During a crisis, the purchasing power of a significant part of the population decreases significantly. For this reason, many goods and services become unclaimed. Therefore, all entrepreneurs need to know what is profitable to sell during a crisis. At a time when the economic situation is difficult, people concentrate their spending on goods and services that they cannot do without.

To achieve high business efficiency during a crisis, it is enough to make a list of essential goods, and then find out in which segment there is a shortage in your city or region. The scale of activity is limited only by the type of product and the amount of start-up capital.

Business in crisis - what to open so as not to make a mistake?

First of all, entrepreneurs are interested in what exactly to do during a crisis so as not to go broke. Below are some examples. All these types of business have a common feature - the provision of services and goods that consumers need regardless of the current economic situation.

Foodstuffs

Food remains an essential commodity at any time. Despite the crisis, people continue to eat. Of course, when selling delicacies and expensive products, getting high incomes will be problematic. If you are thinking about opening a business in which you definitely won’t go broke or make a mistake, then pay attention to the sale of food products. With little capital you can organize.

The most profitable would be the sale of inexpensive cereals. Accordingly, purchases must be made at wholesale centers at the lowest possible prices, which will require certain costs. Also, the right decision would be to conclude an agreement with bakeries for the supply of inexpensive and social types of bakery products. To ensure low cost, it is better to purchase vegetables from farmers directly.

It will take some time to establish business contacts, but buyers will flow like a river to those who can provide a lower cost. Fewer competitors means lower product costs for the store, which increases profits. To estimate the order of current expenses, pay attention to. During a crisis, opening such an establishment is risky, but if you choose a suitable location, the number of clients will be quite large.

Medicines

Medicines and devices from the healthcare sector are something that will always be in demand. They say that money can’t buy health, but no one wants to do without the help of appropriate means. This is a profitable direction that does not lose customers at any time. It would not be an exaggeration to say that today medicines are among the basic necessities. Open a personal pharmacy or even a small chain. No one wants to save on their health, so sales of medicines do not decrease even in the most difficult crisis, and sometimes, on the contrary, show a certain increase.

Hygiene items

Among the essential goods, personal hygiene items can also be identified. During a crisis, the level of sales of such goods may decrease slightly, but this only affects expensive products imported from abroad. In addition, consumers prefer to replace it with affordable domestic analogues. Among personal care products, the highest sales levels are shown by washing powders, toothpastes, shampoos, cleaning products, deodorants and perfumes. Firms selling such goods are able to survive any crisis if they have products on their shelves at affordable prices. It is beneficial to organize periodic ones, not timed to coincide with public holidays. For example, give small discounts on a certain day of the week.

Profitable business in times of crisis

Even in a crisis, you can start a profitable business that will generate a stable income. Demand for expensive goods is falling, but repairing electronics, purchasing components, etc. show large volumes. Instead of purchasing new products, many people prefer to repair existing ones.

Auto parts

During a crisis, many people refrain from purchasing new cars, so trading spare parts in such economic conditions is very profitable. The first step is to evaluate the segment in your region. You can organize sales both in your store and online. First of all, it is worth expanding the range, but you should not purchase parts for expensive models, since they are purchased at the appropriate centers. The only option to avoid inappropriate spending of working capital is to purchase the relevant elements only on pre-order.

Advice: in a crisis, those who can offer a wide range of products both at price and product levels make good money. In an auto parts store, it is beneficial to set up stands with a variety of technical fluids, consumables, motor oils, etc.

In a crisis, an auto parts store is an excellent option for a small town. This business can be developed to cover multiple market segments. For example, add a small auto repair shop, where you can immediately install the necessary part or create a car wash point. In the latter case, the best option would be the one that provides self-service, and therefore a lower cost of the service.

It should be noted that trading in spare parts for cars is the most profitable investment option in times of crisis. Many people can open such a business, but there are no fundamental requirements for those who will be directly involved in trade. This allows you to hire several workers according to a piece-rate payment scheme - to organize a certain minimum rate with an additional payment for successful transactions. At the same time, you can independently engage in the development of another direction.

Construction materials

After a strong increase in the value of the currency, imported building materials became significantly more expensive, and their purchase became unprofitable. However, the need for appropriate materials has not changed. Establishing a business for the production of building materials in 2016 will provide a large number of orders, but this will require maintaining product quality at a high level. To do this, you will need to purchase expensive equipment, although for certain types of production in this business segment you can limit yourself to small expenses.

The biggest crisis in the construction segment is expected at the end of 2016, when the construction of a number of large projects will be completed. During a crisis, buying real estate is one of the most noticeable trends. Developers are responding to this by increasing the volume of work and starting to create multi-storey buildings with a small area of ​​individual apartments, which is more profitable given the low level of income of the population. In addition to them, private individuals are also engaged in construction, preferring to hire a small team of workers and purchase building materials from local manufacturers who offer goods at a lower cost. The absence of the need for expensive delivery also plays a role.

What sells well during a crisis?

During a crisis, everyone is looking for better quality products at a lower cost. If you know the relevant market, you can earn your income through intermediary transactions. Of course, in difficult economic times, it will not be possible to make a large markup, but if the process is organized correctly, the turnover will be really large.

Chinese products

Many people know that in China you can remotely purchase most goods at reduced prices. This situation in the consumer goods market is due to the lower cost of labor when compared with our state. Thus, we can talk about lower costs in this production. Today, Chinese manufacturers offer children's toys, shoes, clothing, various production equipment, electronics and other goods at low cost.

This gives us the opportunity to earn money by selling goods from China. The simplest method is dropshipping - that is, acting as an intermediary between the seller and the buyer. The difference from trade is that you do not purchase goods and do not ensure their storage and delivery, but are solely engaged in searching for buyers. To engage in this type of business, it is enough to open your own online store, as well as resell goods from Chinese suppliers. The list will help you with this.

Cloth

Regardless of the crisis, things continue to wear out and people need to update their wardrobes. If you doubt which products will sell well during a crisis, open a clothing store and you won’t go wrong. There are certain differences between the clothing market and the food sector. There are people who prefer to wear out old things, at least sending them for repairs. However, there is no significant drop in demand.

There is a redistribution of sales levels across various segments: middle-level goods are being purchased less frequently, while cheap and expensive clothes, on the contrary, are being purchased more often. Since clothing items lose their versatility, during a crisis, citizens try to spend less on one set, but in total specialized stores still make quite a large profit.

The maximum income is received by those who provide the widest range. You can create departments for used, inexpensive, mid-range and high-end clothing. The proximity of second-hand retail trade and expensive clothing can show high efficiency if the retail space is properly organized. This business thrives even in the most difficult economic conditions.

What services are in demand during a crisis?

During a crisis, you can sell not only goods, but also certain services. Consulting is becoming especially relevant, but it is important to choose a sought-after area and convey information about your services to potential clients. This can be done even with minimal investment. Combining services with the sale of themed products also shows good results.

Services and goods for holiday and mourning rituals

Regardless of the crisis, people are born, organize marriages, celebrate the birth of children, birthdays, and die. These processes cannot be slowed down or completely canceled, since they are an integral part of human life. For this reason, business providing funeral goods and services is in stable demand. Almost anyone can open such a business, even if they have no experience.

This is the simplest method of starting your own business with a minimum level of investment in 2016. Before starting work, it is necessary to clearly define the specific direction of activity. Some ritual goods can be purchased with payment upon sale, which makes it possible to save on individual purchases. If you start offering customers high-level service and quality products, you can get high profits even in a crisis.

Training for crisis managers

During a crisis, many business owners hope to find special managers to reorganize their activities during difficult economic times. They change the basic principles of operation of the enterprise so that the enterprise can receive greater benefits under changed conditions. There are quite a few such specialists in our country, so many managers are forced to take appropriate courses on the instructions of management. If you have personal knowledge in a relevant field or know someone who can become a teacher in this field, consider that 2016 will be profitable for you.

Organizing such courses is quite easy, while the benefits from this type of activity are especially high today. Knowledge and experience are a commodity that is constantly in demand. Professionals in any field are valued by businessmen for their experience in a particular type of activity.

Advice: You can organize a whole group of training courses, and also actively attract clients. To expand your audience reach, it is advisable to create a platform on the Internet through which you can provide paid information to a huge number of clients.

What to trade during the 2016 crisis in a small town?

Small towns have their own specifics. On the one hand, large players are often absent from such markets, on the other hand, clients are divided between existing enterprises, and luring them under normal conditions is a rather non-trivial task. During a crisis, the cost of goods comes first. Offer a lower price for similar products or take up space in a new direction.

Goods for children

During the crisis, there remains a demand for quality goods for children, which makes this direction very profitable. All parents intend to give the best to their children. Some fathers and mothers, who are forced to spend even more time at work and providing a more comfortable environment, try to compensate for the lack of their own attention to them. Today there is an increase in sales of children's goods. If you ask experts what is best to sell during a crisis, you may get different answers, but selling toys, clothing and hygiene products for children will come up quite often.

If you want to open, then relying on children's clothing items is a risky choice. Many people do not refuse used clothes, while new things are usually very expensive. There is no need to completely abandon the corresponding segment, but there is no need to significantly expand the range, because the benefits will be concentrated in other sections of this product group.

Alcohol products

In times of crisis, the issue of relieving stress and providing leisure comes to the fore. Alcohol products play an important role in this, so you can organize a profitable business based on this, which will be popular in both large and small cities. If you are significantly limited in capital, then it is better to choose the latter option, since this will provide lower rental costs and also make it possible to avoid strong competition with large retail chains.

Today the state is introducing a number of measures to combat counterfeit products. This is beneficial for a new entrepreneur, as it allows an honest business to stay afloat. Despite the 2016 crisis, the alcohol trade remains profitable and can be considered one of the key areas for starting a business with minimal investment. Before starting the sale of alcoholic products, it is necessary to obtain the appropriate permits and familiarize yourself with the legal acts affecting this market segment. When properly organized, a business selling alcoholic beverages can be very profitable. Not least important is the choice of location for your store.

During a crisis, it is profitable to trade in essential products, as well as provide services that save money. Moreover, they can be combined within one business. Using the example of selling auto parts and setting up a self-service car wash at a store, you can consider other types of business. An excellent option is to organize various courses, including those on starting your own business. Many are looking for opportunities to earn more and reduce spending. Based on an understanding of the existing environment, you can occupy a niche with low competition and high development potential. It is enough to simply assess the market.

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During a crisis, large intermediaries experience real economic stress, because in order to reduce costs and increase financial benefits, they try to get rid of them first in the producer-seller-consumer chain. At the same time, organizing such a low-cost intermediary as dropshipping can become a truly profitable business. You can also start your own small farm. Today, a profitable idea is. Merchants should expand the range of available goods, since most of the population refuses expensive goods during a crisis. At the same time, they cannot be completely excluded from circulation. There should always be 10-15% of high-quality goods that will be bought from you, despite the crisis.

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Where to start your trading business

Many people want create your own trading business. But in order to do this, first you need to decide on the direction. Choose the type of trading that suits you and your loved ones. Look around, there are a lot of trade directions. There is somewhere to invest your money, and then get several times more from it. For example, for starters, you can open a stall selling flower products or a store selling car spare parts. If electronics are closer to you, then a store selling mobile phones or office equipment.

In order to open any store, you need initial capital. This is the amount of money you will want to invest to start your business. This amount can vary from 75,000 rubles to several million.
There are many advantages for this type of business (trade), but, of course, there are disadvantages.

Advantages of business in trade:

1) Low starting capital.
2) Large markup on goods.
3) Make a profit every day from production, sales or services, any industry.
4) Few taxes, and usually a very low interest rate.

Disadvantages of business in trade:

1) In order to open something, you need to collect a lot of papers, and this usually takes a lot of time.
2) Some business is seasonal, that is, at some time the profit increases several times.
3) Taxes.

In order to start trading, you need to solve a lot of questions:

1)Registration of your business
2) Find a place where your business will be located. That is, rent a place.
3) You need to register a cash register.
4) Well, and most importantly, decide on the type and type of trade. What will you trade?

Now let's give examples, where to start your trading business. There are many ways to start.

1) You can open a store selling food. Every person cannot live even a few days without food and water. And therefore, you need to think carefully about whether it’s worth opening a grocery store at all. After all, there are a lot of them, there will be a lot of competition. If you decide to open a store, then to do this you will need to decide on the size of the store. Will it be a small stall open 24 hours a day or a medium-sized store. And it is this factor that will influence the amount you have to invest in your project. And in each region the amount will be different, in one region it is one, in another region it is 3 times more or less. Once you have decided on the size of the store, you will need to decide on the type of service, whether it will be self-service, or just like in the old days, selling over the counter. Each type of service has its own pros and cons. The advantages of self-service are that there will be more revenue every day.

The downside is that theft from your store will occur very often. And when selling over the counter, the likelihood of theft is low, but the amount of revenue decreases. An important factor is where the store will be located. That's why. When you draw up your business plan, you can safely choose premises for your future grocery store. In order to attract customers, you need to advertise your store. Regarding the price, you should also be careful; for the first months of work, you should not mark up the goods too much. You can go to nearby stores and look at the prices of certain goods. And try to make it at least 50 kopecks cheaper in your store. When things get better and the sale of goods goes well, you need to remember that you need to do inventory accounting. And this is due to the fact that there are a lot of types of goods in the store, and it will be very difficult to keep track of each one. And finally, when opening your own store, you should not be afraid of difficulties, of which there are a lot in this area of ​​​​business. And do everything to make your store appeal to customers. Then you will always have big profits.

2) Another option for business in trade, this is a discovery clothing store. If you decide to open a clothing store. There are both pros and cons. The plus is that this business is very profitable due to the large markup, but the minus is that it is very risky. You will need to always monitor the release of a new collection and update the collection in your store. And if you fail to offer your clients what they need, then your collection will then have to be sold for pennies. If we compare the total turnover of the fashion clothing market, it is estimated in Russia alone at $150 million. The first distinctive feature of this area of ​​​​business is that the social position of your store is very pronounced here. Clothing for a person is his self-expression, status and position in society; it is by clothing that they often determine what kind of person he is, what he has achieved in this life. And that is why a fashion store will always be a profitable business.

But in order for people to buy clothes in your store, you need to do good advertising for it. Buyers will also look at the brands you sell. You need to predict the demand for your product. If there is no demand, then you can ruin your store. And restoring its former glory will not be very easy. Products must be purchased in medium quantities. If you have purchased a lot of goods, and the collection has gone out of fashion, then you will again have to sell it for pennies and make a loss. Another important factor is where your store is located. If it is located on the outskirts of the city, then few people will go there for shopping with the whole family. And if it is located in the city center, then there is a high probability of remaining in the black. In conclusion, I can only wish you one thing. So that your store prospers. And for it to flourish, you need to go shopping and see how everything is done there, ask the price. And perhaps even talk to their owners; they can tell you a lot more about how and what to do correctly.

3) Another option is opening a spare parts store. If you decide to open a spare parts store, then you first need to determine what topic the spare parts will be for, electronics or auto parts. When you have made your choice, you need to register your business with the appropriate authority. Find premises for a store. If you want big revenue every day, then you should think about where it will be located. This area of ​​business has its pros and cons. The advantages are that there is a very large markup, up to 80%. The downside is that this business requires very large investments.

To furnish the store, you will need to buy a lot of racks, different shelves, display cases for small spare parts. You also need to buy several computers so that they are interconnected and have an Internet connection. Also, if you have a small store, then you will need a warehouse where you will store your spare parts. For the store to run well, you will need to hire several salespeople, a person who will deal with purchasing, an accountant and a store manager. And they all need to be paid a salary of 15,000 rubles. But if you want even more, then you will need to open an online store selling spare parts, then you will also need to hire several couriers. Who will carry out the delivery of goods to recipients. To open a store you will need about 1 million rubles. This amount includes everything that I described above: wages, equipment, goods, store and warehouse rent. We wish you good luck in opening your own parts store!

4) Another type of business in trade is an online store. There are three options for such stores: Small shop; Average store; Large online store.

Let's talk about each one separately. Only an open small online store does not have very many orders. They only need one person who will perform the functions of both administrator and director. You will also need a person who will deliver the goods to the addresses. But how can you do without a system administrator for your online store? He will create a website and see how it functions.

For a small online store you don’t need to spend a lot of money. Only 75,000 rubles will be enough for you. The next option is an average online store. A store that has been operating for a long time and has its own small customer base. And it gives a good profit. You will need a little more staff there. You will need an administrator who will monitor customer support and orders. He will also monitor the project and finances. Will reconcile accounts. But you will also need a storekeeper who will process and add orders. But you also need a car and a driver. To open such an online store you will need to invest about 150,000-300,000 rubles. But if you have more initial money, then you can open a large online store, which will have a large number of orders and a large customer base. For this type of store, you will need a lot of staff: A store manager who will manage the store. Administrator overseeing customer support and orders. A storekeeper who will handle the processing and ordering of goods. Several drivers who will deliver orders to your customers. This type of online store will require about 1 million rubles. But they will quickly pay for themselves. I think you can decide what kind of online store you want to open.

You have looked at several types of stores, we hope you can make your choice. I wish you good luck in starting your own trading business.

What is the most profitable way to trade? Choosing a profitable direction before starting a business

For a beginning entrepreneur, this is a very important question before investing your money, strength and will into a business - how to find, how to choose exactly that niche in the market where there will be both good demand for the product and many paying customers. This dream of every beginning entrepreneur is not always realized, let’s even put it another way - very, very rarely. And the reason for this rarity is the most prosaic - competition.

Yes, yes, the same competition that we all wanted to see around us for so long during the Soviet Union. If only someone found a profitable niche for their business - and someone else found out about it - tomorrow there will be not one entrepreneur in this niche, but two, and the day after tomorrow not two, but four... And after a very short time in this niche It will no longer be free, but competition, like everywhere else in the market.

There is another option- to have an uncle somewhere who works as the director of a large state-owned enterprise and, out of family feelings, will only transfer orders for the purchase of goods and services to you. And since this uncle will only be your relative, there will be no competition. But this is the topic of another article - about monopolism and corruption in government agencies. And in this article we will consider the ideal situation of a competitive market, which often exists when there are simultaneously a large number of competing firms and entrepreneurs of approximately the same size in one niche and using similar technologies or selling similar goods.

Despite the fact that Today in the market all niches seem to be filled and fully occupied, this is wrong. And this is not true for one simple reason - the market is developing steadily, technologies are changing, products are changing, demand is changing. At the same time, new product niches are constantly emerging in the dynamics of change, but they are quickly filled and are occupied by the most mobile and competitively prepared entrepreneurs. Or those who were simply lucky to be in the right place at the right time.

Here are some examples of successful use of uneven market development and changing the situation in order to gain a local competitive advantage in a highly competitive environment.

Let's take an example from the distant past. Once upon a time, when we still didn’t have cockroach pencils on sale at all, one of the commercial companies found out that such a product was already available in China. And then there were a lot of cockroaches in houses, it was just a general disaster. The company entered into a large supply contract, and the first batches of this product sold out with a bang within 2-4 months, and the product was sold at a price 2-3 times higher than the purchase price.

And then, when these 4 months passed, many companies were already importing these pencils from cockroaches, prices fell along with the level of profit. And a year later it was already an ordinary commercial product with a markup of 20-30% of the purchase price.

Or let's take another example from the recent past. The good communicator Palm Treo650 was released in the USA relatively recently. Well, it was good at that time, then progress moved forward, and more advanced communicators began to be produced. But that same Treo650 turned out to be such a successful model that a lot of it was released.

One year it was even the best-selling communicator in the United States. And when the fashion for it passed in the USA, there were still a lot of these models that were slightly outdated by American standards on the market. And by our standards, he was still very remarkable. And there were smart people, they did the math, and began to import these communicators in containers to our market. At the same time, the wholesale purchase price for this model, outdated by US standards, was 100-120 dollars. And here it was sold at a price of 350-450 dollars. And this went on for a long time by today’s standards, more than a year. And then several large companies saw this situation, did the math, and brought in very large quantities of such communicators.

That's all. There was an excess of goods on the market, the price fell. And in our market, prices for newer models have begun to decline. Everything was back to normal.

Therefore, those who really want to make money are constantly looking for new options for earning money, new products and services for possible earnings.

Now let's look at what goods and services there is currently unsatisfied demand for.

There is always a choice here. Or you need to go to the consumer goods market. For example, people buy bread, milk, potatoes and other products regularly every day. But due to the fact that the competition for their sale is very, very high, the profitability of such trade is not very attractive. With such trading, you need to rely either on the use of some new technologies, which significantly reduce the cost of selling such goods in your stores, or on large sales volumes. It is no longer possible to do without the creation of large supermarkets and retail chains. This path is no longer suitable for small and medium-sized businesses.

Another option is to search for completely new options for goods and services., during the implementation of which you will be able to work for some time practically without competition, because at first you will be the only one. If you try to get creative and quickly find a product that is suitable for any region, I would first of all name new fashionable styles of clothing and shoes.

Such products are created by marketers and designers every year. New collections are coming out, and if you already sell clothes or shoes, you can directly contact suppliers of fashion brands in your price niche and please your customers with new products. Which of course will be in demand. But only the first time.

Then your competitors will import similar models, demand and margins will fall... But if you take care in advance to purchase new models that are fashionable for the next season, then you will always have new products for your customers.

And we also need to take into account that progress not only creates new business lines and niches in the market, but also kills old ones. Until recently, trading cassettes for cassette recorders was a very profitable and widespread business. But the time has come, cassette recorders have disappeared, and no one needs such a product as cassettes for them.

Let's take another industry. Every year we sell massive amounts of new electronic gadgets, mobile phones, laptops and netbooks and many other similar equipment.

And for most of these devices, batteries fail much faster than a communicator or laptop deteriorates or becomes obsolete. And many entrepreneurs have found a way to help people - they have established direct delivery of batteries and other small items for electronic equipment on orders directly from China or Taiwan from manufacturers. Or they purchase such spare parts at global electronic auctions such as ebay.com. At such auctions, you can purchase electronic components from existing equipment much cheaper than from a supplier of such equipment.

The technology is very simple– the supplier of communicators buys the same batteries from the battery manufacturer, makes his own markup on them, then the equipment supplier buys electronic devices along with spare parts, takes them here to the warehouse, makes another markup for his work plus for storage in the warehouse. And at an electronic auction you can purchase batteries directly from the manufacturer, and you save a significant amount, which increases many times over when delivering not just one unit of goods, but a whole batch.

With modern means of communication and delivery, this is quite simple and allows you to quickly supply customers with exactly the type of goods that they need right now. There is always effective demand for it, which only increases constantly with the purchase of new equipment.

The question arises: should a new entrepreneur copy existing successful businesses? who already have clients, sales volumes, profits and turnover... But here you must immediately understand that if a successful business already exists and intelligent people work in it, then you can create one either in another place, or in the case when This business is being phased out for some reason. For example, a company worked successfully in the clothing market in one city. You came from another place, got acquainted with the assortment, the system for searching for suppliers and buyers, realized that in your city there is no such type of trade and assortment of goods today, copied and moved such a business to your city. This option may turn out to be successful.

It’s especially nice if you manage to not just copy the business, but to bring something new and unusual into it. Then the probability of success becomes even higher. But you need to immediately understand that any business is not only an opportunity, but also a commercial risk. And the more potentially profitable the business, the greater the risk those who will engage in it take on.

An increasing number of people are successfully using their knowledge and experience in the field of trading. Now this segment of the business market is developing at a rapid pace, but can everyone find themselves in trading? Is it worth investing your savings in this business and where to start your trading business?

Before you start your own trading business, you need to decide on the idea and direction of development. It is important to correctly determine what you will do, and in this case it is better to choose what you like. Nowadays there is a huge variety of goods and services, so everyone can choose something to their liking. This is very important, because if you like what you do, then things will go faster, and your income will grow every day. A good trading business can also happen in an area in which you are well versed.

Once an idea has been selected, it will be necessary to think about its development. If a trading business is based on a new idea, then you can count on the fact that with skillful business management, the new business project will grow to the level of a large company, but you should not rely only on the idea. In the trading business, much depends on the personal qualities of the organizer, his willpower, and approach to business.

Initial capital

In any area of ​​the trading business, initial capital is required to start. This money will be used to prepare and open a business project. In our country, the initial capital must be quite large. Even to open a small stall selling fresh flowers you will need at least 20 thousand USD. These funds are used to prepare documents, obtain licenses, pay for lawyers, etc. If we are talking about the acquisition of a land plot and the construction of a retail facility, then the amount increases at least several times.

Many people wonder where to get initial capital?

• Typically, aspiring entrepreneurs choose a bank loan. But doing this is not as easy as it seems at first glance. The fact is that banks do not give money to everyone. In order for them to allocate funds, it is necessary to interest them in your project, and for this you need to provide a detailed and complete business plan. It is necessary to clearly indicate not only the purpose of the project, but also its differences from similar enterprises, as well as the benefits of potential investors.
• It is also possible that you already have start-up capital and need to invest it somewhere. Money can be inherited, won in a game, received during legal proceedings, in the form of compensation, etc. Keeping funds at home is unprofitable and impractical, so they need to be put to use somehow, the main thing is to do this thoughtfully and reliably. To ensure that your capital does not go to waste, you should think through your future business down to the smallest detail and make all the necessary calculations.

It is first necessary to conduct an analysis of consumer demand. You can do this work yourself or entrust it to a marketing agency, which is available in every city. If the analysis of the consumer market is positive, and there is demand for the product, you can begin to think through your business. It is important to carefully study the product, its characteristics and manufacturing capabilities. It is necessary to establish relationships with several suppliers and. You should also think through a strategy in this area in advance.

Based on this, it becomes clear that the most important thing in business is the start-up capital, the size of which determines the speed of opening the project. Those who are unable to provide start-up capital can start their project through trading for sale. The monetary costs are significantly lower. Of course, the profit will be less, but in any case, this option allows you to save up for start-up capital.

Trade organization process

To begin with, they select a suitable product (one type or several). Next, they move on to compiling a list of manufacturers of this product.

It is advisable to visit manufacturing plants, communicate with managers and sales departments, take price lists, clarify the minimum batch volumes, the possibility of taking goods for sale, deferred payments, etc. It is always advisable to work not with one supplier, but with several, so that you have alternative options in case of force majeure.

You can search for the product in your city - this makes delivery easier - or in other cities, but then you need to think through the delivery system so that it is ton and the products are always available.

When everything about the product has already been clarified, it is necessary to find buyers. To do this, they compile lists of potential buyers, schedule meetings where they come with product samples and conclude supply agreements.

If there is no start-up capital, you can enter into an agreement with the manufacturer to take products from him for sale. It is immediately worth stipulating the validity period of contracts, at the end of which money for the goods will be transferred. Think over the system for delivering goods to consumers. It is important to provide for everything here so as not to delay delivery deadlines.

After the goods are delivered to stores and companies, it is necessary to ensure that the goods are paid for, that is, that the store pays in full for the shipped goods. Payment terms vary, but the maximum is 3 months.

If the store has not paid for the goods, it can be filed in the economic court and a claim will be filed, according to which the store will be subject to financial penalties, as discussed in the contract.

Instead of a store, you can organize the sale of goods through a network of distributors, with each of whom an agreement is concluded, according to which from 10 to 40 percent of the profit received from the sale of goods goes to the supplier of the goods.

Independent trading

It is also possible to sell the goods yourself. In this case, it is necessary to act according to the generally accepted plan: find premises, purchase trade equipment, hire employees, conduct an advertising campaign. In trade, a lot depends on advertising. It is well-thought-out outdoor advertising that can set you apart from your competitors and attract as many customers as possible.

Also, great attention should be paid to the selection of employees. A good seller can multiply your profits, because he will attract customers and many of them will become regular customers. You need to do everything possible to get people to come to your store again and again, and the salesperson plays a significant role in this.

* The calculations use average data for Russia

600,000 ₽

Minimum starting capital

8 %

Profitability

22 months

Payback period

74,500 ₽

Profit per month

Having your own meat store is an attractive, exciting, but very complex business that requires the constant participation of the entrepreneur in all processes. Where to start opening a butcher shop and what are the most basic steps to take?

Many aspiring entrepreneurs are thinking about opening a butcher shop. There are several reasons for the external attractiveness of this business. The first lies in the product itself. Meat is a consumer product. Meat is always in demand by buyers; it has been and will be bought even in a crisis. The meat trade is, as a rule, a very lively and lively business, there is a large flow of buyers, it is a kind of drive. Moreover, the seller has the opportunity to increase his profit by producing and selling semi-finished products, sausages, dumplings, etc. Even if a large retail chain appears in the neighborhood - “the death grim” for any grocery store, a butcher shop can not only stay afloat, but also thrive due to the ability to vary the assortment and offer customers fresh and unique products that cannot be found in the supermarket.

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Secondly, you can enter the meat trade with small investments (from 600 thousand rubles for a small point). It does not require large areas and expensive equipment, as, for example, in a restaurant or canteen. Even in case of failure, a ready-made business and its products can be easily sold, avoiding serious financial losses. The entrepreneur does not require any strict formalities - you can sell meat without a license and the need to obtain product certificates.

Where to start opening a meat business? After analyzing the advice of practical entrepreneurs, you can derive a whole chain of actions that should lead to success in this type of business. Please note that the division into steps should not be taken as a strictly regulated guide to action, since many stages must be carried out in parallel.

Step 1. Do I want to open a butcher shop?

Before you start opening a business selling meat, firstly, you need to think about whether you really need it. Experienced entrepreneurs who have made a name for themselves in this industry emphasize that people who come into the meat business are divided into accidental ones, that is, those who, having looked through all possible ways of earning money, by chance settled on selling meat, and those who for some reason for some reason I felt this activity was my own, I had some personal incentive to do it. For example, a person was not satisfied with the quality of meat sold in city markets, or he felt a desire to develop in an industry familiar to him (for example, raising pigs or calves and then selling them profitably). Well, or I was looking for a new outlet for my talent as a butcher cook or barbecue cook, when my heart is drawn to all things meat...

The point is that if in the first case there is a high probability of becoming emotionally burned out from doing something that is not your own, then in the second case the chances of success are noticeably higher, since a person initially has immunity to failures, losses and other adversities. But the main difference between “non-random” and “random” people in the meat trade is not even this. The main thing is knowledge, or at least a clear understanding of the specifics of working with meat on the one hand, and ignorance of these features on others. And the difference between the first and second will begin to appear from the very first minutes of work, as soon as a “random” person discovers that the pieces of beef that he stacked not in a row, but on top of each other, for some reason turned green. Or when he suddenly realizes that he has absolutely no idea what to do with meat that has not been sold for several days. And one hundred and one more nuances. Simply put, a successful meat selling business (like any other business in general) begins with a love for meat, a clearly understood and partly hard-won task, goal, mission. If in your case it all started with something else, then you should ask yourself this question directly again: “Do I want to open a butcher shop?

Step 2: Analyze your local market

If the answer to this question is yes, then the first thing you should do is conduct a local market analysis. First, you need to find out what kind of meat people want to see and at what price, who sells this meat, who brings it and who buys it. There is no need to waste time spent collecting information - in practice, it pays off many times over due to errors prevented. You should have a complete picture in your head about current competitors, prices, possible obstacles and ways to respond to certain events. The key task at this stage is to mentally fit yourself and your future store into the existing picture. Moreover, after analyzing the situation, sometimes you have to abandon the initial ideas that seemed brilliant. For example, when it suddenly turns out that rabbit meat, horse meat or lamb in a particular region is not needed by anyone for nothing - simply because it has happened historically and the tastes of the population are different.

Step 3. Determine the assortment, calculate the markup and profit

After you analyze the market, you will have a more or less clear picture of what you want to trade and what kind of turnover we are talking about. The strategic issue is finding a supplier. You will need to find affordable meat that is of excellent quality. The catch is that no one will ever say that their meat is of poor quality - everyone always sells only “good” and “best”. Much at this stage will depend on how you have analyzed the market. You need to get out of your comfort zone: communicate with buyers, sellers, suppliers, farmers and draw conclusions. At the same time, as a rule, you cannot find a wide range of prices within one city or region. The difference will be no more than 10%. In a word, digging on the surface, the advantages and disadvantages of this or that proposal are almost impossible to discern. There is no universal remedy in this matter - you need to search and negotiate yourself, travel, look, call, and so on.

At this stage, you also need to draw up a rough financial plan, which you should focus on in the future. There is one difficulty here - compared to other types of business, the pricing system in meat sales is quite complex. It depends not only on purchase prices, the purchasing power of customers, the entrepreneur’s fixed expenses, competitors’ prices and other traditional factors, but also on the characteristics of cutting and drying the supplied products. Once in a store, one carcass can be sold into dozens of positions, and each one must be assigned its own adequate, but at the same time profitable price. The way of calculations here is complex, scrupulous and lengthy, and you have to do them constantly, since you may need to change the cut, the supplier may suddenly raise prices, and the client may order a non-standard piece. At the same time, with a thoughtless approach, there is a real risk of not only losing some amount of profit, but also losing it altogether. Therefore, it is best to use automated electronic services for meat stores to select prices, which allow you to quickly make calculations using ready-made algorithms. It would also be wise to make such calculations at the very beginning, choosing the most acceptable wholesale price, and only then look for a supplier based on it.

The markup on meat in general on the market is quite low because buyers are very cost sensitive. The reaction to any price increase is extremely painful - they simply stop buying meat, switching to cheaper products. Therefore, markups in meat stores almost never exceed 20-30%, and the entrepreneur’s profit consists mainly of the number of sales. Of course, the markup varies depending on the type of meat. For example, for pork it can be 40%, and for semi-finished products it can reach 60-100%, but on average it is the same 20-30%. Much in the matter of pricing will depend on the region - in those regions of Russia that do not have large enterprises or farms nearby, meat prices are much higher. When making calculations, also do not forget to take into account product damage - at the very beginning, losses are unlikely to be avoided.

Step 4. Find a suitable premises for the purpose

The step on which 90% of the success of a meat store depends is the correct location and premises. It is extremely important that the butcher shop is located in a walk-through location - profits in this type of business come mainly from sales volumes, and not from markups. When choosing a location, experienced entrepreneurs recommend spending a day or two and personally counting the pedestrian traffic. The minimum traffic volume for a working day is about 2000 people. Of the resulting number, about 2-3% may become store buyers. This data can be used when planning revenue and net profit.

As a rule, meat shops do not require a large area: even 90 and 100 square meters. meters is a lot, the rent will be too large and unaffordable. For starters, 10-25 square meters may be enough. meters, the optimal area is about 30-40 square meters. The cost of renting such premises may, depending on various factors, vary from 15 to 120 thousand rubles. In Table 1 we presented the average rental cost according to the Avito website for Russian cities with different numbers of residents. Data is current as of September 2017.

Table 1. Average rent for retail premises 25-60 sq. m. meters in Russian cities*

Rent	25 sq. meters	40 sq. meters	60 sq. meters
Moscow (more than 12 million people)
St. Petersburg (more than 5 million people)
Rostov-on-Don, Kazan (more than 1 million people)
Lipetsk, Khabarovsk (more than 500 thousand people)
Tambov, Petrozavodsk (more than 250 thousand people)
Essentuki, Novomoskovsk (more than 100 thousand people)

*according to the Avito website as of September 2017

Looking ahead, we will say that expensive renovations are not required for meat stores: the specifics of the business are such that customers, in principle, do not care about the design of the premises. There are no interior requirements like those of kitchen showrooms or catering establishments. The main criteria are store visibility and traffic. Of course, sewerage and toilet, water supply and washing are necessary. There are some other points to consider as well. For example, the room would benefit from wide doorways for unloading incoming products.

Step 5: Settle Legal Issues

Since the process of finding a suitable premises can take more than one month, from the point of view of economy it will be more profitable to register a business after there is a preliminary agreement with the supplier and a location has been selected. However, in order to conclude a lease agreement, it is already necessary to have at least an individual entrepreneur. For a small butcher shop, an individual entrepreneur is quite enough, and as a form of taxation, the so-called simplified taxation (6% of income) or UTII, the amount of tax in which is constant and tied to the area, is suitable. An individual entrepreneur is registered within three days, the state duty is 800 rubles.

The premises for selling meat, like the meat itself, must meet certain standards. An entrepreneur does not need to obtain any licenses, but some issues need to be resolved. Issues with fire safety and SES most often bypass tenants. The owners of the premises, as a rule, already have the appropriate permits. After opening a store within a month, it is necessary to notify Rospotrebnadzor about the start of trading activities. But the main thing you will need is certificates for meat and veterinary form for meat No. 4. The supplier must provide them, so the problem is solved by selecting a good supplier. You should also not forget about the consumer corner with a book of complaints and suggestions, and that employees must have health records.

According to the experience of practitioners, many of the standards imposed on meat shops are not always feasible in reality. For example, it is not always possible to arrange two entrances to the premises or regularly obtain veterinary certificates for products from the supplier. Issues are usually resolved with a veterinary inspector who periodically visits the store. In general, to ensure the satisfaction of inspectors, the room must have good ventilation, proper finishes that can be washed, the cutting deck must be installed correctly, and staff must have uniforms and gloves. In practice, no one usually requires fanatical adherence to legal norms.

Step 6. Purchase equipment

As a minimum set, you will need equipment for cutting, storage and display. The first category will include a cutting table, cutting block, knives, axes, hooks, etc., about 15-20 thousand rubles will be spent on these purposes. Also, a butcher shop cannot do without a band saw - it will increase productivity, work with frozen products and increase the quality of cutting. A saw is the most expensive equipment among the minimum required. Prices can exceed 80-100 thousand rubles, which discourages many entrepreneurs from starting a business. Here you can consider the option of used or ordering equipment from China - costs can be reduced by 1.5-2 times. It is not recommended to completely abandon the band saw - otherwise there will be a great connection to the butcher’s skills, and many product items will simply need to be abandoned.

To store and display fresh meat you will need a closed refrigerated display case. The cost of one such 1.5-meter showcase starts from 30 thousand rubles. You also need at least one chest freezer; prices for them start from 15 thousand rubles. For recycling, you must definitely purchase a meat grinder for preparing semi-finished products, for example, minced meat, all kinds of rolls, cutlets, dumplings and other things. Usually, professional meat grinders are purchased for meat shops, costing from 20 thousand rubles, but if funds do not allow, then a couple of ordinary household ones may be enough for a small store to begin with. You should also consider the cost of lamps. It's no secret that the quality of lighting directly affects sales volume. The store will also need scales, trays, uniforms for employees and other small items.

Thus, the required minimum equipment for a butcher shop will require 200-250 thousand rubles. Entrepreneurs with experience in the meat business advise that when choosing and purchasing equipment, it is necessary not to attach excessive importance to it - the assortment should come first in importance. So consider your savings options. To begin with, it is quite reasonable to buy used equipment. If you're lucky, you can find good quality equipment with a good discount of up to 50-70%. Many shops, restaurants, cafes are either closing, moving, or replacing equipment with newer ones, etc., so there will always be ways to save money if you look hard enough.

Step 7. Select staff

The key employee of a butcher shop is, of course, the butcher. Moreover, this should not be just a butcher-seller, but a butcher-cutter with knowledge of “store-bought” cutting. Without knowing the principles of such cutting, you can lose up to 25 kg of meat from each carcass. Even if the supplier is cutting the meat, this skill is necessary, since in the butcher shop there is always something to trim, prepare, mince, and so on. Here, entrepreneurs usually choose one of two strategies - some spend time and money searching for an ideal specialist with experience, others teach young people the necessary skills on their own. It is clear that not everyone can afford the first option; moreover, dependence on the skills of a hewer creates some lack of freedom and fetters the hands of the entrepreneur. For the second option, and generally ideally, the entrepreneur himself knows the entire meat kitchen from the inside and has all the necessary skills.

If we talk about the role of the entrepreneur himself, then he, of course, can independently act as a hewer, a seller, or as their replacement, especially if we are talking about a small point and the very start of a business. However, in any case, it should not be indispensable. In an optimal situation, the entrepreneur plays the role of manager, only occasionally monitoring employees, and is involved in promotion and strategic planning. All other responsibilities not directly related to making a profit - accounting, security, etc. - are transferred to freelance specialists.

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How much should store employees be paid? There is no clear answer here: there are too many variable factors that depend on the financial capabilities of the business, the experience and skills of the staff, work schedule, etc. At the same time, there are some guidelines that can be taken as a basis when estimating future expenditure items. Table 2 shows the average salary of butchers as of September 2017, derived from an analysis of advertisements on the Avito website.

Table 2. Average salary by profession butcher in Russian cities*

*based on data from the Avito website as of September 2017

An important point is the identity of the butcher shop seller. This person must not only be well versed in meat, people must like him. The flow of buyers in this business is large, so you need to be as patient, polite as possible, and be able to interest them and tell them about the meat.

Step 8. Take care of promoting your butcher shop

There are passive and active methods of promoting clients. Passive methods include such mandatory things as store signs, pillars and advertising signs. To the active - everything else. The meat trade is not a business that will tolerate a big advertising campaign. Here it is more important not to make a splash throughout the country or city, but to be known in your area. That is, the most effective are low-budget local advertising methods - posting advertisements, distributing leaflets and flyers, the least effective are expensive television advertising. It is best to focus on the distance in the immediate vicinity of the store, namely within a radius of 800 meters. It is best to post advertisements at entrances and in elevators, where they can be read several times. In general, the meat market is a fairly traditional market, so standing out among competitors by advertising in it is not as difficult as it might seem at first.

The Internet can also be used to sell meat, but it is better to focus on individual tasks of the store - for example, to find new customers and markets. It is most advisable to create your own website if the store already has some significant competitive advantage. For a small point that practically does not stand out in any way, a website can only do harm, deceiving the client’s expectations and distracting the entrepreneur from more important tasks. At the same time, even a small retail outlet must be present in 2Gis, Yandex.Maps and Google Maps. Social networks are almost irrelevant in this type of business and require extra effort to maintain activity in them. Of course, the biggest, underwater part of the iceberg is word of mouth. It is thanks to the recommendations of other people that the flow is ensured that no other type of advertising will provide the store. And word of mouth, as you know, is mainly based on product quality. Also, don’t forget to follow trends in the meat industry and business ideas from foreign meat stores; sometimes something worthwhile appears among a sea of ​​junk.

Step 9. Become “one of the guys” for the buyer

From the very first days, a meat store should strive to win over its customers and become profitable within the first month. If you couldn’t make a profit even in the second month of work, this is a reason to sound the alarm. This means that one of the previous steps was completed with errors: the wrong location was chosen, the wrong seller, the wrong assortment, pricing policy, and so on. It is extremely important that the buyer sees as much fresh, tasty meat on the counter from the very beginning and wants to come back. Trying to trade with half-empty storefronts is a recipe for early failure. Even with the most conservative estimates, to cover expenses per month, you will have to sell almost 3.5 tons of meat with a 30% markup. Since meat is a perishable product and lives for 1-2 days, purchases will have to be made constantly or every other day. Moreover, if you sell stale meat at least once, the bad reputation of the new store can spread instantly.

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It should also be remembered that buyers appreciate consistency. It is important here to know and master the principles of cutting meat from the very beginning. Experiments with cutting, when a new piece appears on the counter every day, are completely useless. We need to try so that the buyer is confident that tomorrow and in a month he will be able to buy exactly the same meat and the same quality that he bought today. Of course, you can negotiate with the supplier so that he cuts the meat in his workshop himself, but practice shows that this option will not bring success.

We must not forget about the seasonality factor in the meat trade - we need to build a response strategy in advance. This factor is most noticeably felt in the summer, when there is a general drop in demand for meat products. During this period, store owners purchase smaller volumes of meat, reduce cutting, and redistribute their assortment. A profitable direction for this period is the sale of kebabs and barbecues, active cooperation with cafes and restaurants. Many butcher shop owners manage to not only mitigate the effects of the season, but also earn more during the off-season than during the season. The main thing is to feel the buyer’s needs and respond to them promptly.

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