Three ways to make brass nails

Production of nails - can this business be organized by a novice entrepreneur, usually limited in funds and without experience in running a business? Practice shows that there are no restrictions in this regard, and the nail production business is quite accessible to almost anyone.

Brief analysis of the business: Costs of organizing a business: 500,000 – 1,000,000 rubles Relevant for cities with a population: from 30 thousand Situation in the industry: developed production sector Difficulty of organizing a business: 2/5 Payback period: 6-11 months

Advantages of the nail business

In fact, why nails? Not the screws that I already talked about here, not any other fasteners? The choice to produce nails is easy to explain - no construction can be done without them. How many nails do you think are needed to build a 1-story wooden house 7 by 8 meters? More than 300 kilograms! And when constructing a multi-storey apartment building - several tens of tons! And tens of thousands of such houses are being built throughout the country! Or maybe hundreds...

In general, you can’t go anywhere without nails, not only in construction, but also in minor household repairs. The technology for making nails is simple, the equipment is affordable for almost any willing entrepreneur with a small start-up capital, and the sales market is the main problem of any business, in our case it is simply huge. And the product almost does not need any additional advertising.

What are nails like?

Are they different in any way other than size? - you ask. Certainly! Here are just some of the main types of nails, differing in purpose:

• Conventional construction
• Screw - for a more rigid connection of wooden parts
• Comb nails (they are also called razor nails) - the purpose is the same as that of screw nails
• Slate nails (the name speaks for itself)
• Finishing nails - used for finishing work
• Nails for working with concrete, brick, and metal

There are also shoe, wallpaper, packaging, roofing, etc. All this information is necessary in order to choose, among all the variety, the type of nails that you will produce.

Types of nails

These products differ not only in size (length and diameter), but also in purpose. The following nails are available on the market today:

• classic building;
• with a helical surface of rods;
• comb (ruffed) - an analogue of screw ones with an even more relief surface;
• slate (and other roofing);
• finishing for “clean” work;
• special for work on concrete, brick, metal;
• miniature wallpaper;
• shoe;
• container;
• furniture with a decorative or regular hat.

You can produce several types of products or even all of the above, or you can focus on the production of 1-2 types of nails.

How to register your business

We must immediately warn you that wholesale purchasers of products will not cooperate with an unregistered enterprise. And it is unlikely that it will be possible to “hide” the production of nails from the tax service - the scale is too large.

The choice in registering the form of business activity under which the production of nails falls is small - either individual entrepreneur or LLC. You can find out the difference between a private entrepreneur and a limited liability company in this source. You can read how to register an individual entrepreneur here, and how to register an LLC here.

Another difficult economic issue that you have to solve when organizing your business is the choice of taxation system. You can find out what types of tax regimes are preferable for small and medium-sized businesses, their main advantages for a particular form of doing business, at this link -.

OKVED code for the production of nails: 28.73.

Attention! This is important: from January 1, 2020, the classification of OKVED codes will be changed, and the production of nails will be registered under code 25.93. For existing businesses, the code will be replaced automatically. Beginning entrepreneurs will need to provide new data when registering.

What is required to organize production

The production of nails as a business can be classified as a project whose implementation requires medium-sized start-up capital - about 500-600 thousand rubles (provided that used equipment is used and there is no own premises for production). Of course, for the average person, such a sum often turns out to be unaffordable. Therefore, those who are eager to start this profitable business should consider taking out a bank loan to start a business.

Moreover, at the time of writing, many Russian banks offer quite favorable credit conditions for attracting capital to their sector of the economy. How to take out a loan correctly and not make a mistake when choosing a bank can be found in the article “Loan for small businesses.”

Another option for attracting investment is to borrow the required amount from a private individual. You can read how to borrow money by following the link.

So, the money has been found, all that’s left is to organize a business.

Room

A pleasant feature of the “nail” business is that the machine for making nails and other equipment necessary for production can be placed in only 15-20 square meters. meters. In principle, an ordinary garage is quite suitable for this purpose (would you like to know what other business ideas can be implemented in a garage? Here you go!).

There is only one caveat - additional space will be required to store raw materials and finished products. That is, another garage nearby, or another production area that meets the requirements necessary for production.

The main condition for the premises is the presence of an electrical network of sufficient power. Some machines require a 380 V network, so for fire safety purposes it is better to replace all electrical wiring with new ones. The plant will consume a huge amount of electricity, so old cables may not be able to handle the load.

Equipment for the production of nails

The equipment includes the following units:

• Machine for producing nails. You need to choose it depending on what type of nails you are going to produce. Of course, when producing several types of products, it will be necessary to install additional equipment and increase the production area. You can purchase such a used machine for around 150-300 thousand rubles. New domestic equipment will cost 700-850 thousand rubles.
• A special holder for the wire from which nails will be made. The cost of such a holder is several thousand rubles. Although, in principle, you can make it yourself.
• Apparatus for processing the appearance of products (galvanizing, bluing, varnishing, hardening, tinning, etc.). Its price depends on the type of processing.

That's all. An example of such a machine, which, by the way, would be more correctly called a wire-nail machine, can be seen in the video at the end of the article. On the market of production machines you can find both domestic and foreign equipment.

Honestly, foreign equipment has no advantages, and if there is no difference, then why pay more? Manufacturers working in the field of nail production, as a rule, give preference to Russian machines. And not only because of the price. Finding spare parts in the event of a breakdown is much easier for a Russian device than for an imported one.

Consumables

Consumables in the nail business include:

• The wire from which nails are made
• Containers for packaging products - boxes made of thin wooden planks, or cardboard boxes - it depends on how much weight the products will be packaged

This also includes machine oil, which will require a machine for producing nails.

Staff

Only one person is required to operate the machine. Consequently, how many machines you have in your workshop, the number of employees you will need. Preference should be given to energetic, physically strong (not an easy job!) workers who will not only learn how to operate the machine, but also, in the event of a breakdown, make minor repairs on their own.

Tips for starting a new business: buying equipment

First, before purchasing equipment, we need to understand the technological process of nail production. A special machine receives material resembling steel wire and passes through the machine, which itself cuts off the cap and tip in the right place, hammers the cap and forms a sharp tip. Next, the nails are polished in a special machine so that they last longer and fit better into the material. Now let's figure out what you need to buy for this process.

We need a material processing machine that makes nails. This is a fairly large machine with different settings for producing different types of nails - they differ in diameter. We will buy a domestic machine, since it is several times cheaper than foreign ones, and they are of the same quality. A Russian machine for cutting nails costs 250 thousand rubles, and a Japanese one with the same performance costs 700 thousand rubles. The difference is noticeable, so we recommend taking the cheaper option. If the budget is generally tight, but you have decided to start a business, you can buy a used machine, it will cost half as much.

After the nails are cut to the desired length and diameter, you need to sand them. Untreated nails are much cheaper and last much less. Stores, construction companies and other buyers prefer to buy polished nails. An automatic grinding machine costs 70 thousand rubles, again we advise you to buy domestic equipment. Let's write this money into the start-up expenses of the enterprise. The costs for equipment, however, do not end there - you need to buy shovels, gloves, buckets and compartments for storing products. All this will cost us 12 thousand rubles.

Secrets of writing a business plan for the production of nails - hiring staff

Another advantage of this business will be low wages for its employees. We need two workers who can perform simple operations with machines. It is precisely because the work is not hard and you do not need to study in order to do it that the wages will be low. The minimum figure is 12 thousand rubles per month, which is what we will set for our staff.

It will be very easy to find personnel - go to employment centers and find out if there are any unemployed mechanics or other workers who want to earn the minimum wage. You will have a huge choice for this position, you just need to choose the most suitable workers. One will install consumables into the machine, and the other will operate the grinding machine. As a result, 24 thousand rubles per month for staff.

How business professionals work: product sales

As we said above, we will not sell nails in tens, we do not have a store or staff for this activity. We advise you to sell your goods wholesale to construction companies, hardware stores and furniture factories. Now we will analyze in detail the advantages of each buyer and decide who to target first.

Construction stores and hypermarkets operate as retailers, that is, they simply resell our goods to their customers with a markup or a percentage of sales. It is profitable for large stores to sell our goods at a low price and take a percentage from it, because the store itself does not risk anything. Find several stores and supermarkets, agree on deliveries and sales, and mark-ups on goods. You don’t need to advertise anything, the store does this - after all, it’s also profitable for him to sell more of your product.

Very good clients are construction companies and furniture factories. Such enterprises constantly need a lot of nails, they are needed constantly, and if you satisfy the client with quality and price, then you can work with him for a very long time. And if you have large sales volumes, and there are still unoccupied clients, you can expand the enterprise.

Nail production: business plan for expenses and income

We decided to first calculate the amount of money for the purchase of equipment and renovation of the premises, as well as the registration of the enterprise. Registration of a company will cost 3 thousand rubles, renovation of a rented premises 8 thousand, purchase of a machine for cutting nails 250 thousand rubles and 70 thousand for a grinding machine. Let's add here the purchase of small equipment for work - 12 thousand rubles. Start-up costs are 343 thousand rubles. Operating costs amount to 54 thousand rubles, of which 10 thousand are material costs.

We buy a spool of wire for 10 thousand rubles and make nails from it. From one kilogram we get nails worth 45 rubles, for 10 thousand we buy 2 tons of wire. From this material we will sell goods for 90 thousand rubles, subtract 54 for expenses and get 36 thousand rubles. It is worth noting that our company will process such a volume in a week at most.

I also recommend reading:

Sincerely, Anatomy of Business project

Categories:

• Building bussiness

May 18, 2014 11:38 pm

Technological process for the production of nails

The technology for producing nails is extremely simple, and the steps are as follows:

• The machine pulls the steel wire from the reel located on the holder
• The head of the nail is formed by the blow of a special mechanism
• The wire is cut according to the specified dimensions
• If provided for by the production process, the products are processed in a special apparatus to give a special appearance

A few words need to be said about the raw materials needed for the production of nails. Steel wire is usually supplied in large coils of half a ton each. Larger reels are also offered, but not every machine has enough power to pull wire from such a coil, and therefore most often manufacturers buy reels of 500 kg.

You can order raw materials at the nearest metal rolling base - these now exist in almost any city with a population of 5-10 thousand people. Metal prices “jump” literally every month, so a certain amount for which you can purchase a ton of raw materials is simply impossible.

Raw materials for making nails

The raw material that will have to be purchased regularly is steel wire for the production of nails. It can have different cross-sectional diameters. Wire is sold in coils or reels of 200-1500 kilograms. Pay attention to the quality of the wire: business will not go well if the nails are rusty or weak. For one ton of steel wire they usually demand 35 thousand rubles.

It is necessary to find reliable suppliers of raw materials and conclude an agreement with them on terms favorable to each party. In every region of Russia there is at least one company engaged in the sale of steel wire. Constant cooperation will allow you to receive high-quality raw materials at an affordable price.

How to find sales channels for finished products

You can organize the sale of products at retail and small wholesale directly during production, by opening a small store “on the side”, or by organizing the delivery of the required number of nails to order.

Although, of course, first of all, you need to focus on buyers of large wholesale quantities, preferably regular ones. This category of buyers includes:

• Construction stores and metal warehouses
• Construction companies
• Furniture manufacturing companies

You can establish contacts using “cold calls”, by submitting advertisements in thematic media or posting on thematic Internet forums. It may be that at first, in order to attract customers, you will have to resort to dumping - lowering prices in comparison with competitors. But the costs are fully compensated by the volume of purchases.

Don’t forget that you can discuss your favorite business idea with other readers on the blog forum.

Nail sales places

A business in the production of nails should be started after you have studied the demand for finished products. Construction companies prefer to cooperate with large suppliers; competition must also be taken into account. Is anyone else in the nail business and looking for sales outlets in the same way as you? If not, then it is quite possible to launch a powerful production of nails and dowel nails, since it will not be difficult to agree on wholesale supplies.

To introduce yourself as a new reliable supplier in the construction market, use advertising:

• In printed publications;
• On the Internet.

If you cannot provide large volumes of supplies to construction companies, then you can negotiate with construction stores that sell goods wholesale or retail. You can sell the products yourself, but with this approach you cannot make a lot of profit. But in this way you will be able to establish yourself as a good entrepreneur.