Artistic forging has always been popular among buyers, although sometimes the prices for such products are too high. Despite the economic crisis, many private developers want to ennoble their house or site, for example, with a wrought iron fence or interior elements. self made which not only look good, but are also a quality product.
If we talk about the current realities, then it is better to launch art forging as a business either in large cities or in the suburbs. The price tag for these products is serious, and you first need to focus on target audience, and these are wealthy people, of whom there are not so many in the province. The second option is to work in a small town, with subsequent resale to a metropolis, but here you already need to take the client at a price and quality, and be able to convince him why he needs to use your services.
For whom is the business of selling forged products suitable? Firstly, for people with a welder's education who like to make beautiful and creative things and want to start their own business. Second, if you don't have specialized education, and practices in this area, you will not be able to compete in the market, unless you hire qualified specialists. But as experience shows, if you personally do not understand this, you will not be able to control the level of work done, it will be difficult for you to evaluate all ongoing business processes. Alternatively, you can get a job as a welder in some competing company, work there and gain experience, and only then start your own business.
Documentation
For legal work in this direction, you will need to issue all permits and get all the documents in your hands.
Here is a basic list of what you will need:
- open a sole proprietorship or LLC.
- specify OKVED for activity. For Russia, this is 25.50. For Ukraine - 25.50.
- recruit staff if needed.
- conclude a contract for the lease of premises or an act of sale.
- obtain permission to operate from the fire department.
These are the main documents that you will need, for more detailed information on this issue, it is advisable to use the services of a lawyer.
Technology Choice
Before starting a metal forging business, you should decide on what technology you will work with. There are two main areas here:
- cold forging.
- hot forging.
If we talk about hot forging, then this is an ancient type of craft that requires special skills and abilities from a blacksmith. The entire process of manufacturing the product is carried out manually by heating the metal on fire and then manually forming the design. At the moment, the list of such masters is very small, but the price tag for unique products is high here.
At the start, we would advise you to look towards the cold forging business. This is the most commercially attractive option for a novice master. The base of the structure is also bent by heating the metal, but all decorative elements are bought in a stamped form and subsequently attached to the base of the frame by welding. Due to simply a huge assortment of various stamped forging elements, the master can immediately draw a sketch of the future product and implement it step by step. The cold forging method reduces the production time of the same gates or benches and at the same time is not inferior in quality to the approach given above. The advantage is a lower price tag for products, which cannot affect sales, even during a crisis.
Search for sales markets and assessment of competition
The first is the issue of competition in the sales of artistic forging. In large cities, the level of competition is quite high, but at the same time, it is quite possible to start using online sales and advertising yourself in in social networks, which many forges do not currently do. In small towns, there are several such private enterprises, but you can also work there, because often either the quality of products is of poor quality, or the deadlines are delayed, or the price tag is inadequate. When considering this business idea, we can conclude that although the niche is filled with experienced players, with the right advertising approach, you can always get regular customers and take your place in this field of activity. Often it is your name that is formed as a brand, and people will turn to a particular master on the advice of friends and relatives. So, keep an eye on the image of the company through High Quality and adequate prices.
To analyze the market, you need to study the following questions:
- quantity competitive firms in your region.
- the volume of products sold.
- pricing policy of enterprises.
- the presence of good craftsmen and an assessment of the quality of products in general.
- how much their business is promoted, and what advertising methods are not used.
The main task is to find weak sides competitors and fill this gap when organizing your forging business.
The main sales markets include:
- owners of private houses.
- government agencies.
- business structures.
- sale of forged products in retail stores(tables, chairs, shelves).
- agencies ritual services. For the design of fences in the cemetery.
These are just some of the options. In fact, everything will depend on what products you will focus on, for example, the manufacture of interfloor stairs, this is a narrow niche, but can bring a solid income when provided beautiful examples works and the market price tag for services. You can start with a narrow segment, gradually expanding the list of works.
Location and premises
For a business in the manufacture and sale of forged metal products, you will need to rent a room. The best location would be the outskirts of the city. Why? Firstly, this is a low price tag for renting space. Secondly, forging - implies a rather noisy manufacturing process of the product, and in this way you will be able to avoid complaints from neighbors.
You can rent either a garage or a small hangar. For work, you can consider options from 60 sq.m. and more. All this is necessary in order to divide the room into work areas. There should be several of them:
- area for installing a desktop and a shelf with tools.
- a place for connecting welding and other equipment.
- place for painting and sanding.
- warehouse for storage of finished products and materials.
- recreation area for staff and a bathroom.
Such segmentation of the area will allow the most convenient organization of the entire process.
Equipment for artistic forging
The equipment plays an important role in the quality of the outgoing products, of course, with the practical skills of the craftsman. In order to work comfortably, you will need the main base of tools and it is for it that you will need to allocate a separate item in the expense item when drawing up a business plan for a company for the production and sale of forged products.
Here is a basic list of what you will need:
- welding machine.
- Desktop.
- workbench with tees.
- Bulgarian.
- cold forging machine. On it, the metal is heated with a subsequent change in its shape, for example, twisting, bending, and so on.
- Grinder.
- air compressor for painting products.
- turning, drilling and milling machines.
- hood.
- hand tools (hammer, screwdrivers, wrenches).
- security alarm system.
- staff furniture.
- racks and shelves for storing tools.
- structures for storage of finished products.
Depending on the direction of your business, you may need additional tools and fixtures. Also, do not forget about safety precautions and always use gloves, goggles and masks.
Raw materials and components
The next stage is the purchase Supplies and finished stamped elements for work.
- steel.
- metal profile (square, pipe, corner, round timber and others).
- primers, paints and solvents.
- electrodes.
- grinding and cutting wheels.
- stamped forged elements.
All these materials can be found in stores or warehouses, with rolled metal. If you live in a small town, then you can take a small wholesale batch of stamping and start selling forging items in your city at retail prices. This can bring a small additional income to the main activity.
How to give products a presentation?
The times of standard artistic forging, which our grandfathers were engaged in, have long passed, now all artistic elements are made using stamping. You can buy them in specialized stores, which are usually located in big cities. Their prices start at $1 and up. Taking a price list with pictures, you can think over your future product in advance.
Product range
As we said above, in the business of forged products, you can choose two development paths. The first is to choose a narrow niche and build your portfolio in that direction. The second is to have initially different product options. Which one to choose is up to you. It is important to remember that the more examples of work you can provide to the customer, the more likely he is to buy your product. Also, using photographs of the work, it is often possible to sell to the client the version of the design that you have already implemented in practice, this will save your time, and the client will be able to see the finished version of the product in a “real” format.
- gates and gates.
- forged fences.
- visors.
- furniture.
- fireplace accessories.
- interfloor stairs.
- interior items and more.
The list can be very long, since forged products are partly an element of creativity. And you can come up with many different options, apply this approach in living conditions or in the design of something.
Advertising
Question marketing strategy such a company is very important. Of course, one cannot do without standard approaches. You need a bright, large sign so that customers who want to come to your place can find you on the outskirts of the city. Advertising in the media and online bulletin boards and now gives a good result.
To attract customers from the Internet, you can create your own website and launch contextual advertising or engage in search engine promotion, which many of these enterprises do not do. The main thing on the site is a portfolio, price list and contact information.
Of the extraordinary methods of attracting customers is the search for customers on construction forums or in groups on social networks. But for this you need to be active on specialized resources and, by the way, already sell your services to the target audience.
How much money is needed?
In order to realistically assess the cost of opening such a production in your business plan, it is important to calculate all the costs of organizing the forging process itself and the subsequent sale of products.
- purchase of a tool - $10,000
- paperwork - $200
- corporate identity and promotional items (signboard, website) – $750
- initial purchase of consumables - $1500
Monthly costs:
- rent of premises - $5 - $8 per 1 sq.m.
- communal payments– from 10% of the rent in the heating season.
- taxes - $120
- wage– from $200 per employee.
- advertising - $100
- shipping costs for delivery – $80
We have indicated only the basic costs of this business. You may have more than this list if you plan to provide an additional set of services.
Business Profitability
What mark-up do experts in this field usually make? In fact, this is purely individual. But in most regions, the cost of the product consists of half the cost of materials, the second half is paid for work. If you collect a clientele, you can earn good money.
It will not be superfluous to think about the delivery of goods. But at first you can use the services cargo taxi until you buy your own car.
So an example of prices for finished goods:
- Forged gates, wicket - about $160 per 1 sq.m.
- Forged fence - about $65 - $70 per 1 sq.m.
- Balcony railing — about $120 per m.p.
- Stair railings - about $130 per m.p.
By evaluating these values, you can predict the approximate level of earnings from certain products.
The payback period for a business is on average 1.5 years or more.
Conclusions. The forging business is a profitable niche for real craftsmen who live and are interested in this both creative and technical process. It is difficult to attract a client and make a sale, but if you have a good portfolio, high quality work without delaying the product task and an adequate price tag, you can find your audience. This business is a stable source of income for many years.
Do you have experience in this niche? Looking forward to your feedback in the comments below.
* Calculations use average data for Russia
Currently blacksmith craft replaced for the most part by the industrial production of forged metal products. However, factories produce similar, non-unique products, and a consumer who wants to receive an exclusive forged product often turns to craftsmen who, according to his individual order, produce the necessary products. The profession of a blacksmith today can also become an opportunity to earn money Money, while there are enough prospects in such an undertaking.
The blacksmith no longer wields an anvil and a hammer; they have been replaced by modern equipment, which greatly simplifies the process of forging metal. However, a person who produces such products must have an artistic taste and the ability to create really high-quality things, and it is especially important that the resulting product can serve for a long time and at the same time look aesthetically attractive. For some, the hobby of metal forging gradually becomes a business, while others immediately begin to master the profession of a blacksmith for the sake of earning money, but there are also entrepreneurs who do not get up at the machine themselves, but hire people and open an enterprise for the manufacture of forged products to order.
Artistic forging stands out as a separate business because it is in some way opposed to factory production, these are often more expensive products, but handmade, which adds to their value. The art forging business can be classified as a small type of business, because the volumes will be small, and relatively little money is needed to start. At the same time, the level of competition in most cases is quite low, factories for the production of forged products are not direct competitors, although when entering the market their offers and positions also need to be studied and guided in their work by the fact that a certain percentage of consumers will choose between a factory product and a handmade one.
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As for direct competitors, we can say that not all cities have artisans' offers, and even in large settlements, more than 10 blacksmiths rarely work. In this regard, entering the market can be called quite simple, but it should be noted that at first you will have to work more on your reputation and attract new customers, forming your permanent customer base. Moreover, in many cases, the master receives a sufficient number of orders if he has his own style and an unusual artistic approach to the manufacture of forged products. In this case, customers will come to the blacksmith only because he makes certain and unique things.
To get started, you need to register as a subject entrepreneurial activity. If an entrepreneur is a blacksmith himself, then it is easier for him to register as an individual entrepreneur, because this will not require large investments of money from him, the whole procedure will take a little time and take a little effort. IN further work if you register yourself as individual entrepreneur, you do not have to keep complex reporting, and taxes can be paid according to a simplified taxation system. This involves the transfer to the state of no more than 6 percent of income or 15 percent of operating activities. If there is a need to register a legal entity, then the preferred form is a company with limited liability, because in this case you will not have to be liable with your own property for the debts of the enterprise, and it will also be available simplified system taxation. Register entity it makes sense if the enterprise opens several people or a fairly large-scale expansion of activities is planned. The activity itself falls within the definitions (OKPD 2) 25.12 Doors and windows made of metals, (OKPD 2) 25.62 Services for the processing of metal products using basic technological processes mechanical engineering, (OKPD 2) 25.99 Other finished metal products, not included in other groups. Any special permits for their activities will not be required, and given that the products will be manufactured according to individual orders of consumers, there is no need to comply with state standards.
For their work, they will need a room, while many blacksmiths work literally from their homes, because in currently there is equipment that does not differ in large dimensions, but allows the production of a large number of forged products. However, everything also depends on the volume of production, so if there are a lot of orders, then you need to launch several lines at once, behind which several people will work, and in this case the size of the room will increase significantly. However, this is more like organizing a full-fledged factory, 50-70 square meters are enough for artistic forging. production premises.
However, in addition to this, you need to take care of organizing your warehouse. finished products, while artistic forging involves the manufacture of not only small products, but also sufficiently large metal structures such as gates or fence sections. If you don’t have to work with such products, then you can completely limit yourself to a small workshop, which can be located in a garage or a small room.
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If it is not possible to work at home, then it is necessary to rent a room, while it is desirable to be located in the central areas of the city for the convenience of its consumers. The cost of renting a room is highly dependent on the city of work and location in it, as well as on many other factors. For the internal arrangement of the premises, not too much money will be required, because if it is a rented premises, it may just require cosmetic repairs, and in some cases the organization of your own office, but here you only need to buy office furniture and equipment. If the blacksmith works himself, then he usually negotiates with customers on his own, after which he gets to work; with a more complex business organization, negotiations are conducted between the company manager and the consumer himself, perhaps after that the client discusses the details and appearance of the product with the designer, and only after that the order is transferred to the masters. If a more complex scheme of work is organized, then it is necessary to allocate places of work for all employees.
This is followed by the purchase of the necessary equipment for the production of artistic forged products. Currently, the most common methods of cold and hot processing of metal blanks, however, for full-fledged work, you will need to buy equipment for one, and for another processing method. It is in this case that it will be possible to offer its customers a wide range of possible products and quality products that compare favorably with competitors' offers. The cost of equipment can vary greatly depending on how technological and modern machines are purchased, on their performance, on the brand of the manufacturer (Chinese ones are an order of magnitude cheaper than European ones), as well as on the characteristics in general and the available operations. For work, you will need a special forging machine for art forging, a hydraulic press, a rolling-forming machine, a bending-texturing machine, bending machines, rollers, cutting machines and sheet benders and profile benders. However, the exact list of equipment is selected depending on the chosen format of work and the catalog of products offered, in some cases you can get by with one or two machines for your work.
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Some equipment suppliers offer a fully equipped blacksmith's workplace for an amount not exceeding 100 thousand rubles, but for such money you can get units only if artistic forging is a hobby, and the master is just starting to do it and does not plan to use it as an idea for business. Professional equipment costs an order of magnitude more expensive, so you need to expect that a fully finished workplace will cost more than 500 thousand rubles, in some cases high-quality machines cost at least three hundred thousand rubles, while in addition to them you need to buy the rest of the equipment. In general, the amount seed investment for a business based on artistic forging, it usually amounts to at least one million rubles.
As already noted, such a business can be carried out alone if the entrepreneur himself is a blacksmith and manufactures products for individual orders. Many blacksmiths do this for a living, but in their work they focus on the production of unique products with excellent appearance. However, this idea can be developed, but in this case, additional specialists will be required to ensure the operation of the company.
To begin with, it is worth mentioning people in administrative and organizational positions, they will deal with simple issues and contact customers, receive them in the office and answer their questions by phone. It is very important that the company offers its client design services, that is, the opportunity not only to manufacture a product according to a finished sketch, but also to develop this sketch independently, based on the stated requirements of the customer. In this case, not every metal craftsman can be a good designer at the same time, everyone has to do their own thing, and usually a blacksmith simply fulfills an order according to the drawings, but a completely different person must create this drawing. That is why you need to think about attracting designers to your company who will act as a link between the consumer and the blacksmith.
If the production involves the manufacture of sufficiently large and dimensional metal structures, then you need to think about attracting people to perform simple work, which includes loading, unloading and transportation. If a large warehouse of finished products and raw materials is organized, it is also necessary to hire people for warehouse operations and maintenance. storage facilities. For work, blacksmiths need assistants who can perform more simple work and, for example, carry out painting and applying soil.
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All business processes that are not related to the organization's profit should be outsourced; this primarily includes bookkeeping, as well as advice on tax and legal issues, because in this type of business it is not so often necessary to turn to competent lawyers and tax consultants for help. Ensuring the safety and security of your enterprise, if really necessary, is best transferred to a private security organization.
Also, in their work, the organization of logistics and marketing departments may be required. The first is necessary only if there are a large number of orders, including from other cities, if you have to cooperate with a large number of customers and deliver products to them, if the production process is a fairly complex system with several production lines if you have to work with many suppliers and partners. As for suppliers, here you can find a company that can wholesale rolled metal products. In the case of home or small production, you will have to cooperate with companies that supply metal products in small wholesale.
The cost of 1 ton is on average about thirty thousand rubles, but it must be borne in mind that in the process of its production it is necessary to use a variety of materials; most simple example can protrude into steel, because if the products are planned to be used indoors, then you can limit yourself to cheap steel markings, because the structure will not be exposed to aggressive environments. If we are talking specifically about fences and gates or other structures that are located in the open air, it is advisable for anyone to use stainless steel or galvanized blanks of other metals to prevent corrosion. In addition to the metal itself, you will also have to purchase the amount of consumables, which include paint and primer, other types of materials for decoration, such as wood or even marble or granite.
A marketing department may be required when an enterprise wants to expand its field of activity and attract new customers for itself. Otherwise, you can get by with organizing a simple advertising campaign, giving information about yourself in local media, as well as on thematic portals on the Internet. If possible, it is highly desirable to create your own website with information about yourself and the proposed product catalog. At the same time, previously completed orders are usually indicated in the catalog so that the client has the opportunity to evaluate the work of the company and, possibly, opt for a product from the catalog, which greatly simplifies the processing time of his application. However, creating a website may not be enough, and it will need to be optimized so that it appears first in the list of search queries. If there is no experience and knowledge in this area, then you can contact a company that creates and promotes websites.
Artistic forging involves the creation of a unique, and therefore more expensive product. In this regard, its customers are usually wealthy people who want to get a really high-quality product with an aesthetically attractive appearance. Some companies are targeting more ordinary people, therefore, they offer the manufacture of somewhat cheaper designs, but at the same time only according to standard drawings, possibly with the addition of a small amount of their own changes. In any case, there is a consumer in both spheres; some entrepreneurs try to reach as many potential consumers as possible, therefore they offer a large number of services and a wide range of prices for their products.
In addition to the production of metal structures, the company can offer services for its delivery, repair and installation, in many cases the consumer also has the opportunity to order the installation of automation for their garage doors or gates. But if a company wants to offer such a service, then it needs to find an electronic automatic systems, as well as hiring specialists to install these systems, which in some cases may not be appropriate, for example, when the manufacture of fences and gates is not the main activity of the company. The company usually makes a discount when ordering a large number of metal structures, the customer will really appreciate the opportunity to save money with a large order.
The simplest designs cost about two thousand rubles per 1 square meter for the consumer, however, the cost of artistic forging and exclusive works, as well as replicas, sometimes exceeds 20 thousand rubles per 1 square meter. At the same time, the cost of production in the case of artistic forging is an order of magnitude less than the final cost of the products, because the reward for the skill of the blacksmith is invested in the final price. However, even here it can be noted that in some cases it is necessary to spend a sufficiently large amount of material to obtain a relatively small product.
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A good blacksmith will always find a job! It is this expression that is the best fit for a business in the production of forged products. A lot in this matter depends on the master. For this reason large enterprises not found in this area. Artistic or cold forging is, first of all, a small business, where everything revolves around the talent of the organizer of the business, who at one fine moment decided to turn his hobby into a profitable business ...
Cold forging is the work with metal at room temperature. Unlike hot forging, the metal is not heated here. The main operations in cold forging are cutting blanks and bending them on special machines. Most elements of cold (artistic) forging are templates and are produced in serial versions. Cold forging has its advantages:
- no heating of the iron is required,
- minimal pollution of production,
- high control over the size of products,
- metal acquires good qualities,
- the coating is strong and durable,
- the training of craftsmen is faster than with hot forging.
The great advantage of such a business is the assortment that can be produced in a mini-production environment: forged gates and gratings, barbecues, garden grills and flower girls, fireplace accessories, arches and balconies, forged furniture and benches, visors and swings, forged fences and railings, lamps and monuments, forged doors, forged panels and so on. Prices for products, in fact, are limited only by the complexity of the work. The brazier can be sold for 3-5 thousand rubles, and forged gates for 40-60 thousand rubles.
Production is advantageously located near large cities and metropolitan areas. Customers can be individuals who want to decorate the courtyards, as well as enterprises, shops, recreation centers, ritual agencies, and so on. Some entrepreneurs open a similar business actually at home. And if your house is located on a federal highway, then it is very easy for you to sell your products: you exhibit products right on the highway - and live advertising brings an endless stream of customers. As an example, a message from the user "Old Welder" from the chipmaker.ru forum:
Education is everything!
There are two ways to organize this case:
the first way: you are the organizer of the business, you have the capital to open a business and you want to assemble a team of good craftsmen, that is, you do not produce yourself, but only control the process;
second way: you are a novice craftsman, without initial capital, you want to learn the art of cold forging and produce products on your own. And then, when things go well, expand production and attract assistants.
The first option is business. But there is a big difficulty here - to find good masters. Most often, they work for themselves, they have enough orders and they do not need any owner. Therefore, the second option, when the project initiator personally stands behind the machine, may turn out to be an even simpler way.
If you decide to open such a business from scratch, then the first thing to start with is to study the art of forging. There are many options for education here.
The fastest way is to find a good mentor. To do this, you can get a job as an assistant to an experienced master, who in a few months will make you an excellent worker. In parallel, you can study the literature on forging. Thanks to the Internet, it is not difficult to find literature on cold forging. There is a lot of useful material in the books of American and German masters: Dona Meilach, Diana Stewart, Peter Parkinson, Albert Paley and others. You can always get sketches from the Internet and ready-made ideas for forging. A lot of useful things can be found in the "Artistic Forging" catalog from the site.
Premises and staff
Some craftsmen even use a garage as a room for forging products. But this is rather like a hobby, since it will not be possible to establish at least some volume of production on such an area. The organization of the enterprise will require an area of 100 sq.m. Mandatory areas: blacksmith, metalwork and assembly and paint shops. A machine for metal processing is located at the forge site, a welding machine and a welding table are located at the metalwork and assembly site, and a compressor with a spray gun is located at the painting site.
It is necessary to hire at least 3 people for production - one for production, the second for assembling products (welder) and the third for painting finished products. Also, depending on the volume, a sales manager may be required, although at the first stages the project organizer himself can handle this function.
Equipment and materials
Among the variety of machines for artistic forging, it is difficult to choose the right equipment. To organize even a small production, you will need a machine for cold metal processing and a welding machine. The basis of artistic forging is a metal bending machine. The price of a machine can vary dramatically, depending on its features or the number of pieces it can produce. Ultimately, it all comes down to having the funds to start a business.
With limited starting capital, you can take the budget machine "UMT-04K". It can produce most of the products that are offered on the market. It does not take up much space and is great for working in a small workshop. Can be operated by just one person.
A more expensive option is the Decor-Universal bending and rolling machine. Its price starts from 450 thousand rubles. Such a device is more functional and can produce the main elements of artistic forging: small and large rings, the “basket” element, curls, the “torsion” square, pulling decorative legs, bending pipes up to 70 mm, bending rolled products.
For welding and shaping of forged products, you will need to purchase a welding machine. Professional welding is expensive. For example, many advise to purchase German Merkle welding machines. Their cost starts from 150 thousand rubles. You can save money by buying used welding, but build good business on such equipment will be difficult.
To paint finished products, you must purchase a compressor with a spray gun. As a painting material, experts advise using only special paint intended for forged products. For example, many people praise WS Plast paint. If you use a different paint, then the product may lose its original appearance after 2-3 years, which will make the client doubt your reputation.
In addition to equipment and materials, it is advisable to purchase some ready-made forged elements: baskets, forgings, peaks - this way you can diversify the range of products.
When to start?
As with any business, there is also a seasonality factor. Demand for forged products falls in winter and begins to grow rapidly with the beginning of spring and remains high until mid-autumn. Loading orders can be uneven from month to month. So that production does not stand idle, in winter you can increase advertising, as well as produce products that are traditionally in demand and sold out in any season: barbecues, flower girls, swings, and so on.
Artistic forging - a short business plan
Feasibility study for opening a mini-enterprise for the production of forged products using art (cold) forging technology.
Starting investments:
- purchase of equipment (machine, welding machine, compressor, etc.) - 500 thousand rubles;
- purchase of materials for production (preparation) - 100 thousand rubles;
- costs for education and training - 50 thousand rubles;
- advertising - 20 thousand rubles;
- other expenses - 50 thousand rubles.
Total: 720 thousand rubles.
Fixed monthly expenses:
- rent of premises (100 sq.m.) - 40 thousand rubles;
- salary (2 masters) - 60 thousand rubles;
- utility bills (electricity, heating) - 25 thousand rubles;
- other expenses - 30 thousand rubles.
Total expenses per month: 155 thousand rubles.
With proper promotion of the business, daily you can ship (sell), on average, 4 simple products worth 3 thousand rubles or one complex product worth 12 thousand rubles or more. Taking into account the fact that 20% of the cost of the product is the price of the material, our income will be about 9.6 thousand rubles per day or 288 thousand rubles per month. We subtract fixed costs (155 thousand rubles) from this amount and we get a profit of 133 thousand rubles. Of this amount, we pay the tax simplified tax system 15%, and get a net profit of 113.5 rubles per month. With such indicators, the money spent on starting a business pays off in 7 months of work.
Welcome to the website of earning Business Ideas. Today we will talk about organizing a small business for the manufacture of forged products, using the cold forging method.
Based on the name cold forging is the processing of metal without raising the temperature. This means that this method does not require expensive and costly forging furnaces, forges, the use of which is necessary for standard metal forging. Well, it’s clear that you don’t need to spend money on a pneumatic hammer or spend physical strength wielding a blacksmith’s hammer. Products made using cold forging are durable, which allows them to overtake stamping and casting.
Mostly units and machines for cold forging act on the material with mechanical force, bending raw material(rods, sheets, pipes, strips, fittings) and giving it the shape conceived by the manufacturer. The impact on the metal is carried out by manual effort using levers and turn signals or by means of a machine tool with an electric motor.
The machines are equipped with various equipment, which allows you to produce a large number of identical parts. From which one or another object will be assembled later. The range of possible products is directly related to the number of operations that the tooling is capable of. You can take this fact as negative, although with only imagination and this number of operations, it is enough to create a huge number of metal processing options.
An approximate list of areas where the use of cold forging and further implementation is possible:
- Various fences, gates.
- Decorations of residential buildings, namely lamp holders, railings for balconies, verandas, stairs.
- Arbor decorations, garden furniture.
- All kinds of grids.
When organizing your own business based on cold-rolled metal by hand, you should pay attention to some of the nuances that make cold forging a great start for an entrepreneur almost from scratch. To get up to speed on the above mentioned nuances, you need to have a specific idea of what stages the production consists of and, of course, the required forging equipment.
do-it-yourself equipment for cold forging metal Naturally, it is necessary to start from the imagination. In other words, you need to clearly present the finished product.
Building a sketch. If you have enough artistic skills, you can create a sketch yourself or ask an artist for help. Well, of course the Internet, at the moment you can find a huge variety of different sketches on the network.
Bringing the sketch to the natural dimensions of the product. This is done in order to calculate the number of required elements that will be used in further assembly.
Calculation of the spent material. Base material preparation, cutting and layout.
Before any manipulation, the metal must be cleaned of rust, if any.
Direct cutting and cutting of starting material.
The intended elements of the future product are produced by means of a cold forging machine.
Product assembly. This process can be carried out in stages or in one go. It depends on the previous sketch work.
At the end of the assembly, the welding spots are cleaned, and the assembled product is primed and painted.
At the end of the manipulations done, you simply need to install the product in its intended place.
For the production of things through cold forging, you need to stock up necessary equipment, such as:
- Gnutik. It is used in the case of bending a square, a circle, or turning a bar at an angle.
- Wave rig. Based on the name, the material processed in this way takes the form of a wave.
- The snail allows you to roll the rod into a spiral.
- The twister turns the rod along the longitudinal axis, the distance for this can be adjusted.
- A flashlight is essentially the same twister, only you can additionally twist several elements of the starting material at once.
Cold forging machines Please note that the devices suggested above require physical effort. In this regard, the use of a square or pipe with a bark diameter exceeding 1.4 cm is a rather difficult process in terms of human physical strength.
The machines are not the only ones in the required equipment, you should definitely purchase add-ons:
- Circular saw or grinder with a cutter. These tools are required when cutting pipes, rods, etc.
- Apparatus for welding.
- Tools for cleaning metal from rust and grinding welded seams.
Required financial injections
Six machines in case of metal rolling by means of cold welding can be bought for approximately 100 thousand rubles. Additional Tools have a cost of 50 thousand rubles. You can often find advice that in order to save money, you should place production in own garage. But this idea is not entirely successful. You just need to put yourself in the place of your neighbor, who constantly hears the sounds of working tools. In this case, conflicts cannot be avoided. A good option would be to place production in a rented warehouse somewhere in the industrial zone.
The size of the room must be at least 60 square meters. It is desirable to have a covered ramp, which will allow you to store stocks of metal, finished products. And it will not complicate the process of loading or unloading the products to be installed.
The workshop must be equipped with workbenches, slipways and work surfaces. The workshop should be well ventilated, that is, a high-quality ventilation system should be installed.
The preparation of the production premises will approximately amount to 60 thousand rubles. The result is 305 thousand rubles.
Expenses in the present
Approximately five people are required for production:
- Two employees who will be employed in the production of individual components, with a salary of 20 thousand rubles a month each.
- Welder with a salary of 30 thousand rubles.
- Two auxiliary workers with a salary of 15 thousand rubles each.
Remuneration for labor activity of the staff will amount to 100 thousand rubles. Expenses for the purchase of electrodes, special clothing and payment for electricity spent - 15 thousand rubles.
The average estimate of the cost of the required material is 25 thousand rubles. The approximate weight of one span of the fence 2 by 2 meters is 30 kg. The shop has the capacity to produce 30 spans per day. In one day, 900 kg of material will be spent, and in a month - 27 tons. Based on these calculations, 675 thousand rubles a month will be spent on providing metal.
Profit and payback
The estimated price of a fairly simple span of a forged fence on the market is 8 thousand rubles. The workshop produces 30 flights per shift, that is, the income per day is 240 thousand rubles. As a result, the profit for the month is 720 thousand rubles. Net profit will be equal to 6409500 rubles. The initial investment will pay off in about a week. It may seem that expectations are too high, but the business will be profitable even if only 5 sections are sold per day. Naturally, payback periods increase.
The peculiarity of this type of entrepreneurship lies in the fact that if the product is complex, its artistic value increases, increasing the profit from the sale. There is a geometric progression in the growth of complexity and price.
It is easier for an enterprise to start with simple structures, but in the future it is imperative to grow professionally.
The same is true for machine tools. At the start of a business, you can also use homemade equipment. And the state is limited to two employees. It should not be forgotten that cold forging requires large physical costs, and the productivity relative to costs is not great. If production is fully automated, the costs will be 2 million rubles.
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- Kind of activity: production of forged products
- Capital investments from 230 320 rub.
- Average monthly revenue from 429 000 rub. per month.
- Net profit from 109 800 rub. per month.
- Payback from 2 months.
Over the past two years, the demand for forged products has grown significantly in Russia. Every month, more than 300,000 people are interested in art forging items on the Internet, and this figure is growing by an average of 7%. The trend is explained by the fact that in the regions there is an active improvement of megacities and the construction of suburban settlements.
As a result, there is a high demand for all types of metal structures: from a small decor for a garden plot to massive fences in a cottage. In the next six months, the dynamics will be even more revealing. A blacksmith workshop, open during the “peak” spring-summer period, is an ideal option for a start and a quick payback.
Who is this business for?
Today, the blacksmith business is available to novice entrepreneurs. It does not require large investments, it is easy to organize and manufacture. The whole process is automated and carried out on modern machines. Producers willingly provide assistance in training and business organization. To purchase equipment that even one person can manage, just over 200 thousand rubles is enough.
At the same time, there is no need to go through licensing or certification, and production can be set up in any technical room, up to the garage. Making forged products is a great opportunity to expand an existing business. In Russia, construction and finishing companies, interior design studios, masters of furnace structures open their own blacksmith workshops.
Market competition
This niche is simply free. Unlike other business models with a low entry threshold, there is little competition here. In cities, the number of blacksmith shops is in the tens, while "popular start-ups" - trade enterprises, car washes, catering, tire fitting, are in the thousands.
Where to look for clients?
The first step in this direction is to create a website. To do this, you can turn to professionals or do the work yourself. Today, there are many free editors that will help you create it without programming knowledge. The site will attract the first customers within a month, and you can increase their flow with the help of contextual advertising. It is easily customizable and will allow you to attract the target audience even with minimal budgets.
The second possibility is cooperation with trade and service companies. Hardware stores, utilities, funeral service agencies, interior design studios - these and other organizations actively use forged products in their work.
"Word of mouth" - another one effective method attracting customers. Finished projects - the best advertisement for the workshop, which means that beautifully executed work will attract new customers.
Additional channels for finding customers can also be the placement of information on websites with announcements (Avito, "Iz Hand to Hand", etc.), the placement of an open workshop on the through streets, or the opening of your own finished goods store in shopping malls.
What can a blacksmith shop earn on:
- fences
- Gates
- Chimneys
- Fences (garden, balcony)
- Lattices on windows
- Braziers
- Interior items, furniture (tables, flower stands, hangers in
hallway, etc.) - Other metal structures
- Welding
Business plan "ECONOMY"
Suitable for those who wish to open a blacksmith shop with a minimum investment. Having one universal forging machine "AZHUR-1M", you will be able to arrange the production of: window bars, forged fences, gates, gazebos, forged furniture, canopies, stair railings and much more.
Specifications machine "AZHUR-1M".
The cost of the machine is 217,670 rubles. To expand the range of products, we recommend purchasing a set of rollers that allows you to make forged products from profile pipe for 12,650 rubles. Of the additional equipment, you will need to purchase a welding machine and a grinder.
Calculation of the monthly profit of the blacksmith shop. ECONOMY option.
| Products | Production cost (per sq. m. rub.) | Market price of products (per sq. m. rub.) | Sales per month | Profit, rub. |
|---|---|---|---|---|
| Window bars | ||||
| Stair railings | ||||
In parentheses are the prices of products made of solid rolled metal products.
We subtract the costs of maintaining the workshop from the profit: rent, advertising, electricity, transportation costs, taxes.
Business plan "OPTIMAL"
Suitable for those who wish to organize a large-scale production of forged products. To extract maximum profit, production is organized using a complex of machines. Some machines will give the blanks an exquisite expensive look, others will create forged elements from processed blanks. The resulting products will look expensive and sell faster.
Workshop equipment:
- Machine "Openwork - 1M". Complete set No. 2, worth 307,160 rubles. Additional equipment in the amount of 28810 rubles. In this configuration, the machine allows you to produce the entire range of forged products. For more detailed information please contact our specialists.
- Machine "Openwork -2" for 262,400 rubles. Additional equipment in the amount of 51,700 rubles. Covers the needs of the workshop in metal framing.
- Hydraulic press "Azhur - 3M" for 335,000 rubles. A set of molds for the amount of 29,900 rubles. allows to produce forged products in large quantities.
- Machine "Azhur-4" for 392,000 rubles. manufactures a decorative twisted pipe.
- Cutting machine "OS - 7" for 71,000 rubles. designed to prepare blanks for production.
Total: investment in equipment will amount to 1,477,970 rubles.
Calculation of the monthly profit of the blacksmith shop. "Optimal" option.
| Products | Production cost (per sq. m. rub.) | Market price of products (per sq. m. rub.) | Sales per month | Profit, rub. |
|---|---|---|---|---|
| Stair railings | ||||
| Window bars | ||||
| Benches and swings | ||||
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