Cold forging business plan for opening an IP. How to make a fortune on art forging: a business idea

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An art forging business is an attractive idea for those who have a small start-up capital and experience as a blacksmith. To organize the project, you will need a business plan that contains accurate data on the amount of investment, the costs of maintaining the forge, and expected income.

Artistic forging is a relevant business idea

Interest in blacksmithing is not only not fading, but, on the contrary, is growing. Metal products are becoming more and more popular - the owners of private houses and apartments use them to decorate the garden, facades and interiors. Forged braziers and picnic accessories, gazebos, window bars, gates, and gates are in great demand. Many people order unique headboards and underframes from craftsmen.

Despite the high cost, such products are popular, which means that you can earn money in the production of metal products. Such a business is suitable for a person with good artistic taste and metalworking skills.

Forging types

There are two types of forging - hot and cold. Let's see what they are:

1. The traditional blacksmithing method of hand forging, which has been used by craftsmen since ancient times, is called hot. This method involves heating the metal in a furnace or furnace and further processing it with a hand tool. The master gives the shape and texture to the products with a hammer, tongs, rolling, using his own strength.
2. Cold forging is the deformation of metal without heating. This is done using special machines. In this case, the resulting shape of the product and the presence of patterns on it depends on the capabilities of the equipment. Parts are fastened together by welding or special rivet fasteners.

Attention! Forging in the traditional way is highly valued, as in the process of heating the metal acquires additional strength. During cold working, the material becomes more brittle.

The investor's goal is to open his own production of metal products and artistic forging elements in a city with a population of 200,000 people. Products are planned to be manufactured according to individual orders. The chosen organizational and legal form is an individual entrepreneur.

Project goals:

• meeting the demand of local residents for metal products;
• obtaining a stable profit;
• formation and growth of a permanent client base;
• gaining trust from potential customers.

Description of services

The forge provides services for the manufacture of forged metal products by cold forging. The product range is quite wide:

• fences;
• railing;
• window bars;
• fences;
• gates;
• gates;
• awnings;
• gazebos;
• visors;
• grounds for benches, chairs;
• underframe;
• flower stands;
• braziers and accessories to it;
• headboards for beds;
• candlesticks.

Market analysis: target audience, level of competition

The target audience for which the business is oriented is:

• funeral agencies;
• owners of private houses, country cottages, dachas;
• local churches, mosques;
• owners of cafes, restaurants;
• construction teams.

Before embarking on a project, it is necessary to research the local market. Demand for forged products in large cities is stable. However, the level of competition also affects the development of the project. In each settlement, several forges already operate, which have an accumulated client base. It is important to find out how many competing firms pose a threat to the novice entrepreneur and collect additional information about them:

• what equipment do the masters work on;
• what products are produced;
• what prices are set for products.

Competitor research will help identify their weaknesses. For example, high prices for products, non-compliance with deadlines for fulfilling orders. This information will allow you to form your own competitive advantages and quickly find your niche in blacksmithing.

The business plan discusses the possible risks of the project that may affect its development. These include:

• use of credit funds for financing;
• high level of competition;
• decrease in the solvency of the local population;
• seasonal factor.

It is important to develop a program of measures that will help minimize the impact of risks on the business. For example, to establish competitive prices for products, constantly look for new channels for the sale of products, and fulfill orders with high quality.

organizational plan

The first step towards the goal is the legalization of activities. Further, the entrepreneur will have to resolve other issues - finding a room for a workshop, purchasing equipment for work, establishing contacts with suppliers of raw materials.

Business registration

A mini-forge or a workshop for artistic forging can be issued as an individual entrepreneur. To do this, the project organizer needs to come to the tax office at the place of residence and submit the following documents:

• application in the form P21001;
• passport and a copy of all pages;
• TIN and a copy;
• receipt of payment of state duty (800 rubles).

Attention! In order not to be on the general taxation system, you should write an application for the application of the simplified taxation system. This must be done no later than 30 days after registration as an entrepreneur.

Under the simplified taxation system, deduction rates are available to the business owner - 6% of income or 15% of the difference between income and expenses. For blacksmithing, the first option is more suitable, since the cost of products is relatively small.

During registration, you must indicate the OKVED codes:

• 28.0 "Manufacture of metal products" - the main group;
• 28.12;
• 28.40;
• 28.51.

Some successful entrepreneurs started their business in a garage. At the initial stage, it is possible to place a forge on an area of ​​25 m2. In the future, when things go uphill, you will have to think about expanding.

The main requirements for the premises:

• the presence of ventilation;
• power supply (network voltage 380 V);
• good access and a small platform for loading and unloading products and raw materials;
• distance from the residential sector by 30–50 m.

Equipment

For the manufacture of metal products by cold forging, you will need equipment:

1. Machine "Azhur-1M" in a complete set. With it, you can make decorative elements - torsion bars, peaks, reverse bends, rings, baskets, commas, endings. The cost of the unit is 240,000 rubles.
2. Roller set. They are used for the production of products from profile pipes. The cost is 12,000–15,000.
3. Welding machine - 10,000.
4. Grinding machine - 5000.
5. Bulgarian, diamond discs, etc. - 3000.
6. Another hand tool - 2000.

In total, about 275,000 rubles will need to be allocated for the purchase of equipment for the mini-forge.

Forging raw materials

For the manufacture of forged products, several types of raw materials are used - these are blanks from low-carbon steel, as well as a metal profile. It can be round, triangular or square. It is purchased in bulk at metal depots. For work you will need consumables:

• compositions for anti-corrosion treatment;
• primer;
• patina;
• coke;
• electrodes;
• cutting and grinding wheels.

Staff

At first, while there are few orders, the business organizer will be able to work alone. In the future, he will need an assistant. As the business project develops, you will have to hire a second master in order to fulfill orders on time. The average salary of a forge worker is determined based on the amount of work performed - 200 rubles per 1 m2 of product.

How to advertise forge services and attract customers?

By itself, the launch of production will not bring income to the entrepreneur. It is important to find customers who want to buy forged products. You will have to spend part of the budget on advertising and make several product samples to demonstrate to potential customers.

Effective methods for promoting artistic forging:

1. Promotion of the group in the social network. Here you can post photos of your work and collect customer reviews.
2. Posting ads on poles, stops near cottage villages.
3. Placement of advertisements on the Internet and local newspapers.

Attention! It is very important to be able to position the client during communication with him. People are more likely to trust calm, polite interlocutors. However, first of all, potential customers are interested in the quality of finished products. It is worth making a product catalog with real photos of your own work.

How much can you earn on artistic forging: financial calculations

The financial section of the business plan reflects the calculations of the income and expenses of the forge. By comparing them, you can find out how profitable this project is and when it will start to make a profit.

Business investment

Workshop opening costs:

• registration - 800;
• purchase of equipment and consumables - 300,000;
• advertising - 20,000.

Total: 328,000 rubles.

Project maintenance costs

Monthly expenses include:

• rent of premises - 7000;
• utility bills - 4000;
• working capital for the purchase of raw materials and consumables - 50,000;
• transport costs - 4000;
• advertising - 6000;
• tax deductions - 6% of income.

Total: 71,000 plus tax.

Workshop income and expected profit calculation

The cost of 1 m2 of forged grating is 3,000 rubles, and its cost is 1,000 rubles. Having produced a volume of products of 100 m2 in a month, the entrepreneur will gain 300,000 rubles. To calculate the profit, you need to subtract tax deductions and workshop expenses from this amount:

• 300,000 x 0.06 = 18,000 - 6% tax;
• 300,000 - 71,000 - 18,000 = 211,000 - net profit for the month.

It is important to try to reach the planned sales level by the end of the first quarter, in which case the initial investment in the business will pay off in 5-6 months. In the future, you can think about the prospects for the development of the project and purchase the missing equipment in order to speed up production. This will increase profitability and make more profit.

Artistic forging is a relevant business idea with good prospects, as in large cities the demand for decorative metal elements is constantly growing. People like to decorate their homes with handmade wrought iron railings, railings and lamps. This allows them to emphasize their individuality and status.

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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 is another effective way to attract customers. Finished projects are the best advertisement for the workshop, which means that beautifully executed works 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.

Technical characteristics of the 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 a 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.

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 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.