Business idea - Production of furniture from natural wood (2020) - where to start and how much you can earn

Products made from natural wood have always been valued. This is a classic that will never lose relevance or go out of fashion. If you organize the entire project correctly, you can earn a good income. However, to run a business competently, you need a good business plan. A carpentry workshop as a business is perfect for a novice entrepreneur with hands “from the right place”, as it does not require large investments; the main role here will be played by skills and ability to handle wood.

Brief business analysis: Costs of organizing a business: 50 – 110 thousand rubles Relevant for cities with a population: no restrictions Situation in the industry: average competition Difficulty of organizing a business: 3/5 Payback: 3 – 5 months

If you draw up a business plan correctly, you can use it not only as an information aid. It is ideal when there are not enough funds to implement the project and they can be received from the state as assistance to small businesses. You can also attract investors, or get a loan from a banking institution on preferential terms.

Business Description

On the Russian market there is a large number of low-quality products made from chipboard and fiberboard, which have a number of disadvantages:

Chipboard is a material made from dry wood chips and resin. Products made from it practically do not hold screws and nails. Broken furniture is quite difficult to fix because of this. Such materials contain a large amount of formaldehyde, which has a detrimental effect on health.
Fiberboard is a material made from wood fiber. The scope of application is extremely limited. It is used in the manufacture of the back and bottom parts of furniture.

Their main advantage is low cost. In terms of their characteristics, it is difficult for them to compete with wood. More and more consumers prefer natural products made from environmentally friendly materials. It is worth considering that not only interior furniture can be made from wood, but also door leaves, window frames, souvenirs, and kitchen utensils.

To implement a business plan for a carpentry workshop, you will need to invest money in the following stages of the organization:

renting suitable premises for a long term. The contract can be concluded for a year, with the possibility of further extension. This time will be enough to prepare the premises and start production. After a year, you can extend the contract or expand production and find a new premises.
Purchase of furniture for warehouse, office and industrial premises. The warehouse will require racks and shelves for storing finished products and raw materials (wood, fittings, brushes, paint, varnish) used in production. For the office you will need a computer desk, a chair, shelves for storing documentation, and work equipment (computer, printer). The production facility will need cabinets and shelves for storing hand tools, and tables for processing products.
Purchase of basic equipment for the work of craftsmen - lathes and grinders, band saws, a circular saw, a vice.
Buying hand tools - eclectic tools (drill, screwdriver, jigsaw), hacksaws, chisels, hammers and much more.
You will also need to create a supply of raw materials - wood, iron, fittings, paint and varnish products.
Conducting an advertising campaign.
The process of registering activities and unforeseen expenses during the work process.

Tools and equipment

The list of basic tools and equipment includes:

hammers and mallets;
chisels and electric plane;
tape measure and caliper;
drill and screwdriver;
jigsaw and circular saws;
milling and jointing machines;
devices for applying paint, varnish and antiseptics;
fan with bags.

You will also need the following consumables:

wood glue;
dye;
varnish;
oil;
nails;
self-tapping screws

In addition, packaging materials for finished products may be required.

Description of services

The range of manufactured products can be quite wide. In cases where an entrepreneur is just starting his activities and the implementation of a business plan for a carpentry workshop is his first project, then it is best to choose one direction. After the business develops and makes a profit, it will be possible to expand the staff and choose a second activity in parallel:

The manufacture of doors and windows is constantly in demand. Undoubtedly, wooden window frames are fading into the background with the advent of PVC windows, but wooden doors are gaining popularity. Wood material is still valued.
Making kitchen utensils. This option has a lot of variety. You can make cutting boards, bread bins, rolling pins, coasters, trays, cutlery and much more. These products are valuable, but have a low cost; if produced in large volumes, you can make a good profit.
Production of souvenirs. This includes magnets, amulets, key rings, and boxes.
Making furniture - chairs, beds, chests of drawers, cabinets, tables.
production of desktop and educational toys. If the finished product is coated with varnish or paint, the cost will drop significantly. This is due to the fact that many parents choose environmentally friendly materials for their children. But it is worth considering that if toys are made for children, then they must be perfectly smooth and you will definitely need to obtain a quality certificate for all products.

When implementing a business plan for a carpentry workshop, you should understand that it is quite difficult to compete with large furniture factories. Therefore, producing identical furniture is not the best option. The bet should be placed on exclusive products that are produced in single copies. In this case, you can show all your creative talents. But do not forget to analyze the market, as it often happens that it is difficult to find buyers.

Market analysis

You need to analyze the market in the area and region where the workshop is opening. To do this, you can attract third-party organizations that will do everything for you and provide the necessary data.

If the budget does not allow this, then you can conduct a market analysis yourself. To do this, you will need to use the Internet, find all the workshops available in the area, ask them for a price list for all products and study the prices in detail. It would be a good idea to study reviews from real customers about competitors. This will allow you to identify their weaknesses and not repeat their mistakes in the future.

Identifying potential clients

To identify the needs of potential buyers for the products you make, go to the search engine, go to Yandex.Wordstat and enter the most common requests for the purchase of handmade furniture. For example, “buy a wooden table”, “buy handmade furniture”, “buy wooden furniture”. This will allow you to estimate the number of requests in a particular city, as a result of which you can identify the level of need.

Another way is to communicate with an employee of a large organization. You don't have to say who you really are. You can come as a buyer. During the conversation, you can sometimes ask leading questions. If you can get the manager to talk, you can find out how many clients they have, how often they purchase products, and what is in greatest demand. Or you can conduct surveys on the streets of the city.

Before you begin your research, you will need to get answers to a number of questions that show the profile of your potential buyer:

age;
place of residence - apartment or private house;
approximate monthly income;
what products your client requires;
what primarily influences the purchase;
what problems the purchased products can solve.

The entrepreneur himself answers these questions. They will help you decide on the choice of potential clients. During the research process, it will become clear which circle of consumers needs to be reached as part of the advertising campaign. Any product has its own value. If he sells at a high price, and in the city in which the workshop is located, the income level of the population is low, then it will be quite difficult to sell.

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Underwater rocks

The pros and cons of the business are as follows:

Business will not generate large incomes in regions where there are few companies engaged in the construction and production of wood products and furniture. You will have to look for buyers in neighboring regions, and this business niche is rarely free.
Large furniture manufacturers and construction companies engage in wood processing themselves and will not overpay for raw materials.
High-quality woodworking equipment is expensive. At a low cost you can buy machines from a Chinese manufacturer or used ones. For outdated models, spare parts are either unavailable or expensive. Their depreciation reaches 80%, and profitability decreases.
It is better to work with wood if you understand something about its types, drying, and storage. Wood is a capricious material, and if stored improperly, high-quality raw materials can easily turn into low-grade waste.
The advantages include the ease of organizing the work process. If the plot is ready, equipment has been purchased and workers have been hired, then you can start production yourself in a matter of days.
Whether production is profitable depends on seasonality. In summer, sales are 70% higher than in winter. This is due to the stoppage of construction and repair work in private housing construction. Furniture production is also reducing purchases, as consumer demand is falling.

Marketing plan

You can implement a business plan for a carpentry workshop in any city. It is worth considering that the larger the city, the greater the production should be. Once production volumes increase, other regions can be expanded.

In the future, I will open my own point of sale. To do this, it is enough to rent a couple of square meters in a large shopping or entertainment center. It is not necessary to display ready-made models; catalogs with samples of work, according to which orders are made, are sufficient.

During an advertising campaign you can use:

mass media – print media, radio. At the initial stage, it is not practical to use television due to the high cost of airtime.
Distribute flyers.
Design and create an official website.

Production plan

To locate a workshop for the production of wood products, you will need to rent a room with a total area of 150 square meters. Initially, the room must have running water, electricity, a heating system, a ventilation system, and a sewage system.

By renting such premises, you can create the necessary conditions for production in terms of temperature and humidity. The entire room is planned to be divided into several zones:

Workshop – 70 square meters.
Warehouse for raw materials.
Warehouse for finished products.
Shower room.
Staff room.

You can significantly reduce the costs allocated for renting premises. After all, a production workshop does not have to be located in a busy place.

Selection of premises

To organize a carpentry workshop, you can choose any room, including a garage or basement. The main condition is dryness - the tree does not like moisture and deteriorates from it.

When choosing a room, you need to consider the following features:

the area should be sufficient for comfortable work - optimally 300 sq.m., but not less than 50
when organizing a large workshop, the premises should have an area of about 700 square meters. m.
in the case of the production of window blocks and doors, the length and height should not be less than 4 meters

Additional requirements include:

availability of ventilation
good lighting
low moisture level
air temperature not less than 16 degrees
high level of fire safety
Availability of electricity – minimum 220 V, recommended – 380 V

It is recommended to choose a room in which windows occupy at least 25% of the total area.

In the case of door production, it is necessary to divide the carpentry shop into separate production areas:

drying wood
production of solid woodwork
production of auxiliary elements
assembly
grinding
Painting works

Thanks to this, it is possible to establish a continuous production process.

Organizational plan

When implementing a business plan for a carpentry workshop, do not forget about the registration process, searching for employees, and choosing a taxation system. All this data is an integral part of any project.

Staff

The selection of personnel requires special attention. After all, the reputation of the organization depends on their work. When applying for a job, each employee must have specialized education and experience in similar fields. For full operation of the workshop you will need:

one technologist with experience who controls the entire production process and participates in its organization.
Two carpenters.
One assistant for each carpenter. During the production process, they will assemble products and perform minor work. This will allow the carpenter to do the main work and not waste time on minor work that an assistant can do.
General workers. Their responsibilities will include packaging finished products, cleaning the premises, and unloading and loading operations.
Sales Manager.
It is not necessary to have a full-time accountant; it is enough to enter into an outsourcing agreement with a third-party organization.

The size of the wage fund in this case can vary from 130 to 170 thousand rubles monthly.

At the initial stage, you can do all the work yourself. But this is only if the production is small and the business owner has experience in carpentry.

Choosing a tax system

As a taxation system, you can choose the simplified taxation system (simplified taxation system). The amount of tax paid will be 15% of the organization’s net profit or 6% of total income.

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Registration process

Regardless of the number of founders, you can choose either the registration form or LLC. Each form has its own advantages:

Registration costs are lower.
It is not necessary to have an authorized capital.
There may be no employees on staff.
Bookkeeping is simplified.
The owner disposes of the income at his own discretion.

OOO:

Lenders need authorized capital, which acts as a guarantor.
Insurance and pension contributions are not paid after the suspension of activities.
Several people can act as founders.

When registering an individual entrepreneur, you will need to present a copy of your passport, write an application, indicate the OKVED code, and pay the state fee.

Where it all started

Good afternoon. My name is Vasily Zorin and I am 49 years old. Nine years ago I started doing carpentry - making wooden shelves, racks, and racks to order. I live in the small town of Belgorod, where my first business was launched. A painter and plasterer by training, a paramilitary cash collector by trade, a carpenter at heart. My small business didn’t last very long, but more on that later.

From father to son

My wife and I have been living in her parents’ house for 15 years. My father-in-law was a jack of all trades: he built the house himself, made all the furniture himself, and carved children’s furniture and toys for his grandchildren. He had a separate large workshop where he planed all wooden objects. After he passed away, all this wealth was left to my wife and me.

To say that I was a frequent guest there is no. Although I knew all those tools and how to work with them, I used them very rarely. And then fix something around the house, file it, knock it out, etc. Moreover, I didn’t have time to plan anything - I worked as a paramilitary cash collector within two days, and made good money.

Reduction of staff and job searches

Everything changed when staff reductions began at my work due to the crisis. Many quit, many were fired, transferred to another mode of work. It’s the same with me - they offered to work 2 through 2, or 3 through 3, but they didn’t imagine a hostel. But looking in another city and renting housing is very expensive.

Sales channels

There are several ways to sell finished products:

participate in fairs;
start collaborating with hardware stores;
open your own store;
sell goods from the workshop;
submit advertisements for the sale and manufacture of wood products;
use a personal website with feedback;
involve social networks.

Sawing round wood

This is the easiest way to make money. The initial costs of this business can be recouped in one construction season. The woodworking technology of the primary cycle is not particularly complex. Sawing round wood into building timber of different sections and into boards is usually done using a band-type sawmill.

You can even do without capital premises and install the equipment only under a canopy, protecting the production process from precipitation. But when launching such a business project, you should keep in mind that usually the business ends with the construction season. In winter, the demand for lumber is minimal.

Material selection

Before you start making furniture, you need to decide on the raw materials to be used. Let's look at which breeds are the most popular and what they are used for:

Deciduous:

Oak – massive furniture.
Alder is light and elegant furniture.
Beech – bent products, stairs.
Ash – for interior decoration and carving.
Walnut is predominantly expensive furniture.
Maple - veneer.

Conifers:

Pine – window frames, door panels.
Spruce – doors with good thermal insulation.

Exotic wood species:

Red – decor, musical instruments.
Black – used for small items, such as boxes. Furniture made from this type is the most expensive.

Financial section

In any organization there are constant expenses throughout the month. When implementing a business plan for a carpentry workshop, this must also be taken into account. Let's look at the main expenses:

Payments under the premises rental agreement.
Payment of utility bills.
Conducting an advertising campaign.
Employee compensation and insurance benefits.
Outsourcing service for accounting issues.
Transport costs (fuel and lubricants).
Unforeseen expenses during the work process.

The amount of net profit depends entirely on the direction of the carpentry workshop business plan.

Calculation of profitability in a business plan

Suppose an entrepreneur opens a workshop for the production of windows and doors. To do this, they hired several employees and rented specialized premises. Workload – 50%.

Table 3: one-time and monthly costs.

Entrepreneur's cost item	Monthly costs, thousand rubles.	One-time expenses, thousand rubles.
Official registration of a business case	–	40 thousand rubles.
Registration of a lease agreement for premises	10	–
Payment of utilities (electricity)	8	–
Purchasing the necessary tools	–	100
Arrangement of the premises	–	40
Purchase of raw materials	250	–
Purchasing additional materials	5	–
Payroll	100	–
Social contributions	10	–
Administrative costs	5	–

The total financial costs amounted to 568 thousand rubles.

Table 4: production diagram.

Calculations	Making doors	Window production
Production of goods, pcs.	40	20
Wholesale price for 1 unit	9 thousand rubles.	6 thousand rubles.
Revenue	360 thousand rubles.	120 thousand rubles.

Profitability:

total income from wholesale sales of products – 480 thousand rubles.
expenses (production and non-production) – 388 thousand rubles.
net income – 92 thousand rubles.
profitability – from 15%

Employees can spend the remaining period on making furniture for individual orders, bringing in an additional monthly income of 100-150 thousand rubles.

The payback period for investments is from six months.

Video about furniture production:

With a small starting capital, you can open a small workshop with an initial investment of 100 thousand rubles:

equipment costs – 70 thousand rubles.
purchase of raw materials – 20 thousand rubles.
monthly rent for production premises is 10 thousand rubles.

With an average monthly income of 30 thousand rubles, the initial investment can be recouped in a period of 4 months.

Risk analysis and insurance

Carpentry products are in great demand, especially if they are made with high quality. Handmade products and environmentally friendly materials are equally valued. Therefore, it is possible to earn income from the sale of exclusive furniture. This activity has a number of advantages:

You can start a business on your own, as long as you understand and understand carpentry.
Starting your own business does not require a large budget. Equipment can be purchased secondhand, and the premises can be chosen to be small.

But despite a number of advantages, there are also risks that everyone may face:

The reputation of an organization depends entirely on its employees, their qualifications and work experience.
More and more competitors are appearing in the market for goods and services.
At the opening stage of an organization, it is difficult to find suppliers who supply high-quality raw materials at affordable prices. For large production volumes, you can contact the manufacturer directly. But not all manufacturers work with small businesses. The best option is to work with distributors. Prices are a little higher, but they work with any volume.

The most important thing in any business is to gain a reputation in the market and among consumers upon the first delivery of finished products for sale. Any buyer wants the purchased furniture not to break, to last a long time, and to have an attractive appearance. Therefore, finished products must meet all customer requirements.

Business ideas – wood production. Where to start and how to choose a room?

When the master has found his unique business idea, he needs to find a suitable place to implement it. When choosing a location, you need to take into account that there is no high humidity and drafts. The room must be dry and have sufficient free space. It is necessary to provide for the presence of several rooms, in addition to the main production workshop, one for the master’s rest and the second for communication with customers.

Depending on the size of the manufactured products, the area of the room is selected; its height is important. The building must have good lighting, uninterrupted access to the power supply, as well as a powerful exhaust hood, because working with wood involves cutting, processing and painting.

Stages of starting a business

A ready-made business plan for a carpentry workshop must be implemented following certain steps:

Draw up a project, choose a direction of activity, decide on the number of employees and production volume.
Study the competitive market. Identify all the shortcomings of functioning organizations.
Select legal form.
Go through the registration process.
Obtain licenses and quality certificates.
Find a suitable room for the workshop.
Purchase equipment and tools for work.
Select the appropriate material from which the product will be made.
Find distribution channels.
Conduct an advertising campaign.
Hire staff.

Purchase of a ready-made carpentry workshop

If you do not want to create your own business from scratch, you can purchase a ready-made business. The cost depends on the region of residence.

Analyzing message boards on the Internet, the average cost of such a business is:

Tula – 500 thousand rubles
Chelyabinsk – 1 million rubles. – depends on production volumes
Angarsk – 350 thousand rubles.
Moscow – 1 million rubles.
St. Petersburg – 1 million rubles.

The cost of the finished case depends on the following factors:

presence or absence of suppliers
presence of an established client base
entering the all-Russian sales market
presence or absence of professional workers
technical condition of production equipment
remoteness of the city
workshop location region

The last factor is key. In small towns, the cost of production is lower than in megacities. At the same time, the monthly profit is smaller, but there is a chance to become a monopolist.

A carpentry workshop as a business is the optimal solution for increasing your monthly income. With minimal costs and quick payback, you can achieve a decent profit in the shortest possible time.

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