* Calculations are based on average data for Russia

1. SUMMARY OF THE PROJECT

This business plan covers the creation of own production full cycle knitted clothing. The production will be located in a city with a population of over 1 million people. The company will specialize in the production of original knitted jerseys for men, women and children.

The production area of ​​the enterprise will be 65 sq. meters. For the arrangement, the necessary knitting, sewing and auxiliary equipment will be purchased in the amount of 798.1 thousand rubles. The total amount of start-up investments will be 1.4 million rubles. The success factors of the enterprise include:

increased demand for knitted woolen products due to fashion;

originality and modernity of manufactured products;

work for a wide target audience: different sex and age;

reasonable prices with high quality products.

The planned monthly turnover of the enterprise is 925 thousand rubles. Net profit - 311 thousand rubles. Return on sales - 33.6%. The main performance indicators of the project are shown in Table. 1 business plan.

Table 1. Integral performance indicators

2. DESCRIPTION OF THE COMPANY

For a long time, knitted clothing in the public mind was associated with clothing that is quite simple and unpresentable, suitable for wearing only at home. However, in recent years, the situation has changed radically: knitted clothes have become the highlight of fashion shows and have entered the daily wardrobe of many people, including those with high incomes. If earlier the practical factor came to the fore - convenience and comfort, now consumers appreciate the design of knitwear no less. The brightness and originality of the author's idea often become the decisive pros and cons in choosing a purchase.

In this business plan, the creation of our own production of knitted clothes of a full cycle is considered. The production will be located in a city with a population of over 1 million people. The company will specialize in the production of original knitted jerseys. These will be original designer sweaters, coats, cardigans, tops, scarves and other knitted products. Products for women and children (about 70%) will form the basis of the assortment, the rest will be knitted goods for men.

The organizational and legal form of business will be individual entrepreneurship (IP). The business opens from scratch, the initiator of the project is a person who previously had experience in the production and sale of designer knitted products at home. The products will be sold in small wholesale and retail through its own online store.

The production will be located within the city in a rented space of 65 sq. meters. For the arrangement, the necessary knitting, sewing and auxiliary equipment will be purchased in the amount of 798.1 thousand rubles. The total amount of start-up investments will be 1.4 million rubles. Table. 2 business plans represent all items of starting costs for opening a workshop.

Table 2. Investment costs of the project

	NAME	AMOUNT, rub.
Equipment
	Equipment purchase
Intangible assets
	Creation of an online store
	Software
Working capital
	Working capital
	Purchase of raw materials
Total:		1 401 600

3. DESCRIPTION OF GOODS AND SERVICES

The clothes that will be produced by the company will differ not only in warmth and comfort, but will also be able to emphasize the individuality of the owner due to a rich selection of design patterns. All products will be created so as not to impede a person's movements and at the same time to emphasize his style. Raw materials for production (yarn, accessories) will be purchased in bulk from local supplier working directly with several dozen manufacturers, which will ensure the purchase different types products in the "one window" mode. The list of manufactured products and variable costs are shown in Table. 3 business plans. Note that in the future, with access to wider production capacities, the range of products will be expanded.

Table 3. Nomenclature and variable costs

№	PRODUCT GROUP	COSTS PER UNIT, RUB	UNIT COSTS AVERAGE, RUB	TRADING RATES, AVERAGE,%	PRICE RANGE	AVERAGE UNIT COST
	Children's knitted sweater (1-14 years old)	181-636	408,5		600-1600	1100
	Knitted sweater for men	545-886	715,5		1200-2600	1900
	Long knitted sweater for men	600-1000			1400-3600	2500
	Regular knitted sweater for women	430-727	578,5		900-2300	1600
	Long knitted sweater for women / cardigan	454-836			900-3600	2250
	Top knitted for women	360-460			1700-2600	2150
	Women's knitted coat	1500-3500	2500		3500-8900	6200
	Children's knitted coat	450-2100	1275		1500-4500	3000
	Knitted scarf for children	120-140			300-450
	Knitted scarf for women	140-170			350-550
	Knitted scarf for men	140-170			350-550
	Knitted hat	50-100			170-390

4.SALES AND MARKETING

Our products will be targeted at people of both genders and all ages. The main focus will be on the female audience of 18-35 years old and children. A typical representative of our target audience is a solvent person who strives to be in line with fashion, is interested in new and unusual things, has a good sense of humor. Such a person is ready nice clothes, but at the same time requires from it the highest quality and comfort at a reasonable and affordable price.

Sales will be carried out in small wholesale in Retail Stores clothes, as well as retail through our own online store. In parallel, it is planned to promote in in social networks: product samples will be presented in the company's communities on Instagram, Vkontakte and Odnoklassniki. It is also planned to participate in specialized clothing fairs and knitwear fairs.

5. PRODUCTION PLAN

The production will be located in a rented premises with an area of ​​65 sq. meters. 40 sq. meters will be used directly under the knitting shop, 10 sq. meters will be occupied by a sewing room, the rest of the area will be occupied by utility rooms, a warehouse, and a bathroom.

For production will be purchased necessary equipment in the amount of 798.1 thousand rubles. A detailed list is given in Table. 4 business plans. Preference will be given to universal equipment, namely knitting machines of the fifth class, which will make it possible to easily expand the range of knitted products in the future. Some of the knitting machines will be electronic, which will allow you to line up accurate patterns, automatically knit a pattern, create and edit patterns on a computer, etc. All knitting equipment and accessories come with a 1-year seller's warranty. Installation and training in basic techniques are included in the price.

Table 4. List of equipment

№	Name	Characteristics	price, rub.	Quantity, pcs.	Cost, rub.
Production equipment
	Knitting machine Silveer Reed SK840 / SRP60N	Car class: 5 Number of fountains: 2 Number of needles: 200 Programming method: Computer Programmable pattern rapport: up to 200 needles Country of Development: Japan Country of origin: China	121000		121000
	Knitting machine Silveer Reed SK840	Car class: 5 Number of fountains: 1 Number of needles: 200 Programming method: Computer Up to 200 needles Country of Development: Japan Country of origin: China	82200		82200
	Knitting machine SilverReed SK280 / SRP60N	Car class: 5 Number of fountains: 2 Number of needles: 200 Programming method: Punch card Programmable pattern report: 24 needles Country of Development: Japan Country of origin: China	92000		276000
	Hague 280H kettle machine	Manual netting machine Hague 280H class 5	54900		54900
	Openwork carriage LC580 for Silver Reed SK840	Carriage for knitting openwork on computer machines of the 5th class.	35750		35750
	Silver Reed YC-6 Color Changer	Tool for knitting multi-color fang weaves, Norwegian and double jacquard. For knitting machines SK280, SK840. 4-thread thread feeding system.	24100		24100
	Silver Reed RJ-1 Jacquard Bottom Bracket for Silver Reed SRP60N	Jacquard carriage Silver RJ-1 for elastic attachment to knitting machines Silver 60 and Silver reed SRP60N class 5.	18600		18600
	Bottom bracket Silver Reed AG24 (Intarsia) for SK280, SK840	Carriage for knitting large patterns with many colors in one row without broaches from the wrong side of the product.	6000		6000
	Yarn winder	Yarn rewinder	2900		5800
	Sewing machine Janome JB 1108	Electromechanical sewing machine	8000		16000
	Other equipment	Overlocks, steam irons, ironing table, etc.	45000		45000
Auxiliary equipment
	Computer	Personal Computer	27800		27800
	Knitting machine table	Knitting machine table	7990		39950
	Sewing machine table	Sewing machine table	6000		12000
	Chairs	Chairs	1500		12000
	PC table	PC table	6000		6000
	Other	Other auxiliary equipment	10000		15000
Total:					798100

In addition to what is listed in the list, you will need a specialized software, necessary to track the process of knitting patterns and work on creating projects with a complex design. The cost of the software will be 25,500 rubles.

Knitted clothing is a seasonal commodity and is most in demand in the period from October to April, which will be taken into account in the production plan of the enterprise. During the off-season, production will be partially reoriented to the spring-summer assortment, with a 30% reduction in target levels for revenue purposes. The production targets are given in Table. 5 business plans.

Table 5. Production targets

Product	Average planned sales	Revenue, rub.	Variable costs
Children's knitted sweater
Knitted sweater for men
Long knitted sweater for men
Knitted women's regular sweater
Long knitted sweater for women / cardigan
Top knitted for women
Women's knitted coat
Children's knitted coat
Knitted scarf for women
Knitted scarf for men
Knitted hat for children
Knitted hat

6. ORGANIZATIONAL PLAN

The organizational and legal form of doing business will be individual entrepreneurship (IP). The form of taxation is simplified (6% of income). The business will be initiated by individual entrepreneur, who previously had experience in selling knitted products of his own production in small volumes. In addition to managing the firm, his responsibilities will include sales management. The staff of the company will include 8 people, including 5 knitters, 2 seamstresses and a programmer-dressing officer. The wage fund and staffing table are given in Table. 6. Accounting will be outsourced. Maintenance responsibilities sewing machines will be carried out by adjusting mechanics, whose remuneration will be carried out under a work contract. Production is slated to begin in August, prior to the start of the sales season.

Table 6. Staffing table and wages fund

	Position	Salary, rub.	Number, people	Payroll, rub.
	Knitting machine operator
	Dessinator programmer
Total:				184000
	Social Security contributions:
	Total with deductions:			239200

7. FINANCIAL PLAN

Investment costs for the opening of the enterprise will amount to 1.4 million rubles. The main amount of funds will go to the purchase of equipment (798.1 thousand rubles), the purchase of raw materials (308 thousand rubles) and the formation of a fund working capital(200 thousand rubles). The structure of starting costs is shown in Table. 2 business plans.

IN variable costs included expenses for the purchase of raw materials and transportation costs. Variable costs are detailed in Tab. 7 of this business plan. Fixed costs include rent, bookkeeping, depreciation, site hosting (see Table 8). Depreciation of fixed assets is calculated on a linear basis for a service life of 10 years.

The financial plan for a three-year perspective is presented in Appendix 1.

Table 7. Fixed costs enterprises

8. EVALUATION OF PERFORMANCE

The project to open an enterprise for the production of knitted clothes is effective, as evidenced by financial plan, as well as simple and integral indicators calculated for 5 summer period... Simple and discounted payback period of the project will be 7 months. The break-even point is expected to be reached for 2 months of work.

To account for the value of money over time, a discount rate of 8% is used. The planned monthly turnover of the enterprise is 925 thousand rubles. Net profit - 311 thousand rubles. Return on sales (ROS) - 33.6%, return on investment (ARR) - 16.64%. The internal rate of return (IRR) will be 14.27%, which is higher than the discount rate. The indicator of the net present value of the project (NPV) is positive, and the profitability index (PI) in our case is equal to 1.55, which exceeds 1. Thus, the project is attractive for investment.

9. RISKS AND WARRANTIES

The main risks of the project for the production of knitted products include the following factors, presented in Table. 8 business plans.

Table 8. Potential risks and ways to prevent them

Risk factor	Probability of occurrence	The severity of the consequences	Measures to prevent risks and eliminate consequences
Equipment failure			Purchase of equipment with a seller's guarantee, compliance with operating rules
Rising cost of raw materials			Buying costs in the cost price, purchasing raw materials in larger volumes to get a discount, searching for new suppliers
Failure to reach the planned sales volume			Attraction of sales specialists, obtaining feedback from the client, marketing promotion
Receiving low-quality products			Hiring qualified personnel, purchasing quality raw materials
Unprofitability of the enterprise in the off-season			Taking into account the volatility of demand for products in financial planning, transition to seasonal assortment

10. APPENDICES

ANNEX 1

Production plan and basic financial indicators in a three-year perspective

Earn up to
RUB 200,000 a month having fun!

Trend of 2020. Intelligent entertainment business. Minimum investment... No additional deductions and payments. Turnkey training.

(we cooperate directly with the largest yarn manufacturers and suppliers, this gives us the opportunity to set minimum prices for knitwear)

- unique technologies for the production of knitwear (the company employs qualified employees whose task is to constantly improve the fleet of knitted equipment and monitor the health of all mechanical processes)

Production divisions of the company:

- Experimental workshop - The workshop is engaged in rationing the costs of all types of cloths and accessories, making patterns according to models, testing cloths before starting for cutting (washing, ironing), preparing technical documentation per model, making pre-production samples for launching the model into serial production, developing a collection according to customers' orders.

- Planning and modeling department- Precisely measured patterns ensure the perfect fit of classic, sporty and original jerseys for daily wear. We constantly follow the growth of customer requests, taking into account modern tendencies fashion and time.

- Sewing factory- equipped with modern equipment the latest generation, which allows sewing products of any complexity. Thanks to the latest equipment and qualified personnel, our company can guarantee consistently high quality within the time frame specified by the customer.

- Knitting shop- The heart and power of our factories, Japanese equipment SHIMA SEIKI performs key tasks of knitwear production. Thanks to this equipment, we can produce knitwear of any complexity, from jacquard to knitted jerseys.

- Department technical control - at this stage, the absence of spools, the quality of the assembly of the product, and the absence of defects in the products are checked.

- Ironing and packing shop- The finished products are cleaned and graded, after which the products undergo heat treatment. After that, the products are labeled and packaged for shipment to the client.

Production equipment:

+ 27 SHIMA SEIKI knitting machines

They are used for coupon knitting of most modern weaves, such as press-loops, braids, jacquards, there are also 3 intarsion machines that allow you to use up to 24 colors in a product.
Include optional equipment for the production of more complex products in production, such as intarsia, intarsia jacquards, and can also produce yarns with a high wool content, including three knitting machines with 3 or more beds.
Designed for the production of seamless products and accessories such as scarves, mitts, hats.

+ 187 sewing machines

Ensure proper assembly quality of the seam of the product, allow making the seam of high quality and durable

+ 7 steam irons

Provide high-quality WTO, which is inaccessible to ordinary household steam irons, use distilled water so that the products do not have the smell of uncleaned liquid or rust, giving presentation products and obtaining final shrinkage. The temperature of such irons reaches 300 degrees, due to which the product takes on a unique look.

+ 3 washing machines

Washing is required for all new items, Washable with concentrated industrial softeners, which is washed out after only 10 washes! Required for shrinkage. The first wash shrinkage is 5 to 20%. This guarantees the end customer that his product will not spill. Industrial washing increases the consumer properties of the final product.

+ 2 drying machines

Just an integral part in knitwear, the dryer dries a batch of products, up to 50 pieces in 1.5. hours!

+ 47 drawers

Not found in any other area of ​​light industry. Provides the most accurate gathering of tricky sections of a jersey. The kettle assembly process is the most laborious, but of the highest quality.

Sooner or later, any person who is keen on some kind of craft, handicraft, thinks about whether his hobby can bring additional (or even basic) income. Not every master achieves success in these endeavors, which is associated with the specifics handmade... Really high quality, unique and beautiful products Hand-made products are expensive, and the majority of consumers prefer to buy ready-made, albeit in-line products, often not ideally suited in all respects, but usually cheaper. However, in recent years, the clientele of the craftsmen has been increasing. This also affected knitters.

When is it worth the risk of turning a hobby into a business?

If you knit yourself and for a long time, are aware of fashion trends and are able to embody them in your work, you have gained private practice(that is, many customers) - you can try to get official earnings. It is great if you are proficient in both hand knitting (crochet, knitting needles) and machine knitting - the use of technology significantly speeds up the production process of the product.

If a knitting machine, even if not the most modern, is already in stock, even better. The cost of starting a business will decrease significantly. By the way, the model of a typewriter popular today costs about 120 thousand rubles, plus additional parts are bought, for example, an openwork carriage; add to this the cost of yarn - the amount comes out rather big.

The opportunity to start a business is financially facilitated by state support: you can contact the employment center at the place of registration and apply for a subsidy. However, be prepared to provide a well thought-out business plan that focuses on product marketing.

Is it obligatory to formalize the business officially

If you start your business seriously, there can be no question of "illegal" work. IP is very useful if you want to knit not only to order, but also for implementation, that is, you plan to hand over related things to specialized departments and stores where they will be sold. Moreover, you need to register as an entrepreneur if you want to open your own point of sale of products.

When cooperating with points of sale, it is important to consider the following: giving things for sale, you risk getting them back if they are not sold in a deplorable state after many fittings. Therefore, it is much more profitable for the master to work with departments and shops on the terms of the purchase of things by them. However, it is very difficult to find such partners.

Is it cheap or expensive?

A knitwear business can be run in several ways. In one case, you can completely rely on yourself - both on the master and on the organizer. This option is suitable for those who are confident in their talent, knit exclusive things that are strikingly different from ready-made knitwear, and have been convinced from experience that the manufactured products are “salable”. The work will be carried out mainly to order, but you can also knit a model for the free sale - if there is time, of course (and knitters are often in short supply).

To implement things that are not related to specific customers, you will not find anything better than your own showroom, department, store. To help the master of the Internet - blogging with beautiful photos will attract new customers. With such an organization of work, each item will ideally suit the client, take into account all his wishes and parameters, be created in a single copy - which means that the cost of the product will be high.

Another option for doing business is suitable even for those who do not know how to knit at all, but have organizational inclinations. In this case, several knitters are hired, working either at home or in the atelier. If necessary, they provide them with equipment and knit things in whole lots at the request of points of sale. Of course, much more funds will be needed to implement this option. However, it is worth noting that material state support can also turn out to be much greater, because for each hired employee, the entrepreneur will receive a rather large amount. Making knitwear in batches reduces cost as well as exclusivity.

The expansion of the customer base

The main weapon of any master is word of mouth. One satisfied client told a friend, he was also pleased and shared with relatives - and away we go, everyone is tied up from head to toe.

Participation in exhibitions and fairs can also increase the number of potential customers - do not spare the money for the production of business cards by participating in such events. If you decide to sell finished products in departments, for example, selling yarn, leave your business cards there too.

A modern needlewoman who makes money from her hobby should take advantage of the possibilities of the Internet. This is a treasure trove of creative ideas and a lot of opportunities to get a client. Social network group, own blog, site - choose the most convenient option taking into account your target audience.

What about profit?

The creation and implementation of knitted items is not easy, especially if the craftswoman regards her work as a creative process, and not as conveyor work. Starting your own business from scratch and spending at least 200 thousand rubles (taking into account the purchase of a car, a stock of yarn, a steamer, the necessary tools), it is worth expecting that the expenses will pay off the fastest in a year, but rather in two or three. It is the same when organizing a knitting workshop. Although the costs will be higher, but the sale of products is guaranteed, the production rate is higher - as a result, the first net profit will also appear in a year or two after the start of work.

It should be borne in mind that knitting has its own seasonality - even with a stable demand for summer clothes in winter, there is still more work, and it is only on mittens and warm house slippers-socks that you can earn good money. What can we say about cozy sweaters with trendy Scandinavian patterns!

Eventually

Having decided to start your own business with needlework, be prepared for any outcome, but still hope for the best. The demand for handmade things is growing steadily, and gradually the consumer understands what causes high price on such products. Moreover, he agrees to this price at proper quality products. So the craftswoman only needs to add the organizer's ability to the knitter's talent and move according to the plan, loop by loop, to make a profit.

The main focus of our work is contract manufacturing knitwear (production of knitted products to order under the customer's trademark) in a regular way according to technology (knitting of product parts along the contour, without undercutting).

The ability to obtain on knitting machines parts of a product of a given shape is a very important advantage of modern knitwear production, as it allows you to obtain high quality products on an industrial scale. The absence of waste during cutting significantly reduces the consumption of raw materials for each product, which helps to reduce its cost.

KNITTING TECHNOLOGIES

Manufacturing of garments involves cutting fabrics according to patterns and subsequent sewing. In knitwear production, the choice of manufacturing methods is wider.

You can get a knitted product of a given shape in four ways: cut, regular, semi-regular and solid knitted. In the first case, the knitted fabric is cut out according to the patterns in the same way as the fabric, taking into account the direction of the stitches, the location of the pattern, etc. This method is mainly used for the production of thin products (T-shirts). With the regular method, the parts are knitted along the contour in the same way hand knitting... The semi-regular method is a cross between cut and semi-regular: coupons of the simplest geometric shapes are knitted with subsequent cutting, this method is mainly used in the production of cheap mass production and workwear. Most of the knitwear factories in Russia, Turkey and China produce knitwear using the semi-regular method. The one-piece knitting method allows you to knit a completely finished product on a knitting machine, which minimizes manual labor in production, but has a very high cost of product development and great restrictions on the weaves and shapes used. Each method has its own characteristics and, therefore, each has its own specific methods of sewing processing.

It should be noted that each of the technologies used requires a different equipment for knitting production, for example, for a semi-regular method, it is necessary to have cutting equipment, machines for a regular method must be equipped with a comb and a thread trimming system, for one-piece knitted products, special wide machines equipped with needles with an increased head size are used. for knitting through a needle. In addition, production using Fully Fashion technology requires high qualifications of programmers-desinators and a fashion designer-constructor.

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