I.

Introduction

1.1 Background

The furniture industry is one of the growing industrial sectors in Indonesia. The need for furniture
industry products continues to increase because this industrial sector provides interior design and
artistic value that can provide comfort so that it can support various activities. Indonesian furniture now
also plays an important role as a source of foreign exchange for the country due to product enthusiasts
not only domestically but also abroad. This situation makes furniture producers compete to produce
quality products in accordance with the wishes of consumers.

1.2 Purpose

1. Provide employment opportunities for the surrounding community

2. get as big a profit

3. beautify the room and make it more comfortable

II. DISCUSSION

2.1. Product Diversity

The products that we produce are: a set of living room chairs, a set of chairs for the dining room, a
wardrobe.

Here we are more expecting to order first, you can choose the model you like after that you can
determine the price you want, we usually use teak for optimal results but we also have several other
options such as mahogany, wood, wood pine, cedar wood, sungkai wood, and ramin wood
2.3. Financial management

In order to develop the furniture business to be more productive, a number of management systems are
needed. The management system is very useful for small business people, so it takes some deep
understanding and attention to be able to implement good and right small business management. We
will use the profit-sharing financial management system, which is by dividing the results wisely between
himself and his employees.

Employees are paid a monthly fee of around Rp. 2,000,000 and then also provide additional bonuses in
the form of material or non-material for their employees if they succeed in making a unique furniture
product, which of course has aesthetic value and high economic value. Indeed, if you think that the
wages given to employees are very small, but because this is a small business that is not legal or
informal, then it feels that the wages are sufficient for its employees, especially the products produced
from this furniture business are not on a large scale.

Actually there is a management that is very appropriate in developing the SME business, especially
furniture business like this is with strategic management. Strategic management is a science in the
preparation, implementation and evaluation of cross-functional decisions that can enable a non-formal
home / small business industry to achieve its goals. Based on this definition, strategic management
focuses on the process of setting organizational goals, developing policies and planning to achieve goals,
and allocating resources to implement policies and plan for achieving organizational goals.

In addition to using strategic management, a marketing system will be carried out by marketing their
own marketed furniture to the surrounding communities, or by door to door (offering furniture directly
to their neighbors) or by partnering with middlemen through shops. a shop or show room that informs
furniture that is being favored by consumers in addition to providing business capital loans. The
relationship between small furniture industry entrepreneurs with show room owners and intermediary
traders gave birth to a partnership model with a trade pattern. While the relationship with the home
industry gave birth to a partnership model of production.
2.4. Amount of Capital

The capital to open a furniture business is estimated to cost around 50 to 70 million rupiah, which is
personal capital and borrowing capital from banks. Most of them buy carpentry equipment (including
ordering semi-finished raw materials from Jepara). Meanwhile, to buy wood, paint, varnish and
sandpaper requires funds of around Rp. 10 million per month, the rest is operational costs, such as
electricity and water.

The capital that will be prepared to open this furniture business in addition to money is also the
experience of a carpenter's network. The artisan network in question is to have acquaintances in the
Jepara area so that they can easily order furniture raw materials in the form of semi-finished furniture
products. Then, when we first opened this furniture business, we would call a handyman who had direct
experience from Japan as a center for making furniture crafts to teach his other employees in sculpting,
painting, making beautiful carvings on furniture products that would be produced.

this method is expected employees will become more skilled in making a furniture product, for example
making a set of living room chairs made from teak with a beautiful carving motif, or by making a
beautiful study table. If the employees already have the skills in processing teak / semi-finished raw
materials, they will not encounter difficulties in the future

2.5. Expenditures Per Month and Amount of Profit

Estimates of the profits that will be obtained from the non-formal furniture business business are quite
large. The following is a list of prices for furniture that will be produced

Product Name of Monthly Revenue Price

Dining room Set Rp. 4,800,000 Rp. 14,400,000

Dining table + chair Rp. 2,700,000 Rp. 8,100,000

Study Table Rp. 970,000 Rp. 6,790,000

Living room set Rp. 5,000,000 Rp. 15,000,000

Cabinet Rp. 3,000,000 Rp. 15,000,000

Window Rp. 500,000 Rp. 5,000,000

Door Rp. 1,000,000 Rp. 5,000,000

Rp. 1,000,000 Rp. 7,000,000

Amount of Rp. 76,290,000

Based on the price, it is expected to be able to reap a profit of around 50 million per month.
As for the expenditure (monthly) electricity + water Rp. 5,000,000 Transportation Rp. 3,000,000 Raw
materials + auxiliary materials Rp. 15,000,000, total worker salary Rp. 16,000,000. total expenditure of
Rp.39,000,000. so that a monthly profit of Rp. 37,290,000 can be obtained

2.6. Development Prospects

The development prospects will establish cooperation with one of the housing developers around the
place of business. Of course, we must first look at how the economic level of the community in housing,
if middle to upper, we will dare to offer furniture products at a high enough price, but if the economy is
moderate, we will offer the price of furniture products at a slightly tilted price compared to other
furniture entrepreneurs. we're accepting the exchange of a living room chair, and fix furniture items
owned by the community in the housing

2.7. Marketing

In conducting product marketing, we will carry out several marketing strategies, including making
brochures, making advertisements or promoting through social media, direct marketing, providing
explanations about products that are made so that people understand it, giving discounts for initial
production, promoting furniture in certain areas.

2.8. Constraints

A business that is quite classic in the world of small businesses, especially non-formal ones like those
that will be risk is capital. In addition to capital as a major obstacle in the development of this furniture
business, it is very difficult to obtain mature wood raw materials that are ready to be processed,
therefore we offer as best as possible.

2.9. Business Names

The business name that we use is EBEN FURNITURE, I use the name Eben because eben is another name
for ebony wood which is now threatened with extinction.
III CLOSING

3.1 Conclusions

1. The benefit of setting up a business is to increase experience in developing a business and making
your family comfortable with the atmosphere at home

3.2 Suggestions

This type of furniture business needs to be continuously developed, so that it can be more advanced and
can be combined so that it is easier to borrow money from banks as additional capital. This effort can
also be one of the businesses that improve the economy in Indonesia through a network of small
business businesses.