The economic growth is based also on the process of new product development, and improvement of already existing products. Businesses with their development departments, outside development institutions and also every single person can add something to this process. Having this in mind we decided to try out this process ourselves, and create a new product. The goal of this project was to develop new wooden multifunctional furniture, which could be easily changed into different forms, and was also attractive to buyers. Besides, we also wanted to make the assembly of product ModiKO's different forms fun and playful. Through market survey we determined if there was a need for this type of products. Survey shows that there is a need for this type of products; however, we have to change a few details. It has also turned out that current economic situation is not favourable to this type of products, at least not on the Slovenian market. In the future the product will have to be improved further, and perhaps it would be reasonable to make a survey of foreign markets.