Own business: lumber production

The production of lumber has always been a fairly profitable line of business, because the demand for such materials never decreases significantly, and quality products almost always find their customers. Furniture factories, construction companies, manufacturing enterprises of various directions become consumers, because wood in many cases is an indispensable material. There are many forests in the Asian part of Russia, the price of timber is relatively low (compared to many other countries), there should be no problems with raw materials, hence the good prospects for such an undertaking. However, you need to understand that competition in this area can be serious, and not every entrepreneur has enough funds and resources to create a successful enterprise from scratch, whose products will be consistently bought. To do this, you will have to make a lot of effort, not to mention money.

So, to start your work, you need to contact the local tax office to register as a business entity. Next, you will have to obtain permission from all managing organizations to conduct their activities, this applies primarily to the production premises, since people will be involved there. In general, the requirements here are standard – that is, you need to contact Rospotrebnadzor and the Ministry of Emergencies (their local branches). If you plan to harvest wood yourself, that is, have a forest plot at your disposal, and for this you need to participate in state auctions. There can be serious difficulties here, but all organizational activities in this area are considered in more detail in the article on the timber trade. Here, the organization of production is considered in more detail,

So, when organizational issues are resolved, you can begin to search for premises. In general, it is ideal to find a place somewhere in the suburbs, because there the cost of rent is much lower, while the proximity of the city allows for the effective sale of their products. If an entrepreneur owns a plot outside the city, then it makes sense to use it. But still, it is better to initially have not only a place, but also an infrastructure, because several buildings will be required for work, not only for production purposes. In general, the area of ​​​​the territory can even occupy several hectares, but for small enterprises, only a few ares may be enough. In general, a site is selected depending on the business plan and available facilities. Today you can open a small business that produces a limited range, but only those products that are in demand in the region. In general, it should be noted that it makes sense to open such a business in those regions where wood suppliers offer a really high-quality product that will not cause problems in production, which will make it possible to produce a good product. Thus, renting such a large plot can be a very serious monthly expense item, it is very difficult to give even an approximate cost, because everything depends not only on the location, but also on the condition of the premises and, for example, access roads. So, you can even rent a very large complex of several hectares for a relatively small amount of 100,000 rubles, but then you will almost certainly have to invest several million only in repairing and laying the road. In other cases, the rent will be very expensive,

The next step in organizing a business is the acquisition of the necessary equipment. Here, as always, there is an opportunity to save some money if you buy used units, but this option rarely leads to the fact that the production process goes without interruptions and complications. You also need to understand that today there are a huge number of equipment suppliers, and European or American-made machines will cost the most. But often the best solution is to turn to Russian manufacturers, because they can offer products at a relatively good price, which does not increase due to customs operations and transportation. However, there are many factors to consider when designing a plant. First of all, the optimal performance indicator of the sawmill is calculated, and also, the nature of the process – machines or a production line. Today, a rare plant is engaged in the equipment of isolated machine tools, most often it is a mass production with an established scheme for the movement of material flows. Also, gate technology is almost no longer used; it has been replaced by a band saw. If the machine has the ability to perform the function of a finished product conveyor within the workshop, then this greatly simplifies the work process. It is already necessary to first calculate the amount invested, the possible actual profitability of production and the maturity of loan obligations, if such an entrepreneur plans to take. The cost of equipment is approximately 500 thousand rubles for the equipment of a small enterprise – from 150 thousand rubles a simple band sawmill costs, from 100 thousand – a conveyor, from 50 thousand – an edge trimmer, and for the rest of the funds small equipment is bought: a grinding machine (20 thousand), an adjustable machine (10 thousand), a hook (10 thousand) and other small devices, mostly auxiliary. However, depending on the planned assortment, other devices may also be required, such as: a horizontal sawmill (200 thousand rubles), an angle sawmill (200 thousand rubles), a hydraulic wood splitter (100 thousand rubles), a rounding machine (100 thousand rubles). Here it is also worth considering the raw material base, because if there is no good wood in the region, then it makes no sense to produce some types of products (its quality will be too low); as well as species and working diameters of sawlogs that the machine is capable of processing, the rigidity of its requirements for sorting. In addition, we must not forget that how much the final processing products are in demand on the market, having also calculated the cost of production. The greatest demand is for timber and edged and unedged boards. There is almost always a demand for these products, for more complex products it can fluctuate greatly. Moreover, due to the fact that only the most developed enterprises survive today, the entrepreneur needs to consider the possibility of equipping his workshop for the production of products, taking into account the requirements of the European standard. Then it will be possible to achieve a good yield of useful material (more than 60-70% of the volume of raw materials for any type). Having all these calculations, it is already possible to accurately determine the area of ​​\u200b\u200bthe woodworking shop, because the productivity of the enterprise directly depends on it. As for the internal equipment, then you need to have a reliable electrical network, plumbing and other communications. Important for the organization of the production process is the operating temperature of the machines, because sometimes it is necessary to install additional cooling devices. The next important point is the cost and the average frequency of saw blade replacement. They are consumables, and a large number of saws constantly need to be replaced. The cost of one is from 1 thousand rubles, but there can be more than 10 of them in the machine, so it makes sense to calculate the labor intensity of maintenance. The company must have an experienced sharpener and sawmill, whose qualification allows you to deal with specialized equipment. In general, you need to understand that different suppliers of saws and other consumables promise different maintainability of spare parts and their cost, therefore, if quality consumables are supplied, a good sawmill can make the same saw last for a very long time (several months). Otherwise, you will have to constantly buy new ones. And, of course, this reduces the overall labor intensity and cost of servicing the machine itself. It is also worth noting that the equipment of even a medium-sized enterprise costs several million, not to mention large factories that are designed to produce huge volumes of products.

The next moment in the organization of business is the search for specialists to work in the enterprise. Here, if you do not plan to rent your own piece of forest, it will be enough to hire personnel who will service the machines. The number of people is determined by what the work schedule will be at the enterprise, how many units are installed and what planned performance indicators are set. Also, depending on what kind of equipment is purchased, a different number of people may be required, because there are devices that operate fully automatically, and there are those that require constant maintenance, that is, the operator is at the workplace behind one machine. But you also need to hire people employed in the administrative sphere, and if some processes are not outsourced – such as bookkeeping or, for example, in the case of not forming their own security service – then the staff of the enterprise can be very large. In large enterprises, the number of employees can be more than a hundred, and sometimes several hundred. The entrepreneur himself (or co-founders) can take a leadership position. You also need service personnel, that is, those people who are not directly involved in the production process (this does not include sawmills, because this person is also constantly involved in the production process). For example, an enterprise can deliver its own products or, conversely, bring raw materials for production, that is, have its own fleet, and then you need to hire not only drivers, but also those specialists who monitor the condition of the cars. If we take the average salary equal to 30 thousand rubles, then with a staff of 20 people (from 10 people are people directly employed in production), it turns out that only the salary will be 600 thousand rubles of monthly expenses, not to mention other social contributions ( up to 20% of this amount). Of course, this applies only to large enterprises, but in any case, you will have to work with a considerable number of people, and payroll is a very important point. This calculation is still for a small enterprise. this applies only to large enterprises, but in any case, you will have to work with a considerable number of people, and payroll is a very important point. This calculation is still for a small enterprise. this applies only to large enterprises, but in any case, you will have to work with a considerable number of people, and payroll is a very important point. This calculation is still for a small enterprise.

Now let’s calculate the amount of starting capital:

Registration of a legal entity – from 20 thousand rubles.

Rent – from 100 thousand rubles.

Equipment – 940 thousand.

Salary – 600 thousand rubles.

Purchase of raw materials – 500 thousand rubles.

Total: 2 million 160 thousand rubles. Monthly expenses: 700 thousand rubles. Considering the opening of a sawmill that does not have its own source of raw materials, it must be said that it is also necessary to find a supplier of wood, and in some regions this may be difficult (therefore, it was said that it is advisable to open such an enterprise in the area where there is a large number of such suppliers, that is, where a considerable area is covered with forests). Now, as for the cost of raw materials, depending on the type of wood, it can change, for example, there is wood that costs less than 1 thousand rubles per cubic meter, and there is one that costs more than 5 thousand for the same volume. But on average, the cost of one cubic meter is two and a half thousand rubles. A certain percentage may be transport costs (depending on the size of the lot), if the supplier does not assume the possibility of delivery on his own. Thus, more than half of the cost of production will be the cost of raw materials, all other costs are the maintenance of own production, that is, wages and electricity costs. The larger the volume of production, the lower this percentage, hence the consequence that the profitability of production increases with increasing scale. As a result, timber and edged boards made in accordance with GOST are sold at a price of 6-7 thousand rubles per cubic meter, unedged boards are sold much cheaper (from 4 thousand), but this is quite natural, because the cost of its production is much lower.

Such a business cannot be called easy, it requires the investment of a considerable amount of funds, and if there is no own site, it often turns out to be unprofitable. In any case, the payback period of the project will be very long, because many enterprises spend even their first year of work on building relationships with suppliers and consumers, and take their place in the market. But in case of successful development, you can count on a very good profit later, and if you constantly develop and offer your customers a quality product, if you introduce new positions into production based on market demands, then you can also push out competitors. In general, this business is suitable for entrepreneurs with large funds, because it can hardly be classified as small, and sometimes even medium.

Business plan for an enterprise for the production of children’s playgrounds

Own business: construction of baths