The goal of the project is to open a manufacturing enterprise specializing in the serial production of equipment for children’s playgrounds and ensure its stable operation. This business plan outlines the company’s development strategy, as well as financial calculations that allow us to talk about the effectiveness of the project.
Investments in the project will amount to 8 million rubles. Of these, 3.13 million rubles. will be directed to the purchase and installation of equipment and repair of production and storage facilities, 4.5 million rubles. will be invested in working capital and the purchase of raw materials, 370 thousand rubles. – in intangible assets. Project financing sources will include: own funds, budgetary funds invested under entrepreneurship support programs, partners’ investments.
The payback period of the project will be 24 months. The discounted payback period is 29 months. The planned term for the enterprise to reach the break-even point of the project will be 8 months.
2.Description of the company
Playgrounds are places intended for the play of children of preschool and primary school age, which are equipped with special play complexes, structures and elements for organizing children’s leisure.
The aim of the project is to open a manufacturing enterprise specializing in the serial production of equipment for children’s playgrounds and ensure its stable operation. This goal implies the creation of a production base for the production of equipment according to a proven production technology, the creation of the necessary jobs, the search for distribution channels and the establishment of relationships with partners.
The project for the production of playgrounds is socially significant. The company sees its mission as the creation of high-quality and safe children’s equipment to replace morally and physically obsolete horizontal bars and other unpretentious structures inherited from the Soviet era. Often, many playgrounds not only have an unaesthetic appearance, but are also traumatic for children. In other cases, in all the chaos of adjacent territories, there are no equipped places for children to play at all. The release of high-quality equipment will help avoid the risk of injury on the street, diversify children’s leisure, and will contribute to the development and socialization of the child.
The main activities of the company will include: the production of children’s play complexes made of metal and wood, the production of swings and rocking chairs, slides, sports corners and sandboxes, services for the assembly and installation of structures. The projected annual turnover of the enterprise upon reaching the maximum production capacity will be up to 40 million rubles. in year. To ensure the production and equipping of workshops at the initial stage, a room with a total area of 700 square meters will be rented. meters. Metalworking, woodworking, painting, assembly shops, as well as a design bureau area and administrative premises will be organized on its territory. The company’s products will be targeted at retail and wholesale buyers of the regional market and the market of other regions of Russia.
At the initial stage, the company’s staff will include 18 employees. The project will be managed by the director. In his direct subordination will be production, sales, support staff and accounting.
Legal form – Limited Liability Company. The company operates under a simplified taxation system. The object of taxation is income reduced by the amount of expenses*15%.
3.Description of goods and services
The production will be based on outdoor play complexes for children of preschool and primary school age. A feature of the company will be the presence in the range of products for other age categories of the population, namely, children’s play complexes for early development (for babies under 6 years old), as well as corners for sports exercises for children of middle and senior school age. In the production of products, three main criteria will be laid down, which will be the main competitive advantages – these are attractiveness for children, durability and safety. The materials used will be: moisture-resistant birch plywood, steel rounded elements with strong seams, carefully processed pine wood for load-bearing and supporting structures, environmentally friendly powder paints and varnishes. The price of products will depend on the complexity of the design and the materials used and will be divided into three main segments – “Economy”, “Medium” and “Premium”. As additional services, services for the assembly, installation and delivery of structures will be provided. For more information about services and prices, see Table. one
Table 1. List of goods and services
All manufactured products will have to comply with the Customs Union and GOST and have confirming certificates. In particular, all necessary measures will be taken to ensure the safety of products for children, protruding ends and edges, sharp corners are excluded, the conditions for the maximum height of structures, the size of holes and nets, the presence of fences and bumpers, etc. will be met. The list of regulatory documents that should guide the design and operation is given below:
– GOST R 52167-2012. Equipment and coverings for children’s playgrounds. Design safety and swing test methods.
– GOST R 52168-2003. Equipment for children’s playgrounds. design safety and testing methods for slides.
– GOST R 52169-2012. Equipment and coverings for children’s playgrounds. design safety and test methods. General requirements.
– GOST R 52299-2004. Children’s playground equipment design safety and test methods for rocking chairs general requirements.
– GOST R 52300-2004. Equipment for children’s playgrounds. Safety of structures and test methods for carousels. General requirements.
– GOST R 52301-2004 Equipment for children’s playgrounds. Operational safety. General requirements.
– GOST 9.410-88 ESZKS. Polymeric powder coatings. Typical technological processes
– GOST R EN 1177-2013. Playground surfaces are impact-absorbing. Determination of the critical fall height.
– SanPiN 22.214.171.124.1249-03. Requirements for the device, content, and equipment of preschool educational institutions.
Transportation of equipment for playgrounds around the city and the region will be organized by the company’s own vehicles. In the case of orders from other regions of Russia, the client can use the services of transport companies. To exclude mechanical damage, all products will be packed in bubble wrap. For long-distance shipments, reinforced packaging with corrugated board spacers will be used to protect areas that are particularly susceptible to damage.
4.Sales and marketing
In recent years, the market for children’s play equipment has been actively developing. This is mainly facilitated by the position of society and state authorities on the issue of the widespread availability of high-quality childhood infrastructure. The public is increasingly aware of the importance of developing a subject-developing environment for a child, which is the key to his intellectual, physical and moral health. Children’s towns today appear in many parts of our country, including not only large cities, but also very small settlements. The consciousness of the public is gradually changing: playgrounds are increasingly turning into decoration and pride of Russian courtyards. Fashion for outdoor complexes is growing – experts predict further market growth in the coming years. The highest growth rates occurred in 2008-2011, when the growth rate was estimated by experts at 30% annually. At present, the market for children’s playgrounds is significantly different from what it was 7-10 years ago. Every year the market becomes more saturated. Today, manufacturers of playgrounds can be divided into the following categories:
1. Domestic companies operating at the federal level and in the CU countries. They have a wide range of products, including both outdoor and home complexes, attractions, sports equipment, trampolines and many other equipment for landscaping (park equipment, lawn fences, skateparks, etc.).
2. Dealers of foreign manufacturing companies trading in the territory of the Russian Federation.
3. Local companies focused on sales within the region or several cities in the region.
At the same time, the main sales market is formed by:
1) Residents of multi-storey buildings, HOA, housing and communal services;
2) Owners of private houses, cottages and plots for individual housing construction.
3) Representatives of HoReCa;
4) Municipalities. Conduct tenders and auctions for the supply of small architectural forms and children’s playgrounds. The required warranty period is usually 1 year. The most popular auction lots are … .
5) Construction companies;
6) Private parks;
7) Shopping centers.
8) Charitable organizations and patrons.
Direct sales of playgrounds take place in two main ways: the client is invited to choose a suitable complex or other products using ready-made standard complexes (according to the catalog), or to place an order for an individual project, the price of which depends on the complexity of the structures and materials used. A similar method will be applied in this case. To increase sales, it is planned to create an online store. It will be possible to make a purchase by placing an order from the official website. To do this, a potential buyer needs to refer to the product catalog, select the product of interest and enter contact information in a special form. After that, the sales manager will contact the buyer and discuss the terms and conditions of delivery. In the winter season, to increase sales, it is possible to apply discounts on all products up to 20-30%.
The marketing strategy of the project will be aimed at the development of the company, the search for stable supply channels and the constant increase in market share. Promotion of manufactured products is planned to be carried out through several channels. Among them:
– advertising in print media (advertising newspapers, children’s magazines, construction and design magazines);
– distributing advertising (product catalogs, leaflets, business cards);
– bringing the site to the top positions in search engines; on the vehicle)
– outdoor advertising (board advertising, rivers)
– participation in federal and regional exhibitions.
The following will be available on the company’s website: a regularly updated catalog indicating the presence / absence of goods in stock, the cost of goods and services for delivery, installation and assembly, examples of work performed with photos and reviews, certificates of product compliance with the requirements of GOST and TU regulatory documents, as well as state sanitary and epidemiological standards, contact details.
The enterprise will be located on the outskirts of the city, in an industrial area, away from residential areas: the production process should not cause inconvenience to residents of houses. The enterprise will require an area of 700 m 2 , which will include production facilities, a design office, administrative premises and a warehouse for finished products. The production base of the company will include a woodworking workshop, a plywood workshop, a metalworking workshop, a painting workshop and a warehouse. The production cycle will depend on the complexity of the design and the materials used.
Woodworking will be based on the latest woodworking equipment. The pine wood processing cycle will include sawing and cutting wood, gluing and carpentry procedures.
The plywood will be processed on a CNC milling and copying machine, which will make it possible to produce parts with high precision and quality. The end sides of the parts will be ground and rounded.
Metalworking will be based on the production of parts from thick-walled steel pipes with a smooth radius of curvature. All blanks will be cut on high-precision band saw machines, processed on pipe bending and roll forming equipment. Rotating parts will be made using turning and milling machines. At the assembly stage, all joints will undergo welding and grinding procedures.
The final stage of production is the stage of painting. The paintwork materials used will be resistant to external factors (humidity, ultraviolet) and will have the necessary certificates. The painting process will be organized in the painting and drying chambers in compliance with all technologies. After drying, the products are packed for storage in a warehouse and transportation. Each set of products will have a factory passport, fasteners, plastic plugs.
In total, about 3 million rubles will be needed to purchase equipment for the enterprise, including the purchase of a Gazelle car, equipping the administrative zone and the design bureau. In Table. 2 shows the approximate costs for the purchase of equipment.
Table 2 Equipment Costs
The functioning of the enterprise will require highly qualified personnel in various areas of work. At the initial stage of activity, 18 employees will be required. With the growth of production capacity, staff expansion is possible. The staffing and payroll are presented in Table. 3.
Table 3. Staffing and payroll
The greatest demand for products is expected from the beginning of spring until the onset of the first cold weather (March-October). In winter, production is aimed at forming a strategic stock of blanks. The planned annual turnover in the first year of sales will be 10 million rubles, in the second and subsequent years it is planned to increase production capacity to 30-40 million rubles.
Fixed costs will include: rent (at the rate of 200 rubles per sq. m.), utilities, wage fund and social contributions, telephony and the Internet, depreciation. Variable costs (up to 37-40% of the market value) will include: consumables, components, advertising, fuel, packaging, other expenses.
6. Organizational plan
The term of the preparatory period of the project before the start of production will be 12 months, before the start of sales of products – 15 months. These temporary resources will be required to equip the premises, search and hire personnel, obtain the necessary permits and certificates, search and form sales channels.
The organizational structure of the enterprise is linear. The manager directly reports to subordinate employees who are in charge of the production part, the marketing department and accounting. In their submission, in turn, are subordinate employees. In the future, with an increase in the scale of production, it is possible to deepen the division of labor, specialize departments and switch to a functional type of management system.
7. Financial plan
Investments in the project will amount to 8 million rubles. Of these, 3.13 million rubles. will be directed to the purchase and installation of equipment and repair of production and storage facilities, 4.5 rubles. will be invested in working capital and the purchase of raw materials, 370 thousand rubles. – in intangible assets. Calculations of indicators for project revenue, fixed and variable costs, net profit are given in Appendix 1.
8. Evaluation of the effectiveness of the project
When the sales plan is fulfilled, the company will reach payback already for 2 years of operation. Project performance indicators are given in Table. 4 business plans.
Table 4. Project performance indicators
9.Risks and warranties
The project is in the medium risk range. The main risk of this type of activity is the instability of demand, which may be associated with a deterioration in the country’s economy, a drop in the level of income of the population. An important factor here is the presence of strong partnerships and constant work on expanding the sales market and promoting products.
Table 5. Assessment of project risks and measures to prevent their occurrence or their consequences
The main financial indicators of the project in a five-year perspective