BUSINESS PLAN FURNITURE BUSINESS

INTRODUCTION
Is one of the interesting long lasting business in the world.

MARKET RESEARCH
To be advice. All market segment.

PRODUCT FOCUS
Consider that this is categorized a small business (beginner in the business), so the starting point
of this business will be focused on selling a small of modern minimalist furniture with producing
of product sample on the first line e.g.
1.
2.
3.
4.
5.
6.

Wall shelving
Wall Cabinet
Small cabinet
Minimalist table
TV Table
E.t.c

By the time goes, the product will be developed to the large size and capacity of product. When
people knows and already catched up the workshop and your product promotion, things that must
to do is to produce by order. The product will be as follows :
1.
2.
3.

Wardrobe
Exhibition Booth
Kitchen Set

MARKETING & PROMOTION

As the previous chapter describe, there are many way of promotion

to be conducted. It is

depending to the owner creativity. The first way, location of your workshop will be much
contributing to the promotion achievement. This will avoid the speculation business for those who
dont have a large number of capital.
Secondly, product quality. Producing a unique, perfect and good quality of product will create a
branding image and customer will. Promote your product as best as you can, and it will sell their
own value. Here some of marketing and promotion :
1.

By putting in the front line of your workshop

2.

Social Media Promotion (instagram, path, facebook, blogger, and many more)

3.

Chatting brodcast. Brodcast your link website (blog) with best offer, drive your people to
see your product.

4.

Exhibition (at the mall, plaza, or any special even)

5.

Join to the retails (put your product into the retails and give the best offer)

MANAGEMENT & BoQ

INVESTMENT (Capital Expenditure & Capital Operational)
1. Workshop
Workshop are projected to become as a main assets due to its big value of investment. The
projection value are estimated approx. 75% of Total Capex. If your total investment are
50,000 k, the 70% would be allocated for your workshop. The following details below are the
Investment simulation;

Workshop by Yearly Rent

Total Investment

= 50,000,000

with the following details :

70% Rent of Workshop

= 35,000,000

10% Equipment

5,000,000

15% Raw Material & Expenses (buffer project)

7,500,000

Workshop by Monthly Rented

Total Investment

= 50,000,000

with the following details :

9% Rent of Workshop (first 3 month buffered)
@1,500,000 / month

4,500,000

15% Equipment

8,000,000

82% Raw Material & Expenes (buffer project)

= 41,500,000

Workshop by Monthly Rented

Total Investment

= 23,000,000

with the following details :

9% Rent of Workshop (first 3 month buffered)
@1,500,000 / month

= 4,500,000

15% Equipment

= 7,000,000

Raw Material & Expenses (buffer project)

= 10,500,000

a.

Yearly Rent

This is a typical and mostly at everywhere. Mostly RUKO (rumah toko/retails house) are to
be rented yearly. The rent value / price is depending to the location and region. In this
case, the businsess will runs in Makassar and located in the spescified area. (based on
your research). Started with 15,000 k 150,000 k yearly.
b.

Monthly Rent
This typical renting way are rarely. Usually, the monthly rent of place had a lowest selling
value, and or a regular house that are functioned to runs a business. (800 k 1500 k)

c.

Sharing Profit
There are another way to get the place (workshop). Sharing profit is a good strategy for
those who dont have a large number of money for investment. Sharing profit to become a
good choice depending to your bid and business plan promortion capability.

d.

Location research
Strategic loction is important related to the selling value for this business. If only you had
a good marketing and promotion for your stuff is an exception that you can rent a
livinghouse or lowest selling value of place. Therefore, the strategic location will affected
to your selling value / target market. The more strategic location you got, the more easy
you do the promotion and so on for the reverse side.
The strategic location that mentioned above as follows :
a.

Near Traffic road or;

b.

In the middle traffic road

c.

Eye catching workshop (so people around would know and would be cathed up with

d.
e.
f.

your activities and stuff)

Far from living house
In the middle of business area (ruko centre business)
Unused field, built to become a workshop (this also a wise choise)

TOOLS & EQUIPMENT

Below, some of simple breakdown of capital Investment and Capital Operational ;
Item
Type

Tools (machinary)

Brand

Qty

Unit

Price

Total

Circular Saw

Wooden & Plywood

Saw

Maktek

pcs

700,000

Jigsaw

Plywood Saw

Maktek

pcs

500,000

500,000

Drill

All purpose

Maktek

pcs

500,000

500,000

Grinder

Medium Type

Modern

pcs

500,000

500,000

Screw Drill

Electrical

Krisbow

pcs

300,000

300,000

Router

Maktek

pcs

750,000

750,000

Saw Blade

Large Size

pcs

300,000

300,000

Jigsaw blade

any

Set

100,000

100,000

Ketam Kayu

pcs

75,000

75,000

Regular

pcs

50,000

50,000

700,000

Tools (Manual / handy)

1

Handy Wooden Planner

Hammer

Measure HPL Cutting

pcs

100,000

Handy Saw

Small Type

pcs

75,000

75,000

Elbow Measure

Short Type

pcs

25,000

25,000

Elbow Measure

Length Type

pcs

50,000

50,000

Dial

pcs

250,000

Roll Metering

100 Meter

pcs

50,000

Drill Set

Makita

Set

150,000

150,000
200,000

100,000

250,000
50,000

10

Router Set

Set

200,000

12

Engsel Drill Set

Standard Hydraulic

pcs

50,000

50,000

13

Cable Fitting

Roll

pcs

50,000

50,000

14

Cable Fitting

4 fitting

pcs

75,000

225,000

15

Cable Wire

Meter

10,000

200,000

16

Cutter

Pcs

35,000

70,000

17

Pahat

Pcs

150,000

18

Power Electrical
Best Quality

Wooden Clamp

Various

20

Pcs

50,000

Total Tools & Equipment

*Supplier source to be decide according to the price comparison (at jakarta and makassar)
according to the brand and price.

450,000
200,000

5,720,000

SUPPORTING EQUIPMENT
In order to the jobs process and SOP, the supporting equipments should be made prior to produce
the furniture as follows :
1.
2.
3.
4.
5.

Adjustable Casing of Circular saw modification

Table Saw (Large Type)
Working Station
Bench or Tools Cabinet
Dusting Exhaust

The above items are a modified material, and should be produced at the beginning.
When completed, the prodcution are ready to start. The following table below is the Bill
of Quantity of the above supporting equipment :
Item
1

Dimension
L

Plywood

Plywood

Plywood

Wooden Beam

B
x

244
24
4
24
4
4

x
x
x

122
12
2
12
2
6

Qty

Units

15

Sheet

18

Sheet

Sheet

400

Pcs

t
x
x
x
x

Screw

Box

Glue

Can

Tacosheet

ply

Nails

24
4
2

cm

Box

Nails

cm

Box

Shooting Nails

Box

10

Power Switch

pcs

11

Exhaust Hose

Pcs

200

inc
h

12
2

18
x

Price

Total

210,000

420,000

250,000

500,000

90,000

90,000

69,000

276,000

50,000

50,000

150,000

150,000

150,000

300,000

20,000

60,000

40,000

40,000

50,000

50,000

35,000

105,000
-

TOTAL
2,041,000

MEN POWER
Carpenter
Determining the men power is important in order to run the business. Carpenter is the
main assets.. The expert of carpenter are required related to the jobs role. In the
starting point, we only need to hire two people of men power. One of the expert, who will
act as the executer and supervisor, and the other one is the helper.

In the common furniture business, the men power (carpenter) jobs role are divide into :
1. Cutter & Assembly
2. Finishing
The carpenter will help the designer to calculated the BoQ of furniture Product, in order
to determining the selling price.

Designer
Designer roles is responsible to develop idea, innovation and customer requests. He/her
tasks to adopt the existing design from any source such as internet, magazine or any
related to the furniture design. Designer qualification are required to execution the jobs.
He/she usually called interior designer. But in this case, comprehensive training for
he/she will be conducted due to saving the cost. The men/women with art passion and
sense is fine to match the qualification.
The Designer is working with computer Aid Program (3D & 2D design software).
There are many free simple software are available in the market from the internet such
as :
1.

3ds Max is one of the best software design but with the complicated

spesification.
2. Google Skethup from google are easy to use. . There are thousand of library
available by downloading from the internet.
3. 3d Home Sweet Design are more simple than another. There are thousand of
library available from internet.
4. AutoCAD as the layout and technical drawing. This software are usefull that will
describe the technical spesification of the design, and could be as the
communication tools between the designer with the carpenter.

BUDGETTING & PROJECT SIMULATION

Herewith sample of budgetting financial simulation :
March 2015
PROJECT #01 By Produce earlier (as sample)
Name Of Project : Minimalist Furniture Wall Shelving, Cabinet, and Wardrobe
Cost are subject to 30%
Wall Shelving

5 Units

@150,000

Total

Wall Cabinet

2 Units

@700,000

Total 1,400,000,-

Wardrobe

1 Units

@4,000,000

Total 4,000,000,-

Total

750,000,-

6,150,000,-

In the middle of march, all product are sold out.

Income statement ----------------------------------------------- 6,150,000
PROJECT #02 By Customer requested
Wardrobe

2 Units

@3,500,000

Total 7,000,000

Kitchen Cabinet

1 Units

@3,000,000

Total 3,500,000

Wall Shelving

4 Units

@150,000

Total

Total

450,000
10,950,000

Income Statement ---------------------------------------------- 10,950,000

End of the Month Closing
Income Statement (Project #01 + Project #02)
Total Material Cost (Cost Subject to 30%)
Gross Profit Before Expenses

16,615,000
5,130,000
11,970,000

Expenses
1.
2.
3.
4.

Salary (all staff)

Monthly electric power
Gasoline
Worksop rent allocated monthly
30,000,000/12 = 2,500,000

5. Investment (BEP Expectation 48 Month)

Total Invest. Workshop Rent Cost (yearly)
(50,000,000-30,000,000)/48 Month

3,500,000
300,000
300,000
2,500,000

417,000

6. Security
7. Miscellaneous

100,000
150,000
(-)

Total Expenses
Nett Profit

6,867,000

= Gross Profit Expenses

= 11,970,000 6,867,000

Nett Profit

= 5,103,000

Investor (2 person) : 5,103,000/2 = 2,551,000

SUMMARY
The furniture business are capable to runs with the following conditional :
1. Reducing the cost of workshop rent will affect to
a. increase the nett profit
b. Sharing Profit to be applied to the carpenter as the compliment besides of
salary
2. Plotting the Raw Material Vendor
3. From the simulation above, we can estimate that montlhy Target sales is set to
the minimum nominal 24% of Total Investment
24% are divide into 2 (two) component :
a. 40% of Expenses
b. 10% of Profit
4. Regarding to the minimum sales at the point no. 3, the marketing and promotion
strategy will be arrange to the best way.
5. The particulary details of calculation will be provide when the ecxecution project
begin.
6. Thank you