The pandemic and social isolation forced businesses to adjust and change. Some companies suffer losses, others show growth dynamics and find new opportunities for themselves . The question is, what to invest in? How to assess risks? How to adequately calculate the amount of investments and the payback period at the planning stage?
A business plan provides answers to these and other questions.
Features of the retail business for the sale of semi-finished products
The social distancing request has made convenience stores popular. An attractive factor for such a store was the uninterrupted trade, assortment. The buyer began to react sensitively to the cost of goods, follow promotions and sales. Prefer cheap categories of products, for example, refuses meat in favor of convenience foods.
Sales of semi-finished products increased by 40%. The conclusions drawn are confirmed by retailer statistics for 2020.
Yermolinsky semi-finished products are an example of how enterprises show growth no matter what. The manufacturing company monthly announces the opening of new outlets in Russia. Moreover, it invests in the acquisition of a ready-made business in order to further expand the range. This is an example of a successful business strategy . To start your own business, you need to start by preparing a business plan.
Step by Step Business Plan for Opening a Convenience Store
Step one: choosing a location
The optimal area of a convenience store is 50-200 sq.m.
The budget option is the format of a kiosk or pavilion with an area of 15-20 sq.m., on the territory of shopping malls, food markets. This format is easier to implement without a large initial capital. Part of the costs and organizational issues will be covered by the administration. For a store “near the house” the first floor of a building, an apartment building, is suitable.
It is not recommended to rent basements, basements and semi-basements.
! It is important to familiarize yourself with the fire safety standards, Rospotrebnadzor, SanPiN in advance.
The key is choosing a location. Location affects the flow of customers and the cost of rent. It is important to assess the level of traffic, the proximity of residential areas, the presence of competitors. You can analyze the traffic yourself by counting the number of people near the store (in the morning, at lunchtime and at the end of the day). Finding a store in the city center, next to a student hostel, a public transport stop, will be an advantage.
The second stage: the choice of commercial equipment
At the start, used equipment is considered, and the fund is gradually updated. This option will not allow you to optimally use the retail space, it is important to think over the layout in advance.
You will need to purchase:
- refrigerated display cases;
- electronic balance;
- furniture for the work of the seller;
- office equipment and computer for doing business;
- cash machine.
It is preferable to buy new equipment : there will be a guarantee and confidence that the equipment has been used correctly. When choosing equipment, it is important to focus on the features of the premises, the product matrix, and the financial plan.
Third stage: selection of a supplier and purchase of goods
At the planning stage, a basic assortment matrix is compiled. The first experience will help to orient in this question. It is not necessary to buy goods in large volumes. Getting advice from suppliers and distributors in advance will help to avoid mistakes. At this stage, the details of delivery, acceptable terms and conditions of mutual settlements are discussed in detail. The shelf life of semi-finished products (subject to temperature conditions, 180 days ) is an advantage. Empty windows should not be, the first impression of the buyer is important.
The following are in demand:
- dumplings, dumplings;
- pancakes, cheesecakes, pancakes;
- minced meat, cutlets and semi-finished meat products;
- frozen fruits, berries and vegetables;
- confectionery ;
- seafood, crab and fish sticks, nuggets;
- cabbage rolls, pasties, pizza;
- sausages, Katy, kebab;
- manti, khinkali.
When choosing a supplier, pay attention to the availability of products in full, convenient delivery on time, favorable payment terms. Reviews on the Internet will help to form an idea about the supplier, before the first shipment.
Fourth stage: recruitment
It will take 2-4 people. The owner can also sell. You will need to hire a minimum number of people if employees combine several functions (for example, trade and cleaning). Salary, in this case, will be higher and will interest candidates. When an employee leaves, the functionality is redistributed without prejudice to the business. Recruitment takes an average of one month, so it is better to deal with this issue simultaneously with the search for premises and equipment.
Fifth stage: marketing and advertising
The calculation is based on the flow of people and regular customers living nearby. Therefore, it is important to think over the assortment, offer quality products, work out the pricing policy, and the convenience of the trading floor. Support the interest of buyers with promotions and new offers.
For promotion, use outdoor advertising, original design of signs and shop windows . Tell residents of neighboring houses about the opening of the store through flyers, booklets, messages on social networks. Encourage spontaneous purchase through tasting.
Analysis of expenses at the start-financial security of the business
- rent of premises and utility bills;
- purchase of equipment;
- salaries of hired employees;
- purchase of goods;
- tax payments;
- advertising and marketing;
It is not difficult to make calculations and understand how much money it will take to open a convenience store.
Rent of premises for a shop from 40,000 rubles. , involves placing a deposit. Purchase of the necessary equipment from 150,000 rubles. The average salary of two employees is 50,000 rubles . The purchase of goods and the maintenance of the assortment will require from 150,000 rubles. Prices differ in different regions, this fact must be taken into account when creating a financial plan.
- security, fire alarm, garbage disposal;
- redevelopment and renovation of the premises;
- salary of additional employees;
- registration of a legal entity, opening and maintenance of a current account;
- consumables, detergents.
Taking into account the costs of advertising, delivery, additional costs, it will take no less than 500,000 rubles to open a store.
For a trade kiosk, a pavilion, the costs are lower, and the competition in the food market is higher.
How to organize a store for a novice businessman if there is no necessary amount of money
- Attract a business partner, an investor who will also help run the business. With this option, it is necessary to transfer a percentage of the profit, in proportion to the amount of the partner’s invested funds.
- Get a loan from the Bank. However, the Bank will charge a high percentage because no business experience. You will need to prepare a package of documents, including a business plan. Provide collateral for a loan, pledge of personal property.
- Take advantage of government subsidies. A subsidy is provided to citizens who are registered at the employment center for a year and cannot find a job. But, the amount will not cover all expenses. You can find out what additional support measures exist in the region for start-up entrepreneurs on the website of the employment center and the city administration.
How much can you earn selling semi-finished products
The amount of possible earnings directly depends on the location of the store, favorable conditions for working with suppliers, cost optimization.
The business is highly profitable. At the initial stage – 15% and reaches 30% as sales volumes grow .
The average markup on products is 30%. Depends on the region, information on markups is available on the Rosstat website. By requesting the price of the supplier and comparing it with the prices of competitors, you can independently conduct an analysis. We need to optimize costs. Work out in advance what to save on without damaging the enterprise.
Possible business problems and risks
- Non-compliance of the premises with established standards, additional costs for repairs and redevelopment.
- Overpriced products, poor choice of supplier.
- Poor quality products, poor quality.
- Low flow of buyers, wrong choice of location.
- No ads.
How can you save money and minimize risks?
- Avoid spending on repairs and redevelopment by renting a space that has been used for similar commercial purposes and does not require costs. Perform work on account of payment of rental payments, as agreed with the landlord.
- Independently prepare promotional materials without involving a designer. Use free resources for this or hire a freelancer.
- It is budgetary to equip utility rooms that the buyer does not see.
- Buy used furniture and office equipment.
Here’s what you shouldn’t skimp on
- Do not save on the services of an accountant, in the absence of tax reporting skills.
- Neglect what is directly related to fire safety standards, Rospotrebnadzor, SanPiN. Including on refrigeration equipment and showcases. They must be in good condition.
- Save on the salaries of employees at the initial stage of work.
- You can not neglect the quality of the products sold.
- Refuse ads.
If your own brand is not a priority and there is a willingness to implement a project under the guidance of another company, a franchise of a well-known brand is acquired. The franchisor helps with documents, selection of premises, equipment, marketing. Trains staff and owner. Working on a franchise will reduce risks, help avoid financial losses and pay back investments within a year. For the experience and the right to use the trademark, the franchisor takes a one-time and regular fee (lump sum, royalties).
Example of a successful franchise: trade and retail company “ERMOLINO PRODUCTS”
The company has been operating since 2000, is engaged in the production and sale of deep-frozen products, conservation, sausages, confectionery and pasta. 105 items of goods. The trademark is represented by a wide partner network and covers 500 cities of Russia.
Products under the TM “ERMOLINO PRODUCTS” are widely known to the buyer, are designed for the middle price segment and are sold only through branded stores of the network. The company has three own factories in the Kaluga region, which are among the five largest manufacturing enterprises in the region and do not depend on imported raw materials.
Conditions and features of acquiring a franchise of the SEC “ERMOLINO PRODUCTS”
- Yermolinsky semi-finished products are sold through a company network.
- The contract is concluded for a minimum period of 3 years.
- The franchisee must have experience in management and work in a similar field. Confirm the start-up capital for the implementation of the project.
- Opening a store is only possible in a region with a low risk score.
- Offers flexible conditions, taking into account the characteristics of each partner.
Disadvantages of Franchising
- the entrepreneur follows the rules of the parent company;
- no initiative. To change or introduce something new, the consent of the franchisor is required;
- additional costs (the franchisee pays a lump-sum fee and royalties);
- dependence on the reputation of the franchisor. If the brand has problems, then this will be reflected in the network of partners.
Benefits of a Franchise
- the franchisor gives instructions and shares experience, points out how to save money and time;
- the main company trains staff and franchisees;
- the brand is already known, the reputation has been developed, so less funds are needed for advertising.
Opening a store of semi-finished products under a franchise or on its own will bring income to a novice entrepreneur, and taking into account the current trend, it has prospects for growth and development. This is important in times of crisis.