Sample Business Plan mini-production profiled corrugated mark C-8, with a monthly release of up to 11 000 kv. M. Finished products.
Prospects of opening mini-production of corrugated board
Why corrugated? The prospects of opening such business we see in the following:
- Quick return on investment. In the presence of channels of sale equipment pays off for 1 – 2 months.
- High demand for profiled sheet, especially in the spring-summer period of time.
- Relative ease in opening a case, availability of equipment.
- Not complicated technology, easy learning of operators.
- Durable material that does not spoil during long-term storage.
How much money you need to open a business
According to preliminary calculations, to open a business will need to invest 2 220 000 rubles:
- Arrangement of the premises – 150 000 rub.
- Purchase, delivery and installation of the line – 1 500 000 rub.
- Purchase of raw materials (sheet steel)-300 000 rub. (5-6 tons).
- Auxiliary tools, workwear – 100 000 rub.
- Advertising budget, creation of the site-120 000 rub.
- Business registration and other expenses – 50 000 rub.
Our company will be engaged in the production of corrugated c8 0.7 mm on gost 24045-94. The selling price from the plant will be 260 rubles per m2.
Given the number of orders and seasonality of production, our company will produce daily up to 500 m2 profiled sheet. The monthly volume will be about 11000 m2 (22 working days). In monetary terms the turnover of the company will be 2 860 000 rubles.
Production is planned to be placed on the industrial area of the city. The equipment is rather bulky, therefore it is required considerable areas, even at small volumes of manufacture. It is necessary not only to place machines, but also to leave space for reversal of sheets and their storage. The size of the rented area will be 160 sq. m. M. Rental Rate – 400 rub. per sq. M.
The advantage of such business is that production does not require all communications. There is no need for water supply and sewage. If the production is not year, then heating is not required. The main thing is the presence of sufficient electrical capacity and good ventilation.
What equipment to choose for the production of corrugated board
Buying a set of equipment for the production of corrugated board will cost US 1 400 000 rubles. The composition of the so-called line will include the following machines: Uncoiler of roll metal, rollinging unit, guillotine, transport-receiving table, Automatic control System (ACS). The technological process of corrugated board production on such equipment involves giving the sheet steel trapezoidal shape.
Sheet steel rolls will be purchased as raw materials for production. Requirements for purchased raw materials: thickness of steel sheet-0.4-1.2 mm, steel grade-GOST R 52246-2004, polymer protective and decorative coating-gost R 52146-2003. The raw materials will be purchased at the industrial enterprises of Russia.
As the personnel of our small enterprise will be employed:
- Operator (1 person) – his duties include work on the automatic line. Wages piecework, an average of 25 000 rubles.
- Workers (2 persons) – their duties include loading and unloading of raw materials/finished products. Salary-15 000 rub.
- Sales Manager (1 person)-the list of responsibilities includes the sale of corrugated board and search for new customers. Wages salary + percentage of sales, average 25 000 rub.
- Director-supervises the activities of the company, concludes contracts, establishes trade relations. Salary 35 000 rub.
The wage fund will be 115 000 rubles per month. For employees the organization will carry out monthly deductions to the extra-budgetary funds (RPF and FSS) in the amount of 34 500 rubles.
Which code okved to specify for production
As an organizational form it is planned to register the usual individual entrepreneurship. Code okved-28.52 "processing of metal products using the basic technological processes of mechanical engineering". The system of taxation is USN, 15% of the company's profit.
Marketing and business Promotion
Even at the stage of business planning, we will need to find potential channels of marketing products. Corrugated sheeting is quite popular building material. The scope of its application is quite wide: construction of walls and fences, roofing of houses and shops, construction of hangars, garden and country houses, building of pavilions. Therefore, despite the existence of competition, we do not see serious problems with sales.
We will carry out advertising of our products through the following channels:
- Internet-creation of own site, with a good catalogue and selling articles.
- Outdoor advertising in construction markets and close to large private sectors.
- Advertising in newspapers and specialized magazines.
- Cooperation with construction hypermarkets of the city and small points on sale of building materials.
Monthly expenses for production of 11 000 m2 of profiled sheet:
- Rent-64 000 rub.
- Salary-115 000 rub.
- Deductions to RPF and FSS – 34 500 rub.
- Electricity-40 000 rub.
- * Raw Materials – 2 233 000 rub. (1 m2 – 203 rub.)
- Transportation costs-15 000 rub.
- Other expenses – 30 000 rub.
Total-2 531 500 rub.
How much can you earn on the production of corrugated
* from one ton of sheet steel it is possible to receive 270 m2 of a profiled sheet of Mark C-8. The cost of raw materials is 55 000 rubles/ton. Thus, the cost of material for the production of 1M2 corrugated board is: 55 000/270 = 203 rub.
Monthly income: Revenues from sales of 11 000 m2 of finished products at the price of 260 sq/m2 will be 2 860 000 rubles. The company's profit before the tax will be: 2 860 000 (revenue) – 2 531 500 (COST) = 328 500 rub. Net profit minus taxes (USN, 15% of profit) according to the plan will be 279 225 rubles. Per month.
At such indexes the project pays off for 8 months of work of the enterprise.
Business Plan content: 1. Konfindencialnost 2. Summary 3. Stages of project implementation 4. Object characteristic 5. Marketing Plan 6. Technical and economic data of the equipment 7. Financial plan 8. Risk Assessment 9. Financial and economic substantiation of investments 10. Conclusions
Step Action Plan
Due to the advantages of corrugated board, the demand for this product will be high, and consequently the business of producing material will be profitable business.
So, where to start a business:
- To conduct marketing researches on presence in this region of similar manufactures.
- Make a detailed business plan, taking into account all the items of expenditure. Calculate the income that can be obtained, and in what period will pay off all expenses.
- To register the enterprise as an IP or LLC. To become accountable in the bodies of the tax service and the Social Insurance Fund, pension fund.
- To find the production premises, to conclude the lease agreement.
- Pick up the staff, initially need 5-6 people.
- Purchase equipment and raw materials.
- To sell the products to carry out a wide advertising campaign.
What documents are needed to open
This business will require a standard package of documents related to production and wholesale and retail trade. It is necessary to register a business entity: it can be an individual entrepreneur or a limited liability company. The prepared documents should be submitted to the State authorities or to the multifunctional centers of public services (MFC). If it is planned to engage in production and wholesale trade, it is recommended to open a bank account.
If the enterprise will be carried out retail sales, it is necessary to receive registration of the payer of the single tax on sane income (imputed). The rate is from 5% to 15%. Then FE can make cash payments without using the control-cash equipment (TCC), but with the obligatory issue of a cheque, or other document, which confirms acceptance of money for the goods.
If the enterprise manufactures and wholesale trade, it is possible to apply only general, or simplified system of Taxation (USN). The races of the couple can be produced both through the current account and through the TCC.
Permissions to open
For carrying out of this kind of activity it is not necessary special permissions for carrying out of works. It is necessary to register the enterprise, to choose the form of taxation, to conclude a contract of rent of premises, to hire employees. The premises in which the production is located and will work people must conform to the sanitary norms and norms of fire safety.
Modern lines for the production of corrugated board include a large complex of technological equipment.
Corrugated boarding is made by the following technology:
- Steel in a roll set in a special uncoiling device on a rolling machine.
2. Next on the remote control set the desired length of sheets and their number.
3. The metal is held at the rolling mill to the scissors and there is cut off.
4. Rolling machine makes rolling sheets.
5. In the end, the steel sheets at the outlet have profile waves, which gives the product a beautiful look and stiffness.
6. Ready sheets mark and pack.