Business idea: How to make money on the production of cabinet furniture
Furniture business today
Not only mass production, but also piece production of furniture today has become a simple matter accessible to everyone. The build processes are sometimes referred to as the adult constructor. If you have basic concepts of what and how to do, then it will not be difficult for you to assemble modern furniture that is sold in expensive stores.
For the sake of fairness, it is worth noting the fact that the furniture market in Russia today suffers great competition. About three thousand large medium-sized enterprises are actively competing for their potential customers. Are there even the slightest chances for small businesses to occupy their niche in this market segment? In this article we will try to address issues related to this topic.
In big cities, people are picky and very demanding about the quality of furniture. They are not satisfied with the poor quality product. The consumer is increasingly making complaints about poorly made furniture. He looks closely not only at the appearance of the product, but also wonders how long the furniture will last.
It is very difficult for small producers to compete with large firms, which have much more opportunities to produce products of better quality and in a larger range.
One of the most promising areas is the manufacture of kitchen and office furniture. There is real excitement in this industry. Over the past 10 years, profits in this sector have increased by 20% every year. Small businesses are increasingly turning their attention to built-in furniture - it is the bestseller. Inexpensive, high-quality furniture, which costs almost half the price of similar furniture made abroad, is in great demand among the population of our country.
It is worth knowing that investors are happy to invest in this type of business, because they know that with a successful investment, you can count on 40% profit.
For small and medium-sized furniture business, the main task is to occupy a certain niche. This means producing a specialized product. More and more companies appear on the market that are engaged in the production of unusual furniture made of glass, plastic, rare wood species.
Don't forget that lately it has become very fashionable to make custom-made furniture, which will have non-standard shapes, colors and designs. Wicker furniture manufacturers have practically no competition. Their goods are sold out with pleasure.
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Today we propose to discuss the following topic: "Business ideas for furniture production". We have collected and prepared a complete description of the business model and invite yours to express your opinion in the comments.
Furniture manufacturing as a business from scratch
Furniture business is an excellent choice for starting a young entrepreneur. People always buy furniture, regardless of the season and weather. Even a crisis will not change anything in your business, except that it will reduce the class of furniture from luxury to classic. Therefore, opening a furniture shop is a good and promising idea that will surely bring you great profits.
Furniture production can be divided into three main areas:
- Release of classic office furniture (cabinets, partitions, sideboards, tables). The main emphasis is on functionality and austere appearance.
- Release of kitchens and headsets. The kitchen is the face of the home, it is here that people spend most of their free time, so it should be equipped with comfortable and high-quality furniture. Every year the demand for kitchen sets is growing by an average of 15%.
- Custom furniture production. This is the most promising type of business. Furniture is created according to the client's requirements, according to individual dimensions and drawings.
We recommend staying at one of these options, or combine three areas in your business at once.
Please note: in metropolitan areas you will face serious competition, so it is best to start this business either in small cities, or enter the market with an original and promising proposal.
Be sure to find out if there are similar workshops for the production of furniture in your city, what services they offer, what are the real terms of furniture production and the price range of your competitors. Think about what you can do better to entice customers.
According to recent years, most of the furniture manufacturers produce mainly expensive or even exclusive furniture. At the same time, cheap cabinet furniture began to be manufactured in smaller volumes, because it turns out to be not so profitable for the manufacturer.
Therefore, the idea of creating your own furniture business can be successful for a small production. Manufacturing inexpensive products, you can get a fairly high and stable income even in the presence of competition.
Each city has furniture stores where you can find typical pieces of furniture. But there are enough people who want to purchase custom-made furniture for them. Such unique and original furniture can be made with the direct participation of the customer in drawing up sketches.
Furniture for the kitchen, bedroom furniture, as well as the wall very often needs an individual approach in the manufacture. Cabinet furniture is made up of modules, and this makes it possible to freely distribute furniture with maximum convenience.
For successful competition in the production of cabinet furniture, prices must be lower. To do this, we need to try to make production less costly for some items, for example, energy intensity or labor intensity. Better than the competition, quality is bound to quickly affect the number of orders. Reputation plays an important role.
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Besides, production needs to be advertised. Even the leaflets sent out are very effective, not to mention radio and local television. And of course, the individual approach to each customer should be of great importance. He should feel your interest in fulfilling all his wishes.
The best option for setting up this business would be to rent or purchase three premises - in one room there will be a shop for the production of cabinet furniture, in the other there will be an office for accepting orders and conducting all calculations, and in the third room you need to locate a store for finished furniture. By the way, a store and an office can be located in one place, and this is often even more convenient.
The main items of expenses in the furniture manufacturing business should be considered:
production of cabinet furniture
- rental of premises (approximately $ 3,500-4,000 per month); - purchase of production equipment (up to $ 8,000); - purchase of consumables. But this will depend on the scale of the business, and the average is $ 4,000; - employee salaries (up to $ 800 for each employee).
At least 2 shop workers should be hired, who would be professionals in their field and know all the nuances of manufacturing cabinet furniture. You also need a salesperson to the store, and a driver is needed to transport furniture. Designers play a very important role. The furniture transportation vehicle can be rented or leased.
The concept of cabinet furniture includes products that are installed along walls that have many drawers. These include:
- tables ...
Business organization issues
Since the manufacture of cabinet furniture will require close cooperation with large companies (customers and suppliers), it is necessary to register an LLC. Taxes are worth paying under the general system. This way you can work with retail customers as well.
To register your workshop, you need to submit the following documents to the registration department:
- charter, which will indicate the types of activities of the company, authorized capital;
- receipt of payment of state duty;
- details of the company's current account, and also the account to which the authorized capital will be credited;
- information about the accountant, director;
- minutes of the meeting of founders, at which the decision was made to open a company;
- company name.
The types of activities of the enterprise (OKVED) should be selected as follows: 36.2, 36. 3, 36. 4, 51. 7. 1, 52. 4., 52. 4., 52. 1..
Furniture shop in the production of cabinet furniture should be guided by GOST 26800. -86; GOST 28136-89; GOST 13025. -85; GOST 28105-89; GOST 19882-91; GOST 16371-93.
Before drawing up a business plan for the production of furniture, you need to find out the situation on the market and the demand for such items. According to official statistics, the manufacture of cabinet furniture occupies 25% of the market. At the same time, little attention is paid to brands, they are more focused on the quality of the products made.
- 1 How to start furniture production
- 2 Clients for the purchase of furniture
- 3 How to interest a potential client
- 4 How much money is needed for the production of furniture
- 5 The choice of premises for an office and a workshop
- 6 Materials and components for furniture
- 7 Supply and demand on the furniture market
- 8 Personnel and their motivation
- 9 How much can you earn
- 10 Which equipment to choose for furniture production
- 11 Which OKVED should be specified for furniture production
- 12 What documents are needed to open
- 13 Which taxation system to choose for the production of furniture
- 14 Do I need permission to open
- 15 Technology business
- 16 Newcomer in the furniture business
Setting up a furniture manufacturing enterprise is a painstaking and costly business.
But, if you approach business organization wisely, you can gradually achieve significant success and strengthen your position in the market for a long time.
Business organization requires a miscalculation of every step.
This concerns not only finances, but also labor and time costs, so this is not the easiest idea for a business.
There are a number of rules that can be followed to create a profitable furniture business.
How to start furniture production
Most small entrepreneurs do not consider business planning an important element in starting a business.
Many people think that it is enough to simply communicate with people, negotiate good prices, or just go with the flow.
In fact, all further activities and business success completely depend on planning.
- Makes explicit all questions and problems of the enterprise;
- Schedules all the time and financial costs;
- Coordinates actions;
- Controls all expenditure and income parts;
- Controls the volume of supply and demand in the market.