The furniture market in Russia is vast; new enterprises survive if they find a free niche in a particular region. It is important to note that competition is lower in the low and medium price categories. Sales volume depends on the size of the locality. Experts believe that it is profitable to produce furniture in a settlement with 500-800 thousand inhabitants. It helps to reduce costs, keep demand at the desired level and reduce the influence of competition.

Experts' forecasts are encouraging - small and medium-sized furniture businesses will reach 75% in the coming years. The most rational ones are small workshops that produce economy and middle class furniture of one type to order.

The advantages of the workshop include:

• small initial investments (900-1,300 thousand rubles)
• no need for large areas
• production process flexibility
• ease of changing the assortment
• the opportunity to become a monopolist in a separate niche

Manufacturing to order avoids the negative impact of competition. The low cost of finished products speeds up sales, which makes it possible to quickly return the initial investment.

But when choosing, you must also take into account the disadvantages. If the furniture is made by hand, it requires creativity and a lot of time. A small assortment can quickly saturate the market. But the workshop is a good option for the initial stage. How to promote a furniture business in the future depends on the circumstances. You can often change the range or expand production.

There is no need to buy premises for a workshop. The location (entrance), temperature (18°C) and humidity level (up to 70%) are important. This means that a ventilation and heating system is needed. Under unfavorable conditions, both raw materials and finished products can be damaged. The area should be enough for production, warehouses and administration premises.

Equipment for the workshop is purchased semi-automatic:

• cutting machine (manual feed) with cross and longitudinal cuts
• drilling machine for drilling open and blind holes
• Grinder
• edge banding machine

When making custom-made furniture, small tools are also needed: cutting devices, hammer drills, screwdrivers, drills, drill bits, knives, etc.

Reaches 25%, average payback period 2-2.5 years.

Features of retail outlets selling furniture

A furniture store can be of different sizes:

• from 300 m2, with narrow specialization (wide range of one product group)
• from 1,000 m2, hypermarket with a wide selection of goods from different groups, warehouses and parking lots
• salon in the city center with luxury goods for wealthy buyers
• warehouse store of finished furniture from the manufacturer

The premises for the hypermarket are selected in a residential area or outside the city in order to reduce the cost. A hypermarket should have a wide range of goods at different prices (from economy to luxury). Operational efficiency is enhanced by additional services.

The salon is small (from 30 m2), as buyers place orders from the catalogue. The room should have space for employees (tables, chairs, computer equipment) and a place for visitors, equipped with upholstered furniture.

In the warehouse, furniture is sold at an affordable price and immediately. allows an additional offer to order certain types of goods according to an individual design.

The amount of initial investment directly depends on the type of store. You can make your choice only after a thorough analysis of the market in a particular region. It is important to offer customers something that is not available in sufficient quantity.

The advantages of the store include:

• stable demand for goods
• possibility of opening in almost any city
• opportunity to increase sales by launching an online store

But competition is high, since such stores already exist in any locality. Initial costs are high regardless of the type of outlet (can reach 2.5-3 million rubles), since a lot of funds are required to purchase goods. If the choice of assortment is unsuccessful, there is a possibility that the purchased product will be difficult to sell. In the best scenario and a 20-40% markup, the initial investment will pay off in 2 years.

Furniture factory: advantages and disadvantages

Under your own brand, you need from 30 million rubles. This option is a furniture workshop expanded several times. When equipping production with modern equipment, it is possible to achieve a profitability of 15-25% by supplying furniture throughout the region and country.

The advantages include:

• neutralization of competition due to a full production cycle and a wide range
• purchase of large volumes of raw materials at a reduced cost
• lower cost of finished products (compared to a workshop)
• consistency of wholesale sales with our own dealer network and well-developed marketing

Disadvantages of the factory:

• the need for large initial investments
• difficulties in choosing premises (large areas are required)
• high costs for the purchase of modern equipment
• difficulties with (requires special education and high qualifications)
• high costs for brand development and advertising due to competition

A furniture factory is worth opening if you have large investments and are willing to wait a long time for returns.

Criteria for choosing between a workshop, a store or a factory

When looking for an answer to the question of what is better, production or trade, it is important to take into account financial capabilities and personal qualities. If you have skills in plumbing, it is better to start from the workshop. If you are confident that you can manage production, you skip the workshop stage if you have money. For a person who has the ability to trade, the best option would be a store.

All options have advantages and disadvantages; profitability depends on a number of factors that do not always depend on the entrepreneur. The quality of the finished product and economic conditions in the region and country are of great importance.

You can make money without having a lot of money for initial investment in a small space. The only condition is the availability of a raw material supplier offering cutting services. This allows you to avoid purchasing expensive equipment. When purchasing a semi-finished product, components and inexpensive tools for assembly are required. In such a situation, success depends only on the planning of the model and the quality of manual assembly. If the product meets customer needs, production can be expanded.

Even in a large factory it is impossible to produce all types of furniture. It is important to determine who the product is intended for. These may not be households. There are children's and public organizations in the city that need specific products. Each institution requires a special style. In addition, furniture is made not only from wood. Warehouses, banks and medical centers, chemical and food industries require metal furniture. This is a good option if such products are not produced in a particular region.

When opening a store, you should not start with a large area and a wide range. It is advisable to walk around the already operating stores in the city and determine what they offer. There is always a type of product that does not exist. It becomes the basis for forming the assortment of a specialized store. The advantage of this approach is the opportunity to become a monopolist in a small niche.

Purchasing equipment when starting a furniture business from scratch

Furniture can be kitchen, built-in, cabinet, upholstered, garden, specialized, for offices or children's and medical institutions. Equipment is purchased after selecting the type of product. A factory requires bulky machines and tools; in trade, a minimum amount of furniture for staff and customers is sufficient.

If you open a workshop and do not plan to cut the material yourself, then you buy hand tools: drills, screwdrivers, grinders, milling cutters, hair dryer, hammer drill, etc. Machines are expensive, you can buy them later (if desired), when a customer base and sales level have been formed will rise.

For a factory, equipment is selected depending on what is planned to be produced. For example, when making cabinet furniture, there is no need for upholstery tools and compressors. Please note that equipment designed for processing chipboards is not suitable for working with natural wood. In the first case, sawing, grinding, milling, and decorating machines are required. The slabs are cut using molding machines; equipment for drilling and edge processing is required.

In a furniture store, it is better to focus on compliance with sanitary standards and the design of the room. A professional designer is involved, especially if the outlet is for rich people. Expensive repairs and original exhibition are needed. It is advisable to organize a place for customers to relax with the opportunity to drink coffee, tea, and buy water. This does not require large expenses, but the level of service increases. In a warehouse store, the interior is simple, the main focus is on the distribution of products across halls and sections.

Ways to promote a furniture business

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, the opportunity to obtain a loan and receive discounts, bonuses, gifts, delivery and assembly costs is 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)

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

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* The calculations use average data for Russia

If you are looking for an idea to start your own business, you should pay attention to a furniture sales business. Many entrepreneurs do not consider this option because they consider the furniture sector to be too expensive, complex, long to pay off and, most importantly, highly competitive. However, in practice the opposite is true.

Russian furniture market

Despite the unfavorable economic situation, the domestic furniture market (primarily upholstered furniture) is growing steadily. Over the past four years, its annual growth rate has averaged 5%. Although literally ten to fifteen years ago the situation was completely different. Then new furniture was purchased only after the old one failed. Now our compatriots are looking for a new sofa or armchair because the existing furniture is out of fashion or out of style. Favorable trends in the furniture segment are due to two main reasons - the growing welfare of the population and the presence of international furniture companies.

According to researchers, the share of imported furniture on the Russian market is increasing every year by 45%. The increase is achieved through the supply of components, since importing finished furniture is too expensive. Logistics costs directly affect the cost of production and, therefore, its market value too. However, domestic producers do not feel disadvantaged. There are a large number of Russian companies whose furniture is in great demand in a certain price category (mainly the low and medium price segment). Again, if we look at the 90s, the situation then was exactly the opposite. After the Iron Curtain was removed, the domestic market was flooded with foreign-made products. Russian furniture companies were helped, oddly enough, by the economic crisis of 1998, when consumers simply could not afford to buy foreign furniture and preferred cheaper Russian ones.

The second economic crisis, which occurred exactly ten years later, again played into the hands of domestic companies, which were able to offer their clients not only the optimal combination of affordable prices and good quality products, but also a uniform standard of service and, no less important, walking distance to furniture showrooms .

Now the economic situation in the country is close to the situation in 2008. Furniture manufacturers and sellers are already noticing a sharp decline in demand for expensive products and an increase in interest in domestically produced furniture. On the other hand, there is still a construction boom, which significantly increases the demand for furniture. Therefore, experts advise entrepreneurs who are just entering this market to rely primarily on domestic manufacturers, choosing proven brands, good quality (even without designer delights) and affordable prices.

Furniture store formats

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First of all, you need to decide on the format of your future store. The classification of such outlets is rather arbitrary. However, within its framework the following formats can be distinguished:

Standard furniture store. Its assortment includes an average of 200-250 product items, and its area ranges from 300 to 1000 sq. m. meters. The furniture products presented there cover all major product groups (furniture for the bedroom, kitchen, office, upholstered furniture, office furniture).

Showroom. This store format is suitable for expensive exclusive furniture, often made or imported to order. Each trading position in such a room is usually presented in five to six different variations.

Furniture hypermarket. The area of ​​such a store is from 1 sq. km, and the assortment includes over 1000 trade items. The widest selection of furniture is presented here (usually in the middle price category): hallways, walls, office furniture, kitchen furniture, bedrooms, etc.

Special shop. Stores of this type sell furniture of one specific product group (usually in sets): office, bedroom, upholstered, kitchen, etc.

The format of the furniture store you choose directly depends on the starting capital and the characteristics of the regional market. Assess the level of competition in your city, identify direct and indirect competitors, paying special attention to the largest chain stores. The mid-price segment is considered the most profitable, but here the life of individual retail outlets is significantly complicated by such “monsters” of furniture retail as Ikea, Hoff, etc. We do not consider a furniture hypermarket in this article, since organizing such a business requires large investments. This segment includes international and federal networks. A showroom is not the best option in a looming economic crisis. The cost of renting a room for it may be too high with a relatively small selection and high prices for furniture. The standard format is represented mostly by regional networks, although federal players are gradually beginning to oppress them. A highly specialized store also has some disadvantages if we consider it as a business, but they can be leveled out by finding your niche and correctly forming the assortment.

Until recently, the main part of the Russian furniture market was upholstered furniture. However, now the situation has changed significantly. As manufacturers and sellers themselves note, in the home segment the share of bedroom and children's furniture, stationary beds, and living room furniture is increasing due to a decrease in the upholstered furniture segment. This is explained by changes in the way of life of our compatriots. If before this furniture was more of an aesthetic nature and served as interior decoration, now the consumer gives preference to simplicity and functionality. But in the office segment and HoReCa (restaurant and hotel industry), on the contrary, upholstered furniture is becoming more and more in demand: the number of people who prefer to spend their free time outside the home is increasing, and accordingly, the number of establishments where a person can relax and have a good time is growing .

We are drawing up a business plan for a furniture store

After you have chosen the format of your future store, you need to conduct several marketing studies, determining the market capacity and target audience. When determining the capacity of the furniture market, keep in mind that the turnover in this segment is comparable to the turnover of building materials. It is estimated at 300 billion rubles (data for 2013). Knowing the capacity of the regional market, you can determine the level of competition in your region.

The next step is to determine how much money it will take to open a furniture store. The main expenses include repairs to the retail premises, lighting, and production of signs. In the total budget, this expense item accounts for up to 45%. Exactly how much money you need depends on the location of the premises, its area, condition, selected building materials, store design, etc. The next significant expense item is inventory. Its share in the total budget is also estimated at 40-45%. The amount of expenses depends on the price category, the number of product groups that you will have, and the positions within each group. The remaining part of the budget (15-20%) is working capital, which includes rent for two months, as well as the monthly wage fund for your employees.

To open a small specialized furniture store you will need from 3 million rubles. The payback period for such a project is estimated by experts to be at least two years.

Documents for opening a furniture store

In order to open a furniture store, you first need to choose a suitable organizational and legal form for running your own business. This is the name of the legal status of a business entity and its choice of method of using property. For small businesses, the best forms of ownership are individual entrepreneurs and LLCs. We will not dwell in detail on the advantages and disadvantages of one form or another. Let's just say that for a small furniture store it is quite enough to register as an individual entrepreneur with the INFS. In this case, you will need to choose a form of taxation. In addition, please note that to carry out your activities you must select OKVED codes. There may be several of them, but there is only one main one! The activities we are considering include the following codes:

52.12 - Other retail trade in non-specialized stores;

52.44 - Retail trade of furniture and household goods;

52.44.1 - Retail trade in furniture;

52.48.1 - Specialized retail trade of office furniture, office equipment;

52.48.11 - Retail trade of office furniture.

When choosing OKVED codes, focus not only on those types of activities that you plan to engage in immediately at the very beginning of your work, but also those that may be relevant to you in the future. These may include, for example, the following:

36.11 - Production of chairs and other seating furniture;

36.12 - Production of furniture for offices and trade enterprises;

36.13 - Production of kitchen furniture;

36.14 - Production of other furniture;

51.15 - Activities of agents in the wholesale trade of furniture, household goods, hardware, cutlery and other metal products;

51.15.1 - Activities of agents in the wholesale trade of household furniture;

51.47.1 - Wholesale trade of household furniture, floor coverings and other non-electrical appliances;

51.47.11 - Wholesale trade of household furniture;

51.64.3 - Wholesale trade of office furniture.

If some codes are missing from this list, this may subsequently cause difficulties when expanding the scope of your activity. You will have to make changes to the registration documents, which involves additional inconvenience and loss of time.

The list of documents that are submitted to the registration authority (INFS, located at the location of the individual entrepreneur being opened) includes: an application for state registration of an individual as an individual entrepreneur in form P21001, a receipt for payment of the state fee for registration of individual entrepreneurs, an application for transition to a simplified tax system according to form No. 26.2-1 (optional), copy of the applicant’s passport. Registration documents can be submitted either personally or through a representative by proxy. In addition, you can send all the necessary documents through the “Electronic Services” service or by mail in a valuable letter with a list of all enclosed documents. If all documents meet the requirements, then within five days after submitting them you will receive documents on individual entrepreneur registration.

In addition, you will need to prepare a number of documents necessary to conduct such business activities:

permission from Rospotrebnadzor employees to locate (this document provides the right to start the operation of the facility);

program for industrial and sanitary control (opening a furniture store is possible only if you have this document, which is designed to optimize the process of compliance with sanitary rules and regulations at the enterprise);

a sanitary and epidemiological conclusion, issued for a specific period by employees of Rospotrebnadzor, determines the compliance of the premises of the facility with the current norms and rules that apply for this type of enterprise;

agreements on the removal of solid household waste and other garbage;

drawing up contracts for deratization, pest control, and disinfection work, which involves the execution of sanitary work to exterminate pathogens, rodents, and insects;

regulatory documentation for a furniture store;

drawing up an agreement for the provision of laundry and dry cleaning services for washing work clothes;

drawing up a contract for disinfection work for vehicles;

an agreement for regular disinfection and cleaning of ventilation and air conditioning systems;

official agreement for the disposal of fluorescent (mercury-containing) lamps.

Depending on the region and the specifics of the business, other documentation may be required to open a furniture store.

Furniture store premises

Even at the time of registration documents, start looking for premises for a store. It should be located on the first line and under no circumstances in the courtyards between houses. As for the region, the choice here is not so important. For good and high-quality furniture, people are ready to travel to the other end of the city. And in any case, they will need delivery of purchased furniture to their home, even if the store is located in the same area where they live. When inspecting suitable premises, take into account the requirements and standards defined by law. Thus, industrial goods stores can be located in residential, public or separate buildings, in shopping centers and complexes. If the store is located in a residential building, then the entrance to the premises must be isolated from residential apartments. Norms for the area and height of premises are not regulated, and it is not recommended to use premises with a ceiling height of less than 2.5–2.7 m, with the exception of utility rooms.

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If you find a room on the ground floor, then take into account that according to the standards, it is allowed to place stores in premises without natural light, but the requirements of SanPiN 2.2.1./2.1.1.1278-03 “Hygienic requirements for natural, artificial and combined lighting of residential and public buildings" (approved by the Chief State Sanitary Doctor of the Russian Federation on 04/06/2003), where Table No. 2 shows the standardized indicators of natural, artificial and combined lighting depending on the purpose of the premises. For example, for the sales floors of furniture and sports stores, the minimum level of artificial illumination is 200 lux.

After the premises have been found and a lease agreement has been concluded, you need to obtain the conclusions of the fire inspection and sanitary inspection. The presence of a conclusion from the sanitary and epidemiological service is the main condition for obtaining permission to operate a store by local governments and executive authorities. To obtain a fire safety certificate, an entrepreneur must install fire safety systems in the store premises, provide a sufficient number of fire extinguishers, as well as an emergency exit.

An ordinary furniture store does not require any design delights. It is enough to have fresh renovations and maintain cleanliness in the sales area. An additional advantage of furniture stores is that there is no need to buy additional commercial equipment. It will be enough to have a counter for the seller and a cash register. The latter, by the way, must be registered. In addition, if you plan to hang a sign on the facade of the building where your store is located (and you cannot do without it), you will need to obtain permission from the landlord. Please note: a sign on the facade of a building containing the name of the company and its type of activity is not advertising, and therefore it can be placed without any permits or contracts. But if your sign is located at a different address, then its placement must be agreed upon with the authorized body.

Choosing a furniture supplier for a store

When searching for suppliers of goods for your point, consider several basic requirements for future partners and the products they offer. First of all, the furniture you purchase should be of good quality and affordable prices. Pay attention to reviews about the company you have chosen and its working conditions. Reviews can be found on various websites and forums on the Internet. Of course, you shouldn’t trust them blindly, since many of them are custom-made (that is, they are advertising in nature), but they can still give a certain idea about the supplier. Try to work only with trusted suppliers who have been in the market for a long time. You should not get involved with new companies, even if they offer extremely favorable working conditions. Due to currency fluctuations and consumer preferences, it is best to work with domestically produced furniture. Goods can be taken from suppliers for further sale or purchased at wholesale prices. Don't forget to ask the supplier for certificates for the products they provide.

If you prefer a specialized store, then you will have more suppliers, because you will need to ensure a variety of assortments, despite the limited number of product groups. Of course, in the middle price segment it is difficult to find original furniture options in design and execution. But there are Russian manufacturers who produce transformable furniture in small quantities, as well as various designer models. The prices for such furniture are slightly higher than average, but you can offer those who wish to choose the option they are interested in from the catalog and bring it to order. Such a service will be in demand, since original and, most importantly, compact furniture (transformable and built-in) is in high demand.

Take time to plan the arrangement of furniture in the sales area. Try to ensure that all models are clearly visible and that price tags are readable from any distance. At first glance, these are small things. But cluttered furniture makes it difficult for people to move around the store and causes them irritation. As studies show, when store visitors do not find what they are looking for, in most cases they immediately leave the store without turning to a sales consultant for help.

Furniture store staff

By the way, since we’re talking about sales consultants, let’s say a few words about the furniture store staff. The success of your business and your profits directly depend on it. Preference should be given to people who have experience in this field, but newcomers should not be neglected. After a little training, which you can do yourself, as well as a careful study of the store's assortment, many of them are in no way inferior to experienced sellers. Many furniture chains conduct entire exams for newly recruited workers, asking them questions about the assortment, selection of furniture for a specific interior, materials used in production, colors, etc. Small stores do not have the means to hire trainers, but you can control it yourself work as sales consultants, visiting the sales floor from time to time. As a rule, a salesperson's salary consists of a salary and a percentage of sales, the amount of which depends on the fulfillment of the established sales plan. This is the best option for financial incentives for employees.

Expenses and profits of a furniture store

The total cost of opening a specialized furniture store is from 3.5 million rubles. Don’t forget to budget for advertising costs – your profits directly depend on them. Print media (specialized publications), radio, television and outdoor advertising are suitable for promoting a furniture store.

The revenue of a furniture store in a small town with a population of up to 500 thousand people, according to various sources, ranges from 2.5-3 million rubles per month. The average markup in the furniture business on products sold is 30-40%, and net profitability is estimated by experts at 7%. Accordingly, it is possible to recoup all expenses in 2-2.5 years.

It is widely believed that the furniture business is not subject to factors such as seasonality. In fact, it is not true. According to the sales results of individual furniture stores and retail chains, peak sales occur in the period from September to December. Then there is an increase in consumer interest in furniture between March and June. Summer is a “low season” both for the furniture segment and for other stores in general.

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People strive for comfort and confidence. They want their work to be structured thoroughly and bring in a solid income; they want to start their day in an environment that is pleasing to the eye and meets all their needs. The words “quality”, “stability”, “respectability” are applicable to both a well-organized life and a thriving business. One of the stable and promising areas of the latter is the furniture sector.

Analysis of the Russian furniture market

From a geographical point of view, most of the furniture production enterprises are located in the Central Federal District, namely in the Moscow region - Moscow and the Moscow region. At the same time, large players are trying to extend the network from the capital to smaller cities.

In the 90s, the Russian market was predominantly occupied by imported products. The period of demand for domestic goods began after the crisis of 1998, when people simply could not afford expensive foreign furniture and preferred Russian manufacturers. Similar dynamics were observed in 2008.

In 2015-2017, dense development took place in Russia, while the overall share of sales in the furniture niche decreased by 5-7%. But 2018 promises an increase in demand. It's time to get involved.

The legion of furniture makers is dominated by trade organizations that sell ready-made and made-to-order products. There are much fewer companies operating a full technological cycle: design, production of materials, production of the finished product, provision of delivery and assembly services. Own production and maintenance of warehouse space is a costly business.

Furniture is conventionally divided into several categories: household, office and special. Next to the body and soft ones. The niche of the economical and mid-price segment is firmly occupied by domestic manufacturers, but in the premium class sector, competition from foreign companies is extremely high.

Today the Russian market is dominated by (in descending order): cabinet furniture, office furniture, kitchen furniture, upholstered furniture, children's furniture, garden furniture, and specialized furniture (includes furnishings for public buildings, transport, gardens, parks).

Business plan for a furniture salon

So, where to start a furniture selling business? First of all, you should find out what the buyer is in demand for the current period, what the modern market offers and how to make a profit while avoiding high competition. And then calculate costs, risks and strategy.

A business plan for the production and/or sale of furniture includes the following mandatory items:

1. Type of product (cabinet, upholstered, office furniture, etc. in accordance with your assortment).
2. Technological production cycle, estimated costs, payback periods.
3. Financing an enterprise: own assets, borrowed funds, attracting partners, investors, founders. Salary distribution plan.
4. Organization of production: rental or acquisition of ownership of production and warehouse premises, purchase of related equipment, selection of personnel and specialized personnel.
5. Target audience of buyers: wholesale customers, private customers, dealers, retailers.
6. Sales of goods and services: own retail outlets, individual orders, direct deliveries to wholesale and individual customers.
7. Advertising and promotion of the company. The amount of money allocated for advertising.
8. Company registration and legal registration in the appropriate authorities.

Important: in order to avoid unforeseen expenses, each item of the plan should be carefully worked out and calculated.

Who is the potential buyer of a new interior? For the most part this is:

• young families;
• families with school-age children;
• opening firms and organizations;
• elderly people, pensioners.

Choosing premises for a furniture store

Chinese furniture center project

Retail space can be rented/purchased in a large shopping center, a separate building, a room with a separate entrance, etc. The main criterion when choosing is cross-country ability. It doesn’t matter whether it’s a center or a residential area; the key to success is the intense flow of people in a given location. It is also advantageous if the store is visible from the roadway. A bright, visible sign from the road will reduce advertising costs and attract potential buyers.

A small retail space with several exhibitions can be transformed into an apartment and samples of each room can be presented according to its intended purpose: kitchen, bedroom, living room, hallway. The vast retail spaces will be divided thematically: upholstered furniture, cabinet furniture, glass furniture, wicker furniture.

In order to freely move from object to object and not miss a single sample, the passages should be made spacious, flowing into one another. And don’t be afraid of bold decisions! The more extraordinary the styles and combinations, the greater the chances of being remembered and standing out from the mass of standard, hackneyed solutions.

In addition, you can hire a designer and work out the exhibition in every detail. After all, if a bedroom is displayed, there should be a bedspread and bed linen on the beds, flower arrangements on the bedside tables, an intricate painting on the wall, dishes with original patterns in the kitchen, a delightful carpet in the living room that beckons you to take off your shoes and step bare feet on the soft pile . Often, the interior comes to life and is “sold” precisely due to the decor and stylish details.

The larger the area of ​​the room, the higher the ceilings should be. In any case - from 3 meters. Lighting is of particular importance: it should not dazzle or distort color, but it should be enough to see details.

Furniture store advertisement

Why invest money in advertising? So that people know that there is a company, it is engaged in the arrangement of residential premises, regularly informs clients about the arrival of new collections, the beginning of discounts and, with well-structured work, thereby attracts a new audience.

To develop a business you need a website. You also need pages on popular social networks, a customer base to whom you can send commercial offers by e-mail, printed catalogs with product samples, and branded brochures. Methods are combined with each other and the optimal one is selected.

If you have an initial budget, you can contact a marketer who will conduct a detailed market analysis, help identify the target audience and calculate options for advertising investments with a high probability of return.

For those who start without a financial cushion, there are many options to make themselves known with minimal investment. A fair number of companies sell furniture “from photographs” - they create a page on Instagram or Vkontakte, post pictures of beautiful interiors and offer services for calculation, design and production of identical goods. And, as statistics show, people are ordering.

If the exhibition area is located on the territory of a furniture center, this is already advertising. All it takes is an attractive sign and an original display. Further development depends on the work of consultants and the quality of products.

If the store is based in a separate building, you should organize a grand opening: print flyers, hire promoters, decorate the entrance and offer pleasant bonuses to the first customers in honor of the start of work.

Search and selection of suppliers

Working in the furniture industry involves interacting with a number of contractors. First of all, these are manufacturers. The ideal option is to cooperate with the factory directly, but this is only possible if the order volume is beneficial to the manufacturer. The plant will not make a couple of cabinets and a kitchen for a small apartment. This is why it is easier for small firms to communicate with dealers and distributors.

When choosing a supplier, the following points are important:

• Does the furniture meet established quality standards?
• Do the supplier's capabilities match the technical and design objectives of your projects?
• Stability and reliability of the company, fame in the market, recommendations of large companies.
• Warranty conditions.

Attention: the supplier must guarantee that the furniture meets the declared characteristics, subject to the conditions of transportation, storage, assembly and operation, and produce replacement elements of the product during the warranty period to ensure the repairability of the furniture.

Pricing: how to conduct a competitor analysis

In order to assess the market situation, experts advise conducting marketing research. This does not mean that you need to pay through the nose, wait months and rack your brains over dozens of diagrams and tables. No, this is a collection of data on what and how competitors trade, what are their advantages and disadvantages.

Newcomers, as a rule, are not ready to spend their budget on analytics. Here's what you can do in this case: attend furniture exhibitions. Manufacturers from all over the world present current and new samples, willingly get acquainted and share professional information. There are a lot of ordinary buyers and representatives of retail chains at the exhibition, and this is an excellent opportunity to understand what is being offered, what kind of discount system is used, and what bonuses cooperation promises.

As a last resort, use the Internet and collect all possible information about your competitors there.

Legal registration of business

Choosing a tax system

In the retail trade sector, there are 4 main tax regimes: UTII (unified tax on imputed income), simplified taxation system (simplified taxation system), OSNO (general taxation system), PSN (patent taxation system).

The most popular is the simplified taxation system (USN). For individual entrepreneurs there are no restrictions on the use of the simplified tax system; for LLCs there are a number of requirements for the number of full-time employees, income and branches.

Reference: The tax rate depends on the region, the type of activity of the company and the turnover of funds.

In general, the choice of system looks like this:

• small store without branches - simplified tax system
• store with high, uninterrupted profits - UTII
• seasonal trade, exhibitions - PSN
• cooperation with legal entities, including VAT – OSNO

Choosing a form of ownership

Forms of ownership for the operation of a furniture company 2 – LLC and individual entrepreneur. To work with orders from commercial organizations, you need to register an LLC, and if you work only with individuals, it is enough to open an individual entrepreneur.

To register a company, you must prepare the following documents:

1. Company name
2. protocol for making a decision on opening
3. information about the director and accountant
4. charter indicating the type of activity and the amount of authorized capital
5. Bank details
6. receipt of payment of state duty

There are few special requirements for the furniture trade. It will be necessary to conclude agreements with Rospotrebnadzor, Rospozhnadzor and MUP Gorenergo.

Recruitment and registration

To launch a project, a staff of employees is required: a director, sales consultants (the number depends on the area and assortment of the store), a designer, an accountant, and a customer service manager. It is also necessary to conclude agreements with transport companies and cargo carriers.

Employees should be officially registered in accordance with the provisions of the Labor Code of the Russian Federation: sign an employment contract, an order for hiring, create a personal employee card and make an entry in the work book.

The usual markup on furniture is +/- 50%, there are models with a 100% markup or more. During promotions, discounts are set at 20%, 30% and up to 50%. The maximum discount is given in order to quickly sell out stagnant goods and purchase a new collection.

Offers that guarantee personal benefit to the client work well: interest-free installments, a loan at a small interest rate, free delivery, measurement or cashless payment.

Working in the same field, entrepreneurs closely monitor each other. One of the ways to influence the consumer market is dumping - artificially lowering prices. Many companies, in order to survive competitors and capture a niche, put price tags below the cost of goods, thereby causing people to feel “there is deception all around, but these are honest.” But sooner or later the price will have to be raised, people will react negatively and again go looking for something cheaper. How to fight dumping? Become colleagues, not competitors, and negotiate on a contractual basis a system of discounts that will be attractive to customers and provide an opportunity for sellers to earn money.

Online store: a good way to reduce costs

How to thread an elephant through the eye of a needle? Or applicable to furniture: how to present the maximum number of collections and product samples without investing a single extra ruble in rent? Open an online store. Most buyers search and select models on the Internet before coming to the salon. Many people don’t even get to the store and make their purchase online – just photos of the product from different angles, descriptions, guarantees and advice from the manager are enough.

The larger the assortment, the more calls we receive with questions. That is why it is advisable to organize the work of a call center and hire specialists who will competently advise and guide the buyer to calculations and orders.

By tracking the behavior of customers on the site, you receive pure statistics on which models are in maximum demand, and where, on the contrary, there are obvious shortcomings in everyday use. Based on the information received, you can adjust the work of a real salon, open additional points and display a guaranteed in-demand assortment.

With growing demand and turnover, it makes sense to open new showrooms and expand model ranges. Many large enterprises focus on the regions and open branches in the region and nearby cities.

No matter how changeable the economic sphere, fashion, or the behavior of competitors are, the main thing in any business remains service. I would like to return to a place where the service is high quality, fast and friendly. Well-structured communication, clear work of employees within the team and following current trends will help you survive and prosper under any circumstances.

Furniture is an integral part of every person’s life. It is everywhere: at work, at home, in places of rest, in various institutions. Most often, they purchase household furniture when updating the interior or furnishing a new apartment. Therefore, the furniture retail business has its own prospects for development and earnings. In order to correctly calculate the main points and costs of opening your own retail outlet, we present a business plan for a furniture store, an example of which you can use when launching your project.

Project Summary

We are considering opening a furniture store in a city with a population of about 800 thousand inhabitants. The store will feature the following categories of home furniture: sofas, armchairs, bedroom and kitchen sets, desks and office chairs, coffee tables and ottomans. Target audience: people from 25 to 50 years old with an average income.

The store is located in a large residential area of ​​the city in a heavily traveled area, close to a shopping center, clothing stores and construction stores.

Main project risks:

Risk name	Solution
The emergence of a strong competitor	In the fight against a strong competitor, it is necessary to offer customers the widest possible choice of furniture models, alternative options for production and delivery times; develop a loyalty system, promotions, advantageous offers, discounts for regular customers
Unsuccessful first purchase	To minimize the risk of unsuccessful furniture purchases, it is necessary to analyze competitors and similar furniture stores, form a buyer profile and determine the level of demand for furniture categories. In addition, you can agree with the manufacturer to take the furniture for sale or with the possibility of exchanging for another model
A sharp increase in the price of renting store premises	You will have to rent a large area, so the price will be rather high, as will the costs of repairs and preparation of the premises, so it is better to draw up a lease agreement for at least 2 years with the possibility of extending the lease and the right of priority to purchase the premises
Economic crisis, decreased solvency of the target audience	In this case, you will have to rework your sales tactics, offer cheaper models of furniture that will be affordable for buyers, or offer joint special programs with banks for installment plans and loans.

A business plan for a furniture store with calculations will help create an estimate of planned and reserve costs for opening and developing a furniture store.

Decor

To open a furniture store, we need to choose a form of entrepreneurial activity and undergo appropriate registration with the tax service. To operate one store, it will be enough for us to register an individual entrepreneur and select a simplified taxation system of 15%. We indicate the OKVED code 47.59, which allows us to engage in retail trade in furniture and interior items.

In addition, it is necessary to obtain permission from the fire inspectorate to use the premises for a furniture store.

No more permits or licenses are required.

Investments in registration and registration will not exceed 7-10 thousand rubles.

Renting premises

We will rent premises in a residential area of ​​the city in a heavily traveled area, close to clothing stores, building materials and transport interchanges. The room is located on the ground floor of the house. The total area is about 80-100 sq. m. The cost of such premises will be 50 thousand rubles.

The room will also need to be redecorated - painting the walls, installing coverings on the ceiling and floors. We will determine the cost of repairs in the amount of 200 thousand rubles.

To minimize the cost of repairs, it is important to rent a room with a minimum number of partitions and free space visible from the entrance.

Utility payments for such a premises will cost about 7 thousand rubles. The store should be warm, but not hot or damp.

Purchase of equipment

For a furniture store, it is necessary to purchase a table, a chair and a laptop, an MFP for the work of a sales assistant, as well as cash register equipment.

In addition, a furniture store will need a truck with which to deliver furniture to the customer. Take a GAZelle-business class car with an all-metal van body worth 900 thousand rubles.

In total, 1 million rubles will be needed for these purposes. To save on the purchase of transport, you can purchase a used car or agree on cooperation with the owner of such a vehicle.

Assortment and manufacturers

It is very important to select both the current range of furniture for the first purchase, and manufacturers. The following categories must be present on the sales floor (we indicate purchases at cost):

Name	price, rub.	Quantity	Amount, rub.
Large sofa	20 000	2	60 000
Small sofa	15 000	2	40 000
Large bed	15 000	1	20 000
Double bed	15 000	2	40 000
Elements of a bedroom set (countertop, wardrobe, upper cabinet, chairs)	10 000	5 types of cuisine	50 000
Bedroom set (bedside table, wardrobe)	15 000	3 types	45 000
Mirrors	5 000	5	25 000
Closet	15 000	3	45 000
Desk	10 000	3	30 000
Children's ottomans	2 000	10	20 000
Adult ottomans	3 000	5	15 000
Children's table chair	2 000	3	6 000
Adult desk chair	2 500	4	10 000
Chandeliers	1 000	10	10 000
Table lamp	500	10	5 000
Floor lamp	1 000	5	5 000
Bottom line			426 000

This is the minimum purchase of the necessary representatives of furniture categories and the maximum for a given retail space. It is advisable to agree with the manufacturer on the option of exchanging by color or for another model if necessary. You can also obtain visual catalogs from the manufacturer for the supply of custom-made furniture.

The store should represent at least 5-7 different manufacturers. They should differ in price category, quality and style solutions.

Our markup on furniture will start at 50%.

Staff

To fully operate a furniture store, you need to hire several workers. At first, the entrepreneur himself can deal with the sale and delivery of furniture, but combining these 2 functions with administrative tasks will not be easy. Therefore, we will hire a sales consultant and a loader driver for delivery. The third specialist will be a furniture assembler.

One of the job functions can be performed by the owner himself, for example, a delivery person. This is a responsible position, since he is responsible for expensive transport. And the safety of the delivered furniture also depends on this person.

Approximate staffing:

The seller will have a piece-rate salary system with a bonus for fulfilling the sales plan. The assembler will receive a piece wage for completing each order.

The entrepreneur will conduct the accounting independently, just like ordering furniture for the sales area.

Marketing and advertising

To attract customers, it is important to analyze the level of demand and formulate the correct pricing policy and appropriate assortment for the first purchase. During the opening of the store, it is necessary to install a large sign and organize a grand opening of the furniture showroom with balloons and promotions for the first customers.

The savings system is formed individually for the buyer. For example, for a one-time purchase of furniture worth 50,000 rubles, a regular customer card is provided with a 5% discount. After reaching the figure of 100 thousand rubles, the discount increases to 7%.

In addition, favorable installment plans will be provided for expensive furniture (from 35 thousand rubles per item).

Expenses and income

Here we will analyze and summarize all the starting and monthly costs of opening and developing a store. We will designate a sales plan and plan estimated revenue starting from the 3-4th month of active trading. After this, we will determine the net profit, profitability indicator and payback period for the initial investment.

Start-up costs

Income

The first 3-4 months for a furniture store will be difficult, with minimal or no profit in the first month. However, starting from the 4th month, a certain level of sales is planned. By this period, the number of buyers should reach the planned level.

Sales plan:

Name	price, rub.	Quantity	Sum
Large sofa	20 000	1	20 000
Small sofa	15 000	1	15 000
Large bed	15 000	1	15 000
Double bed	15 000	1	15 000
Complete bedroom set (medium)	70 000	2	140 000
Bedroom set	100 000	2	200 000
Mirrors	5 000	2	10 000
Closet	15 000	1	15 000
Desk	10 000	2	10 000
Children's ottomans	2 000	3	6 000
Adult ottomans	3 000	1	3 000
Children's table chair	2 000	2	4 000
Adult desk chair	2500	2	5 000
Chandeliers	1000	10	10 000
Table lamp	500	5	2500
Floor lamp	1000	5	5 000
Total:			475 500

Taking into account the average markup of 50%, the profitability will be 237,750 rubles per month.

Let's calculate the difference between income and expenses to calculate tax:

237,750 – 122,000 = 115,750 rubles per month.

We calculate the tax payment:

115,750 x 0.15 = 17,363 rubles.

Accordingly, our net profit will be:

115,750 – 17,363= 98,387 rubles per month.

Let's calculate the return on investment:

(98,387 / 122,000) x 100 = 80.64%.

The profitability indicator of a furniture store is quite optimistic. However, it is worth remembering that for the first 4 months you will have to work on the store’s image and constantly work to increase the effect of advertising, which will require investment.

Let's calculate the payback period of the project:

758,000 / 98,387 = 7.7 months.

Within 7-8 months it is planned to recoup the initial investment in the store.

Eventually

Selling furniture even in a small town can become quite a profitable business. The main thing is to enter the market, establish a strong position, attract as many buyers as possible and retain regular customers with advantageous offers and a loyalty system.

In the future, in a year, you can rent a larger premises and increase the range of products offered, enter the online sales market and open your own online store with home delivery. In addition, in two years it is planned to open another sales point in another large area of ​​the city.

The furniture business is an excellent choice for a young entrepreneur to start. People always buy furniture, regardless of the season and weather. Even a crisis will not change anything in your business, except that it will reduce the class of furniture from elite to classic. Therefore, open a furniture workshop – a good and promising idea that will surely bring you excellent profits.

Studying the market

Furniture production can be divided into three main areas:

1. Production of classic office furniture (cabinets, partitions, cabinets, tables). The main emphasis is on functionality and strict appearance.
2. Production of kitchens and furniture. The kitchen is the face of the home, it is where people spend most of their free time, so it should be equipped with comfortable and high-quality furniture. Every year the demand for kitchen sets is growing by an average of 15%.
3. Production of furniture to order. This is the most promising type of business. Furniture is created depending on the client's requirements, according to individual sizes and drawings.

Starting a furniture business is not difficult - a minimal investment is enough

Note: in megacities you will face serious competition, so it is best to start this business either in small cities or enter the market with an original and promising offer.

Be sure to find out if there are similar furniture manufacturing workshops in your city, what services they offer, what the real furniture production times are and the price range of your competitors. Think about what you can do better to win over customers.

Premises requirement

To organize a full-fledged factory, you need three full-size premises. This:

1. Furniture production workshop. Its area must be at least 100 m2.
2. Office. Managers will work here, concluding contracts for the purchase of raw materials and accessories, as well as for the sale of finished products. Often the office has a small exhibition stand with samples of materials and furniture, or even a small shop.
3. Stock. This room will be used to store material and finished products. It should be spacious (about 70-100 square meters) and dry.

These premises may be located in the same building or scattered throughout the city. For example, the workshop itself will be located on the outskirts, and the office with samples will be in the city center or in a convenient location. This will significantly increase the number of possible clients. The warehouse can also be located on the outskirts of the factory. This will allow you to reduce rental prices several times and avoid complaints from residents about the constant noise from cutting material.

The premises for furniture production should be spacious

Purchase of necessary equipment

To start the production of upholstered furniture as a business, you should have a sufficient amount to purchase the appropriate equipment. You can, of course, cooperate with other workshops for cutting furniture sheets, but this will significantly increase the lead time of orders and the cost of finished products, which will reduce all your competitive advantages to nothing. Therefore, it is definitely necessary to buy machines. To save money, you can buy used equipment - its price can be 30-50% lower than that of new one. But you need to have a good understanding of the machines so as not to buy ones that have already been written off.

Read also: How to clean seeds from husks in production

To work you will need the following types of machines:

1. Band saws. Such equipment is used for precise cutting of wood, MDF or chipboard to the ordered sizes.
2. Dryers. These machines are used if you plan to work with natural wood and it will need to be dried to a certain humidity.
3. Machines for decorating and fine processing of wood. Used for shaping wood, processing edges, cutting various chamfers, and other milling and drilling machines.
4. Devices for working with glass. This includes sandblasting machines, drilling machines, engraving machines, cutting machines, etc.
5. Devices for working with metal. This includes welding, drilling, cutting, and polishing metal.
6. Sewing equipment for creating upholstery, covers and various soft furniture elements.
7. Tools. These include hand drills, screwdrivers, staplers, screwdrivers, planes, hammers, etc.

Also, for the production of furniture you will need a variety of fiberboard and chipboard sheets, MDF boards, high-quality fittings and a large number of fasteners. Consumables: various varnishes, paints, adhesives, etc.

Staff

A lot in the furniture business depends on the staff. To build a furniture business from scratch, you need skilled and responsible workers who will accompany the product at all stages from design to sale and installation to customers. You will definitely need:

1. A manager who will be responsible for accepting orders, drawing up contracts for the supply of necessary fittings and materials, and providing project support.
2. Director of operations. The responsibilities of this person include control over every stage of furniture production. This is a foreman who monitors the workers, organizes their work and accepts ready-made orders.
3. Workers. For a small workshop, 3-4 people are enough; for a medium one, up to 8 specialists may be needed. Their responsibilities include the entire cycle of work on the production of furniture from raw materials.
4. Driver. This person will be responsible for delivering furniture to customers from the warehouse. Also ensures the delivery of necessary materials.

Qualified personnel are the basis of your business

This is the minimum possible staff for operating a mini-factory that produces furniture. You can play the role of manager and accountant in the first stages - there is nothing difficult about it. If you don’t want to waste time, you can hire people, but this will reduce the payback period due to salaries.

Marketing

You can start creating a marketing plan even before you open. The goal of this plan is to properly organize various events to sell the maximum possible amount of finished products. How to sell furniture correctly?

1. Open an exhibition center or mini-shop in your office.
2. Conclude an agreement with furniture stores and offer products for sale to them.
3. Start working with tenders created by budgetary organizations. Very often, schools, kindergartens, hospitals and various municipal institutions become regular clients, bringing in serious money.
4. Interest several large private clients. These could be banks that periodically open new branches, various offices, etc.
5. Create your own website on which you need to post detailed information about the furniture, telephone numbers for contact and a detailed price list.
6. Create groups on social networks and support them.
7. Launch classic advertising: banners, leaflets, banners, signs, billboards.
8. Advertising in the media: radio, TV, newspapers, magazines.

How much money do you need to open?

It is impossible to accurately calculate how much money is needed to start furniture production as a business from scratch without knowing the specifics of your region: everything greatly depends on the level of rent, the chosen work profile, the number of workers and equipment. We will provide national average prices, which will be fair in almost 80% of cases.

1. Purchasing premises for running a business will cost approximately 1 million rubles. If you rent a building, you will spend about 50-70 thousand a month, that is, it is still more profitable to buy a building.
2. Purchase of equipment for the factory, its delivery and installation – 600,000.
3. Repair of the building, paperwork – 300,000.
4. Consumables – 250,000.

Never skimp on fittings and tools

Now let's calculate fixed costs. These will include:

1. Utility fee – 30,000.
2. Salary – 180,000.
3. Fixed costs for maintaining the website, social networks, advertising and marketing – 20,000.
4. Other expenses, incl. and taxes - 30,000.