Using the proposed sample business plan for the production of furniture as a starting template, you can easily create your own business plan for furniture production to suit your specific conditions.

Despite the fact that in any city there is now a huge number of furniture stores, there are many people who want the furniture in their home to be individual, unique, and, sometimes, made according to their personal sketch. It is for this reason that starting your own furniture production can be a good idea for starting your own business.
However, a furniture manufacturing business (like any other business) should only be started if there is a clear plan of action. Therefore, if you are planning to open your furniture manufacturing business You absolutely need to draw up a business plan for the production of cabinet or upholstered furniture, which will answer all your questions related to organizing this business.
The business plan for organizing furniture production described below describes in detail how to start a furniture production and what is needed for this.

Let us note that in the furniture production business plan proposed to you, the organization of a furniture production business is considered in all aspects, which is called “from” to “to”. There are also financial calculations here that are not available on other sites.

Business plan for furniture production

Overview section
This business plan involves opening a furniture production workshop.
The organizational and legal form of doing business is an individual entrepreneur. This is due to the fact that the end consumers of services are private individuals. However, if it is planned that a sufficiently large percentage of customers will be among legal entities and government agencies, you can additionally register a limited liability company.
The success rate of the project is assessed as high, since the demand for furniture since 2000 has shown a steady growth trend of 15-20% per year.
Description of the enterprise
It is planned to open a furniture production facility that will accept orders from the public and furniture stores for the production of cabinet, office, kitchen and other furniture.
Description of services
This business plan provides for the creation of furniture production, working on orders from individuals, shops and institutions.
Market analysis
In this section it is necessary to characterize the furniture production market in your city. Consider the level of competition, as well as identify shortcomings and shortcomings in the business of existing workshops in order to eliminate them in your own business.
In the same section, you can outline marketing strategies for promoting furniture production in your region to the market.

Production plan
The first step in implementing a business plan to create your own furniture production will be the search and selection of premises necessary for running this business. Please note that there will be at least two such premises. The first room is the order receiving office, where orders will be accepted and approvals will take place with the customer. The second room is a furniture production workshop.
The first premises must be located within walking distance for potential clients, and the production workshop can be moved outside the city if this will reduce rental costs.
However, the best option would be when all production is concentrated in one place. Often in this business you can find such a model, when not only an order acceptance point and a furniture production workshop are concentrated in one place, but also a store selling finished furniture is organized.
Which business option to choose is, of course, up to you to decide.
The next step will be the purchase of equipment and software for the workshop. Currently, there are many domestic and foreign manufacturers represented on the market for equipment for furniture production, and all machines are freely integrated with the most well-known computer programs for modeling and manufacturing furniture. The most well-known furniture production programs are “Astra Cutting”, “Astra Furniture Designer”, “KZ-Furniture” and a number of others.
Equipment you will need is a jigsaw, a milling machine, a panel saw and a lathe. This is the minimum set of equipment required to get started.
Another important step is the selection of personnel for production. It is necessary to place a person at the order receiving point who has experience in the most common programs for modeling and furniture production. It is advisable that he be sociable and educated in order to find a common language with any clients.
In a furniture production and assembly workshop, you need competent, non-drinking workers who can work with the main types of furniture machines and materials. Today, the main materials for furniture production are chipboard (chipboard) and MDF board.
Well, if you combine a furniture store or a showroom of finished products with production, you will also need a salesperson.
So, let's summarize how many workers are needed for the full functioning of furniture production:
- designer-order taker – 1 person
- workers in the workshop – 2-8 people (depending on the size of production)
- salesperson in the showroom – 1 person
- driver – 1 person
Sales plan
This business plan provides for the following sources of sales of finished products - clients, furniture stores and your own store or showroom.

Financial plan
In this section we will consider in detail all the financial aspects of running a furniture business.
Expenses:
- workshop space (300,000 rubles per year)
- premises for an order receiving point (100,000 rubles per year)
- premises for a showroom (200,000 rubles per year)
- equipment (200,000 – 1,500,000 rubles)
- consumables (300,000 rubles per year)
- staff salary (minimum 1,200,000 rubles per year)
Total: 2,300,000 – 3,600,000 rubles needed to start
Income:
- sale of finished products (400,000 rubles per month)
Total: 4,800,000 rubles per year
As can be seen from the calculations, the minimum payback period for furniture production is about six months. However, a lot depends on how competently you approach the issue of organizing your business. As practice shows, many furniture manufacturers earn much larger sums.
In general, focus on the following data on sales of different types of furniture in Russia:
- cabinet furniture – 25%
- office furniture – 22%
- kitchen furniture – 19%
- upholstered furniture – 12%
- bedroom furniture – 12%
- other types of furniture – 10%
As the figures show, the greatest demand in Russia is for cabinet, office and kitchen furniture, so when organizing a business and purchasing equipment, be guided by these figures.

We hope this one furniture production business plan will help you organize your own profitable furniture business.

Among business ideas showing good profitability, recently it has taken a well-deserved place production and sale of cabinet furniture. This is due to the year-round stable demand for various types of furniture and the relatively low costs of its production.

Cabinet furniture is a type of furniture consisting of different sets of furniture elements, allowing its owners to independently create the interior of the room, gradually complementing it and introducing new elements as needed.

The advantages of doing business include the following:

• Organization of the entire work process for an already placed order, which frees you from the need to have warehouse space and purchase large volumes of consumables;
• Minimum number of employees at the initial stage of work;
• The ability to make necessary adjustments to the range of products offered, taking into account existing market trends;
• Minimal need for tools and equipment at the initial stages;
• The ability to present your products in your own showroom, offer customers a large selection of consumables and all kinds of accessories;
• The opportunity to sell your products through an online store with the provision of services such as delivery to all regions of the country.

Business plan for the production of cabinet furniture

Cabinet furniture production technology

• Full production cycle;
• Average production cycle;
• Short production cycle.

For those who are just thinking about implementing a business plan for the production of cabinet furniture, experts advise not to invest large amounts of money in the business at first, given the high competition. It is worth investing in expanding the production of custom cabinet furniture as soon as you receive income, and for this you need to secure a stable customer base, which means ensuring the high quality of the products produced. Considering this fact, start production of custom cabinet furniture It is best to start with a short production cycle - assembling products from already prepared components. Thus, you will be able to pay more attention to working with clients, build mutually beneficial relationships with suppliers, and analyze the situation on the market. At this stage, a small number of employees will be enough: in addition to the manager, it is worth hiring a professional designer-technologist, as well as a furniture assembler. To deliver finished products, it is worth concluding an agreement with a transport company.

Production of custom-made cabinet furniture: key stages of starting a business

First of all, you need to register your business in accordance with the requirements of current legislation. As a legal form it is possible. If you are planning to open furniture manufacture small parameters with a short production cycle, you can get by with registering an individual entrepreneur. In this case, a separate current account is not required, and there is no need to form an authorized capital. If your plans include expanding production and collaborating with serious suppliers and customers, choose the LLC form for registration. Working on a simplified basis, in which 15% of the difference between total income and expenses is payable, you will have to buy a cash register.

The next important stage in preparation for the launch of furniture production will be the rental of premises for office and workshops. If you listen to our advice and start with small production volumes, it will be enough to rent a premises with an area of ​​200 sq.m., of which ¾ will be allocated for a workshop with a warehouse, and the remaining ¼ for an office, which also serves as a showroom.

It would be nice if the area of ​​the rented premises could be expanded in the future using premises located nearby, since as production volumes increase, you will definitely need more space to install additional equipment and store finished products.

Among the requirements for this room are the following:

• It must be uninhabited. The most suitable option is a room that has a production purpose, since the work of a furniture production workshop is usually accompanied by an increased noise level.
• The premises should be located on the ground floor and have 2 separate entrances - to the office and also to the production workshop. Convenient access for transport is also welcome.
• Since the equipment used in the furniture production process is characterized by a high level of energy consumption, three-phase electricity of 380 W must be provided in the room.
• The room must be warm and dry to avoid deformation of wood, which is the main material in the furniture making process.

Companies producing laminated chipboards and MDF boards, facades and other consumables act as suppliers of materials. It is advisable to consider the possibilities of mutually beneficial cooperation for a long time with companies that have earned a good reputation and provide regular quality control and discounts for wholesale buyers.

The responsibilities of the manager, as well as the manager, should include interaction with clients (receiving applications, concluding contracts and signing acceptance certificates), working with potential and regular suppliers and intermediaries, as well as activities directly within the company, namely forming a staff of employees, paying them labor, making personnel decisions; working with all kinds of documents and developing a business development strategy.

The designer-technologist must be involved in the design and construction of each manufactured piece of furniture, selection of colors and finishing materials. The actual work of assembling and installing furniture should be carried out by furniture assemblers.

Advertising events in the field production and sale of cabinet furniture should be aimed at forming a target audience. These include advertising in various media and product catalogs of construction stores. It wouldn’t hurt to print advertising brochures, business cards, or make and install a billboard. It’s great if you can create your own website on the Internet with photographs of your products, a description of their advantages and other information that may be useful to customers. It’s not worth saving too much on all of the listed activities, since the flow of your clients, and therefore the prospects for the development of your business, depends on the level of their implementation.

Business plan with calculations

Current expenses include the purchase of consumables necessary during the production process, depreciation, costs of fuel and maintenance of equipment or hiring of transport, payment of utilities, rental of premises and wages of personnel.

Provided you take a serious approach to building a client base and have a constantly high level of orders, you can reach the break-even point after 2–3 months, and the project will pay off in just six months. After this, you can move on to considering the possibilities of expanding production by increasing the staff, purchasing the latest high-tech equipment and increasing the range of products offered to potential buyers.

By revising business plan for the production of cabinet furniture we cannot remain silent about several risk factors that are characteristic of this idea in the field of entrepreneurship. These include:

• High levels of competition;
• Periodic lack of applications;
• High purchase cost of materials used in the process furniture production.

Furniture production is a profitable and in-demand business. The market supply of these products is quite large, which meets the needs of the population.

The high demand for furniture in the mid-price category makes the organization of such production promising.

Market and competition analysis

Even a superficial analysis of the modern market allows us to identify 3 promising areas of activity:

• Manufacturing of office furniture. Large companies open new offices in our country almost every day. The requirements for such products are rigor, conciseness, and maximum functionality.
• Production of kitchen sets. To improve living conditions and update the kitchen interior in accordance with fashion, people began to change their kitchen furniture more often. Every year there is a steady growth of consumer demand by 20%.
• Creation of custom-made furniture. Manufacturing enterprises, kindergartens, schools and medical institutions also need high-quality products.

An entrepreneur who decides to organize this business needs to be prepared for high competition in the segment. It is felt especially acutely in megacities. Here you need to enter the market with a unique, extraordinary idea that is guaranteed to be positively received by the target audience.

In smaller cities there is less competition. To convey the offer to the client, high-quality advertising will be enough.

Production plan

To organize a factory and sell finished products, you will need 3 premises:

• Room No. 1 – manufacturing facility area 100-250 sq. meters. The size of the premises is determined by the planned production volumes and the amount of equipment.
• Room No. 2 – office, where contracts for the purchase of raw materials will be concluded, orders will be accepted, and possibly equipment of a showroom or even a store.
• Room No. 3 – stock finished furniture with an area of ​​50-150 sq. meters.

The complex can be located in one place and represent a single structure. However, this is not always beneficial. It is better to place an office with a showroom in the city center, next to large supermarkets (this will ensure greater foot traffic).

It is economically profitable to locate production areas outside the city: firstly, rent will be several times cheaper, and secondly, the distance from residential areas eliminates complaints about high noise levels.

An equally important stage in organizing production is the purchase of equipment. The type and number of machines are determined by the chosen direction of production.

To save money when starting a business, you can purchase used equipment.

In general, you will need the following equipment:

• Band saw. Machines for cutting sheets of metal or wood to a certain size.
• Drying. Equipment for wood processing. It will be necessary if you plan to produce furniture from natural wood.
• For glass processing. Machines for cutting, cutting, decorative edge processing, engraving, drilling, sandblasting.
• For wood processing. Milling and copying, drilling units, machines for splicing, equipment for imparting decorative effects to wood (aging, varnishing, etc.).
• For metal processing. Units for cutting, welding, drilling, polishing, etc.
• Sewing. For sewing covers, upholstery and other elements of upholstered furniture.
• Auxiliary Tools. Screwdrivers, drills, hammers, planes, industrial staplers, screwdrivers, pliers.

To make cabinet furniture you will need the following materials:

• Chipboard (chipboard).
• MDF board.
• Accessories and fasteners.
• Consumables – decorative coatings, glue, paint, varnish.

Information on where to start such activities is presented in the following video:

Recruitment

Working in a workshop requires workers to have special skills and knowledge. You will need:

• Specialist manager for office work. Job responsibilities: accepting orders, preparing projects, concluding contracts for the supply of materials.
• Production Master. Job responsibilities: control of each stage of the furniture production process, organization of teamwork. The position of a foreman involves bearing financial responsibility for machines, materials, and raw materials.
• Workshop specialists(5-8 people depending on production volumes). Job responsibilities: a range of production works, from primary processing of raw materials to assembly of finished furniture.
• Driver. Carrying out cargo transportation, delivering finished products to the customer.
• Cleaning woman. Maintaining cleanliness of the production area.

Marketing plan

In order for the costs of starting a business to be recouped faster and the company to begin making a profit, it is important to organize a set of activities to find ways to sell products.

Methods for selling furniture:

• Through the office of your own company. It is necessary to equip a showroom.
• Through furniture supermarkets and showrooms through partnership agreements. It is important to look for such sales points not only in your city or region, but throughout the country, in the CIS countries.
• Participation in tenders for the supply of furniture to budgetary organizations - schools, kindergartens, hospitals, etc.
• Directly to large private organizations. The tasks of promoting the company's products are assigned to the office employee, who must organize mailings to potential clients.

An important means of advertising your own products and communicating with customers is your own website. It must contain a gallery with high-quality photographs of furniture, a section with prices, terms of cooperation, contact information for exchanging information, etc.

You can inform retail buyers using direct advertising - distributing leaflets in crowded places, placing colorful posters on billboards, etc. Advertising on television or radio works effectively. In the text of the message, it is important to indicate the address of the exhibition center, where everyone can clearly evaluate the quality of the products.

A significant role in creating a positive image is played by high-quality fulfillment of orders on time. For regular customers, it is important to organize a system of discounts and additional services.

Financial plan

Expenses

Investment costs:

• Purchase of premises for organizing a business – 1 million rubles.
• Purchase of equipment, its installation, cosmetic repairs - 900 thousand rubles.
• Other starting expenses (registration of an enterprise, obtaining permission to organize a business, creating a website) – 50 thousand rubles.

Fixed (monthly) expenses:

• Payment of utilities – 25 thousand rubles.
• Salary to the staff is 200 thousand rubles.
• Purchase of raw materials, fittings, consumables – 250 thousand rubles.
• Costs for advertising, marketing, website maintenance – 30 thousand rubles.
• Taxes and various contributions - 80 thousand rubles.

As production volumes increase, costs for consumables and employee wages will increase. At the same time, as the brand is recognized and a wide customer base is developed, advertising costs can be reduced.

If funds for organizing a business were borrowed, the payment of interest on the loan should be added to the list of expenses.

Revenue

Even if an enterprise with a small production capacity is underutilized, revenue from the sale of furniture can amount to 400-500 thousand rubles per month.

Provided the profitability level is 35-40% (at the initial stage of the business this is a sufficient level, after 1-2 years the value can be increased by 1.5 times), the business income will be 90-100 thousand rubles. Net profit after paying all taxes will be 75-80 thousand rubles.

Payback

The payback period of a business depends on production and sales volumes. A large enterprise can pay for itself in up to 3 years. Under the most favorable conditions, this period can be reduced up to 6 months. The payback rate is determined by the number of orders, sales volume and the company's pricing policy.

The more original and unique the sketch, the higher its cost will be. Furniture created according to a standard design is cheaper, but the demand for it cannot be called high.

Before starting a business and developing layouts, it is important to study the market, evaluate the models presented on it, and take into account their strengths and weaknesses.

If you plan to organize large-scale production, it is important to make efforts to find wholesale customers who will ensure uninterrupted operation. In a small workshop, it is more logical to provide custom production services.

An undeniable advantage of business is the lack of dependence on the season. Furniture is in demand at any time of the year.

Furniture production. Let's consider a plan for organizing a medium-sized enterprise that specializes in furniture for the home and office.

Is it profitable to create furniture production?

Analysis of the furniture market segment shows that with proper organization of the factory, the owner can receive 40-50% profit per year. The profitability of the business is quite high and reaches 40%. Demand for medium-priced goods always remains stable. With established sales channels, an enterprise can increase its turnover and, after 4-5 years, grow from a medium to a large one.

Most often, furniture manufacturers choose a narrow specialization.

A company producing mid-priced office and home cabinet furniture can find buyers among businesses of all sizes and people with low and moderate incomes.

The business plan for furniture production involves selling to order through the office, as well as selling finished products through retail outlets.

Company advertising

The company must be known to customers, so advertising will first be aimed at brand recognition, increasing consumer loyalty and stimulating demand.

Enterprise registration

• sawing machines;
• milling machines;
• wood drying equipment;
• glass processing machines;
• metal processing machines;
• tools for the work of craftsmen.

For a workshop measuring 250 sq. m. the optimal amount of equipment would be 2 machines of each type. This will allow for a high speed production process.

Recruitment

The production of cabinet furniture according to a business plan requires hiring 7-10. The process will be effective if you select highly specialized workers for each stage of production.

To operate the office and sales area, 4 employees are enough to perform administrative tasks, advise customers and organize product sales.

To deliver furniture to customers, you need to hire one driver and buy a suitable sized truck.

Search for suppliers of raw materials

A business plan for furniture production can only be implemented if reliable suppliers of raw materials are found. When choosing suppliers you should be guided by the following aspects:

• close location to the production workshop;
• low prices for raw materials;
• high quality raw materials;
• reliability.

Calculation of initial investment

A business plan for the production of custom-made furniture includes approximate calculations of the cost of initial investments. They may differ depending on the region of business organization, the size of the enterprise and the financial capabilities of the entrepreneur.

So, in order to implement a business plan for creating a furniture workshop, you need to have about 3 million rubles. This amount is needed for a medium-sized enterprise. It is simply unprofitable to organize a small production enterprise.

In this article:

A furniture business can be developed in two ways - to sell furniture already made by someone or to produce your own. But it is much more profitable to combine these two currents into one channel. And the simplest option for organizing your own furniture production is considered to be opening a workshop for the production of cabinet furniture.

What is included in the category “cabinet furniture”

Cabinet furniture is furniture that has a “box” design and is designed to be placed along the walls. This category includes: tables, shelving, cabinets, cabinets, walls and other types of furniture made from separate rigid parts.

The production of cabinet furniture is regulated by the following standards:

• GOST 16371-93: Furniture. General technical conditions.
• GOST 19882-91: Cabinet furniture. Test methods for stability, strength and deformability.
• GOST 28105-89: Cabinet furniture and tables. Test methods for drawers and half-drawers.
• GOST 13025.1-85: Household furniture. Functional dimensions of storage compartments.
• GOST 28136-89: Wall-mounted cabinet furniture. Strength testing methods.
• GOST 26800.4-86: Furniture for administrative premises. Functional dimensions of cabinet compartments.

Analysis of the cabinet furniture market

According to Rosstat, the manufacture of cabinet furniture is the most popular type of furniture business, which occupies about 25% of the niche of all furniture production. Today's consumer is well aware of what cabinet furniture is and what it is needed for. At the same time, even the brand or the company’s long presence on the market is not important - offer a lower price with decent quality - and the buyer is yours.

If we arrange consumer requirements in the form of a pyramid, then the lowest and most “weighty” tier will be the price, then the materials used, build quality, original design, and only then the manufacturer’s brand. Therefore, despite the huge competition in the cabinet furniture production business, there is a place for everyone who can understand the desires of the consumer and predict fashion trends.

Who is he, a potential buyer?

According to the analysis of age characteristics, the target audience of cabinet furniture buyers is divided into two groups:

• young people under the age of 30 who are purchasing furniture for the first time;
• older age category (40-50 years), who buy new furniture to replace old ones.

The most popular “representatives” of cabinet furniture are kitchens and walls for the hallway and living room.

Raw materials for the production of cabinet furniture

Cabinet furniture can be made from chipboard, MDF, solid wood. To reduce the cost of production and the final cost of the product, companies often combine these materials, for example, replacing expensive furniture panels on the wall area and partitions with chipboard or laminated fiberboard.

The simplest option to start production is to make furniture from double-sided laminated chipboards (LDSP). Why?

Firstly, there will never be any problems with the supply of such raw materials - laminated chipboards are produced in abundance by both domestic and foreign manufacturers. Secondly, for the same reason (wide supply), it is possible to negotiate favorable delivery terms (with deferred payment, discounts for large quantities, etc.). Thirdly, the use of laminated chipboard significantly reduces the cost of production, since it reduces one stage - veneer or laminate cladding in the manufacture of furniture, which requires additional investment and makes sense only for large production volumes.

To select raw materials, you must be guided by the following indicators:

• thickness of laminated chipboards (16-18 mm for external walls and 12 for internal partitions);
• density – compliance with GOST 10632-89;
• emission class according to 16371-93 – E1.

For the back walls of furniture, you can use fiberboard (GOST 4598-86).

Features of the technological process for the production of cabinet furniture

There are several options for the technological process of manufacturing cabinet furniture. They can be divided into chains of different lengths:

• complete technological process - from the manufacture of material for the cabinet base (chipboard, MDF, furniture board) to the finished product. This is the best option for mass and serial production, allowing to significantly reduce the cost of materials, but very expensive from the point of view of small businesses;
• medium - furniture manufacturing, where the raw materials are ready-made sheets of chipboard, fiberboard, MDF - essentially, only cutting and assembly;
• short (assembly only) - the production of cabinet furniture is carried out from already cut to order chipboard, laminated chipboard, MDF. This is the most popular option for starting a small business from scratch, which involves working on a specific order without purchasing expensive cutting equipment. Then, after developing an appropriate customer base and receiving serial orders, you can think about purchasing your own cutting and edge banding machines in order to “lengthen” the technological process chain and expand production. This explains the relative ease of entering the furniture manufacturing business - in fact, it can be plan in any sequence of the production cycle.

The manufacturing technology of any cabinet furniture is divided into five main stages:

• Drawing up a project of the finished product in various planes;
• Cutting out the necessary materials for the parts of future furniture;
• Drilling sockets for fasteners;
• Finishing of cut edges (laminated edge, veneer, PVC film);
• Assembly of the finished product.

A detailed description of the technological process depends on the automation of production and the percentage of use of manual and mechanized labor. The most progressive (and, accordingly, expensive) production is considered to be one equipped with automated machines (CNC). The operator only needs to enter the dimensional data into a special computer program, design the desired product and give the “start” command.

In just a few minutes, a CNC machine will cut out the necessary walls and partitions of future cabinet furniture from clearly fixed materials, and drill holes according to the development plan. All that remains is to trim the edges and assemble the finished furniture. But it is profitable to buy such lines if there are constant serial orders. It makes no sense to reconfigure the machine for each piece of furniture on an individual order. Therefore, let us consider, as an example, the “golden mean” - the operation of a semi-automatic line of several machines with partial use of manual labor.

To start such production you will need the following equipment:

1. format-cutting machine with manual supply of materials;

2. edge banding machine for finishing straight edges, concave and convex elements;

3. drilling and filler machine for making blind and open holes for fittings, hinges, dowels;

4. grinding machine;

5. screwdrivers;

6. hammer drill;

7. cutting tools (mills, drills, knives).

Description of the production technology of cabinet furniture

1) After the design has been developed and approved by the customer, a model of the future product is created using a computer program , which can be installed on a regular laptop.

For example:

• Cutting– a program for selecting the optimal cutting of chipboard, laminated chipboard, MDF sheets with the least loss;
• PRO 100– a program for visualizing a sketch of a model in 3D, drawing up a design, constructing and calculating the necessary materials, parts and accessories for assembly.

But manufacturers of automatic and semi-automatic machines also offer other types of programs already installed on their equipment, for example “UCANCAM V9″, “ArtCAM”, etc.

2) The slab of material from which the product will be made is fixed on the machine and cut into individual parts in accordance with the cutting charts.

If furniture is made from fiberboard, this is where the preparatory work ends - the parts are sent for assembly. If we are talking about furniture made of chipboard or laminated chipboard, the rough blanks are subject to mandatory mechanical processing of the sawn edges;

3) Furniture parts made from chipboard are fed to an edgebanding machine, where they are used with glue and a pressure press slab sections are lined with laminated edges , PVC film, melamine or other edge materials;

4) Depending on the configuration of the machine, holes for fasteners are done:

• semi-automatically– on additive machines;
• manually, using rotary hammers and electric drills, using drawings with additive diagrams.

6) After adding holes, the product is ground along the edges (to smooth, remove overhangs of the edge material in height and length) and sent for assembly;

7) Test assembly using hand tools helps to identify defects and inconsistencies and eliminate them in the finished product. After which, the furniture is disassembled (if necessary), packaged and sent to the finished goods warehouse.

Estimated business plan for organizing the production of cabinet furniture

1. Project goals

The company plans to open a furniture workshop for the production of cabinet furniture in the mid-price segment.

Range: cabinets, tables, racks, bedside tables. Production will be organized on the principle of an incomplete cycle: raw materials in the form of chipboards and fiberboards, as well as fittings, will be purchased from suppliers for further cutting into finished panels, processing and assembly of furniture according to the developed drawings.

2. Financing

To launch production, it is planned to attract the own funds of the LLC founders, which will reduce the payback period and give an advantage in shaping the pricing policy.

3. Target group of buyers:

• intermediaries - specialized furniture stores, repair and design studios;
• end consumers (retail) - people with average incomes who prefer to update furniture every 3-4 years;
• end consumers (wholesale) - state-owned enterprises and government institutions, office centers, hotels.

4. Ways of implementation:

A) through a warehouse store, in which samples of work will be displayed and an office will be equipped to receive customers;

B) direct deliveries of furniture to private companies and government agencies; C) through dealer networks (including in other regions).

5. Advertising campaign

Advertising will be built with the target group of consumers in mind, for which the following will be used: media (advertising in the press of relevant topics), creation and promotion of your own website on the Internet, placement of advertising banners on sites dedicated to interior design and renovation of premises. It is planned to allocate 60,000 rubles/month for advertising purposes.

6. Organizational issues

For the legal registration of the business, it was decided to create a Limited Liability Company (LLC) on the general taxation system. This form makes it possible to work with both large wholesale suppliers and consumers, and retail buyers.

To register the activities of a company, you will need the following documents:

• information about the name of the enterprise;
• decision of the founders (protocol) on opening;
• information about the director and accountant;
• details of the account opened for the contribution of the authorized capital (if the contribution is in cash) and the current account for conducting business activities;
• confirmation of payment of state duty;
• charter, indicating the size of the authorized capital (at least 10,000 rubles) and the following types of activities:
  • 36.12 Production of furniture for offices and trade enterprises
  • 36.13 Production of kitchen furniture
  • 36.14 Manufacture of other furniture
  • 51.47.11 Wholesale trade of furniture
  • 52.44.1 Retail sale of furniture
  • 52.44.5 Retail sale of wood, cork and wickerwork
  • 52.61.2 Retail trade carried out directly through television, radio, telephone and the Internet.

7. Requirements for premises for the production of cabinet furniture

• First floor,
• availability of all communications,
• three-phase electricity 380 W,
• access roads and loading platforms,
• absence of dampness and high humidity.

It is planned to rent a premises of 500 m2 at a price of 240 rubles/m2, divided into 3 parts:

• office with a showroom with an area of ​​50 m2;
• workshop for the production of cabinet furniture, with an area of ​​350 m2;
• warehouse for raw materials and finished products – 100 m2.

Total – 120,000 rubles/month (1,440,000 rubles/year).

8. Staff

To work one shift (21 working days/month, including holidays and weekends), the following staff is required:

• director – 40,000 rubles/month;
• accountant – 35,000 rubles/month;
• customer service manager – 20,000 rubles/month;
• designer - 25,000 rubles/month;
• production foreman - 30,000 rubles/month;
• workshop specialists - workers with knowledge of the main types of furniture machines and the features of working with chipboard, fiberboard and MDF boards (5 people for 20,000 rubles / month);
• auxiliary workers - (2 people, 12,000 rubles / month).

Total: 12 people.

The estimated wage fund is 274,000 rubles/month.

Salary taxes (37.5%) – 102,750 rubles/month.

Total salary expenses – 376,750 rubles/month.

9. Main and auxiliary equipment

Total cost - 423,950 rubles

10. Performance

It is planned to produce products in the following volumes:

• cabinets – 100 pieces/month,
• tables – 100 pieces/month,
• cabinets – 100 pieces/month,
• racks – 100 pieces/month.

11. Calculation of product costs

According to the calculated data from the table of material consumption for production

and prices for materials,

The cost of production will consist of the following material costs:

• consumption of materials,
• electricity,
• advertising,
• salary,
• depreciation,
• rent

Cabinets – 18,354 (material costs) + 207.59 (electricity) + 94,187.5 (payroll + unified social tax) + 21,197.5 (depreciation) + 45,000 (other costs: rent, advertising) = 178,946.59 rubles /month.

Tables – 27,550 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 188,142.59 rubles/month.

Cabinets – 44,647 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 205,239.59 rubles/month.

Racks – 19,210 + 207.59 + 94,187.5 + 21,197.5 + 45,000 = 179,802.59 rubles/month.

Total: 752,131.36 rubles/month.

12. Price

Calculation of the wholesale selling price per unit of production (cost per unit of production + profit margin):

Cabinets – (RUB 178,946.59: 100 pieces/month)+25% = RUB 2,236.83.

Tables – (RUB 188,142.59: 100 pieces/month)+25% = RUB 2,351.78.

Cabinets – (RUB 205,239.59: 100 pieces/month)+25% = RUB 2,565.49.

Shelving – (RUB 179,802.59: 100 pieces/month)+25% = RUB 2,247.53.

13. Revenue and profit

Revenue: 2,236.83 * 100 pieces + 2,351.78*100 pieces + 2,565.49*100 pieces + 2,247.53*100 pieces = 940,163 rubles/month.

Cost: RUB 752,131.36/month.

Balance sheet profit: 940,163 – 752,131.36 = 188,031.64 rubles/month.

Income tax (20%): RUB 37,606.33/month.

Net profit: 940,163 – 752,131.36 – 37,606.33 = 150,425.31 rubles/month.

14. Financial analysis

Expenditure part

• material costs - 752,131.36 rubles;
• capital costs - 423,950 rubles.

Total: 1,176,081.36

15. Product profitability

(Book profit: Cost) * 100% = (188,031.64: 752,131.36) * 100% = 25%

When producing 400 units of cabinet furniture per month, the payback of the project will be 8 months.