How to calculate an advance payment according to the simplified tax system: formula
The algorithm for calculating advance payments under the simplified tax system has been approved by the Tax Code of the Russian Federation. The base for them, as for the total tax amount for the year, is determined by the cumulative total. But the calculation formulas differ depending on the object of taxation.
pp. 3 and 3.1 art. 346.21 of the Tax Code of the Russian Federation establishes how to calculate the amount of advance payments under the simplified tax system with the object of taxation “income”.
Advance payments under the simplified tax system in this case are determined in the following order:
1. The tax base (NB) for the reporting period is established. To do this, it is necessary to calculate the amount of income actually received on an accrual basis from the beginning of the calendar year to the end of the reporting period.
2. The amount of the advance payment attributable to the tax base is determined. For this, the formula is used:
AvPrasch = NB × C,
C is the tax rate. When the object of taxation is “income”, its size ranges from 1 to 6% depending on the region (clause 1 of Article 346.20 of the Tax Code of the Russian Federation).
3. The amount of advance payment payable (APP) is calculated using the formula:
AvP = AvPrasch - NV - AvPpred,
NV - the amount of tax deduction, which represents the total amount of paid sick leave benefits, paid compulsory social insurance contributions, some other payments and cannot exceed half of the amount of accrued tax for legal entities, and for individual entrepreneurs it can be applied to the entire amount of accruals;
About at what point an individual entrepreneur must take into account the payment he made for insurance premiums, read the material
“An individual entrepreneur can take contributions “for himself” to reduce tax under the simplified tax system only in one period .
AvPred - the amount of advance payments calculated for previous reporting periods.
For an example of calculating tax on the object “income”, see the article “The procedure for calculating tax under the simplified tax system “income” in 2018-2019 (6%)”
.
When choosing an object of taxation “income minus expenses”, the procedure for calculating advance payments under the simplified tax system is slightly different. It is defined in paragraph 4 of Art. 346.21 of the Tax Code of the Russian Federation as follows:
1. The tax base is established based on the results of the reporting period (1st quarter, 6 months, 9 months), for which the formula is applied:
NB = Dx - Px,
Dx and Px - actually received income and actually incurred expenses on them, expenses for the period, calculated on an accrual basis from the beginning of the year.
2. The amount of the advance payment attributable to the tax base (NB) is determined using the following formula:
AvPrasch = NB × C,
C - tax rate equal to 15% or taking a lower value (from 15 to 5%) in the constituent entities of the Russian Federation (clause 2 of Article 346.20 of the Tax Code of the Russian Federation).
3. The amount in which the advance payment according to the simplified tax system will be paid to the budget is determined:
AvP = AvPr. — AvPpred,
AvPred - the amount of advance payments calculated for previous reporting periods.
Deadlines for making advance payments under the simplified tax system
According to paragraph 7 of Art. 346.21 of the Tax Code of the Russian Federation, advance payments under the simplified tax system must be transferred before the 25th day (inclusive) of the month following the expired reporting period. Moreover, the deadlines for paying advances under the simplified tax system are the same for legal entities and individual entrepreneurs and do not depend on the selected object for calculating this tax.
The Tax Code of the Russian Federation provides for situations when the last day for payment of advance payments falls on a weekend or holiday. In this case, payment is made no later than the next working day following the weekend (Clause 7, Article 6.1 of the Tax Code of the Russian Federation).
Legal entities - payers of advance payments according to the simplified tax system make payments at the location of the organization, individual entrepreneurs - at the place of residence (Clause 6 of Article 346.21 of the Tax Code of the Russian Federation).
What are the specific deadlines for paying advances under the simplified tax system in 2019? For this year, there are no coincidences between the deadlines established in the Tax Code of the Russian Federation and weekends, therefore all deadlines for paying advances under the simplified tax system in 2019 will correspond to the 25th date:
- April 25, 2020;
- July 25, 2020;
- October 25, 2020.
Read about the differences in the application of the simplified tax system for legal entities and individual entrepreneurs.
Failure to pay advance payments under the simplified tax system: liability
In case of violation of the terms of payment of the advance payment according to the simplified tax system or its incomplete payment, arrears arise. Control authorities have the right to charge penalties on the amount of arrears for each day of delay. The amount of penalties is determined as 1/300 of the refinancing rate of the Central Bank of the Russian Federation for each day of delay. This procedure is established by clause 4 of Art. 75 of the Tax Code of the Russian Federation.
From October 1, 2017, for legal entities that delay payment for more than 30 days, the amount of penalties has been increased. If the delay does not exceed 30 days, they are calculated in the same manner (from 1/300 of the refinancing rate). And for calculations for days beyond this period, the rate of penalties turns out to be 2 times higher, amounting to 1/150.
We note that if the established deadlines for making advance payments under the simplified tax system are not met, the taxpayer cannot be held accountable for violating tax legislation (clause 3 of article 58 of the Tax Code of the Russian Federation). There are no penalties for non-payment or incomplete payment of advance payments under the simplified tax system of the Tax Code of the Russian Federation.
Payment of advance payments under the simplified tax system: KBK
If the BCC is correctly indicated, the advance payment of the simplified tax system will be correctly credited to the budget of the Russian Federation. The payer should carefully fill out this field in the payment order.
Here are the BCCs for tax transfers in force in 2019:
- 182 1 0500 110 — KBK tax calculated by “simplified people” with the object of taxation “income”;
- 182 1 0500 110 - BCC of tax calculated by taxpayers operating on the simplified tax system with the object of taxation “income minus expenses”, and from 2020 this BCC is also applied when paying the minimum tax.
The BCC values are established by order of the Ministry of Finance of Russia dated 06/08/2018 No. 132n, the text of which should be used in the current version.
Results
Payers of the simplified tax system have an obligation to make advance payments for this tax during the tax period. Advances under the simplified tax system are calculated quarterly. The basis for them is determined by the cumulative total. A rate is applied to it, taking a certain value, depending on the object chosen for application of the simplified tax system (“income” or “income minus expenses”) and on the decision of the region regarding the specific rate.
The amount of tax due for payment for the reporting period is equal to the difference between the amount of the advance calculated from the general base of the period and the amount of advances paid in previous periods. For the “income” object, an additional reduction is applied to the amounts of insurance premiums paid during the period, paid sick leave and voluntary transfers for insurance.
The payment deadline for advances is the 25th day of the month following the end of each quarter. Late payment results in the accrual of penalties.
The simplified taxation system is a very convenient method of paying taxes for many entrepreneurs and not only simplifies the process of reporting and paying taxes, but also makes it possible to significantly reduce their amount. When opening a new business, individual entrepreneurs and legal entities need to determine the most favorable tax system for themselves.
There are two special regimes - simplified taxation system and UTII. We will talk about the simplified tax system, when its use is profitable, what rates of deduction of advance payments are best to use.
What is an advance report under the simplified tax system?
STS (simplified taxation system) is a special taxation regime that can be used by individual entrepreneurs or legal entities. The peculiarity of this system is that the taxpayer does not pay taxes on profits, property, personal income tax, VAT (except for import VAT), all this is replaced by payment of advance payments.
An advance payment (AP) is a special payment, an advance payment of tax, paid three times a year after the reporting quarters by each business entity that is on the simplified tax system.
Advance payments under the simplified tax system, as we have already said, are paid by simplifiers three times a year:
- For the first quarter - until April 25 of the current reporting year;
- For the 1st and 2nd quarters - until July 25 of the current reporting year;
- For the 1st, 2nd and 3rd quarters - until October 25 of the current reporting year.
To pay tax after the end of the year, an entrepreneur or legal entity only needs to calculate the balance, and then pay it on time. The deadlines for submitting a tax return and paying advance payments under the simplified tax system are the same, namely:
- for legal entities, the deadline for submitting declarations under the simplified taxation system and paying taxes for the previous year is April 2 (for example, payment and submission of the declaration for 2017 must be completed by April 2, 2020);
- for individual entrepreneurs, the deadline for submitting a declaration under the simplified taxation system and paying tax for the previous year is until May 3 of the current year (for example, individual entrepreneurs must pay tax and submit a return for 2020 by May 3, 2020).
You should know that if an enterprise on the simplified tax system has ceased its activities or has lost the right to be on the simplified tax system, then the tax must be paid next month by the 25th.
What happens if you are late with payment for AP according to the simplified tax system?
If you are late in paying the advance payment, the tax service will charge a penalty for each day of non-payment, and will even count the days for which the money already paid will reach the budget. Therefore, you should not think that you can only pay tax at the end of the year, ignoring advance payments.
There are two interest rate options when choosing to pay tax using the simplified tax system:
- STS “income” - rate 6%;
- STS “income-expenses” - rate 5-15% (rate gradation depends on the region and type of activity of the enterprise).
How to calculate an advance payment under the simplified tax system “income”?
The “income” payment system should be chosen by those entrepreneurs whose activities provide for insignificant income. The advantage of choosing a 6% rate is that tax authorities rarely check such taxpayers. The reason is that expenses (with the exception of insurance premiums) are not taken into account for tax purposes.
When the object of taxation is only income under the simplified tax system, then the tax or advance payment must be calculated according to the following scheme: the amount of income must be multiplied by 6%, which will be equal to the advance payment (tax under the simplified tax system).
After this, it is possible to reduce the amount of the calculated payment:
- Individually working entrepreneurs have the opportunity to reduce their tax payment to zero - by 100%. When the amount of insurance premiums is greater than or equal to the tax, then it will be reduced by this amount. Discount = insurance premiums for entrepreneur
- Entrepreneurs and companies that have employees can reduce payments by exactly half. This half is the amount of insurance premiums for your staff and for yourself, the payment of which can be confirmed by bills. The entrepreneur includes contributions for himself in the “discount” if it falls within half of the tax payment. Discount = contributions for employees + contributions for yourself
If the individual entrepreneur first used the first method of “discount” on AP (tax), then after he decided to hire workers, he must immediately switch to the second method. And vice versa, if at the beginning of the year the employee was registered with a tax-paying employer and was soon dismissed, then by the end of the year the employer will not be able to use a 100% reduction in the amount of the AP.
So, you can now adjust the calculation formula as follows: the amount of income multiplied by 6% - insurance premiums (for yourself + for staff) - AP of previous periods = AP (tax).
Let’s calculate the AP according to the simplified tax system “income”:
Based on the cumulative results of work for the quarters of 2020, entrepreneur “A” received the following income and insurance premiums:
- first quarter - 270 thousand rubles. and 4049.1 rub.;
- half-year - 580 thousand rubles. and 8096.2 rubles;
- 9 months - 930 thousand rubles. and 12144.3 rubles;
- year - 1340 thousand rubles. and 16192.5 rubles.
Advance payment for the first quarter = 270,000* 6% - 4,049.1 = 12,150.9 rubles.
When the amount of tax is greater than the amount of insurance premiums, the payer does not pay anything to the tax service.
AP for six months = 580 thousand * 6% - (8,096.2 + 12,150.9) = 14,552.9 rubles.
Likewise, if the deduction amount was greater than the tax amount, then there is no need to pay an advance payment.
AP for 9 months = 930 thousand * 6% - (12144.3 + 12150.9 + 14552.9) = 16951.9 rubles.
The deductible amount is greater than the amount of insurance premiums, so the advance payment is reduced, but not equal to zero.
Scheme for calculating advance payments according to the simplified tax system “income - expenses”
To calculate the amount payable using this method, expenses are subtracted from income for the reporting period, including insurance premiums for yourself and for staff. It happens that last year the tax was paid, but as a result of the results of activities, the entrepreneur ultimately received a loss, then at the end of the current year he has the right to take into account the amount of this loss in calculating the amount of tax as one of the expenses.
AP = (income - expenses (cumulative) * 15% (from 5 to 15% depending on the region and type of activity) - the estimated amount of the AP of previous quarters.
STS - simplified taxation regime. It is suitable for many individual entrepreneurs, as well as legal entities. It is worth noting that if an enterprise intends to choose a simplified taxation system, then it must decide in advance which method of paying advance payments it will use. There are two methods for calculating the amount due:
- Taking into account income.
- Taking into account income and at the same time deducting expenses. The main difference is the interest rate.
Metalworking is a wide range of processes for the formation of individual units, elements, structures and products. Metal processing methods can be divided into: cutting, joining, forming. In this case, the following operations are used: cladding, heat treatment and thermal spraying, anti-corrosion treatment, chopping and cutting, turning, milling and plastic processing on machines, grinding, creating holes, hardening, applying decorative coatings.
The LLC Uralosnastka company offers all types of metalworking. Modern metalworking workshop
produces products with a perfectly smooth surface and dimensions adjusted to within a fraction of a millimeter.
CNC machines and innovative technologies make it possible to produce such delicate work. The high-tech metalworking industry has opened up new opportunities for businesses at all levels these days. To obtain high-quality products that meet the high demands of today, a metalworking shop
with a complex of modern machines is needed.
One of the most important materials discovered by man is metal. Today there is not a single field of activity where alloy products are not present. Mechanical engineering, medicine, chemical and construction industries, light and food industries, nuclear energy, aviation and space technology... The list of industries where metal-processed parts are used can be continued endlessly. That is why metal processing is a profitable, but very responsible business. And the process itself is labor-intensive, high-tech, requiring ultra-precise, expensive equipment.
Equipment and ideas for small businesses
Taking a closer look at the products made from tin, you can see that the entire structure consists of parts and elements that anyone can make with their own hands.
Enough: choose a diagram, a drawing, get acquainted with the basics of the tin business and purchase several bending devices. Advertising stand samples of drainage system, sandwich pipe, chimney and ventilation pipes ..jpg (14.66 KB) 11224 views Premises
The area for placing the workshop can be a garage or hangar. Mechanical machines and sheet bending devices are used to process tin, and their autonomy reduces the cost of paying for utilities and renting premises without electricity.
Workshop, hangar ..jpg (9.38 KB) 11242 views
First profit
Table
If there is no metal table to make non-bulky tin products, you can use a wooden one - it is quite sufficient for such needs. Required dimensions: width 1.5 meters, length 2 meters, height 0.8 meters.
Tinsmith's table ..jpg (11.88 KB) 11242 views
Grips
To make the simplest products that can bring your first income, you will need a device for producing grips (hooks) of circular cross-section. Clips are necessary when attaching the gutter that distributes water from the roofs to the downpipes. The retail price of the hook is 130 rubles, wholesale – 90 rubles, the cost of the device (equipment) – 700 rubles.
Device for the production of round grips ..jpg (15.6 KB) 11242 views
Materials
For the beginnings of a newly minted tinsmith, the following auxiliary materials for working with thin sheet steel are suitable:
1. Metal pipe 2 meters long and 80-90 mm in diameter; 2. Channel or piece of rail, about 2 meters, 90-100 mm wide; 3. Round timber 2 m, diameter 50 mm.
Tools
Tinsmith's tools ..jpg (13.58 KB)
Tinsmith tool set:
1. Curly scissors (left, right, straight) 2. Tape measure 5 meters 3. 250 mm caliper 4. Soviet-style meter ruler 5. Ruler 500 mm 6. Hammer 100, 250 g 7. Wooden mallet 8. Metal scribe 9. Pencil 10. Spot welding 11. Drill 12. Grinder 13. Riveter 14. Pliers
Business plan: metalworking
Start-up capital
The state accommodates small businesses and allows them to receive a subsidy for the development of the enterprise. A person who has registered as unemployed and has a business plan has the opportunity to receive a one-time, one-time benefit to support and develop the business.
To receive a subsidy, contact business support centers. The institutions are located in every region of Russia and work closely with municipal authorities. Along with the application to the employment center, you will need to provide a business plan for production. If the idea of a business direction satisfies the criteria of the Business Center (break-even business, provision of jobs), the issuance of a gratuitous benefit will be positively approved.
Next, you need to register as an individual entrepreneur. The subsidy is issued upon availability of documents from the federal tax service.
Already existing individual entrepreneurs and limited liability companies can receive benefits if the company is not more than 1 year old.
Business subsidy programs contain a clause on the amount of funds requested; the percentage may vary depending on the Center, for example: the amount of funds requested should not exceed 70% of the company’s equity capital. So, if it is necessary to receive 100,000 rubles, the enterprise must have 70,000 rubles of its own.
Companies that rent equipment, manufacture or sell alcoholic and tobacco products cannot receive the subsidy.
Production
Folding bender
Manual folding bender.jpg (22.53 KB) 11242 views
The production of grips can be supplemented with the technology of locking sheet metal joints, which professionals call a “lying seam lock.” The connection helps the parts of drainage and ventilation systems not allow air and water to pass through the cracks. The device that makes the fold is called a “fold bender” or popularly a fold bending machine. The folding machine is equipped with a plastic element and does not leave damage to the sheet or scratches on materials with a polymer, painted coating.
Dimensions of the fold bending machine:
1. Length – 1300 mm; 2. Weight – from 30 kg (determined by the package).
The price of a manual folding bender is 28,670 rubles.
Sheet bender
Manual sheet bending….jpg (14.5 KB) 11242 views
With more functional devices such as sheet bending, you can cut and shape galvanized, paint and varnish material, giving it the required shape. Using a manual sheet bending machine in your work, you can reduce the time for bending and cutting metal several times; bending a sheet of metal without a sheet bender is a labor-intensive and thankless task.
The sheet bending machine is used in the production of: building parts, roofing, decorative finishing, profiles, frames, shop windows, signs. The manual sheet bender is equipped with a metal cutting machine and spare cutting roller knives for quick cutting of galvanized sheets.
Characteristics of the sheet bending device:
1. Width - 200 mm 2. Height - 1 meter 3. Length - 3000 mm; 4. Machine weight - 170 kg.
The cost of a manual sheet bending machine is 64,540 rubles.
Zig machine
Zigmashina.jpg (10 KB) 11242 views
Using zig machines, the following are formed: convexities and depressions in sheets, bend segments, and design details. Such features make the machine indispensable in the manufacture of ventilation, chimneys, air ducts, and round drains. Using zig machines, pipes are corrugated to connect them, a circle is formed into a fold, and locks, funnels and hooks are rolled out.
Characteristics of the zig machine:
1. Allows processing of steel thickness of 0.55 mm; 2. Weight – 10 kg.
Price – 22,720 rubles.
A complete set of equipment for the manufacture of drainage systems, ventilation, air ducts
The complete set includes:
A complete set of equipment for the workshop.jpg (18.75 KB) 11242 views
1. Rollers; 2. Sheet bending; 3. Zig machine; 4. Folding bender; 5. Seam-setting machine; 6. Round bender; 7. Equipment – device for grips.
Price – 225,000 rubles.
More details about the equipment
Training in the basics and operation of equipment
To learn the basics, you can use the tinsmith's tutorials:
1. Roofing and tin work - ; 2. Tinsmith for industrial ventilation - ;
Video lessons will help you use mechanical machines and devices correctly - watch.
Tin products
Advertising stand samples of drainage system, sandwich pipe, chimney and ventilation pipes ..jpg (14.66 KB) 11224 views
1. Drainage systems; 2. Sandwich pipe; 3. Chimneys; 4. Ventilation pipes.
Installation tools
If the services of tinplate products include the installation of drainage and ventilation systems, you will need the following tools:
Tools for installation of drainage, smoke, ventilation systems ..jpg (34.92 KB) 11221 views
1. Spirit level; 2. Bending tools; 3. Tape measure, pencil, rope; 4. Hacksaw; 5. Riveting pliers; 6. Drill with battery; 7. Rubber and metal hammers; 8. Ticks; 9. Metal scissors.
Sales of goods
Tinplate products can be sold through:
1. Points of sale; 2. Providing installation services: drainage, ventilation systems, sandwich, chimneys; 3. Execution of individual orders.
Before choosing a specific production, it is necessary to analyze the market for the need for services of tin products. For analysis, they consult with store sellers, review advertisements in the media and online resources.
Establish contact with suppliers of tinplate materials and negotiate prices. It is worth thinking about transport for delivering goods to points of sale and to customers. Post office services can be considered as an option for delivering tinplate products to remote locations.
The success of the implementation lies in the correct presentation of your services through: advertisements in the media, distribution of leaflets, business cards, posting advertisements in busy areas.
Results
Despite the existence of companies producing tinplate products, the market needs non-standard things: sanding boards, caps for fences, protective and decorative parts for windows and walls. When purchasing goods from foreign manufacturers, the buyer overpays for the company label, intermediary services, delivery, and point-of-sale markups.
With an investment of 300,000 rubles and competent organization, the business can pay off after producing 3-4 drainage or ventilation systems.
We recommend: Business plan: production of corrugated sheets Business plan: production of metal-plastic pipes Business plan: workshop for the production of metal doors Business plan: production of artificial stone materials
Metalworking shop equipment
Our metalworking shop
equipped with the latest technology. At 1500 sq.m. squares are located:
- pressing machines;
- machines for milling and turning with program control;
- drilling machines;
- punching presses
- press brakes;
- electroerosive installations
- automatic lathes;
- furnaces for heat treatment of metal;
We carry out work of any complexity; if necessary, we develop technical documentation and drawings for the manufacture of parts.
Reviews from our clients
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of a cleaning company
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Elizaveta K.L., Kazan
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The business plan downloaded on the website contains a very clear and accessible description of both the business in general and its financial component in particular. The calculations show a fairly clear picture of the actions and are convenient to use: make edits, adjust investments, sales, expenses. All formulas are editable and transparent.
Ivan Nekrasov, Pskov city
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The business plan was prepared by a website consulting company in accordance with the requirements, with high quality and even a little earlier than the agreed upon date. As a result, funds in the amount of 50 million rubles were received from a private investor.
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Artworks are included in the price
Having made a small and modest craft using a CNC machine, many craftsmen are then ready to start collaborating with shops selling souvenirs and products that relate to arts and crafts. And this is a solid and stable income if sales markets are established.
Many craftsmen have a need to correctly evaluate a product. How much do you think you can get for a panel (carving) made from a wooden blank - the result of skillful milling, measuring 20x370x548 mm? Within 10 thousand rubles. And this is in the middle price range. And on a product 60x110, with much lower quality (the milling mark is visible), we will earn only 200-220 rubles.
For a creative person, the idea of making figurines and panels with flat or three-dimensional images (plywood, plastic, metal and even glass) on milling machines can be a reliable business.
Those who like to burn will use a pyroprinter or will work on engraving devices, creating unique images in accordance with the selected photo, making custom-made souvenirs. The duration of the technological process is 6 hours or more.
Typically, the material is within 10% of the price of the product; energy costs, film and varnish coatings, depreciation of the router and processing time are also taken into account.
For example, a good quality beech icon takes about 10 hours to cut, and after the machine is finished it takes 4-5 days. And the one who makes products of this kind knows its price.
Analysis of the metalworking target audience within the framework of a business plan
The variety of metalworking services creates a fairly wide range of consumers, including:
- Small production;
- Construction companies;
- Individuals, usually owners of country houses or residential buildings;
- Automotive repair shops, etc.
If we are talking about artistic forging, then the target audience may include, in addition to individuals, various companies who want to appropriately design the appearance of their office.
In addition, a large segment are state and municipal authorities that need, for example, to install a fence or improve the embankment, etc. Work with them is carried out through the public procurement system.
Applicable to each customer group in the business plan
A marketing plan for a
metalworking
.
The relevance of starting a business
Currently, large, medium and small businesses are developing at a rapid pace. The most common and in demand are the service sector, trade and farming. The service sector needs to be highlighted separately. A current idea is to organize metal processing services. Today, metal is one of the most common materials. It is widely used in construction and industry. A very promising business would be to open your own metal processing shop. It should be noted that this idea will require certain capital investments.
Metalworking is a fairly broad concept. It can be based on technological processes used in industry, or decorative. In any case, organizing such a business will require a lot of effort. Metal parts and products are in great demand; when producing them, you can hand over the goods to various private organizations or stores. The advantage of such a business is that selling the goods will not be difficult. Let's take a closer look at the business plan. Metalworking: how registration is carried out, collecting documentation, where to buy equipment - these are the issues that he must take into account.
Premises for metalworking
Selection and rental of equipment suitable for metalworking
premises will become one of the expense items
of the business plan
.
The optimal location is an industrial area of the city, but with good transport accessibility. Customers should be able to travel seamlessly to their destinations as more work will be delivered via trucks.
The area must be at least 40 sq.m. to accommodate a workshop and administrative premises, it is good if it is possible to allocate a warehouse area. It must comply with fire, sanitary and labor protection standards.
Algorithm for opening a metalworking enterprise, provided for in the business plan
Metalworking Business Planning Process
, can be divided into the following main stages:
- Assessment of the market situation;
- Studying the target audience;
- Definition of the concept and list of services provided;
- Description of the technological process;
- Drawing up a marketing plan;
- Determining the need for equipment and personnel;
- Drawing up a financial plan.
After consolidating the considered positions in the metalworking business plan
Let's move on to the preparatory part, which includes:
- Registration of activities and registration with the tax authority;
- Choice of taxation system;
- Opening a current account;
- Raising funds if necessary;
- Selection of premises;
- Purchase and installation of equipment;
- Carrying out promotional events;
- Recruitment and training of personnel.
Registration and collection of necessary papers
To start your own metalworking business, the first thing you need to do is draw up an accurate business plan, which should include choosing the location of the future enterprise, registration, collecting documents, purchasing equipment and tools, establishing a customer base, determining basic expenses and income, selling products . First, a new entrepreneur must decide on a location. In addition, it is important to know exactly what you want to open: a small workshop or a workshop where metalworking will be carried out. Then, after you have a legal address, you need to register as an individual entrepreneur or LLC with the tax office.
In this case, you need to pay a state fee. The first registration option is the simplest; it will help save time and money. But it has one big drawback: in this case it will not be possible to carry out transactions with legal entities, that is, various companies and organizations, only with individuals. In addition, you will need to collect the necessary documents: permission from territorial property management, a conclusion from Rospotrebnadzor authorities on the right to carry out this activity, permission from the fire inspection. If the premises are rented, then the latter is the responsibility of the lessor.
Return to contents
Start-up investments in metalworking as part of a business plan
Launching such an enterprise requires significant investments, a large share of which falls on:
- Rent of premises – xxx rub.;
- Purchase of equipment – xxx;
- Business registration – xxx;
- Marketing activities – xxx;
- Purchase of materials – xxx;
- Stock of money – xxx.
Total investment in metalworking
at the launch stage within the framework
of the business plan
will range from 5 to 50 million rubles. The final figure will be known after the concept is formulated, since the need for this or that equipment will depend on this.
You can use both your own and borrowed funds. To obtain loan funds or investments, you will need a professionally written business plan. Ready-made metalworking business plan
, where all the information is structured and the financial model is calculated, you can download from the link below.
Purchase of metalworking equipment as part of a business plan
As noted, the list of necessary machines and machines will depend on the specialization of the metalworking
determined by
the business plan
. Each type of work has its own list of equipment:
- For cutting and turning - turret, lathe, screw-cutting, rotary machines.
- For milling – horizontal, vertical, longitudinal or universal milling machines;
- For grinding - round and flat grinders;
- For bending – profile bending lines;
- Welding equipment for welding;
- Rental lines.
In addition, care should be taken in advance to purchase uniforms and protective equipment for workers, as well as various consumables, such as hammers, screwdrivers, pliers, etc.
Another cost item for equipping a metalworking
The
business plan
will include the purchase of furniture for the client work area and recreation area, equipping office employees’ workplaces with computers and office equipment.
Installation of fire protection systems and alarms is mandatory.
A less expensive, but also promising option for business is a photo studio. includes all aspects of business processes, as well as calculation of income, expenses, taxes, investments, etc.
Marketing and advertising in a metalworking business plan
The marketing plan is an integral part of the business plan
any company, including
metalworking
. Marketing activities include the following:
- Creation of a company website indicating a list of services and their costs and promotion of this resource on the Internet.
- Outdoor advertising in the location area. Here you can provide for the presence of signs, pointers, as well as placement of the offer on billboards.
- Sending out a commercial offer or calling a database of potential clients. Don’t hesitate to set aside time for this, so you can convince the client to use your services.
- You can use advertising in specialized construction and industrial magazines.
When creating a list of metalworking
In
your business plan,
keep your target audience in mind and use only those methods that will attract their attention.
Profitability, main expenses and income
The business plan must include calculation of total expenses and income, since success will depend on this. Metalworking is a rather difficult task. Her business plan should include renting premises, which will cost several tens of thousands per month. Costs will largely be associated with the purchase of equipment. It will cost about a million rubles, it all depends on the size of the enterprise. The smaller it is, the lower the costs. Part of the money will go to pay wages to workers. Metalworking is largely automated labor, and the more machines the enterprise has, the fewer workers will be required.
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Metalworking Business Plan Financial Plan
The financial model is based on the forecast of income, expenses and revenue of a metalworking
and is included in
the business plan
.
Costs in a metalworking business plan
Current costs are necessary to maintain the operation of the enterprise; they can be divided into such items as:
- Building rent – xxx rub.;
- Utilities – xxx;
- Maintenance of machines and equipment – xxx;
- Employee salary – xxx;
- Deductions to tax authorities – xxx;
- Purchase of raw materials – xxx.
When conducting regular marketing events, we include their cost in the costs of the metalworking business plan
- xxx. Total – xxx rub.
Income in a metalworking business plan
To the main source of income for a metalworking
the
business plan
includes revenues from the provision of services provided for by the concept. In addition, existing machines can be used to produce your own products for further sale. This could increase revenue by more than xxxx%. In this case, the total amount of revenue will be from xxx rub. per month.
Thus, taking into account current costs and cash receipts, the profit will be xxx rub. per month.
Metalworking Business Plan HR Plan
To ensure the normal functioning of the company, the following positions should be included in the personnel plan of the metalworking business plan:
- Director;
- Accountant;
- Marketer;
- Account Manager;
- Machine operator;
- Head of workshop;
- Workers - milling operators, welders, carvers, etc. depending on the services performed.
Total from 4 administration employees and 5 workshop workers. It is necessary to provide certain qualification requirements for all employees, especially for shop workers, since the quality of work will depend on their professionalism. a separate product designed for business planning and calculation of all its
Business income plan
A necessary component of a full-fledged business plan is a flexible sales plan. It is important, on the one hand, to have a forecast for the business as a whole, and on the other hand, to be able to look at profitability in the context of a separate profit center or even a separate product.
The cash flow statement is the most important document in any business plan. Contains comprehensive information about the company's operating, investment and financial inflows and outflows, and also allows you to evaluate the overall picture of the company's performance.
How to open a metalworking business from scratch: main steps
Creating a business plan will be a necessary step in creating any type of business. It requires planning both the main stages of opening an enterprise and its further activities, calculating initial investments and regular investments, and also correlating the data obtained with the projected profit. Based on such calculations, the profitability of the future company is determined and it is predicted how long it will take to recoup costs and begin to generate stable profits. Depending on the region, the specifics and volume of work that the enterprise will perform, profitability indicators may differ. But on average, experienced businessmen give a figure of about 20%, which, taking into account the considerable investment in opening a company, implies a payback period of 2 years.
On video: An example of a home business in metal processing
A suitable room for metalworking will be one of the important expenses. If an entrepreneur does not have a suitable workshop, it is necessary to buy or rent a premises measuring 30 square meters. m or more. The workshop premises must comply with fire safety and sanitary standards, in confirmation of which it is necessary to obtain appropriate permits from regulatory services.
In addition to the workshop itself, it is also necessary to equip office and storage space. If at the first stage of the company’s work it is possible to do without an office, then with its expansion it will be necessary to hire administrative department employees who will establish contacts with potential clients, sign contracts with suppliers of equipment and consumables; both the manager and his deputy will need jobs. The warehouse, for which part of the production workshop can be allocated, should already have finished products, as well as raw materials and consumables.
On video: Plasma processing of metals
An advertising campaign for a metalworking enterprise should be drawn up taking into account the fact that the target audience of this industry is quite limited. As a rule, the main customers and buyers of products will be companies of various levels, less often - individuals. Taking this feature into account, you should choose suitable advertising methods.
The most important thing for promoting an enterprise will be the creation of the company’s own website. This resource should be informative and user-friendly, providing all the information that may be of interest to potential clients; for this purpose, its development and maintenance is entrusted to professionals. It is desirable that the company’s official website be optimized for basic search queries, which will enable future buyers to see it in the first lines of search engines.
Metal processing as a business: how to make money on artistic forging and more
Other types of advertising on the Internet, as well as placement of information in the media and thematic print publications, will also be relevant. Outdoor advertising, posting notices and distributing leaflets and business cards of the enterprise can be auxiliary methods.
The amount and specifics of equipment that you need to purchase before opening a metalworking business will depend on the selected industries. Thus, just starting work, the company will most likely engage in the simplest and least expensive types of work. Therefore, first of all, you need to purchase high-quality metalworking tools and several machines, primarily equipment for cutting metal. At the first stage, you can even purchase used machines, which will significantly reduce your investment.
As the scope of work expands, the variety of equipment will be significantly greater. So, you will need to purchase rotary lathes, lathes, milling and grinding machines. To perform grinding of parts you will need presses - crank and hydraulic, be sure to purchase several sets of tools. It would be good if each machine was presented in several varieties and in sufficient quantities - this would allow a large volume of work to be carried out with an increase in orders. If you start a business with a simpler activity - metal turning, then according to rough estimates, the amount required for the purchase of equipment will be up to 60 thousand rubles, of which about 45 thousand must be spent on purchasing a lathe. Equipment for processing metal under pressure will require at least 15 thousand rubles. Therefore, when determining the profile of future production, it is imperative to take into account financial aspects.
Metal processing business in your city from scratch: how to start
When purchasing metalworking equipment, you should pay attention to the quality of the product offered. Thus, often expensive imported equipment turns out to be of higher quality and has a long service life. However, in the first stages it makes sense to use high-quality, but used equipment, which will save money.
The staff of the enterprise will depend on production volumes and the specifics of the company’s offerings. So, in most cases, you will need experienced turners, milling operators, mechanics, grinders, mechanics, machine operators, at least one technologist, as well as customer and supplier managers, accountants, deputy managers and technical workers.
Prospects for the metalworking business
Due to the need to purchase expensive metalworking machines
, competition in this market is low, and the volume of demand for some types of work is constantly growing. In this regard, it is possible to make a good profit.
For this, competent business planning for future activities is important. Ready-made metalworking business plan
, containing structured information and the necessary calculations, you can download from the link at the end of the article. You will need the document to summarize your knowledge and attract additional money. In addition, we can prepare an individual turnkey business plan, taking into account all your wishes.
High quality of metalworking services
and a well-thought-out concept within
the business plan
will allow the company to remain relevant for a long time.
Drawing up a metalworking business plan
Before opening a metalworking station, it is necessary to think through all aspects of the functioning of the future enterprise.
It is also important to determine the list of services provided. Due to the diversity of work, the need to focus on one thing or introduce a full range of services should be considered, for this a full market analysis should be carried out.
In addition, within the framework of the business plan, the necessary initial investments for the creation of a metalworking and the cost of services are calculated.
