Furniture production as a business: which direction to choose?

Despite the constant huge demand in the furniture sales market, most novice entrepreneurs, and experienced businessmen too, do not even consider this option as possible for creating a successful business, believing that the furniture market is already oversaturated with supply. The price of the “entry ticket” to business, long payback periods and the high level of competition are also deterrents. Is this how things really are, or can the question of how to open a furniture store from scratch be looked at from a different angle?

Brief business analysis: Costs of organizing a business: 3-7 million rubles Relevant for cities with a population of 10 thousand or more Situation in the industry: high competition Difficulty of organizing a business: 4/5 Payback period: 1.5-2 years

Furniture store formats

How to open a furniture store, where to start such a complex business, how to avoid mistakes common to beginning entrepreneurs? First of all, you need to decide on the format of the furniture store and conduct thorough marketing research.

What types of furniture stores are there?

• Standard furniture store. The occupied area of ​​a store in this format usually ranges from 250 to 1000 square meters. meters, the range of furniture averages 200-250 items, most of which are presented in catalogs.
• Exhibition hall of luxury furniture. Such outlets, as a rule, are engaged in the sale of custom-made furniture. Each product unit is presented either in one, or in two, maximum three copies.
• Highly specialized furniture store. Such stores sell furniture of one type, as a rule, these are sets - furniture for offices, bedrooms, living rooms, kitchen sets, etc.
• Large furniture hypermarket. The area of ​​premises for hypermarkets ranges from 10 thousand square meters. meters. Such retail outlets offer a range of products in various price categories and are able to satisfy any type of buyer.

  

• Store in warehouse format. If at present most of the stores work on order, i.e. have only a few samples of furniture in stock, the warehouse store is able to complete the purchase in one day. The nuance of such work is the need for premises with the necessary conditions for storing products.

Of course, each type of store requires its own operating rules, various investments and other factors that must be taken into account when determining the trading format.

When choosing the type of store, you need to take into account economic indicators in the region and the country as a whole, the purchasing power of the population in a particular locality, and the presence of competitors nearby.

Furniture store franchise

Do you want to take the easier path? It is quite possible to open a furniture business as a franchise. You can learn in detail about what franchising is in Russia and how profitable such a work scheme is by following this link -.

Currently, almost any large furniture chain offers those who wish to create a business under their own brand. What does a franchise buyer get? First of all, this is comprehensive support, expressed in:

• in providing a ready-made business plan for a furniture store;
• in providing furniture samples;
• assistance in staff training;
• some advantages when it is necessary to obtain a loan to organize and/or develop a business.

What, in turn, is the franchise buyer obliged to do?

• Make payments for using the franchise within the terms specified in the contract;
• strictly comply with all conditions for granting a franchise (this may include requirements for premises, employees, business conduct, etc.).

Working under a franchise imposes certain obligations on the entrepreneur, but many people like this approach to running a business for its stability and relative safety. Relative, because in fact, some companies providing franchises often do not fulfill their obligations under the contract, and the businessman receives the promised support only in words. Therefore, the choice of a franchise must be approached with full responsibility.

Online furniture store

Another format of a furniture store that deserves attention is an online store. Online trading has already become very popular in big cities, while in the regions online shopping is still viewed with caution.

To open an online furniture store, you will need an amount that is several times less than to create an offline retail outlet. What is required to open an online store?

• First of all, this is a website.
• Premises for storing goods are at the discretion of the business owner.
• Availability of your own delivery service or an agreement with a third-party service.
• Office space in which there will be operators who accept and process orders, answer customer calls, as well as other employees.

Dropshipping work

Dropshipping is an interesting new trading format in which the seller only accepts orders for the manufacturer, while acting as an independent legal entity or individual entrepreneur. In this case, the manufacturing company often bears the costs of warehousing, delivery and all other expenses.

The entrepreneur can only accept orders in his store and send them to the factory, receiving his legal commissions.

Of course, having only catalogs to present furniture products to customers, it is unlikely that you will be able to attract many customers. Therefore, one or two samples of furniture are still worth putting on display.

Dropshipping is an ideal option for an online store, optimally suited for entrepreneurs with low capital to start a business. But not everything is as smooth as it really seems. Dropshipping, in addition to the obvious advantages, also has its negative sides. More information about both can be found in this source.

How to choose a furniture supplier

Supplying goods is the most difficult aspect of any business, unless, of course, you are a direct manufacturer. Particular difficulties when choosing a supplier are caused by online trading and dropshipping. If in the first case the seller still somehow contacts the supplier through rare personal meetings, then in the second situation the seller often never sees the manufacturer.

Relying on integrity, responsibility and reliability of partners in our time is a huge luxury that a sane businessman cannot afford. Therefore, first of all, you need to look for reviews about the manufacturer. And not only reviews from those who worked with this supplier, but also customer reviews about the quality of the product produced by this company.

After all, the main complaints of the end consumer most often relate specifically to issues of the quality of the purchased product. And the demand, as we know, will come from the one who accepted the order and promised the client “mountains of gold.”

So, what should you consider when choosing a business partner?

• The products produced must stand out in the general furniture market not only for their good quality, but also for their affordable prices. What is better: to make only two sales of 50 thousand rubles each in a month, or 15 sales of 20 thousand each?
• You need to look for reviews about possible suppliers on the Internet - on various sites and forums. However, you should not blindly trust what is written; it is quite possible that these reviews may turn out to be custom-made. The best option is to personally communicate with organizations that have worked with this supplier.
• Choose companies that have proven themselves and have solid experience in the furniture market. You should not contact new companies without serious recommendations, even if they offer super favorable terms of cooperation.
• It is better to try to work with companies that produce furniture from domestic raw materials and fittings. Companies that use foreign materials in their products are extremely dependent on currency fluctuations and the general political and economic situation in the world.
• It is better to deal with suppliers who agree to provide furniture for sale, are ready to work in installments and provide other preferential conditions.
• You should always request a certificate for the supplied products. Moreover, this should not be a one-time service, but a document on the proper quality of the goods should be for each purchased batch (if the products are purchased in bulk). Suppliers will understand this anyway.
• If you open a store with a narrow product range, you should try to deal with one supplier. Furniture trading is not an area where you can rush from one supplier to another. Sooner or later, due to the threat of contract failure, most reliable suppliers may refuse to cooperate. In addition, it will be much easier for any businessman, especially a beginner, to work and analyze work with one partner.

You need to understand that in the low and middle price segment of the market it is difficult to find a manufacturer working with the production of exclusive furniture in a single copy or in small quantities. Such things are handled either by factories that produce luxury furniture, or by small furniture workshops that work exclusively on order.

You should also always keep an eye on new trends. For example, transformable and built-in multifunctional furniture is currently in use. Sales of cabinet furniture remained with a slight drop of several positions only in the low price segment.

Competitor market analysis

Thorough marketing research is the second stage of preliminary preparation when opening a furniture store from scratch. It’s stupid to poke your nose into a niche that’s chock-full of offers. Of course, in any business there is always room for one more applicant for a “place in the sun,” but in this case, business promotion will take much longer and cost much more.

Despite the not entirely favorable environment for small and medium-sized businesses in the country, sales in the furniture market are growing - slowly but surely. According to experts, this is partly due to the “gloomy” forecasts for the Russian economy. People are eager to update their furniture now, not being sure whether this will be possible in the foreseeable future.

In addition, the share of imported furniture on the Russian market has fallen quite significantly, providing an opportunity for the development of the domestic furniture industry. But even this fact did not increase competition in the market, all because of the same fears of going into the furniture business due to high costs, long payback and high competition.

The decrease in mortgage rates led to an increase in demand for real estate, an increase in construction, the number of home purchases on the primary market and, as a result, an increase in sales of new furniture.

What should a new entrepreneur consider when analyzing competitors?

Download furniture store business plan

• You need to start with the location of the outlet. Often the choice of location is decisive in sales. There are stores where the prices are higher and the conditions are not as favorable as in others, but people go to them. Because the store is conveniently located. Not often, but such precedents do occur.
• Pricing policy. Since the assortment of furniture stores is approximately the same and the suppliers of competitors located in the same locality are often the same, even a small price reduction can become a serious argument in the competition. Especially for a novice entrepreneur. Who needs to win over his client, make a “face” for himself.
• Terms of the purchase and sale agreement. You need to try to include more pleasant “bonuses” for customers in your work. Carrying out promotions, introducing discounts on certain dates of the month (of course, on “stale” products), free delivery within the city, free assembly, reducing the price for climbing a floor and other “tricks” will allow you to stand out among competitors.
• Reviews of buyers' competitors. This is also an important factor. If the buyer is loyal to the store, he will definitely recommend it to his friends, acquaintances, and relatives on occasion.

All the necessary information can be found out under the guise of a buyer at a competitor's outlet by interviewing their customers. Knowing the main aspects of your competitors’ work, you can build a competitive strategy. The “sit and do nothing” option will not work here. The furniture business is a tough industry where only those with the strongest grip remain.

Market Review

Where to start furniture production? Before opening a furniture shop, be aware that small and medium-sized businesses in this area typically specialize in something specific. You should not grab hold of producing everything in a row, but you should try to make every effort to gain a foothold in some narrow niche. This is a fundamental rule in the survival strategy in furniture production. You can focus your efforts on your own production of the following furniture:

• hull;
• soft;
• advertising;
• for trade organizations.

Promotional furniture is used to decorate points of sale and attract as many buyers as possible to a product or service. For trade organizations, such as shops, pharmacies, shopping centers, salons, special shelves and display cases are required on which the assortment will be displayed.

Furniture manufacturing involves a large number of specializations. You can focus your efforts on collecting any products with limited functionality, such as, for example, Euro pallets or computer tables, or you can make glass tables and cabinets, or produce furniture from a specific material - plastic, natural wood.

Furniture manufacturing as a business does not only mean creating goods. Services for restoration of cabinet and upholstered furniture are also popular. These services are especially in demand among citizens with low incomes, and there are many of them in the country. The opposite direction is the restoration and restoration of antiques. In this case, services will be in demand in regions that are economically developed.

An unoccupied niche in this market includes the production of wicker furniture. A small enterprise can master it, but wicker chairs, sofas, and cabinets continue to be imported from abroad, leaving them in the high price segment.

An excellent specialization for small and medium-sized businesses is built-in furniture. In this case, an individual approach to each client is required. Large enterprises cannot satisfy individual customer requirements.

To understand whether it makes sense to start a furniture manufacturing business, pay attention to the development trends in related fields. If the real estate market is developing, foreign cars are being purchased, the market for antiques and advertising services is developing, and this dynamics can be observed in the next two to three years, we can start in this direction. On the other hand, there will always be demand for furniture: after its decline, the upward trend returns very quickly.

Organization of production

Where to start making furniture? Once you have decided on your specialization, you need to find a suitable room. The minimum required area that will be required is 200 m2. Its rent will cost 1300-6500 rubles per year per 1 m2. This price range depends on the region.

In Moscow and St. Petersburg, you need to adjust to the cost of 1 m2 at 5-6.5 thousand rubles. per year, and in regions, especially economically undeveloped ones, you can quite count on the lowest prices. The average is 3,300 rubles per year per 1 m2. Total rent will cost 650-660 tr. in year. If you can rent a room for a cheaper long-term, that will be very good.

Depending on the specialization, you need to spend from 350 thousand rubles on equipment. up to 1.5 million rubles. This does not take into account the purchase of office equipment, software, or a truck with which the furniture will be delivered to the consumer or to points of sale. You can purchase both standard machines and entire production lines that are made to order.

Pay attention to purchasing quality components. Please immediately note that it is impossible to produce furniture that will be of high quality and competitive, while relying only on domestically produced parts and fittings. You will have to establish connections with distributors of foreign companies that offer everything you need for furniture production.

Decide in advance and make a list of component suppliers, enter into supply agreements:

• MDF boards;
• laminated boards;
• films on slabs;
• paint and varnish materials;
• accessories;
• aluminum profiles;
• sliding systems.

At the initial stage, it is necessary to duplicate suppliers for each position. Diversify your assortment so that there is more than just the production of chipboard furniture. During the work, some of them will be eliminated, cooperation will continue only with some of them, which turned out to be reliable and favorable in the price range.

Next, it remains to resolve the issue with the staff. The level of training of employees must be high, but they also require high pay. You can organize your training in your specialty if you have the experience and qualified personnel for this.

The staff of a furniture workshop should include:

• master;
• assembly fitter;
• carpenters;
• glazier.

The production workshop can accommodate from 10 to 50 people, depending on the volume of production.

In addition to these, you also need:

• driver;
• Sales Manager;
• courier;
• storekeeper;
• designer.

The general wage fund (payroll), if there are no more than 15 employees, is from 350 thousand rubles.

These calculations are valid for the general case. Depending on the specialization and scale of the region, they can change both downward and upward. For example, for economically underdeveloped regions the wage fund will decrease, but for Moscow and St. Petersburg it will increase several times. Let's look at specific examples in the niches for the production of cabinet and upholstered furniture.

Production of cabinet furniture

The production technology of cabinet furniture includes the following:

• preparation of a project for the intended product in different planes;
• work on cutting materials, forming parts of the future product;
• work on drilling holes and sockets for fasteners;
• work on trimming edges;
• final assembly of finished furniture.

This process depends on how automated it is. It is believed that the use of CNC machines reduces the percentage of manual labor and increases process automation. The operator of such a machine only needs to enter the size data into the program, create the required product, and once the machine is started, it will cut out everything that is needed in a few minutes. This manufacturing method is considered advanced and high-tech.

The disadvantage of such production is that constantly reconfiguring the program for an individual order is considered an unprofitable exercise. Therefore, the use of CNC machines is not suitable for working with individual orders. The best option is to organize furniture production on several machines, which form a semi-automatic line with combined manual labor.

For such a furniture manufacturing workshop you will need to purchase the following equipment and tools:

• format-cutting machine with manual supply of materials;
• edge banding machine, with which straight edges, concave and convex elements are lined;
• drilling and filler machine, which allows you to make holes - both blind and open;
• grinding machine;
• screwdrivers and hammer drill;
• cutters, drills, knives.

With all this, you can count on a simultaneous monthly production of 100 units:

• cabinets;
• tables;
• cabinet;
• shelving.

A total of 400 units of finished products. The expenses must include the following:

• for materials;
• for electricity,
• for advertising;
• for depreciation.

In addition, the cost of furniture production is formed by payroll and rent. The payroll together with wage taxes is about 400 thousand rubles, rent is 50-55 thousand rubles. The cost of 400 of these products will be about 500 thousand rubles.

The cost of a table or cabinet varies from 2.3-3.3 thousand rubles, and the cost of cabinets and racks - 3.5-5 thousand rubles. The approximate income will be 1160-1660 tr. The profit will be 590-1060 tr. per month. This is the perfect calculation. To obtain real numbers, the final values ​​can be divided in half, even if labor efficiency is high.

Production of upholstered furniture

The population's need for upholstered furniture forms a sixth of the entire furniture market, which makes this niche very promising and attractive for both medium and small enterprises.

There is a trend towards the production of sofas and armchairs to order, which makes it possible for small enterprises to successfully compete with large industries that will not pursue individual customers. It is convenient for small and medium-sized businesses to produce small batches of armchairs and sofas.

This niche is also attractive for small and medium-sized businesses because it does not require the purchase of expensive equipment.

Basic operations are performed manually. Finally, such small and medium-sized businesses easily adapt to fashion trends and are ready to quickly fulfill an order, even if a new product has just appeared on the market. For this, the factory needs a quarter to transfer the equipment and technological process to the production of some specific models. A small workshop can only provide the customer with a whole line of models through combinations of upholstery, fittings and materials, thereby benefiting from exclusivity.

Your production of upholstered furniture requires the purchase of the following machines:

• combined - for wood processing;
• multi-saw edger;
• turning;
• milling;
• crosscut;
• grinding.

Their total cost is 150-160 thousand rubles. In addition to machines, you will need drying equipment and pneumatic clamps, as well as hand tools, a sewing machine and cutting tables. This is another 40 tr. In total, the technology for producing upholstered furniture will require about 200 thousand rubles for equipment and tools.

In addition to equipment for the production workshop, you will also need to purchase office equipment - office equipment and furniture with a total cost of 60-90 thousand rubles. This equipment allows us to produce up to 100 sofas monthly, each of which can be offered for sale at a price of 7.5 thousand rubles. The enterprise's income will be from 750 thousand rubles.

The costs of producing upholstered furniture are:

• Payroll - 150-250 rubles;
• rent - 50 thousand rubles;
• materials - 150 tr.;
• electricity, utilities, internet, communications - 20 thousand rubles;
• advertising - 30-50 t.r.;
• unforeseen expenses - 40-60 tr.

In total, the total production costs are 440-580 thousand rubles. The enterprise's profit before taxes is 170-310 thousand rubles, and after - 160-290 thousand rubles. The real profit value will be 1.5-2 times lower. The average payback period for investments in equipment and tools in this type of activity, if efficiency is high, is considered normal from 4 months.

Manufacturing of facades

Take into account the production of facades. The number of enterprises that specialize in this is growing every year, but many manufacturers’ products are not of high quality. Buyers are willing to spend more money on high-quality facades, therefore, if you focus on product quality and do not strive to reduce costs due to it, then the production of facades can turn out to be a very profitable enterprise.

To open your own production, you will need 1.5 million rubles. One equipment, its purchase, delivery and installation will cost 1 million rubles. You also need to provide for the purchase of raw materials for a month of furniture production, which will cost another 250-300 thousand rubles.

One person can operate the equipment, so the payroll will be small. Such a furniture production workshop produces 400-500 m2 of MDF facades per month. The cost of 1 m2 reaches 1 thousand rubles. The income of such an enterprise is 400-500 thousand rubles. Consumables - up to 200 tr. The initial investment will pay off in 8-12 months.

What to focus on?

How to organize your furniture manufacturing business to achieve high labor efficiency? First: it is necessary that safety precautions are observed. Second: the staff must have a personal interest in high-quality production. Therefore, establish that the salary is formed from a fixed rate and a percentage for the work performed, and the marriage is deducted from the salary. This will increase employee engagement and improve labor efficiency.

After the work in the workshop has improved, begin an active search for customers. You can sell products both through retail chains in your city and in other cities.

It is very good if you have your own online store to sell manufactured furniture. If you invest money in its promotion and contextual advertising, it allows you to increase sales several times, while advertising costs will be low.

Scheme for starting a business selling furniture

The general scheme of organizing a furniture selling business looks something like this:

Most stages of organizing a business are carried out simultaneously, so the total time frame within which you can “meet” when opening a furniture store from scratch is approximately 2-3 months.

Ways to promote a furniture business

Experienced businessmen know that the most effective advertising is based on word of mouth. But at the initial stage, clients are sought through advertising. Methods are selected depending on the characteristics of the region and financial capabilities.

Advertising with the aim of increasing sales is part of marketing, and not the most important one. It is more important to work on identifying the characteristics of demand, developing a product that meets the needs of the target audience, and the price level. If competition is low, this is enough to increase sales.

The number of users of online stores, including furniture stores, is growing. Both manufacturers and traders have websites. It is important to attract a specialist who can optimize the resource and organize promotion in a specific region. If the site is constantly developed and updated, offline and online traffic increases quickly. If a factory opens, the brand quickly becomes popular and consumers begin to recognize the company.

In third place is the organization of exhibitions with preliminary distribution of business cards or leaflets, in fourth place are groups on social networks. When writing texts, attention is focused on what interests the target audience:

• For buyers of economy class furniture, a specific price, the possibility of obtaining a loan and receiving discounts, bonuses, gifts, delivery and assembly costs are important
• people with average incomes pay more attention to the popularity of the manufacturer and the environmental friendliness of the product
• in advertising for expensive furniture, it is important to emphasize exclusivity: expensive wood, popular brand, custom fittings (do not mention strength and durability)

Furniture advertising should be approached comprehensively. Large expenses are required in the first 2 years. Then you only need to spend money on events aimed at reminding: sales and promotions. However, when a new competitor appears on the market, costs have to increase.

The production and sale of furniture are relatively profitable areas of business. The organization requires a careful approach to market research and product selection in order to reduce the negative impact of competition.

Top

Write your question in the form below

How much investment will be required?

In order to open a furniture store from scratch offline, a very significant amount will be required, in contrast to the online version of a furniture store, franchising and dropshipping.

In addition to monthly payments for renting premises, you will have to spend a lump sum on the purchase of cash register equipment, which is required for accounting. Afterwards, periodically pay for the maintenance of the cash register. You also need to pay salaries to sellers, accountants, movers and furniture assemblers, and technical workers.

Based on the experience of various furniture stores operating in the regions, opening a store will require from 500 thousand rubles to 1.5 million for every 100 square meters. meters of area. In Moscow and St. Petersburg, this amount increases to 1-2.5 million rubles for the same area.

Do you need a business plan for selling furniture?

The question of whether a business plan is needed for a furniture store is a little inappropriate. Such a complex project is very difficult to implement without a step-by-step guide, in the preparation of which it is necessary to foresee most of the errors encountered in this business.

A business plan should guide an aspiring entrepreneur through all stages of organizing a business, bypassing the main obstacles encountered by his predecessors. You can try to create a business plan yourself using various guides. But, firstly, this will take quite a lot of time, and, secondly, it is not a fact that a non-specialist will be able to competently disclose all the necessary aspects of the document.

The best option is to order the development of a business plan from a specialized company. In addition to guaranteeing the quality of the compiled manual, this can serve as an advantage if it is necessary to submit a business plan to the bank if you need to take out a loan.

Will selling furniture be a promising business in Russia in 2018?

As reviews from owners of upholstered furniture stores, news and statistics from the last year show, furniture as a business is still a relevant area. This is justified by the following facts:

• Any furniture tends to wear out and become obsolete. As a result, the demand for fashionable new furniture will always be relevant.
• Not a single commercial establishment can do without upholstered office furniture, but such companies will turn to furniture showrooms in Russia “with a name.” An advanced brand indicates the highest level of trust, so it is much easier to “hook” large clients as a franchisee than for those entrepreneurs who decide to start a new business from scratch.

If you are interested in this area and want to get acquainted in more detail with the issue of opening a business for the resale of branded furniture products within the framework of a well-known franchise, on this site you can find detailed information about the conditions and cost of the franchise, cases, with figures and facts. You can also simply contact us in any convenient way and we will be happy to answer all your questions.

Location and premises for a furniture store

As already mentioned, the location of a furniture store can play a decisive role in sales volumes. What conditions should a businessman provide for when looking for the right premises for a retail outlet?

• The question of whether it will be a separate building or just part of the area in a shopping center or somewhere else is not particularly important. The main thing is that there are good access roads leading to the building, including for trucks.
• It will be better if the store is located on the ground floor in the first line of houses on the street.
• The location area is also not very important. For value for money when choosing furniture, people will be willing to travel even to the other end of the city. Moreover, subject to free delivery of purchased goods. But it will still be better if the location is chosen taking into account the categories of potential buyers.
• The choice of premises should also be based on taking into account the necessary parameters - a separate entrance (if the store is located in a residential building) and an emergency exit, a ceiling height of at least 3 meters (to allow the installation of tall furniture). Standards for lighting (artificial and natural) must also be observed.
• After concluding a lease agreement, the premises must be inspected by employees of Rospotrebnadzor and the fire inspectorate, and an appropriate conclusion will be issued.

In general, the final criteria for finding a suitable premises for a store should be determined by its format. For a furniture hypermarket you will need a separate large building with warehouse space, which is unlikely to be found in the city center. For a luxury furniture store, it is better to be located closer to the private cottage sector. A standard or narrowly focused store can increase traffic by locating high-rise buildings and new buildings in residential areas.

By the way, installation of a store sign on a building must be agreed upon with the landlord. And if the store is located in a residential building, then it will also include its residents, because the house is the common property of all persons living in it.

Opening options. Their advantages and disadvantages

1) Open mini-production to order in a narrow niche of consumer demand

Pros: the opportunity to become a monopolist, avoiding competition with large companies - an ideal option for any manufacturer. High margins on each unit of production, independence from pricing policy and other advantages of monopoly will quickly recoup the initial investment and raise funds for further promotion.

Cons: low sales volumes and limited demand - there is no guarantee that the local market, saturated with narrowly produced goods, will continue to grow. In addition, such production is artisanal in nature - to save money, it does not use automatic machines, but manual processing at most stages of the production process. This method leads to a large number of substandard products, and the quality of the products leaves much to be desired.

Entry price: about $15,000

Bottom line: a good option to start with if it involves further development by expanding production capacity and range. For example, having started the production of lockers for kindergartens, you can subsequently cover the entire product range of this segment: tables, chairs, children's beds, sports corners, shelving for toys.

2) Open a mini-factory under your own brand and your own dealer network

Pros: in a saturated market, this is the best option for developing competitive production.
Production in large volumes makes it possible to obtain significant discounts from wood suppliers, and the presence of an extensive network of dealers will ensure constant sales. Disadvantages: direct competition with existing players, which is impossible without large financial costs for advertising, development and promotion of the network. To “earn a name” it is necessary to strictly control the quality of service, maintain low prices and monitor quality.

Entry price: from $500,000

Bottom line: an option if you have access to an impressive initial capital and are willing to invest money now, with the expectation of profit in a few years.

Business registration

Today, there are two forms of doing business that are suitable for organizing a furniture business - and LLC. How to choose the most suitable format for business registration, read the link. Each type of business registration has its own advantages and disadvantages; you need to carefully read all the nuances in order to avoid difficulties in the company’s work later.

Another important aspect is the choice of taxation system. It would also be useful to find out how two tax regimes can be used simultaneously, and what taxes a specific individual entrepreneur pays.

Costs, profits and payback periods

As already mentioned, the total amount required to organize a furniture business depends on the region of the country. On average, this figure is up to 10-15 million rubles in Moscow and St. Petersburg for a store with an area of ​​up to 1,000 square meters. meters, and 3-7 million rubles – for other cities and regions.

Profit planning is also calculated based on specific operating conditions and the format of the outlet. But, if we take into account the experience of operating furniture stores, in general, furniture stores reach the break-even point by the end of the second year of their operation. Considering the cost of organizing a business, these are very good indicators.