Average investment: from $5,000 (flower shop)
Approximate amortization period: from 1 year
It would seem: why think about how to open your own store?
You’ve chosen a product to sell, stocked up on staples, rented a space, and are expecting a well-deserved profit.
But anyone who has experienced this task in practice will confirm that everything is not so simple!
In order to open a point of sale that brings a stable profit and does not close in six months, you need to pay a lot of effort and attention to several points.
The main categories of tasks to be solved are discussed in detail in this article.
Advantages and disadvantages of the idea to open a store
For some reason, the idea of opening a store remains one of the most popular among newcomers to the business.
Although, like any other idea, it has drawbacks.
|Opening a store is considered one of the least stressful business ownership options.||Some store options require significant start-up capital.|
|Retail business is relatively easy to scale.||It is necessary to have a “financial cushion” to finance the business if things go wrong.|
|Profit depends only on desire and effort.||This business is associated with a number of risks.|
|Store management can be completely delegated to specialists.||The trade is highly competitive.|
|Opening a store is profitable and profitable if you organize your business correctly.||Even if the basic rules of the organization are observed, no one can guarantee 100% success of an entrepreneur.|
How to choose a niche to open your store?
Choosing a niche for a business is the first step for an entrepreneur.
In fact, other decisions depend on the products you choose to offer to your customers.
Lucky are those units that burn with an original and popular idea, so they don’t suffer with a choice.
But the rest need to do analytical work, given a few points:
- The level of competition.There is already a high level of competition in trade, so you should not analyze this moment before starting a business.This is not to say that if there is a supermarket nearby, opening a stall is a bad idea.It is enough to limit the direction of work (only pastries or bread) and everything will be fine.
- Demand analysis.If a business has no competitors, maybe it just won’t find an audience?Sometimes potentially profitable ideas from Europe simply turned out to be misunderstood by Russian buyers.And entrepreneurs had to close unprofitable enterprises until better times.
- Pay attention to whether there is seasonality in the chosen niche.For some newcomers, simply running the business during the “off-season” without preparation has proven to be detrimental to the business.If seasonality is pronounced, plan before opening a point how you will level it.
- Assess available resources.For example, the initial budget calculated according to the business plan should be increased by another 30-50%.Look at the resulting figure.Do you have this capital?Or do you mean investors who can provide financial support?
Calendar plan ideas for opening a store
A calendar plan is necessary to control the implementation of the idea of opening a store.
The timing depends on the chosen niche and the expected scale.
|Event||1 month||2 months||3 months|
|Registration and permissions|
|Sign a lease agreement|
|Execution of repair and finishing works|
|Purchase and installation of equipment, furniture|
|Start of an advertising campaign|
How to advertise your store?
It is worth starting to advertise a future store even before it opens.
Firstly, the store itself can be used as an advertising platform.
Put up a big banner with the opening date.
On X day, be sure to decorate the entrance, turn on the music, make special gifts for the first visitors.
In the future, you can use the following advertising methods:
- To make your customers permanent, offer special conditions.This may be a “Club of buyers”, regular promotions, the use of discount cards.
- Inform customers about discounts and promotions.To do this, you can use the distribution of brochures, mailing lists, the release of mini-newspapers from your store.
- Upselling is good for most niches, but don’t use it too often.
- Hire promoters to distribute flyers in nearby public areas.For grocery stores, distributing promotional materials to nearby home mailboxes works well.
Implementation steps to open your store
The actions required to open a point depend on the chosen niche.
However, some steps are common to all.
Registration and Permits
An online store can be opened without permissions, but offline activities require a lot of paperwork.
- To open a store, an entrepreneur registers an individual entrepreneur or LLC.Each option has its own advantages and disadvantages, so the choice is yours.
- To register a store, you need to decide on the basic data: name, legal address, composition of founders, form of taxation, and others.
- Registration includes registration in a number of organizations, funds (pension, medical, social insurance), printing and opening a current account.
- To obtain a work permit in the selected premises, it is necessary to pass inspections of the State Fire Supervision and Rospotrebnadzor.
- If you plan to use a cash register, do not forget about the need to obtain permission for it.
- The process of obtaining permits and other formalities can take a long time.Experienced businessmen advise, if possible, to delegate this task to specialists.The cost of the service is not particularly high (about 35,000 rubles), but the processing time will be significantly reduced.
Choice of location and premises
What else do you need to do before opening your store?
Decide on a place.
A novice entrepreneur may not be in a hurry to buy a territory.
It is best to start by renting a suitable location and then build on the success of your business.
When choosing a place, keep in mind:
- it is important that your customers have convenient access to public and private transport;
- a big plus is the presence of crowded places nearby (crossroads, underground passages, office centers);
- evaluate whether there is enough space to organize not only the trading floor, but also storage and technical premises.
The most profitable business in Russia
Recruitment for the store
Competently selected employees are half the success.
Don’t forget about training courses and incentives in the form of bonuses.
An approximate staff of a small store might look like this:
|Shop assistant||four||20 000|
|Total:||160 000 rub|
The functions of an accountant, security guard and cleaner are often delegated to other companies.
This saves on wages.
How much does it cost to open your store?
Opening a point may require both minimal investment and high costs.
It should be noted that trading is accompanied by a number of risks.
And if you invest large sums from someone else’s “pocket” into the business, the danger of the company grows exponentially.
Approximately the cost of opening a store can be represented by the example of a flower shop:
|Item of expenses||Quantity (rub.)|
|Repair and interior design||100,000|
|Purchase and installation of equipment||70 000|
|Launch of an advertising campaign||30,000|
|Total:||300 000 rub.|
List of estimated costs for the development of your store
Before the profits cover the costs, the entrepreneur must have a source for investing in TT.
An approximate list of monthly expenses for work looks like this:
|Item of expenses||Quantity (rub.)|
|Building rental||From 50 000|
|Employee salary||From 30 000|
|Total:||140 000 rub.|
How much can you earn if you open a store?
The potential of the store can be assessed in one or two months of work.
Once discovered, strengths and weaknesses that you may not have identified during the preliminary analysis will appear.
Additional fixes in progress.
Increase your inventory of popular products, organize a sale of obsolete products, expand your assortment and experiment with advertising.
The income of the store will depend on the chosen niche.
As a rule, it consists of several parts:
- direct profit due to the markup of goods (on average – 40-200%);
- use additional services (brand advertising, sale of “golden shelves”, paid delivery of products);
- income from the rental of space in the building of your store.
Practice shows that the average store needs at least 1-1.5 years to recoup the investment.
The video shows the basic steps to open a retail store:
Before opening your own store, an entrepreneur should think: can he take into account all the above subtleties and rules in the organization?
After all, any risk or unaccounted for error in the calculations can lead to collapse.
But with a competent and systematic approach, your own store can become a source of large stable income.
So believe in yourself and everything will work out!