Welcome to the website for making money Business Ideas. Today we’ll talk about organizing a small business producing forged products using the cold forging method.
Based on the title cold forging is the processing of metal without increasing 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 forging hammer. Products produced using cold forging are durable, which allows them to outperform stamping and casting.
Mostly units and machines for cold forging act on the material with mechanical force, bending the source material (rods, sheets, pipes, strips, fittings) and giving it the shape intended by the manufacturer. The impact on the metal is carried out through manual force using levers and turn signals or through a machine with an electric motor.
The machines are equipped with various equipment, which allows the production of a large number of identical parts. From which this or that object will subsequently be assembled. The range of possible products is directly related to the number of operations that the equipment is capable of. One can accept this fact as negative, although with only imagination and this number of operations is enough to create a huge number of metal processing options.
An approximate list of areas where it is possible to use cold forging and further implementation:
- Various fences, gates.
- Decorations of residential buildings, namely lantern holders, fencing for balconies, verandas, stairs.
- Gazebo decorations, garden furniture.
- All kinds of gratings.
When organizing your own business based on cold rolling of metal by hand, you should pay attention to some nuances that make cold forging an excellent start for an entrepreneur practically from scratch. To get up to speed on the above-mentioned nuances, you need to have a specific understanding of what stages production consists of and, naturally, the required forging equipment.
DIY cold forging equipment Naturally, we need to start from the imagination. In other words, you need to clearly present the finished product.
Sketch construction. If you have sufficient 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 Internet.
Bringing the sketch to the natural size of the product. This is done in order to calculate the number of required elements that will be used in further assembly.
Calculation of materials used. Preparation of base material, cutting and planning.
Before any manipulations, the metal must be cleaned of rust, if any.
Direct cutting and slicing of starting material.
The planned elements of the future product are produced using a cold forging machine.
Product assembly. This process can be carried out in stages or in one go. It depends on the sketch that precedes the work.
Upon completion of installation, the welding areas are cleaned, and the assembled product is primed and painted.
At the end of the completed manipulations, you simply need to install the product in its intended place.
To produce things through cold forging, you need to stock up on the necessary equipment, such as:
- Gnutik. It is used when bending a square, circle, or turning a rod at an angle.
- Wave equipment. As the name suggests, the material processed in this way takes on the shape of a wave.
- The snail allows you to roll the rod into a spiral.
- The twister twists 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.
Machines for cold metal forging 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.
Machines are not the only required equipment; you should definitely purchase add-ons:
- Circular saw or grinder with a milling cutter. These tools are required when cutting pipes, rods, etc.
- Welding machine.
- Tools for cleaning metal from rust and grinding welded seams.
Required financial investments
Six machines in the case of metal rolling by cold welding can be purchased for approximately 100 thousand rubles. Additional tools cost 50 thousand rubles. You can often find advice that to save money you should place production in your 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 locate production in a rented warehouse somewhere in an industrial zone.
The size of the room must be at least 60 square meters. It is desirable to have a covered ramp that will allow you to store metal reserves and finished products. And it will not complicate the process of loading or unloading products that need to be installed.
The workshop must be equipped with workbenches, stocks and work surfaces. The workshop must be well ventilated, that is, a high-quality ventilation system should be installed.
Preparation of the production premises will cost approximately 60 thousand rubles. The result is 305 thousand rubles.
Expenses in the present
Production requires approximately five people:
- Two employees who will be employed in the production of individual components, with a salary of 20 thousand rubles per month each.
- Welder with a salary of 30 thousand rubles.
- Two auxiliary workers with a salary of 15 thousand rubles each.
Payment for the labor activities of the staff will be 100 thousand rubles. The cost of purchasing electrodes, special clothing and payment for consumed electricity is 15 thousand rubles.
The average cost estimate for the required material is 25 thousand rubles. The approximate weight of one span of a 2 by 2 meter fence is 30 kg. The workshop can produce 30 spans per day. 900 kg of material will be spent in one day, and 27 tons in a month. Based on these calculations, 675 thousand rubles per month will be spent on providing metal.
Profit and payback
The approximate price of a fairly simple span of forged fence on the market is 8 thousand rubles. The workshop produces 30 spans 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 6,409,500 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 business lies in the fact that if the product is complex, its artistic value increases, increasing the profit from sales. There is a geometric progression in the growth of complexity and price.
It is easier for a company to start with simple designs, but in the future it is necessary to grow professionally.
The same applies to machines. When starting a business, you can also use homemade equipment. And the staff will be limited to two employees. Do not forget that cold forging requires a lot of physical effort, and the productivity relative to the costs is not high. If production is fully automated, the costs will be 2 million rubles.
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Artistic metal forging is not very expensive, but quite a profitable business idea. This project can be implemented in any city and district, village and regional center.
What it is?
Artistic forging products have recently become quite widespread. These are textured gates and fences made of metal, balcony frames and gratings. These beautiful products are also used for front gardens and as fences in cemeteries.
In former times, the artistic forging method was used to produce all these items. This required special equipment and tools. A workshop was also needed where the forging process itself took place. However, over time, everything changed.
The old technology was replaced with a new, more improved one. It's called cold. At the same time, products are produced whose appearance resembles ancient ones, but forging in a forge is not used in their production.
First steps
In order for the planned project to be successful, you will need to have at least the minimum necessary equipment, have ingenuity and good physical strength. An idea can become a reality and allow you to make money only if a competent business plan is drawn up.
Artistic forging will bring the desired profit if all points of this document are strictly observed. The business plan should consider all the details of the future project, including the location where the workshop will be located and the choice of necessary equipment.
Stages of business development
The choice of location where the workshop will be located is of great importance. Currently, a large number of elite class villages are being built. The houses in them will belong to successful entrepreneurs, officials, and the Russian elite. The location of the workshop on the way to these places should be included in the business plan being drawn up. In this case, artistic forging will quickly become in demand.
However, it is not always possible to achieve our plans. Therefore, you will need to provide for the costs of conducting an advertising campaign on the Internet. They should also be taken into account during the period when a business plan is being drawn up. Art forging can be advertised through advertisements on street billboards, on television and in local media. Only in this case will the business idea begin to take on real shape.
Selecting a room
The next stage in business development will be finding a place for a future workshop. In this case, the premises must have an area of at least one hundred square meters and be equipped with sewerage, water supply, and electricity supply. If the scale of the future project is small, then a garage will be enough.
Equipment
The clause that provides for the purchase of a small universal machine should also contain a business plan being drawn up. Artistic forging does not require the purchase of expensive equipment produced by a foreign manufacturer. A domestic machine designed for the production of “crow’s feet”, “peaks” and “baskets” can be purchased. The resulting blanks, then brought to marketable condition, will help you get your first money.
An artistic forging machine from a domestic manufacturer can perform spirals, curling, and longitudinal twisting. This universal equipment will need to be supplemented with the following:
Drilling machine;
Welding machine;
Bulgarian;
Other small improvised tools.
Purchasing good equipment will increase the profitability of your business to impressive heights. Ideally, it is advisable to equip the workshop with machines designed for twisting, bending and applying designs to the strip. It is also advisable to have equipment for forming, sizing, pressing, stamping and straightening.
Products in the creation of which artistic forging was used will be of high quality if you use such specialized equipment as a semi-automatic vertical press with a force of up to one hundred tons, saws designed for cutting metal, a lathe and milling machine. To paint finished products, you will need spray guns, and to store tools and workpieces, you will need racks. All this equipment can be purchased for 3-4 million rubles.
Required material
After equipping the workshop with equipment, you will need to invest money in the purchase of consumable raw materials and hardware. First of all, these should be metal rods with a diameter of eight to twenty millimeters. Such consumables will be required for the manufacture of spiral curling and longitudinal twisting to obtain a “basket”.
Do-it-yourself artistic forging will require squares and corners, sheets and pipes. As a rule, the range of procured raw materials directly depends on the type of order. As for the characteristics of the metal, experienced blacksmiths recommend purchasing low-carbon steel marked “St0”, “St1”, and also “St2”. This material is best suited for artistic forging.
The list of consumables includes paint intended for anti-corrosion protection. You can even buy a car. Two or three layers of such paint will highly reliably protect products from exposure to adverse factors.
Cleaning and cutting wheels, primer and electrodes, as well as solvents must be purchased as consumables.
Assortment list of products
If you are organizing a workshop where you will produce artistic forging with your own hands, samples should be displayed in the room to demonstrate the products to clients. For clarity, an advertising colorful booklet with finished products or a photo album can be issued. It is advisable to place high-quality photographs of products on your own website on the Internet.
The finished product will look good even before entering the workshop itself. You can place garden benches and window bars there.
A workshop for the production of artistic forged products can produce gates and fences, iron furniture and fireplace accessories, exclusive lamps and benches, awnings and window grilles, as well as much more.
Features of the technology
The production process in which artistic forging is performed has its own characteristics. First of all, it is characterized by minimal costs for purchasing equipment, which makes it possible to make the price of finished products affordable.
In addition, artistic forging, the equipment for which in the form of a press, hammer and hydraulic apparatus is made independently, will pay for itself within a short period - from one week to a month. Such machines can, if necessary, be transported to another room.
Artistic forging, done with your own hands, does not require special skills and knowledge, because mastering a hammer, press and other necessary equipment cannot be called a complex process.
At its core, cold forging is a process in which a fairly thin sheet of metal is bent. The material does not require preheating. The purchased rod is cleaned of rust with a metal brush, which is put on the grinder. Next, the frame of the future product is assembled on any flat surface (table, workbench, etc.).
The corners are welded. Then the future pattern is applied to the asphalt or chipboard, its elements are measured, and the rod is cut according to their sizes. In order to deform the workpieces, a special device is created, which consists of two pins welded to a flat surface at a distance of two to three centimeters from each other.
After this, the rods are bent with a hammer. During the production process, the workpiece must be constantly compared with the stencil. The next stage is assembly, and after that – welding. The elements are laid out on the stencil in such a way as to assemble the required pattern. Excess pieces of rods must be cut off. The product is welded first on one side and then on the other.
Shutdown
The next step is cleaning and welding ready-made forging elements, which are purchased in advance, to the product. The metal is then coated with white primer and painted. To make the product more attractive, it can be aged and gilded, and it will practically not differ from what was forged in a forge.
* The calculations use average data for Russia
Currently, blacksmithing has been 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 produce the desired product according to his individual order. The profession of a blacksmith today can also become an opportunity to earn money, and there are enough prospects in such an endeavor.
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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, the person who produces such products must have artistic taste and the ability to create truly 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 in order to earn money, but there are also entrepreneurs who do not stand at the machine themselves, but hire people and open an enterprise for the production 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 made by hand, which adds value to them. A business in artistic forging can be classified as a small type of business, because the volumes will be small, and you need relatively little money to start. At the same time, the level of competition in most cases is quite low; factories producing forged products are not direct competitors, although when entering the market, their offers and positions also need to be studied and focused in their work on the fact that a certain percentage of consumers will choose between a factory product and made by hand.
As for direct competitors, we can say that not all cities have offers of artisans, and even in large settlements there are rarely more than 10 blacksmiths working. 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 clients, forming your regular client 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, clients will come to the blacksmith only because he makes certain and unique things.
To start your work, you need to register as a business entity. If an entrepreneur himself is a blacksmith, then it is easier for him to register as an individual entrepreneur, because this will not require large investments from him, the whole procedure will take a little time and take a little effort. In future work, if you register yourself as an individual entrepreneur, you will not have to maintain complex reporting, and taxes can be paid according to a simplified taxation system. This involves transferring no more than 6 percent of income or 15 percent of operating activities to the state. If there is a need to register a legal entity, then the preferred form is a limited liability company, because in this case you will not have to bear responsibility with your own property for the debts of the enterprise, and a simplified taxation system will also be available. It makes sense to register a legal entity if the company is opened by several people or a fairly large-scale expansion of activities is planned. The activity itself falls under the definitions (OKPD 2) 25.12 Doors and windows made of metal, (OKPD 2) 25.62 Services for processing metal products using basic technological processes of mechanical engineering, (OKPD 2) 25.99 Other finished metal products, not included in other groups. You will not need any special permits for your activities, 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, you will need a room, while many blacksmiths literally work from their own homes, because at the moment there is equipment that is not large in size, but allows you to produce 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 increases significantly. However, this is more like organizing a full-fledged factory; for artistic forging, 50-70 square meters of production space is enough.
However, in addition to this, you need to take care of organizing your warehouse of finished products, while artistic forging involves the production of not only small products, but also fairly large metal structures such as gates or fencing 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 from home, then you need to rent premises, and it is advisable to locate it in the central areas of the city for the convenience of your consumers. The cost of renting a room greatly depends on the city of work and location in it, as well as on many other factors. For the interior arrangement of the premises, you will not need too much money, because if it is a rented premises, it may just require cosmetic repairs, and in some cases, organizing your own office, but here you will only need to buy office furniture and equipment. If a blacksmith works himself, then he usually independently negotiates with customers, 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 this, the client discusses the details and appearance of the product with the designer, and only after that the order is transferred to the craftsmen. If a more complex work scheme is organized, then it is necessary to allocate work places for all employees.
Next comes 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 workpieces, however, for full-fledged work you will need to buy equipment for one and the other processing method. It is in this case that it will be possible to offer its consumers a wide range of possible products and high-quality products that compare favorably with the offers of competitors. The cost of equipment can vary greatly depending on how technologically advanced and modern the machines are purchased, on their performance, on the manufacturer’s brand (Chinese ones are an order of magnitude cheaper than European ones), as well as on the overall characteristics and available operations. To work, you will need a special artistic forging machine, a hydraulic press, a rolling and forming machine, a bending and finishing machine, bending machines, rollers, cutting machines and sheet bending and profile bending machines. 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 workplace for an amount not exceeding 100 thousand rubles, but for that kind of money you can only get units if artistic forging is a hobby, and the master is just starting to do it and does not plan to use it as a business idea. Professional equipment costs an order of magnitude more, 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, and in addition to them you need to buy other equipment. In general, the amount of starting investment for a business based on artistic forging is usually at least one million rubles.
As already noted, such a business can be run alone if the entrepreneur himself is a blacksmith and manufactures products to individual orders. Many blacksmiths make a living from this, but in their work they focus on producing unique products with an excellent appearance. However, this idea can be developed, but in this case it will be necessary to attract additional specialists 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 clients, receive them in the office and answer their questions over the 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 metalsmith can be a good designer at the same time, everyone must do his own thing, and usually the blacksmith simply fulfills the 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 production involves the production of fairly 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 of warehouse premises. To work, blacksmiths need assistants who can perform simpler work, such as painting and applying primer.
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All business processes that are not related to the organization’s profit making should be outsourced; This primarily includes accounting, as well as advice on tax and legal issues, because in this type of business it is not so often necessary to seek help from competent lawyers and tax consultants. Ensuring the safety and security of your enterprise, if it is really necessary, is better to transfer to a private security organization.
Also in your work you may need to organize logistics and marketing departments. The first is necessary only if there is a large number of orders, including from other cities, if you have to cooperate with a large number of clients 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. In the case of home or small production, you will have to cooperate with companies that supply rolled metal in small wholesale.
The average cost of 1 ton is about thirty thousand rubles, but it must be taken into account that in the production process it is necessary to use a variety of materials; the simplest example would be 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 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 a large number 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 a company wants to expand its field of activity and attract new customers. Otherwise, you can get by with organizing a simple advertising campaign, providing information about yourself in local media, as well as on thematic portals on the Internet. If possible, it is very advisable to create your own website with information about yourself and a 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 company’s work and, possibly, opt for a product from the catalog, which significantly simplifies the processing time of his application. However, creating a website may not be enough and will require optimization to ensure it appears first in searches. If you do not have 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 truly high-quality product with an aesthetically attractive appearance. Some companies focus on simpler people, so they offer the production of slightly cheaper designs, but only according to standard drawings, perhaps with the addition of a small number of their own changes. In any case, there is a consumer in both areas; Some entrepreneurs are trying to reach as many potential consumers as possible, so 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 a supplier of electronic automatic systems, as well as hire specialists to install these systems, which in some cases may not be practical, for example, when the manufacture of fences and gates is not the main activity of the company. The company usually gives a discount when ordering a large number of metal structures; the customer will really appreciate the opportunity to save on a large order.
The simplest designs cost approximately two thousand rubles per 1 square meter for the consumer, but the cost of artistic forging itself 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 final price includes a reward for the skill of the blacksmith. However, here it can be noted that in some cases it is necessary to consume a fairly large amount of material to obtain a relatively small product.
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