Woodworking as a business; relevance and requirements
Contents of the article:
Legal registration of the business is carried out only through the registration of LLC lumber. Find out what documents you need, what stages of registration here.
You will also pay taxes regularly, namely:
- income tax;
- property tax;
- income tax; li >
- social benefits.
We offer you to download ready-made business plans of a woodworking enterprise with calculations:
Determine the activity and buy raw materials
Stages of organization Terms, months Conclusion of contracts with investors1Obtaining a loan1Legal registration1Selection of a location1Equipment of buildings3Purchase of equipment1Purchase of personnel1Training1Marketing company12
In total, your woodworking business plan should be thought out for at least 1.5 years.
What to do?
Run a woodworking business in 4 directions:
- rounding of logs (20% of production volumes);
- production of beams for window blocks (20%);
- furniture boards (40 %);
- biofuel in pellets, which is made from wood waste (20%).
Wood processing is one of the oldest activities. Even the development of concrete and brick technologies could not replace the warmth and comfort inside wooden structures. Therefore, this type of business will remain profitable for a very long time.
Where to start
As with any business, woodworking requires careful preparation and calculations. The following factors should be considered when drawing up a primary action plan:
It is best to purchase a land plot to develop your own production facilities. Purchase equipment and start a business from scratch. This is a more risky way, since at first the enterprise will work only for recoupment.
- Calculation of a business plan. It must take into account all possible scenarios for the development of production. Starting with small sales volumes, ending with large supplies of products in the region.
- Search for equipment. It is better to start with used machines, as they can be bought in good condition for 60% of the market price of a new machine.
- Selection of personnel. It is especially important to select experienced and responsible technical personnel who will monitor the condition of woodworking machines and lines. Finding good workers is important.
These are the main steps you need to think through before starting a woodworking business.
Choice of direction
Income will directly depend on which direction you choose. It will affect the level of initial investment in the business. Let's consider all directions from the simplest to the most expensive:
These are the main areas that can be developed as the business grows. It is best to start with the simplest, gradually building up a client base. But at the very beginning, you need to register your own enterprise with all official bodies and structures.
When registering a new company, it is best to choose an LLC, since an individual entrepreneur will not be able to make a lot of money in the field of woodworking. List of documents for submission to the local tax authority:
- charter in the company;
- statement from the current account on the availability of authorized capital;
- application for registration of LLC;
- notarized photocopies of passports and TIN of each founder of the company;
- receipt of payment of state duty.
Almost everyone dreams of starting their own business that generates income. However, a wide choice is confusing for a novice businessman. To open a profitable enterprise, you must have your own capital And in order for the investment to pay off soon, it is necessary to develop a marketing strategy.
Woodworking business is a profitable and promising business. In the market, your material will always be in demand. Wood is used in the construction of houses, in the manufacture of furniture, as well as in finishing work.
Before starting your own business, you need to draw up a business plan for a woodworking business. This document will allow you to determine the necessary costs and establish a strategy for the development of the enterprise. Market research will also be required.
The business plan of the woodworking business can be drawn up independently. However, it is advisable to entrust this matter to qualified specialists.
The business plan of the woodworking business is drawn up on the basis of marketing research. In the course of their implementation, the name of the products existing on the market, the list of main competitors and other factors are determined. All of them can affect the business.
Where should production be located?
After the assortment list of products is determined, you will need a room in which the woodworking workshop will be located. The business plan should address this need.
The workshop in which the timber will be processed must be large. And this is important. The entire premises will be divided into zones for a workshop, a warehouse for storing raw materials and finished products. You will need utility rooms for staff, a dining room, toilets and an office for the boss.
All of this will require preliminary planning. If the workshop premises are rented or purchased, then there will be a need for minor repairs. Surely the building will require redevelopment. It is unlikely that you will be able to find just such a room that would have all the areas necessary for your business.
The business plan of the woodworking business must contain a section on the state required for the production and sale of products. The productivity of all activities, and, consequently, your income depends on the personnel working at the enterprise.
Hello dear readers and subscribers of the blog, Andrey Noak is in touch with you! Surely, many of you dreamed of starting your own business. It's a great idea to have your own business. But which industry to work in? How not to be mistaken? What should be done to make the start of the project successful? Agree, difficult questions.
In my opinion, one of the most profitable types of business is woodworking. This is a fairly technologically advanced and modern type of business, and there are simply plenty of raw materials in our country. And taking into account the fact that investments in woodworking fight back like an "oil pipe", it is also a very profitable business.
If it is reasonable to act at each separate stage, not to make spontaneous decisions, then the project should be successful. It is clear that some investments will be required, a lot of effort, time and even nerves must be spent. But, in a few years, such a business will begin to bring good profit and will work like a Swiss watch. And so, let's take a closer look at the most important issues.
As in any other business, the main rule here is a business and responsible approach. That is, in this business, the state requires a responsible socially oriented employer, they do not like “black” lumberjacks and employers who do not provide white salaries.
Business plan and registration
You will definitely agree that you need to make any decisions only after everything is thought out to the smallest detail. Mistakes made can lead to extremely disastrous consequences, up to the collapse of the idea, loss of money, large debts.
First, you need to conduct a marketing research of the relevant market segment. It is important to understand the mood of buyers, how serious the competition is, take into account current trends, learn about the saturation of the market with products. You can do this either yourself or resort to my help.
It is imperative to determine the average prices for raw materials, rental of premises.
Drawing up a business plan is a complicated procedure. It is important to consider every detail. If there are certain fears, some lack of confidence in their abilities, then you can visit the thematic forum, chat, website. On such resources, you will learn a lot of useful information, you will be able to correctly highlight accents. Here you can also communicate with people who are directly related to such a business.
Wood processing is one of the oldest crafts in human history. It provided sustainable income for many generations of those who professionally engaged in it. There is no need to prove the simple fact that with modern technologies and rational organization of the business, the woodworking workshop is able to bring a good and stable income.
Where to start
And you should start with a simple understanding of the fact that no business is possible without a well-thought-out plan for the near and more distant future. This applies, in general, to any business. Equally commercial and industrial. Woodworking is no exception. A business plan implies a strategy for the development of an enterprise for a specific period of time. It should indicate the economic and financial indicators that management must achieve, and the ways to achieve these results.
How to plan your business
It's simply impossible to foresee everything in advance. Such a seemingly traditional process as woodworking, the business plan of which includes several important points, requires a mandatory level of qualifications both on the part of the management and the entire personnel of a small enterprise. Without this most important factor, any plans, even carefully calculated ones, are doomed to be impossible.
When drawing up a business plan for a woodworking enterprise, it is necessary to clearly understand the state of affairs in the regional market and the degree of demand for the products and services that you intend to offer to potential consumers of your products. A rational business plan includes organizational, production, marketing and financial components.
Woodworking, the business plan and rational marketing of which are properly focused on the needs of the construction market in the region, is simply doomed to success. The demand for lumber is stable. In short, business planning comes down to correctly determining the market demand for products and finding a way to produce these products.
Wood processing in none of its specializations requires state licensing. However, it is best to do some negotiation before starting production. Woodworking is essentially about materials that burn well. Therefore, the entire production base must fully comply with technical fire safety standards.
Contact the fire inspectorate for a survey of production facilities and adjacent areas. Usually the inspector draws up a list of detected non-conformities to the standards and issues an official order to correct them within a certain period. The same algorithm of actions applies to communication with representatives of the sanitary and epidemiological station. The production base must comply with environmental protection standards and labor safety conditions.
These are the prevailing realities. Without communication with administrative structures, not a single type of production business is possible, including such as woodworking. A business plan can only be implemented after passing some bureaucratic approvals. An attempt to optimize this process is quite possible, but you should be aware that all the trump card in this game is not on the side of the entrepreneur.
Choice of direction
Woodworking technology differs mainly in the degree of impact on the processed material. Conventionally, wood processing can be divided into primary and deep. The primary cycle involves the production of lumber for construction, and the subsequent cycles - the manufacture of joinery of varying complexity from the resulting wood. Correspondingly, woodworking enterprises usually specialize either in one direction or another. And much less often they combine the first with the second.