Furniture business
A person who decides to start his own business should pay attention to a business related to the sale or production of furniture.
Most aspiring entrepreneurs reject this idea, considering this direction specific and expensive. In their opinion, there is high competition in this area. In practice, this is not the case.
The furniture business is a good investment of the available funds. According to average estimates, an investor can get about 40% per annum from this case. The main thing is to choose the most suitable niche at the start.
Furniture business development
Despite the economic crisis in our country, the furniture market continues to grow. In recent years, the increase has amounted to about 5%. 15 years ago, things were completely different. At that time, people bought new furniture only if the old one was out of order. Now, citizens choose modern household items based on style or simply after renovation.
How to develop the furniture business, and is it profitable?
First of all, you should decide on the specialization! You need to choose it, build on the needs and capabilities of the region in which it is planned to carry out activities. For example, in areas with a low standard of living, workshops for the restoration and restoration of furniture are in demand. In rich regions, such services are less in demand. Although here you can also earn money on restoration.
Most often, small and medium-sized furniture manufacturers are guided by a narrow specialization. They choose a specific niche and work exclusively in it.
These areas are - production of furniture for:
- medical institutions;
- trade organizations;
- schools and kindergartens.
Today, the most popular is the so-called advertising furniture.
In general, a novice businessman can choose any specialization. In recent years, the number of destinations has only grown. Today, there are firms on the market that manufacture products from specific materials.
Some companies focus on the production of narrow-focus models:
- disk shelves;
- PC tables;
- office tables.
The market of upholstered furniture in our country is represented mainly by domestic manufacturers. It must be said that these firms are trying, in addition to assembly and sale, to provide their customers with additional services. These include not only delivery, but also the selection of design and required dimensions. This attracts customers. After all, many people need not only beautiful, but also furniture suitable for living conditions. For example, residents of small apartments will like compact options, transformers that do not take up much space.
Another niche in demand is the production and sale of wicker headsets, armchairs, tables. The fact is that such furniture is imported from abroad. Therefore, its cost is quite high. Small domestic enterprises are ready to offer similar products that differ in price.
It is worth paying attention to the production of built-in furniture. This segment is dominated by small and medium-sized companies that are ready to adapt to the needs and requirements of any client.
For example, in the production of a built-in kitchen, a layout is created that corresponds to the quadrature and layout of the room. In the future, craftsmen use it to produce the furniture itself.
We can recommend that novice businessmen start working in several areas at once. Also, before starting a new case, you should carefully study the legislative acts. It is quite possible that the state will start developing some area, for example, educational institutions. In this case, the demand for furniture for schools, colleges, universities will surely increase.
Is there a sales crisis in the furniture business?
As mentioned above, the economic crisis has not greatly affected domestic furniture makers. 15-20 years ago, domestic furniture manufacturers were inferior in all respects to their Western counterparts. However, in recent years, new technologies have been mastered, thanks to which you can get a good quality product.
It should be noted that domestic manufacturers do not raise prices, while the cost of imported furniture is growing. The main reason here is the rise in the foreign exchange rate, which occurred after the cooling of relations between our country and the Western states. This factor allowed the domestic manufacturer to squeeze foreign competitors in many niches of the furniture business.
How to increase sales in the furniture business?
Many tools to attract customers in the furniture industry are similar to other areas of business. At first, it is advisable to create a specialized website. It is better if on the Internet resource, there will be not only the phone number and the address of the company, but also an interactive component.
Today, many people are looking for the necessary thing in the global network. Without a website, in modern business as without hands. You also need to try to post ads about services and goods on all available trading platforms. It will be a great addition to your own web page.
If the business is focused on the end customer, and not sold to dealers, then you need to conduct periodic promotions with the distribution of promotional material.
Firms specializing in the production of highly specialized products can organize the mailing of commercial offers to companies that are theoretically interested in purchasing the manufactured product.
How to buy a ready-made furniture business?
Many entrepreneurs prefer to acquire an already functioning business. Buying a furniture business in the capital can bring investors up to 60% per annum. The average cost of such production is approximately 250-300 thousand dollars.
It is noteworthy that such enterprises located in the regions are much more expensive than those in Moscow. At the same time, the payback of such organizations is slower. Such investments will be of interest to large companies wishing to diversify their funds.
Search on the Internet: "Selling furniture business"
You can buy a ready-made furniture business in the global network. Similar offers can be found on trading platforms: http://alterainvest.ru/msk/products/287/, http://www.bizzona.ru/localsearch.php?action=category&ID=82&subcategory=350 and others ... Moreover, it is possible to purchase both a finished production and a store that is a dealer of any workshop.
Opening a furniture business, what is the difficulty?
The furniture business, like any other type of business, is not without difficulties.
The main problem for a beginner entrepreneur is a solid investment. 270-300 thousand - money is not small, even for a wealthy entrepreneur.
The second difficulty is competition. Of course, it is present in all areas of business. However, as mentioned above, the furniture business in our country is developing. The number of companies is growing. Therefore, you will have to choose your specialization very carefully.
Small furniture business
If the planned business will be classified as small, then it is better to choose an individual entrepreneur as a form of ownership. This form of organization does not require complex reporting, but it has a significant disadvantage - less trust.
There is another form of ownership suitable for this type of activity - LLC. It implies more taxation and stricter tax reporting. Such a firm will command more respect in the eyes of the public, since LLCs are rarely used as "fly-by-night" companies. Here the authorized capital is established, which will be collected from the entrepreneur in the event of bankruptcy.
Now a few words about the profitability of a small furniture business. On average, a similar business opened in a small town with a population of 500-600 thousand people can bring its owner about 2,000,000 rubles a month. This is provided that 3-4 million rubles will be invested in the business.
Product markup is 35%. The profitability is 7 percent. After analyzing this data, it turns out that such a business will pay off within 2-3 years.
Working in the furniture business
Summing up all of the above, we can say that the furniture business in general and in general is similar to other types of production and trade. It has its own nuances, pros and cons. With some effort and ingenuity in it, you can achieve some success.
The main thing is to analyze all the data, choose the right specialization and start working, working, constantly developing.
How to develop the furniture business, sell, buy, whether it is profitable, you can find out at the Mebel exhibition, which takes place in the Expocentre Fairgrounds.