What is needed in order to organize the production of metal structures for their further sale.

In this material:

The high, constantly growing demand for metal structures makes their production a profitable and profitable business that requires large investments. A business plan for the production of metal structures is usually based on attracting third-party investments that will pay for themselves in the next 5 years. Startup capital for a startup runs into hundreds of thousands of dollars, so the business plan must be carefully thought out.

The high demand for metal structures in various industries is justified by the characteristics of the products: durability, strength, high wear resistance. The ease of installation of structures and structures makes their purchase profitable.

Product description

Metal structures are divided into:

• solid;
• collapsible;
• mixed.

Depending on the area of ​​use and the role assigned to the metal structure, the following are distinguished:

1. Sheet (made from sheet steel or sheet alloys based on aluminum). They are used for the production of containers, pipelines, chimneys, and other elements of buildings and structures.
2. Long-span (frames and arches).
3. Pavements, for the construction of road and railway bridges, suspension bridges and pedestrian crossings.
4. Crane structures, support and suspension crane designs.

The production of one or more types of metal structures involves the purchase of the necessary equipment. Before making a choice, you need to carefully study the market, supply and demand, and, if possible, occupy one of the free (or least occupied) niches.

Market analysis

When planning a business, you need to decide on potential clients. These include:

• large organizations with government funding, specializing in the construction of houses, bridges, buildings;
• private firms involved in construction, providing intermediary services to third parties;
• private individuals purchasing metal structures for their own needs.

Negotiations on the supply of products must be carried out long before the workshop begins its activities; working at a “warehouse” in a business related to the production of metal structures will lead to ruin and debt. When analyzing a possible sales market, you need to take into account the direction of activity of competitors, offer either metal structures of a different type, or work in a different price segment, or offer high-quality products at an adequate price.

The modern market is focused on generating income through turnover.

Room

The purchase or rental of premises is not limited to the workshop in which the machines will be located. The complex must include a warehouse for storing raw materials and finished products. Ideally, finished products are not stored, but are immediately sent to the customer.

The workshop is divided into:

• preparatory stage;
• processing;
• assembly;
• coloring

The size of the workshop directly depends on the scale of production: for the manufacture of gratings, fences, and fences, a small garage provided with electricity is suitable. And for a large production workshop you will need a room with an area of ​​three hundred square meters. Rental prices vary greatly in different regions. In a small town you can rent a workshop with a payment starting from 100 rubles. per square meter, there is no upper limit on the price.

The workshop must be equipped with ventilation, lighting and heating. A thrifty owner will first take care of installing an alarm system.

Equipment

The chosen specialization makes its own adjustments, but the standard set includes automatic sheet metal processing machines, plasma and thermal cutting machines, hydraulic press shears, drilling machines, cantilever shelving and racks, painting equipment, and work tools.

The purchase of equipment will cost about 6 million rubles and depends on the number of machines purchased and the country of origin.

Delivery of raw materials to the warehouse, and finished products to the customer will be faster and more efficient if you have your own freight transport.

Staff

To produce quality goods and expand the business, qualified workers will be required:

• manager;
• warehouse manager, who controls the acceptance of raw materials and the release of goods, the purchase of necessary materials;
• for round-the-clock shift work, qualified and experienced specialists in working with metal are needed, as well as technologists and shift foreman;
• cleaner;
• accountant;
• Sales Manager;
• driver (if you have your own transport);
• watchmen (guards).

Raw materials

Raw materials for metal structures, scrap metal, are bought from the population and purchased at scrap collection points.

Companies involved in the sale of metal operate in almost every region. Before concluding a supply agreement, it is worth comparing price and quality and calculating delivery costs.

Advertising

The choice of name plays an important role; you should not chase complex abbreviations or overuse abbreviations that are difficult to remember and do not tell the client anything. A succinct, clear name related to the company’s activities will be easy to remember and will facilitate the implementation of an advertising campaign.

Modern realities confirm that an organization aimed at development and making a profit must have its own website, providing potential and actual customers with up-to-date information, answers to popular questions, photographs and descriptions of products.

Approximate investments

At the initial stage of production development, the business plan includes costs for:

• paperwork and registration (self-registration of an individual entrepreneur will cost 800 rubles - payment of state duty, for an LLC - 4 thousand rubles);
• rent or purchase of a building (from 100 rubles per square meter);
• purchase of equipment, tools (from $100 thousand, imported - more expensive than domestic);
• purchase of raw materials and materials.

Monthly expenses include utility bills, depreciation and maintenance of machines, transport, employee salaries, and taxes.

Pros and cons of business

The advantages of business include:

• demand for products;
• high profitability;
• the opportunity to work to order without fear of “hungry” periods.

• high competition;
• long payback period for investments;
• huge starting capital;
• need for qualified specialists.

When choosing the production of metal structures as a source of income, you need to be prepared for market overcrowding and sales problems. Initial capital contributed by several investors requires the opening of a legal entity. However, working with specific customers, searching for unfilled niches, and quickly responding to changing demand will bear fruit.

The production of metal structures is a future-oriented business; the winner is the one who can quickly and flexibly adapt to the needs of the market, and beat competitors in price, range and quality.

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Of course, the production of metal structures is not the easiest thing. But it is quite profitable and in demand. When drawing up a business plan, you should prepare for the fact that the investments will be very large. Most likely, one person will not be able to start a business from scratch. It is worth thinking about looking for investments.

Investments in business

Naturally, you must first register your business. It will take about 50 thousand rubles to collect documentation for this particular type of business. This is not the smallest investment in the production of metal structures.

Own business: production of metal structures

Next you will need a room. The workshop cannot be less than 250 square meters. This area is necessary to accommodate all the machines, apparatus, as well as various utility rooms. Building a new plant costs differently in different areas. On average, you can meet 600-900 thousand rubles. This indicator is very conditional.

You need to think about finding employees in advance. You will need a staff of at least 30 people. Workers must be professionals in their field, have extensive experience and seniority.

The biggest investment item in the business is equipment for the production of metal structures. You can order it from both domestic and foreign companies. The first option is cheaper, but the quality is only slightly inferior to the second. You will have to invest no less than 6-7 million rubles. That's why it's worth considering attracting outside investment.

This applies only to large and massive enterprises, in particular, the production of building metal structures. It is difficult and sometimes completely impossible to produce this type of product in a small factory. That is why, before organizing production, you need to decide what you will sell.

And of course, you cannot do without the material from which this or that part or structure will ultimately be made. You can also purchase material at a low price at scrap metal collection points. Sellers usually provide substantial discounts for bulk purchases. This applies mostly to private locations, because state-owned enterprises rarely sell wholesale quantities of material.

In total, initial payments include:

1. documentation,
2. room,
3. equipment,
4. advertising,
5. material.

Despite the fact that the supply market is not very large, competition exists. In order for the buyer to notice you, you need to spend money on advertising. This can be either a television commercial or information on the radio. Ideally, have your own website on the Internet, where not only services and prices will be described, but there will also be photographs of the finished product.

An additional expense item may be your own vehicle fleet. If you plan to deliver your products to customers yourself for a certain price, then you cannot do without technology.

The production of light metal structures is quite viable even in a small area. If you are going to sell forged gratings, fences and other small structures, then you can do this on your personal plot, for example. Then the costs will only cost you the construction of a premises, registration of an individual entrepreneur, purchase of a welding machine and a couple of special non-production machines. At the same time, finding clients is quite easy. You can contact offices providing funeral services, as well as small sales companies, with an offer of cooperation. Advertising can be launched on the Internet. You may need a Gazelle-type car from your own equipment.

Whatever kind of production you start - large-scale or small-scale, you need to draw up your own business project, as well as calculate investments (taking into account all the features of your region), study the market and evaluate your strengths.

In order not to work at a loss by creating unclaimed standard structures, it is worth setting up the production of metal structures to order. This option will allow you to work at a good pace, increasing your profits. This type of work is universal for this type of business (whether it is a large plant or a small private enterprise).

Revenues, profitability, profit

You shouldn't expect quick profits. It takes time to start a business, and it takes time for money to start falling into your piggy bank. For large production, this period can be from 3-5 months. Small things can bring profit almost immediately - the main thing is to find your customers, get orders, and work to your advantage.

A large plant should look for buyers even before starting the business. When all the equipment has been purchased, installed, working, and staffed, you can start searching. It is logical to look for construction companies (large, medium, small) that will be customers for certain types of structures. This will allow you to make a profit almost from the start of the business.

The monthly net profit of a large enterprise can reach about 300 thousand rubles. The figure is very arbitrary. A small business is somewhat more modest in income. It is difficult to give an average figure; everything depends on the pace of work and the availability of stable orders. It can be either 30 thousand a month or 70. The advantage of a small enterprise is that monthly expenses are much lower, which allows you to keep almost all of the profit for yourself.

It is also worth knowing that the production of metal structures is usually not in demand in winter. In order not to sit idle during this period, not to let things stand still, it is necessary to collect the maximum number of orders in the fall. Ideally, those orders that are not very urgent. This will allow the plant to operate all winter. This applies to a greater extent to large-scale production.

The profitability of the project can reach 20-35%.

Pros and cons of this business

The biggest advantage of this type of business is that it is a sought-after business. Metal structures have always been, are and will be needed. For each subtype of manufactured product there is a buyer.

Of course, the production and manufacture of metal structures is a rather complex activity. But, despite this, such activity is considered a very profitable and in-demand business. In order to competently prepare a business project, you should be aware that you will need to spend a lot of financial investments. Simply put, running this business from scratch alone will be very problematic. So you need to think about where to find investments. If you want to turn the production of metal structures in Russia into a profitable one, then you should build special factories and study some of the features of such a very complex business.

Investments in business

Metal structures manufacturing business an extremely responsible matter. First of all, you will need to register your own business with the tax authority. But in order to collect all the necessary documents for this, you should spend around 50 thousand rubles. This amount is by no means the smallest in organizing a business for the production of metal structures.

After which, you will need to find a room. You should find a workshop with an area of ​​at least 280 square meters. m. This condition must be met so that you have the opportunity to install all the machine equipment, various units in this place, and also have a separate room as a utility room. In order to build a new plant or plant in various areas of the city, on average, 650-950 thousand rubles may be required. This amount may vary depending on location.

Now here is a list of initial contributions:

• Search for premises;
• Collection of documentation;
• Advertising;
• Purchasing the necessary material.

Based on the fact that the number of offers on the market is not so large, competition still takes place. In order for the consumer to see your offer, you need to take care of advertising. The type of advertising can be different: a video on local television; information on the radio station, etc. The most ideal option would be to develop your own website on the Internet. On this portal you can place as much as possible all the necessary information about your production, product, etc.

Another expense item may be having your own vehicle fleet. If you decide to deliver your products yourself at a set cost, then you simply cannot do without vehicles. It is possible to manufacture lightweight metal structures in a small area. If you plan to make forged metal gratings, various fences and small structures, then this can be done in your own garden plot. In this case, you will only spend your money on building the necessary premises, registering an individual entrepreneur, and purchasing a welding machine. Perhaps several non-production machines will still be needed. Based on this, searching for clients will be quite simple. You can also make an offer of cooperation to companies involved in providing funeral services, as well as small companies selling these products. You can start placing your advertisements via the Internet. For vehicles, you may need a Gazelle car. Regardless of what you decide to manufacture - whether to start a large or small production, in any case, you need to prepare a business plan in detail, as well as calculate all the initial costs. And also engage in market assessment.

To be able to work and make a profit by manufacturing non-standard types of structures, you should launch the production of custom-made metal structures. This method will help you work at a constant rhythm, while increasing your income. This work is a good solution for this type of activity.

Revenues, profitability, profit

Manufacturing metal structures as a business can require a lot of effort from you. If you are running such a business, then you should not expect quick income. It takes more than one month to put the production of metal structures on stream. If you create a large-scale production, you will need to wait approximately 5-6 months for payback. On the contrary, small things can bring you income immediately after starting your business. The most important thing in this matter is to find future buyers of your products. A larger plant needs to search for its buyers in advance, before this production is launched. Once you have purchased and installed the necessary equipment and hired employees, you can begin searching for your potential clients. The best option here is to search for construction companies (small, large or medium), which will subsequently become your future customers.

The monthly income of a large plant can be around 300 thousand rubles. This amount is approximate. If you organize a small workshop, the profit will be much less. It is very problematic to name the conditional cost, since it is related to the work rate at a given production and the number of regular orders. The amount can be 35 thousand per month or 70. The main advantage of small production is, as a rule, minimal monthly expenses.

You should also take into account the fact that the manufacture of metal structures is not popular in the winter. And in order to provide yourself with work at this time, you need to take care of your future orders in the fall. For example, such orders that are secondary in their urgency. This method will help to carry out work in the workshop almost all winter. It is most suitable for large enterprises. And the profit in this case can be 25-30%.

Advantages and disadvantages of this business

The production of metal structures as a small business can be organized in absolutely any city. However, first it is worth listing all the advantages of such a thing. So, the most important advantage of this type of activity is its demand. Metal structures have always been very popular and have always been necessary. The main benefit of a small business is the low initial investment. Another advantage of this business is that in the event of bankruptcy of the enterprise, it will be possible to sell the existing equipment.

Feedback on the business plan
"Production of ceramic tiles"

Received an investment loan in the amount of 280 million rubles for a period of 7 years. The business plan included a detailed description of market conditions, calculation of revenue and costs, and break-even points. The project was accepted by the bank without modifications.

Voloskov N.N.,

financial director
LLC "New Line"

Feedback on the business plan
"Production of suspended ceilings"

A well-executed business plan made it possible to attract investments to open a workshop for the production of suspended ceilings in the amount of 25 million rubles. Professionalism and scrupulous attention to detail allowed us to positively resolve the issue of financing.

Evstafiev I.D.,

Favorit LLC

Feedback on the business plan
"Drywall production"

Thanks to the high-quality and meticulous work done, my partners and I saw potential bottlenecks in the project that we had not discovered during our own express analysis. As a result, an additional reserve of working capital was built in.

Zheldikov A.V.

Saint Petersburg

Feedback on the business plan
"Asphalt concrete plant"

We express our gratitude for the work done to develop the business plan for the Asphalt Concrete Plant. As a result, this allowed us to take out a loan for 352 million rubles.

Sergeev P.V.

Krasnodar city

Summary

The demand for metal structures is quite high; they are practically irreplaceable in many production processes. The business plan for metal structures includes a description of all technological issues, product promotion policies, as well as calculations of the main indicators of the project.

It is expected that the plant will be engaged in the production of various types of metal structures to order, both standard and non-standard. The minimum production capacity of the facility is 800 - 900 tons of materials.

Payback period is about 2 years.

Contents of the business plan for a concrete plant:

1. Summary.
2. Capital raising strategy.
3. Organizational aspects.
4. Work schedule.
5. Marketing concept, revenue forecast.
6. Current costs, calculation of break-even point.
7. Analysis of risk factors and their impact on the result.
8. Financial and investment indicators.
9. Conclusion.

For what purposes is a business plan needed?

1. To determine the trajectory of movement for organizing a business in the intended format.
2. To find investments for the implementation of a project: banks and investment companies will consider providing you with funds only if you have a document.
3. To monitor the results of the enterprise's activities.
4. To reduce the level of risks and their impact on the work process.

Example of a business plan for metal structures

Select
suitable option

This kit is ideal for those who need a business plan to obtain a loan or attract investment.

Description

The extended business plan includes a financial model of metal structures in Excel format.

The business plan was developed taking into account the practice of evaluating projects in Russian banks, as well as taking into account the requirements of investors and funds for supporting entrepreneurship in the Russian Federation. It will allow you to justify management decisions on investing in the creation and development of metal structures, predict its financial results and assess risks.

A full description of the business plan can be downloaded from the link:

To view the content, download the file:

To see the list of tables, graphs and diagrams, look at the file:

You can pay in the following ways:

• Bank cards (Russia)
• Electronic money
• Terminals and communication salons
• Money transfers
• Bank cards (International)

Submitting a business plan and financial model:

Dispatch is carried out within 24 hours after payment to your email address.

Business organization

Metal structures are used in the construction of the building frame. Their advantage over reinforced concrete structures is that they are more reliable, but at the same time much lighter. It will take a lot of money to start your own business, but if you do everything right, you can easily recoup your entire investment. To do this, you need a good metal construction business plan.

What to do to start a business?

1. Find funds to finance the project.
2. Select a location for building a plant.
3. Organize construction activities according to the calendar plan.
4. Purchase and install equipment.
5. Attract staff.
6. Consider a policy for attracting customers and working with suppliers of raw materials.
7. Launch.

To get started, you should register as a legal entity, for example, a limited liability company; the individual entrepreneur form is also suitable if you are planning to create a small enterprise. Then you will need to register with the tax authorities, open a bank account, and register yourself and your employees with the Pension Fund of the Russian Federation.

Market analysis and description of the metal structures project

Metal structures are an extremely popular type of building materials and are used in many production cycles. Despite the negative economic factors caused by the crisis, the demand for materials has not fallen significantly. Moreover, experts believe that the economic situation in the country will improve by 2019–2020.

Produced goods/services

Metal frames, block, frame, arched, hanging and other systems.

Potential clients

Construction companies and factories producing construction and finishing materials.

Calculations for opening a workshop for the production of metal structures are presented below in a sample business plan.

Financial part of the metal structures business plan

Investments:

An example of a business plan for the production of metal structures suggests that investments in the business will be about 40 - 50 million. rubles

Income:

Annual revenue will be about 50 - 60 million rubles.

Expenses:

Annual expenses average 33 - 38 million rubles.

Profit, payback and profitability of the business:

The payback period is about 2.5 - 3 years, and the profitability is 30%.

Conclusions:

It has long been an established fact that the construction business is one of the most profitable areas of entrepreneurship. And, if, in order to enter the construction itself, colossal investments and connections are most often needed, then the production of building materials is less expensive, although, of course, in this industry the threshold for entry is quite high.

Download the business plan template and financial model template and you can:

• Based on your own preferences in terms of the direction of business development, independently calculate the indicators of current activities and the investment attractiveness of the project.
• Save more than 150 thousand rubles on document development.
• Attract highly qualified specialists to participate in business.
• Avoid a large number of risks and other negative factors when starting a business.
• Motivate staff to complete assigned tasks.

The metal structures segment is a serious business, requiring quite impressive investments and the most thoughtful approach. You should only take risks if the risk is calculated and predicted. A professional business plan template will help you, which will allow you to understand all the issues.

Other ready-made business plans.

Setting up a plant for the production of metal structures is a very expensive undertaking. In terms of the volume of required investments, it is unlikely that one entrepreneur will be able to open this business without additional investments. But the business justifies itself due to the high demand for the product.

Product type

What are metal structures? These are building elements that are used in wall and roof panels, and also as load-bearing supports. They can be used both in the construction of buildings and other engineering structures. Metal structures have a great advantage over reinforced concrete products - they are much lighter, although they are just as reliable and impenetrable.

It is important that the business plan provides for the production of a wide range of metal structures: both all-metal frames and mixed ones. As a rule, it consists of the following positions:

• block systems;
• frame;
• arched;
• hanging;
• combined.

They must meet certain aesthetic and technical characteristics.

Market analysis

Before starting production, it is necessary to conduct a market analysis in the region where it is planned to open production. It is necessary to clarify how many similar factories operate in the region, what specific metal structures they produce, to whom they sell the goods and under what conditions. This will help you formulate your own enterprise development strategy. It is advisable to order such market analysis from specialized companies. Then you will get the most accurate picture possible.

Based on this data, the business plan will be able to determine the market segment in which your company will operate. Based on this, you can determine your target audience. This may include:

• state construction companies that build industrial buildings, bridges, overpasses, etc.;
• commercial construction firms that do the same thing, but perhaps on a smaller scale.

Investments in business

First of all, the business plan must provide for the official registration of the enterprise. In this case, registration of business activities alone is not enough. A whole range of permits and other documentation is required. Therefore, it is wiser to outsource the solution to this issue to companies that specialize in such matters. At least 50 thousand rubles must be allocated for processing production documents.

In addition, the business plan must allocate funds for:

• raw materials;
• advertising;
• equipment;
• room.

Additionally, you can allocate funds to create your own vehicle fleet. True, this expense item is justified if you are going to deliver the goods to customers yourself. In total, at least 7 million rubles must be allocated to start production.

Room

Production requires premises. The business plan must provide for the rental or purchase of a workshop with an area of ​​at least 250 square meters. m. They should accommodate equipment, utility and utility rooms, warehouses for raw materials and, possibly, finished products, if your plans include the production of small metal structures. On average, the construction of a plant, depending on the region, will cost about 600-900 thousand rubles.

But if your business plan is designed for the production of small metal structures for individuals or small offices, it is quite possible to get by with small areas. Up to a personal plot or garage, in which you can make fences, gratings, etc. Of course, in this case we are not talking about building a plant.

Since the business is quite expensive, experts recommend making metal structures exclusively to order. This way you can ensure the sale of expensive products.

Staff

Even at the stage of plant construction, it is worth finding the necessary personnel. For large-scale production, about 30 workers will be needed, who must have the appropriate qualifications, experience and work experience. You will also need a technologist, cleaners, a HR employee, and an accountant.

Equipment

But the largest cost item for the production of metal structures is the purchase of equipment. You can purchase it both domestically and imported. Accordingly, the first option is cheaper and of lower quality. Which specific production lines are needed depends on which segment of production your business plan focuses on. But at least for a large plant it is necessary to allocate at least 6 million rubles for this expense item.

Raw materials

Then the business plan must take into account what raw materials will be imported and from which suppliers. The lowest price for metal at scrap metal collection points. Moreover, if you purchase it in bulk, you can get a significant discount. However, this only applies to private collection points. State-owned companies rarely trade metal in bulk.

Advertising

There are few offers of metal structures on the market, but competition is still very high. Therefore, you need to look for your client by conducting advertising campaigns. What they will be depends on your production segment, as well as on the target audience. But in any case, a reasonable step would be to create your own website on which samples of products, approximate prices for them, conditions for ordering and delivery of goods will be posted.

Financial part of the matter

Profit from such production is expected depending on the scale of the project. A small business can break even and make a profit in the first month, but for large-scale production this period can last for six months or a year. It all depends on how well you manage to resolve the issue of finding clients. For a large plant, the search for customers must be done even before it opens. First of all, construction companies of different sizes and areas of activity should come into your field of vision. In general, the profitability of the business reaches 35%.

As a rule, the income plan for such a plant is about 300 thousand rubles. monthly. Smaller enterprises receive, accordingly, less income, but they also have much less monthly production costs. But the numbers are very conditional, since they depend on the number and stability of orders, the pace of work, equipment, personnel and other things.

When organizing a product sales plan, you need to take into account the seasonality of the business. In winter, metal structures are practically not in demand, since large-scale construction work stops during this period. To smooth out the seasonal factor, it is recommended to look for non-urgent large orders for the spring in the fall. This will allow not to stop production and work all year round.

Advantages and disadvantages of the case

The advantage of business is that metal structures are always needed. Whatever type of product you make, you can always find your buyer.

Small-scale production is less risky. It requires a minimum of investments, and in case of failure, the equipment can be quickly sold, compensating yourself for most of the costs.

But for large-scale production, significant investments and considerable monthly expenses are required, which is a big disadvantage of the business. Also, without experience in production and without proper advertising, it is difficult to find customers for large products.