Carpentry workshop business plan: calculation procedure, determination of costs and profits

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

Stylish and solid furniture, which is made of natural wood, is in demand at all times. Now that quality pieces of furniture are much more difficult to find on sale, it makes sense to organize your own workshop. A well-thought-out and well-written carpentry business plan will help organize the business and provide a stable income.

Case evaluation

Before you start registering an individual entrepreneur, it is important to understand what are the benefits of a business. The advantages of opening your own carpentry shop include:

• constantly growing demand for original natural wood products;
• the ability to create products with a unique design that are distinguished by a high price;
• small initial investment;
• fairly fast payback;
• minimal risks;
• comparatively low competition compared to other low turnover business options.

Sequenceaction

In fact, a carpentry shop is a business that has a minimum profitability of 20% to 35%. To destroy this case, you should try hard. Therefore, do not be afraid of ruin or work at a loss.

There are six steps to starting an entrepreneurial business:

1. Registration of the company in the tax office.
2. Search and rent (purchase) of premises for carpentry workshop equipment.
3. Purchasing specialized equipment and tools.
4. Purchase supplies.
5. Conducting a competent advertising campaign.
6. Search for buyers.

All the above steps are a summary of the main points of a carpentry shop business plan for a job center or anyone interested. Let's look at each step in more detail.

Decoration of woodworking production

At first, setting up a carpentry production can be done without registration. However, to legalize a business, of course, it is better to register a limited liability company (LLC). After the official opening of the company, it becomes possible to hire workers in case of expansion of production.

An individual entrepreneur (IP) can register only if 1-2 hired craftsmen work in the carpentry workshop. Since the manufacture of products is directly related to the work of flammable materials, it is important to obtain permission from the fire inspectorate.

To legalizeown business, follows:

• Choose the form of government.
• Get a certificate of registration of an individual entrepreneur or LLC.
• Register with the tax office.
• Get permission from Rospotrebnadzor.

Opportunities and prospects

For active, enterprising and active carpentry specialists, starting their own business is the right decision, even despite the economic crisis. The most important thing is to correctly select the types of products for future production, which are mandatory indicated in the business plan of the carpentry workshop. To get the maximum profit, it is important to establish a production process, and it is also worth learning how to attract potential buyers and constantly increase their number.

So, natural material can be successfully made:

• cabinet furniture (chairs, cabinets, chests of drawers, etc.);
• door and window frames, window sills;
• fences and decorative gazebos;
• stairs (steps and railings);
• Design items for residential, commercial and public spaces;
• all kinds of finishing materials;
• equipment for catering establishments.

Advice for new entrepreneurs

Among the entire list, you can choose the products that will be manufactured in the best way, which can also be guaranteed to bring high income. In order not to make a mistake with the choice, you must first assess the situationin the market of joinery products in the region, which has developed at the moment. The business plan of the carpentry shop with calculations indicates potential competitors, which will help to fairly assess their own prospects.

Requirements for the premises

When considering a business plan for a carpentry shop in a garage, shed, or even basement, it is important to consider the characteristics of the work space. When using your own premises, it is quite possible to save from 10 thousand rubles a month on rent.

Basic requirements for production space, which must be taken into account in a sample business plan for a carpentry workshop with calculations:

• Shop area should not be less than 50 square meters. m, and with large production - 300-700 sq. m.;
• ceiling height - not less than 4 m;
• temperature not lower than 16-18 degrees, which minimizes the appearance of all kinds of defects in finished wood products;
• low air humidity (less than 50%);
• windows where woodworking takes place should occupy 20% of the floor area of the same carpentry shop;
• availability of 380 V or 220 V power supply;
• The ventilation system must work properly.

Equipment

When compiling a business plan for a carpentry workshop, it is important to indicate in it the tools and equipment that will be used for woodworking. The main thing you need for productive work is a multifunctional combined machine. You will need to purchase reliable addition altools:

• electric planer;
• roulettes;
• hygrometer;
• jigsaw;
• screwdriver;
• hammers;
• hacksaws;
• caliper;
• circular saws;
• electric drills;
• grinders;
• a tool for applying antiseptics and coloring mixtures to the surface of wooden elements, etc.

From consumables you will need: self-tapping screws, nails, carpentry glue, varnish, paint, oil. In addition, you may need materials for packaging finished products: thick film and paper, foam plastic.

Market and competitor analysis

In a situation where financial possibilities allow, they order a marketing study of the market. However, the lion's share of the information can be accumulated on your own and included in the finished business plan of the carpentry workshop. If you already have your own business in a similar field, then most likely you already know the local conditions of sale. Otherwise, visit specialized companies and shops, analyze what they offer in building supermarkets. So you can determine the cost, types and design of products, as well as find out what interior items are popular, ask about the origin of wood.

Methods of marketing finished products

The easiest way to sell wooden products is to negotiate with existing outlets in stores, supermarkets and the market. Of course, it is very difficult to get into large trading platforms, so you need to try to conclude sales agreements.with shops of a narrow focus.

An excellent option would be to open your own retail space or sell wooden products directly from the workshop. You can get additional income by opening an online store where you can place beautiful product photos. So it becomes possible to sell products not only in your city, but also in other regions. Small and medium-sized furniture stores and construction supermarkets may be interested in cooperation.

You can also additionally advertise in free newspapers or information on social networks. If you produce quality products at low prices, then word of mouth will help. In the business plan of the carpentry workshop, be sure to indicate all possible ways to sell products in your area.

Hiring Staff

Opening a full-fledged carpentry production, you need to be aware that you can’t do it on your own. Before opening a carpentry workshop, the business plan should indicate the number of personnel that will be needed to manufacture the selected wooden products.

For a productive workflow, the following staff is hired:

• technologist who holds the position of head of production - 35-40 thousand rubles;
• foreman - 35 thousand rubles;
• machine operator - 25 thousand rubles;
• handyman - up to 20 thousand rubles;
• Accountant who works full time - 38 thousand rubles;
• sales manager - 32 thousand rubles.

Importantbe aware that woodworking involves a lot of risk, so you should organize safety briefings with employees. In the case when it is planned to carry out the development of unique furniture and interior items, you may need a specialist for artistic wood cutting. It is important to remember that the number of employees directly depends on the amount of work. As the business expands, a marketer will be needed.

Profitability

A carpentry shop as a business must be profitable. Consider the main cost items and income:

• revenue from wholesale sales - 500-750 thousand rubles;
• production and non-production expenses - 600-700 thousand rubles;
• net profit - from 100 thousand rubles;
• project profitability - from 20%.

In addition to manufacturing products for wholesale sales, specialists can spend the remaining working time on individual orders, which can bring an additional 100-200 thousand rubles per month. The financial investment of a garage carpentry business will pay off in an average of 6-10 months.

If we talk about a small carpentry workshop, then the investment in this case will be about 100 thousand rubles:

• tools and small woodworking machines - 75 thousand rubles;
• materials - 10 thousand rubles;
• rent of premises - 6-7 thousand rubles.

With a profitability of 23%, it is quite possible to make a profit of 30 thousand rubles a month, and capital investments will already pay off in 4-6months.

Additional services

The business plan for a carpentry workshop for an employment center will become a reliable support for a budding entrepreneur who is striving for the successful development of a business. In addition to the main activity, the carpentry workshop opens up a large number of opportunities. In addition to the manufacture of wooden products, customers are offered additional services such as:

• delivery of products to customers;
• collection of furniture at the customer's home or office;
• restoration and repair of furniture;
• installation of wooden windows and doors;
• other services that accompany the field of activity.

How to attract customers

For a carpentry business idea to be profitable, it is important to use different advertising methods:

1. Leaflets and booklets, which are a mini-catalog. It describes the benefits of the product, indicating the cost, contacts and address where you can turn if you want to buy wood products. This method of advertising is considered one of the most effective, as potential customers can instantly get acquainted with the assortment of the carpentry shop.
2. Internet advertising. To find buyers, you need to create your own website, where on the pages of the company's catalog there is a special order form. An excellent option is the launch of contextual advertising. Also, do not ignore the social networks mentioned above in our article.
3. Advertising in the media. Here you need to take care of an advertising campaign on local television, newspapers, radio and magazines. Which media to attract depends on the financial investment allocated to promote the business.

Before you accept any specific ideas, you should carefully weigh and think through everything. It is important to make sure in advance that the products you plan to produce are in high demand. It is best to start your own business with furniture, windows and doors. This wood product is in great demand in the market. For a successful start, such wood products are the most optimal. In the future, it is quite possible to expand the assortment and add additional services.