to start trading in a narrow niche, for example, opening an inflatable furniture store or building a business with wicker furniture, you can avoid competition with the main furniture monsters, but the risk in this case is also much higher. In this situation, it makes sense to regularly conduct a survey of buyers of a furniture store to identify consumer demand in order to take timely measures to change the assortment. You can minimize risks by using a professional example of a business plan for opening a furniture store with ready-made calculations. A competent organizational plan will help to accurately determine the structure of a furniture store. You will deal with such an important issue as the organization of a credit line in the furniture business, you will be able to independently calculate the planned volume of sales of cabinet furniture per month, and ultimately count on a good profit.
Furniture store opening: office style
The furniture market is not very profitable, but there is one exception - the segment of office furniture, which is in stable demand. Writing and computer tables, office chairs, shelves, tables for conference rooms, side tables - all this wealth is an integral part of the work of any office. And businessmen who care about their own reputation tend to regularly update the furniture in their office, rightly believing that the first impression of a company is usually the most lasting.
Sales volumes of office furniture products are growing every day, as the number of offices of various firms and enterprises is increasing at the same rate. In this regard, the profitability in this market sector reaches 30-35%. By opening your own business - a furniture store - from scratch, you can recoup the initial costs within 2-3 years.
Feedback on the business plan for the production of furniture ()
BP is quite systematic and detailed. Suitable for those people who have not yet chosen their niche or are in doubt. Thanks to a business plan, based on your initial data, you can create your own business project. Very well! Thank you
The main thing about the business plan for the production of furniture in the year
Organization of furniture production from scratch
Demand, as you know, gives rise to supply. This factor is responsible for the appearance on the Russian furniture market of a large number of new manufacturers. According to statistics, more than 70% of the furniture sold on the market is made by domestic entrepreneurs, and the most popular are products that are in the middle price range.
Uncomplicated technology for the manufacture of cabinet and frameless furniture often misleads novice businessmen, who think that it is not difficult to organize a business from scratch and start making custom-made furniture. And at this stage, many of them make annoying mistakes, which subsequently lead to serious failures.
The first question that worries any businessman is where to start the production of frameless furniture, how to open your own furniture business and turn it into a stable source of income. One of the factors favoring the opening of furniture production is the relatively low financial investment in this business. Having decided that he will produce furniture, the entrepreneur must also decide in which room the furniture production can be opened.
First steps in organizing furniture production
Renting a special furniture shop is certainly one of the best options. But, by and large, the costs at the initial stage of business development can be minimized and a small room can be rented to assemble furniture.
But even this option should be considered for optimal benefits. It is important that the organization of a furniture shop takes into account how convenient its location will be, whether it will be possible to avoid unnecessary transportation costs, as well as the costs of maintaining the premises in good condition. For example, a semi-abandoned production workshop or an empty spacious room in a municipal office may be suitable for this purpose.
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Step-by-step plan for starting a furniture manufacturing business
The first part of any financial document is a resume, which sets out the basic concept for the production of upholstered or cabinet furniture. In our example, we will describe the procedure for manufacturing cabinet furniture in the middle price segment. These are kitchens, hallways, bedroom sets and office furniture. The workshop will operate on an incomplete cycle principle. Suppliers will be required to provide materials ready to be cut and assembled to custom drawings for upholstered furniture or cabinetry. It is believed that an entrepreneur does not use borrowed funds and does not attract investors, but relies only on his own savings.
Market and Competitor Research
A business plan must necessarily contain an analysis of competitors' proposals, price range and terms of supply of raw materials by suppliers, sales markets and potential buyers.
Today, the production volumes of the furniture industry in Russia consist of the following segments:
- Cabinet furniture for household use - 25%.
- Furniture for office and production - 23%.
- Ready-made kitchen sets and kitchens to order - 22%.
- Sofas, beds, soft corners and other items of upholstered furniture - 17%.
- Bedroom sets - 13%.
All furniture that is presented on the domestic market today is subdivided by functional purpose, design solutions and type of materials. For storing things, they use cabinets, chests of drawers, cabinets. For rest and work - chairs, sofas, beds. Tables should provide a comfortable meal and work. Structurally, they distinguish sectional furniture, universal-prefabricated, non-separable, built-in and other. Among the materials, wood, combinations of plastic, metal and glass are in the lead, and recently the manufacture of wicker furniture has become popular.
The business plan should take into account the nature, materials, functionality of the furniture. At the stage of its preparation, the entrepreneur must decide on the release of the first batch. Whether it will be kitchen sets, production of upholstered furniture, office or household products.
Ways of implementation
It is important that the business plan immediately identifies the circle of future consumers:
- Enterprises, restaurants, offices, production workshops.
- End consumers - the population who buys furniture for themselves.
- Furniture stores, design studios and other intermediaries.