How to promote a small business. How to promote a small business: a scientific approach

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 need to 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 machines, 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 case 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.

Answer

At the moment, all areas of small business are developing very actively. Businesses related to furniture production are considered especially productive and profitable. In order to be aware of all the intricacies of this production, you do not need to undergo special training. To successfully conduct business, you must have basic knowledge, concepts and some experience in this area. Luck and patience are not the last components of your success in this business.

Furniture business today

Not only mass production, but also piece manufacturing of furniture today has become a simple matter, accessible to everyone. Assembly processes are sometimes called construction for adults. If you have basic understanding of what and how to do, then assembling modern furniture that is sold in expensive stores will not be difficult for you.

To be fair, it is worth noting the fact that the furniture market in Russia today faces great competition. About three thousand large medium-sized enterprises are actively fighting for their potential clients. Is there even the slightest chance for small businesses to occupy their niche in this market segment? In this article we will try to address issues related to this topic.

If the company is not very large, it should pay great attention to the development of its production base, otherwise it may lose its competitiveness and go bankrupt.

In big cities, people are picky and very demanding about the quality of furniture. They are not satisfied with low quality products. Consumers are increasingly making complaints about poorly made furniture. He looks not only at the appearance of the product, but is also interested in how long the furniture will last.

It is very difficult for small manufacturers to compete with large firms, which have much more opportunities to produce products of better quality and in a larger range.

Many experts are inclined to think that the share of small and medium-sized enterprises in the furniture business will increase every year. This trend is quite understandable and predictable. In a few years, the share of small enterprises is expected to increase to 75–80%.

One of the most promising areas is the production of kitchen and office furniture. There is a real excitement in this industry. Over the past 10 years, profits in this sector have increased by 20% every year. Small businesses are increasingly turning their attention to built-in furniture - it is a top seller. Inexpensive, high-quality furniture, which costs almost half as much as similar furniture made abroad, is in great demand among the population of our country.

It is worth knowing that investors are happy to invest their money in this type of business, because they know that with a successful investment they can count on 40% profit.

For small and medium-sized furniture businesses, the main task is to occupy a specific niche. This means producing a specialized product. Increasingly, companies are appearing on the market that produce unusual furniture made of glass, plastic, and rare wood.

Do not forget that recently it has become very fashionable to make custom-made furniture that will have non-standard shapes, colors and designs. Manufacturers of wicker furniture have virtually no competition. Their goods are sold out with pleasure.

Instructions for those who decided to open a pawnshop, but do not know how best to do it:

Furniture business from scratch: we purchase equipment

It is possible to organize the production of furniture of various types and purposes. This could be a business producing built-in furniture, cabinet furniture, upholstered furniture, kitchen furniture, office furniture, garden furniture and specialized furniture.

Choosing a room and purchasing the necessary equipment for furniture production is one of the most important components of the entire process. At the beginning of your working life, an inexpensive tool will be enough for you. An approximate list of what you cannot do without:

electric drill;
screwdrivers;
jigsaw;
grinding machine;
hand router;
perforator;
industrial dryer;
tools for manual carpentry;
miter box;
clamps.

After production moves to a new, high level, it will be possible to take care of purchasing a higher quality and more expensive tool. The cost of purchasing a tool can range from 40 thousand rubles and more. Professional machines are expensive, and you need to buy them only when sales volumes and the number of orders reach an economically justified level.

How to promote a furniture business?

The main role in implementation belongs to retail trade. You can negotiate the sale of your products in large shopping centers and stores. Large manufacturers create their own branded showrooms in which they sell goods of their own production.

Retail outlets should have a large area so that furniture is placed freely and is clearly visible. In small towns, furniture sells well in markets. To sell specialized furniture, you need to send booklets and leaflets to company managers.

Selling furniture online is currently popular. The only disadvantage of promoting a product in this way is the buyer’s inaccurate understanding of the product.

Profitability of this type of business

To open store medium scale you will need from 2.5 to 3 million rubles. The main amount will go towards renting premises, purchasing goods and wages to staff. The business will pay off in 1.5 - 2 years with a markup on the goods of 20 - 40% of the cost.

Budget and profitability of a furniture workshop:

premises rental – 60-70,000 rubles per month;
purchase of equipment, arrangement of production – 1,000,000 -1,300,000 rubles;
purchase of necessary raw materials and materials – 250,000 rubles;
wages for workers - 100,000 -120,000 rubles per month;
expenses for other needs - 30,000 - 40,000 rubles.

A furniture workshop can pay for itself in 2 – 2.5 years. Profit per month will be about 80,000 rubles.

Furniture factory– ideal profitability is 10 – 25%.

premises rental – 2.5%,
staff salaries - 8 - 10%,
purchase of materials – 70%,
utilities and equipment maintenance – 3.5%,
transport – 2%,
advertising – 2%.

This is a calculation for a factory that specializes in the production of cabinet office furniture made from chipboard. In this case, the sales volume must be at least 10,000 products per month.

The furniture manufacturing business has always been and remains promising. People have changed and will continue to change furniture according to the degree of wear and tear. Manufacturers will never be left without work. And you can safely plunge into the production process. The main thing that needs to be done is to plan everything exactly and organize it correctly.

Working for hire very rarely gives you the opportunity to afford something extra. Most often, such people live by saving their money for the essentials. To raise income, there is one way - entrepreneurial activity.

Your own business means constantly increasing income

Defining the Goal

First of all, you need to decide what type of activity is best to do. Therefore, we start with analysis. We analyze the situation in the economy and the market, what you can do to surprise and please your potential client, which is in great demand today. The decision is made based on your research.

Set a goal - what you want to get as a result. And this goal, like a ray, will show you specific actions.

A person decides to start his own business primarily because of dissatisfaction with his life. He wants to improve, be financially independent, change his life and those of his loved ones for the better. And your own business can provide such an opportunity.

Required knowledge

Promoting a business from scratch will require you to have certain knowledge and determination. You cannot be afraid of failure; you will doom any of your endeavors to failure from the very beginning. Let mistakes happen, no one is immune from this, but you need to move towards your goal, and move firmly and confidently. You must be confident in your abilities, you must be an optimist.

If you feel that fear is present in you, talk to people who have experience in entrepreneurial activity, use literature on psychology. Special training helps many people. If you lack knowledge, you can sign up for courses where you will be given the basics of business for beginners.

Selecting an activity

Why do many of us still have the dream of opening our own business? Because they were never able to choose what exactly to do, what field of activity to define for themselves. And they spend the rest of their lives thinking about it. Think about what you personally like to do most, what you can do. Think about options where you can apply your knowledge and in what area. From all the options, choose the best ones and make the decision that will be correct and the only one for you. In what areas of activity can you choose ideas for your business?

Choose your business option

Trade. The method is simple. Today everyone is trading. What will be required of you? Choose what you want to trade. Be smart about your business. Plan all your actions carefully. And then everything will work out for you.

Services sector. Minimum costs, only your sincere desire. How to promote a business in the service sector and where to start? Most likely, these are the questions that concern you? Select a specific type of service. You can start without renting office space. Applications will initially be accepted by home telephone. And if your profits increase, you can think about renting office space and recruiting staff. Of course, first register officially.

Production. One of the most promising directions, but also more expensive. This requires careful consideration when choosing products. If it is in demand, you are guaranteed to receive high profits. You will need funds to purchase equipment and consumables, and find premises for the workshop. But within a few years, your expenses will pay off, and the business will help you get closer to your goal.

Registering your business

It is best to legalize your business. This means registration is required. You need to decide who to register as, individual entrepreneur or LLC. Yes, registration, especially for beginners, takes a lot of time. But you can turn to specialists who will quickly and competently draw up the necessary documents. But you can do everything yourself. You have a choice. You will have to pay for the help of specialists, but you will save time. Doing everything yourself will save money, but it will take a lot of time. So decide what is more important to you.

We do not recommend starting work without a business plan. It is with its help that you can determine all your expenses and calculate your expected profit. Tune in to the fact that the first steps of business are difficult and complicated, but all this can be endured. You have a goal - don't forget about it.

Solving financial issues

Many people have a desire to start their own business, but how to do this if there is a catastrophic lack of money to start? You are not the first person to think about how to grow a business from scratch. There are options from which you can choose the one that suits you best.

Own funds. If your decision to become an entrepreneur is firm, you will have to save a certain amount every month. A reliable method, but long.
Duty. You can take this step only if you are absolutely sure that your business will become profitable. Otherwise, you will not be able to repay the debt in a timely manner, and relationships with loved ones will deteriorate.
Investments. A well-written business plan and a good business idea will definitely interest people who have free money. You are guaranteed business promotion, and investors receive a portion of your profits.
Credit. For a newbie in business, this is a risky step, as banks charge high interest rates. For a start-up business this is expensive.
Franchising. You buy from a well-known company the right to work under their name. From her you receive assistance in starting a business, professional advice, and, if necessary, special production equipment. But before taking this step, you need to carefully study the market. Is there a demand for your product or service, the level of competition. And then make a decision. A franchise will never give a 100% guarantee of success - be on alert!

Business ideas

Food

Great idea if you live in a rural area. For example, grow vegetables and sell them in bulk. What if we set up production? Frozen fruits and berries, compotes and jams, seasonings. All this is in quite high demand.

Automotive services

This type of business can be opened both in a metropolis and in a small town. Invest in your own car wash, open an auto parts store. A service station will always find its client, because cars today are available in almost every family.

Dispatch services

A good option to open a taxi service is dispatch services. You do not need to buy cars for this, but only enter into agreements with car owners who are willing to work. Dispatchers need a small office to work. For the first time, you can set up an office at home or rent it. For equipment, you will need a telephone line, preferably a memorable number. You need a computer, you need internet, you need furniture. Here is the answer to the question of how to build a business from scratch and get promoted.

Cloth

You can engage in tailoring or clothing trading. People want to look beautiful. Play with this idea. More recently, we have introduced a new type of activity – dropshipping. What does it mean? Direct supplies of necessary goods. Chinese manufacturers are attractive in this type of business. Their prices are low and the quality is good.

The benefit is that you purchase products from the manufacturer at a wholesale price, and add a good increase to the price for your customers. What attracts entrepreneurs to dropshipping? You do not need to purchase wholesale quantities of goods. Through your online store, your customers place an order and pay for it. And after that you buy this product. You need to find a way to contact a Chinese supplier and agree on cooperation. You transfer money to him, he sends the goods. This type of business brings quite a decent profit to many businessmen.

Anyone can start their own business, the main thing is to find the right approach and a worthy idea. A lot has been written about how to grow your business from scratch, but there are still nuances that are very important in this matter.

Many people ask themselves the answers to the question of how to build a business from scratch and get it going. The reason is that people, as a rule, think about business when they are already tired of working for their “uncle.” Many people want to realize themselves and live a decent life as a free and independent person, and not constantly count pennies and be content with little.

We start and grow our business

Where can I find it? Where to begin? Of course, from the simplest, but very important stage - choosing an idea. There are a lot of options, no one can tell you what to do specifically for you. Since there are many important nuances, such as place of residence, competition, as well as the skills and abilities of a particular person.

Choose a business you like

It is best, of course, to choose a job you like; it has a much higher chance of success than any other job. But not always a hobby can become a full-fledged way to earn money. Consider the relevance of a particular idea to your area. If, for example, you live in a village, then opening a supermarket or restaurant is initially not a suitable idea for you.

You can promote your ready-made business with the help of additional innovations. For example, well-designed advertising will help attract visitors. To do this, use the services of experienced specialists. Also, by changing concepts, you can achieve some success.

Now you know ways to grow a business from scratch, be sure to use them to achieve good results. Good luck to you.

Live training on how to build a business from scratch

It took radio 38 years to reach an audience of 50 million, television 13. Facebook gained 200 million users in less than a year.

More than 82% of Internet users have accounts on social networks and spend (at least) two hours a day on them. Russia ranks first in Europe in terms of popularity of social networks.

There is a growing number of users who come to social networks not for communication, but for information, as well as businessmen who understand that social media is an effective marketing channel. If you want to promote a project through social networks, then get acquainted with four effective ways of promotion.

Content is the main factor of promotion

Any SMM specialist will confirm: without quality content, promotion tools are useless. If your brand’s page is boring, you shouldn’t count on audience growth and loyalty.

Three components of good content:

Uniqueness. The information you post should be relevant and engaging. Do not copy materials from other resources. The exception is cross-posting between a company’s blog and its page on a social network.
Regularity. Articles should be published systematically. Two, three, four or seven times a week - depends on the specifics of the business and its target audience. So, for people from the business environment, two or three updates will be enough, but for the beauty community this is clearly not enough. It is necessary to adhere to the chosen content strategy regardless of the number of subscribers.
Virality. Publications should be lively, evoking an emotional response in the form of a burning desire to tell friends about them. Avoid overtly promotional posts.

Facebook in Russia- “social services are not for everyone.” It is used by marketers, programmers and other IT-savvy people. They are not afraid of a “complex interface”, and their areas of interest include gadgets, the Internet, travel, education, books and business in all its forms. They willingly like and share materials on these topics, as well as motivating articles that set the mood for positivity. Most of Facebook's active audience uses the mobile application - it is recommended to illustrate posts with pictures measuring 800 × 600.

"In contact with"- the largest social network on the Runet (more than 230 million registered users). Her audience is younger; Users' interests are mainly focused on entertainment (communication, games, music, movies, etc.). VK users do not like text content (it is advisable that the length of the post does not exceed 500 characters), but they love photos and videos.

The most popular among photo hosting sites in Russia is Instagram. At the same time, when maintaining a brand page on Instagram, it is recommended to adhere to a single design style (use not only standard filters, but also third-party photo editors), and also place objects in the photo on 2/3 of the screen (this makes the picture more visually attractive).

Targeting

The ability to place targeted advertising is available on almost all social networks: VKontakte, Facebook, Odnoklassniki and others. At the same time, it is believed that targeted advertising on social networks is more suitable for the B2C sector. However, there are also companies in B2B that effectively solve business problems through targeted advertising.

Some types of targeting:

Geographic (geotargeting) - displaying advertising to residents of a certain region / city / district, etc. For example, you want to promote a beauty salon located in Khimki near Moscow. Your targeted ad will be shown to residents of this city.
Socio-demographic - displaying advertising depending on gender, age, marital status and other social criteria. Thus, it is recommended to place advertisements for children's products and household goods on the pages of married women over 25, and advertisements for an art store - on the pages of designers, architects, and decorators.
Contextual - displaying advertising in accordance with the user's interests. Membership in groups such as “Fashion”, Fashion, “Shopping”, etc. clearly demonstrates the user’s interests. He will be interested in relevant advertising.
Behavioral - displaying advertising depending on specific user actions (travel routes, favorite places, frequent search queries, etc.). Let's say a person is interested in Latin American dancing, goes to a salsa club, and looks for relevant videos - there is a high probability that he will be attracted by an advertisement for a last-minute tour to Cuba.

Despite its apparent simplicity, targeting is a tool that requires serious preparatory work. First, you need to analyze the brand's target audience. Secondly, make an ad.

Advertising in communities

Advertising in communities (in the professional language of SMM specialists - sowing) is the purchase of posting posts or reposts in popular communities. In the first case (purchase of a post), the advertiser’s goal is to increase traffic on the company’s website; in the second (buying a repost) - attracting users to the company’s group on a social network. Moreover, the more subscribers the community in which you buy a post has, the more expensive the advertising campaign will cost.

You can negotiate with community owners directly or use the services of a special exchange. In 2013, it was opened by the social network VKontakte (an account for advertisers). Advertising is placed by the community administration in its feed and, according to the conditions, must remain there for 24 hours.

Professional promotion in social media

This refers to services that provide paid promotion services on social networks. As a rule, they independently create high-quality content, launch a targeting mechanism and negotiate advertising in communities. These include Plibber. Why conditional? Because the capabilities of this service are much wider.

register;
decide on the format of work on the site (you can advertise your brand yourself or contact the Plibber team to organize a shocking advertising campaign);
prepare an advertising post;
select the most suitable sites from the target audience and begin sowing.

After preliminary moderation, your task will be available and you can start attracting fans of your brand.

How to get organic loyal traffic? We addressed this question, which is of interest to all advertisers, to the founder of the Plibber project, Oleg Ratunin.

Oleg Ratunin

CEO and ideological inspirer of Plibber.ru. Knows everything and more about social media.

To attract potential fans to your brand, you should:

use quizzes, infographics, illustrations, viral videos, advertising games, etc.;
place a link within the visible area of the post announcement (first and second lines);
introduce a call to action into the content;
add a provocative survey;
work with associative content format and its adaptation to the brand;
launch creative, vibrant and unique competitions.

If you manage to find the content that your audience craves, you can count on over 600 clicks from one post.

Also, do not forget to analyze the communication of large brands with their subscribers; now good results are being detected in the community