There is a clear upward trend in the furniture sales market. The market is growing by about 15-20%. Sales growth is pushing businessmen to become more and more interested in furniture production. Money is not small. The market in 2010 amounted to about 11.5 billion dollars. Thus, you can clearly see that there is money in the market. You should not think that the entire segment has long been taken away by large companies, they are on the market and will always be, but small industries will always remain the main engine.
A business plan for the production of furniture, even with initial calculations, will show the profitability of this business. You can plan your activities in various ways. Many small companies operate independently in the market, and some cooperate with retail chains, large companies. It all depends on the owner’s ambitions and regional marketing opportunities.
Many small firms operate and furnish furniture only in their region or nearby cities. In large cities, shadow shops are also involved in furniture production, which make low-quality furniture, selling it at a low price. Thus, they lure suppliers to themselves, but this only stimulates the legal business to develop and offer better products. Often, a well-designed business plan for the production of furniture in the early stages makes it possible to plan further activities and enter retail sales networks.
Business plan for the production of furniture:
First you need to start with marketing research of the market. This will be needed to determine the type of product that you will produce. Cabinet furniture accounts for 25%, office furniture 22%, kitchen furniture 20%, upholstered furniture 12%, bedroom furniture 11%, and other types of furniture 10%. From these statistics it is clear that you need to select a specific profile or do all at once.
Renting a room will be an initial task, really calculate your financial capabilities. For the manufacture will require a workshop of about 150 square meters. For sales, you will need an office where they will take orders and, if possible, you need to open an observation room in which samples will be presented. In Moscow, for example, many businessmen who have been engaged in this business for a long time recommend buying premises rather than renting.
The next step will be the purchase of equipment. Having decided on the type of furniture produced, you should purchase equipment for its production. The most difficult thing is to find high-quality equipment that will not break every month. It is advisable to buy well-known foreign or domestic equipment. When buying, consider its specifics of service, operation requirements.
You will also need to recruit staff. You will have to hire workers in the workshop. They will carry out all the work, you need to recruit experienced people with experience in the industry. If you have your own point of sale, then you will need a sales assistant in the hall, administrator, accountant, driver. Thus, you will have a whole team of workers who will put your business on its feet.
A business plan for the production of furniture should contain financial calculations for the convenience of planning future activities.
Annual expenses:
room rental - from 300 to 600 thousand rubles
the cost of equipment - from 300 thousand to a million rubles
material costs - 300 thousand rubles
salaries to employees - from 1.5 million
Total: 2.2 - 3.0 million rubles
Income:
From 300 thousand rubles a month.
Experience has shown that kitchen, office, cabinet furniture are very popular. This is not strange, the business is developing rapidly.People began to earn more and can allow changing the interior that has bothered over the years.
"Good luck!" All the best.