Business in small towns has some distinctive features. They must be taken into account in order to ensure the stability and profitability of an enterprise in any field of activity.

Local market analysis

In order not to lose invested funds and make a profit, you need to start opening your own business with its planning. At this stage, you should carefully assess the situation on the local market and select the most promising niche.

The following factors require a competent assessment:

• Population size, its structure;
• Economic opportunities, solvency of residents;
• The relationship between supply and demand, the presence of unmet needs of the population;
• Opportunities for competition.

Having studied the data on the number of residents and their age composition, it is easy to determine the most numerous category of the population and its needs. For example, if there are a lot of young people in the city, it would be advisable to consider the idea of ​​opening a sports or gym, a sporting goods and food store, a children's clothing or toy store.

When starting your own business, it is important not to overestimate the financial capabilities of potential consumers. In cities with low incomes, types of business such as an expensive spa salon, an expensive branded clothing store or animal grooming will not be popular among residents.

Having an idea of ​​the size and structure of the population, its solvency, it is not difficult to analyze the level of its needs and the degree of their satisfaction. Perhaps the city lacks 24-hour pharmacies, a store for car enthusiasts, or young people have nowhere to spend their free time.

It is profitable to start activities in areas where competition is minimal or absent at all. The most promising will be a new idea that is useful for residents, but has not yet been implemented. For example, a private kindergarten, a pet supply store, large-format printing services.

Business in a small town - pros and cons

When starting a business in a small town, it is important to evaluate all its pros and cons, which will significantly affect the efficiency of the business.

Obvious disadvantages hindering business development in small towns:

• A small number of potential clients;
• Low level of income of the population;
• Limited demand.

Small number of inhabitants in small towns and their low level of income significantly limit the choice of field of activity. In small settlements, trading in goods of a narrow special purpose such as art supplies or musical instruments will not bring profit.

Low income of the population determine the demand mainly only for everyday goods. The lower the income, the less the buyer is willing to spend on non-essential items.

Business in small towns has its advantages:

• Low initial capital investment and operating costs;
• A small number of competitors or even their absence;
• Unpretentious clients;
• State support for regional small businesses.

An important advantage of small cities The fact is that you can start your own business and run it at much lower costs than in a large metropolis. Renting premises will cost several times less, and staff salaries are also low.

In small towns Large companies that are difficult to compete with do not work. And there are few local competitors, so it will not be difficult to thoroughly study the advantages and weaknesses of each of them and find the most open niche.

Unlike the population In large cities, residents of the regions are less demanding of goods; they prefer high-quality domestic products rather than expensive delicacies. They don't follow fashion trends so fanatically.

A stock store selling high-quality clothing from outdated collections can become very popular among local residents. Good suppliers will provide the store with excellent products at low prices.

Thanks to government programs for the development of small businesses in the regions, you can receive certain benefits and subsidies.

Business in a small town - where to start

Having assessed the situation in the local market and studied potential clients, you can choose a suitable niche that is in demand and will bring profit.

There are several ways to start your own business:

• Offer a popular product, the demand for which is not fully satisfied;
• Introduce a new product to the market, an idea that was not available in the city before;
• Organize a business in the area where you have experience, qualifications, and special education.

If a business opens in a niche where there is already competition, it is necessary to provide benefits that attract customers. In small towns, it is important to focus on the quality of service.

An individual approach, additional services included in the price, various promotions and discounts will increase the number of sales.

Reputation in a small town where many people know each other is of great importance. Customers satisfied with the quality of the product and service will become regular visitors.

Many business ideas that work in megacities have not yet been implemented in small towns. We need to implement a successful idea that will be in demand among local residents. For example, the first fast food in the city.

Lack of competitors– an important advantage of promoting new products, which will ensure a quick return on investment for the business.

An indisputable advantage over competitors is the owner’s personal experience and special knowledge in the area where he is opening a business. Knowing all the ins and outs of your business will help you attract and retain clients.

The location of the business is also important. It must be relevant to the target population. It is more efficient to locate catering establishments closer to the city center, and residents of the outskirts who have to walk far to buy groceries will be happy to have a grocery store.

Having decided on the field of activity, it is necessary develop a detailed business plan, calculate the required amount of start-up capital, the efficiency and payback of the enterprise. Having an economic justification for your project and its profitability, you can contact the bank and get a loan.

Qualified legal advice will help you competently take advantage of the state small business support program. As part of the program, you can take advantage of benefits when obtaining a loan, subsidies and tax breaks.

Franchise

Franchise business involves opening your own business under the name of a famous brand and work according to his standards. The advantage of this approach is that the company is already promoted and popular, this inspires the trust of potential customers and ensures stable sales.

Franchise agreement are offered by various companies working with food, clothing, shoes, furniture, household appliances, as well as cafes and restaurants, delivery services, and entertainment complexes. It is important to make the right choice, to determine what will be most in demand in the city.

You also need to pay attention to terms of cooperation, reliability of the partner, availability and amount of franchise payments. At the beginning of the activity, the terms of delivery of goods, mutual settlements, and advertising campaigns are of great importance. A lot of unofficial useful information can be learned from other network participants.

Working in partnership presupposes the fulfillment of certain conditions. Must be carefully study the terms of the contract. In some cases, failure to fulfill the sales plan leads to termination of cooperation. Information about all such points must be collected before signing the contract.

At first the franchisor provides financial support, but you won’t be able to do it without your own investments. Companies do not bear the costs of renting premises, paying staff, tax and other obligations.

Consultations with company specialists will help aspiring entrepreneurs understand all the intricacies of running a business.

Ideas

In small towns, real income comes from business in the trade sector. It is most profitable to sell everyday goods here.

Produse store

Grocery store opening- this is the most a win-win in any locality.

There is always a demand for products, regardless of the economic situation. It is important to choose the right location, and the store will be profitable.

Most likely, there is already a large shopping center in the city center. There is no point in competing with him in prices or assortment.

It is more profitable to sell products in close proximity to residential buildings, for example, to open a store on the ground floor of a high-rise building.

According to marketers' observations, in hypermarkets, buyers prefer to shop once a week, buying goods for future use, because prices there are lower. It is more convenient to purchase food products that need to be purchased daily close to home. These products - bread and pastries, milk, tea and sweets for tea, fruit - form the basis of the assortment of convenience stores.

To attract and retain customers, the store must have advantages over competitors and have its own “zest.” Fresh baked goods every day can be such an advantageous difference. If you install an oven in a store or open a mini-bakery next to it, the appetizing smell of fresh bread will provide regular customers.

Goods for children

Trade in goods for children– stable business, regardless of the season or size of the locality. The fact that parents usually do not save on purchases for children causes more high markups on children's products. This ensures good business profitability and makes it possible to pursue a more flexible pricing policy, creating an advantage over competitors.

The areas of trade are quite diverse: children's clothing and shoes, toys, baby food, cribs, strollers and other similar products.

Marketing research will help you successfully determine the direction for your store.

After analyzing the assortment and prices of competitors, and talking with the population, we can draw a conclusion about what children's products are needed in the city.

Highest attendance observed in stores located near childcare facilities(kindergartens, schools, clinics), in shopping arcades or large shopping centers. The store can be highly specialized, for example, a children's sports clothing store, or universal.

Children's store should attract with an original thematic design. Competitive advantages will help ensure a constant flow of customers. These could be lower prices, exclusive assortments, holiday promotions, discounts, discount cards.

Buyers will also like additional amenities: a room where you can feed a baby or spacious fitting rooms that can accommodate both a child and a parent, a children's corner and a TV with cartoons.

The staff is also important. Friendly sales assistants must be able to communicate patiently with children.

Goods for pets

Pet products are in demand among all segments of the population, from schoolchildren to retirees. Products for cats and dogs are in greatest demand; aquariums are also becoming fashionable. Aquariums are now found not only in houses and apartments, but also in supermarkets and official institutions.

A small simple store can sell the most popular goods for everyday needs, mainly goods for cats and dogs: food, litter, combs, shampoos, leashes, muzzles, collars. You can attract customers with a catalog of goods delivered to order.

Such a store should be located in a public place: on a busy street, near a bus stop, next to other stores.

Car accessories

In our time, when Almost every family has a car, business in this area is very relevant. Trade in car accessories in our country is only gaining momentum.

Now there is a good opportunity to become the first owner of a car accessories store in your city.

These accessories are additional devices and means to improve the operation of the mechanisms and appearance of the car, and increase the convenience of its use.

Such products include windshield wipers, deflectors, foot mats, as well as various equipment: GPS navigators, radar detectors, video recorders and much more.

A good option might be suitable franchise. The partner company will provide regular supplies of certified goods at competitive prices. The store will feature the latest new car accessories.

Trading quality products from official representatives and distributors will provide an undeniable competitive advantage.

Household goods

The range of household goods is very wide. There is an opportunity to find your niche in this area, a category of goods for which demand exceeds supply. Main groups of household goods: household goods, gardening goods, household chemicals. The specific choice will be determined by the current market situation.

The profitability of trade in household goods ensures a large turnover. The optimal assortment of a small store should be a large number of inexpensive items for everyday use. Accordingly, a hardware store needs a large retail space.

A good place to locate a store would be a densely populated residential area where there are no competitors nearby. It is not advisable to locate a store near shopping centers and chain retail outlets.

Conclusion

In any business, it is important not to stop there.

And in accordance with this, it is necessary to promptly introduce new methods of work into business, constantly update and expand the list of products. Sometimes it is more profitable to completely change the assortment than to sit and wait for customers.

Stanislav Matveev

Author of the bestselling book "Phenomenal Memory". Record holder of the Book of Records of Russia. Creator of the training center "Remember Everything". Owner of Internet portals in legal, business and fishing topics. Former owner of a franchise and online store.

One of the most difficult questions facing a new entrepreneur.

In this article, we will look at what to sell in an online store, ideas for creating an online business, what goods and services are most often sold online, and what determines the choice of products for the store. We will select the most interesting options for sale in a small town. We will also determine what is profitable to sell in an online store in the current crisis.

What do they sell in popular online stores?

The Internet is a global network through which almost anything can be sold. The world's most famous online store, Amazon.com, offers millions of products across 35 product categories, including electronics, home appliances, clothing, shoes, toys, jewelry and many others.

The largest online store in Russia, Ozon.ru, sells goods in 16 categories, which even include tickets to various events and travel packages.

What to sell in an online store: ideas

Most often, online services specialize in 2-3 categories of goods; is it easier to develop and subsequently expand? Is it better to sell in an online store? For example, a clothing and footwear website, upon reaching a certain turnover of funds, can begin to offer jewelry and watches, thereby increasing its profits.

More than 3 billion people visit the Internet every day, which means any of them can visit your site. Therefore, you can sell absolutely any product in an online store. However, trading one will be profitable, while the other will not be in great demand.

Selling unique goods via the Internet

You can come across sites that offer only one unique product. It is known that you can buy the same thing in an online store and you can make very good money on it! For example, there is a website selling handmade wooden bow ties that are now fashionable. Do-it-yourself things with a touch of creativity are popular, and their sale brings a substantial profit to the site owner.

What is most often sold online?

What to sell in an online store? Ideas may arise after reading the table below. Let's figure out what most people are used to buying online. Having analyzed the structure of Internet business in Russia, we have compiled a table in which popular product groups and the number of sites on which they are sold are presented in descending order.

Based on the data in the table, we can conclude which products are most often sold. This indicates a high level of demand for them. But do not forget that where demand is high, competition is high.

The table shows extensive product categories, and some niches in product subcategories are practically unoccupied. Therefore, you don’t need to be afraid of a lot of competition - you should take a closer look at the direction that you like best and find a place in it for your online store.

What determines the choice of product for an online store?

Determining a product category for sale depends on several factors:

• business project budget;
• territory of operation of the online store;
• personal knowledge regarding the product;
• Internet business trends;
• demand for goods;
• Possibility of delivery of goods.

In times of crisis, many entrepreneurs who own online stores lose part of their profits or go bankrupt completely. It's all about the reluctance to accept new conditions of reality and change working methods. What to sell in an online store? Ideas and the chosen product must be in demand. Here are some tips for determining the product content of the site.

If the budget formed to start a business is small, you should not choose an expensive and exclusive product for sale. You also need to remember that large-sized goods require expensive delivery, so if your budget is limited, it is better to choose a medium-sized popular product.

It is best to choose a product that you understand. This will make your future activities easier; you will not need to learn a lot of new information.

If you plan to operate an online store within one city, then you should carefully study the demand there. The main categories of goods that are in demand are the same in almost all cities. But there are also those products that are not represented in your city, although people will definitely buy them.

How to determine which product is most relevant now?

In order to know what is relevant to sell in an online store, you need to take into account trends in the field of online sales. It happens that by identifying the future high demand for a specific product in time, entrepreneurs earn huge money! In the current crisis, the demand for some goods has increased, while for others it has fallen. We propose to consider what is most profitable to sell during a crisis.

What price groups of goods are popular during the crisis?

What should you sell in an online store during a crisis? During the crisis, expensive and elite groups of goods are sold in larger volumes than before. The main buyers of expensive products are wealthy people, who probably care about the stability of their well-being. During a crisis, rich people try to protect their wealth and invest money in antiques and art, jewelry.

The main drop in demand is observed in the middle price segment. This is due to the fact that people with average incomes, who are buyers of such goods, are experiencing falling wages and running out of other funds. They stop buying quality goods at average prices and try to save money.

Cheap goods become more in demand in times of crisis. The general population saves money and strives to purchase goods at low prices at the expense of quality. Cheap clothing, furniture, food and budget holidays are in great demand due to the influx of former middle class people into the segment of cheap goods and services.

Thus, to select a product for sale in an online store during a crisis, you can use two strategies:

1. Sell ​​luxury, expensive goods for wealthy people.
2. Establish reliable mass supplies of cheap goods for the bulk of the population.

What to sell in an online store during a crisis?

You need to choose a product for an online service taking into account modern realities. Do you want to know what you can sell in an online store? You will find ideas on what to sell during a crisis below:

1. Industrial and construction equipment. Currently, due to restrictions on imports, many new enterprises are being created in Russia. They try to save on construction, so used equipment is in particular demand.
2. Household appliances and electronics. By buying broken equipment and electronics for pennies and repairing them, you can make very good money. People strive to buy inexpensive goods, so used equipment is in great demand.
3. Inexpensive food. Food is something people try to save on during a crisis. People will buy products from your online store if you offer lower prices than your competitors.
4. Auto parts. The demand for new cars falls during a crisis, so people try to repair old ones. By selling inexpensive spare parts online, you can earn decent money.
5. Jewelry. They are in demand as a reliable option for saving money. Exclusive and expensive jewelry is in particular demand among wealthy people.
6. Inexpensive clothes and shoes. The population also saves on it, but absolutely everyone needs it. Find a supplier with low prices and sell cheap clothes and shoes through your online store.

The demand for cosmetics and perfumes, ready-made food, and small household appliances is increasing.

How to make money from an online store without investment

If your budget was only enough to create a website, then you probably want to know what to sell in an online store without investment. You can sell discounts on products through your online store! It is very convenient and profitable. By agreeing with stores to sell their discount cards, you will earn money from this. During a crisis, people tend to buy discounted goods, so this idea is especially relevant now. In this case, you can fill the site with your supplier’s goods and introduce a 100% prepayment condition.

Thus, you will not need to spend money on purchasing goods, and with each order you will give part of the funds paid for it to the supplier. There are many sites on the Internet that work in this way, but many people just don’t even know about it.

Online store ideas for a small town

For residents of the regions, an important question is what to sell in an online store in a small town? As you know, the incomes of the population of small cities are lower, so expensive goods offered online will not be popular there.

Residents of small cities pay special attention to the quality of products. Inexpensive and high-quality goods will be in great demand among them.

So, we present to your attention a list of goods on which you can make money when selling in an online store in a small town.

All of these will be in greatest demand when selling online in a small town. By creating a website and filling it with in-demand products, you will ensure high and stable profits.

In the article, we looked at the main areas of effective operation of an online store and found out which products are most profitable to sell online. We wish you success in choosing a business idea and its development!

Many novice entrepreneurs wonder what to sell in a small store. In fact, the question is much deeper than it seems - after all, in a store with an area of ​​a couple of tens of square meters, not every product can be sold profitably, especially if the outlet is located in a residential area, that is, within walking distance. In this article we will look at the best options for organizing trade in a small area.

The first thing that comes to mind when it comes to organizing a business related to trade is opening a grocery store. And this is a really good option. An area of ​​20-30 square meters will be more than enough. The initial investment in the purchase of goods and commercial equipment will not exceed seven to eight thousand euros. If you purchase used equipment, you can save about a thousand euros. Net profit can reach 1.5-2.5 thousand euros per month, depending on the location of the property.

Childen's goods

You can also make great money selling children's products. The investment will be greater than when opening a grocery store, but the profit may be significantly higher. So, in addition to the initial investment of 9-10 thousand dollars in goods and commercial equipment, you will need to invest another 200-300 dollars in arranging a ramp - many parents will come with strollers. The profitability of such an object is on average about 2.2-2.7 thousand dollars and higher.

Goods for pets

Every second city resident has pets, so a pet supply store is a very profitable business that does not require significant investments. The initial investment will not exceed six to seven thousand euros if you purchase feed from the middle and lower price segments.

However, it is worth keeping in mind that many pet owners want their pets to receive the highest quality product. And to make money on this, you will have to increase investments: you will have to invest about one and a half thousand euros in expanding the range of high-quality feed. The profit will be from 1.2 to 2.3 thousand euros. If you establish contact with local manufacturers of furniture for animals, you can earn an additional 200-500 euros per month.

Draft beer

Draft beer stores generate a stable, albeit small, income and require minimal investment. In a room of 30 square meters you can open a retail outlet with approximately 16 taps, that is, you can offer your customers 16 types of beer. Preference should be given to domestic varieties, since they are much cheaper and allow for a large markup (up to 100 percent), providing higher profits.

The total investment in opening such an establishment will be about four to five thousand dollars. Earnings in this business entirely depend on the season - if in winter the profit will be 1-1.5 thousand dollars per month, then in the summer the income will be better - up to 2-4 thousand dollars per month. It is especially profitable to open such stores in regions with warm climates.

Pharmacy

Opening a pharmacy on your own will cost 14-16 thousand dollars, with a franchise - 20-25 thousand. However, the second option is preferable: a pharmacy with a familiar, well-advertised sign is more credible and, accordingly, will attract more customers and bring greater profits. In addition, a franchise provides many other benefits such as staff training, marketing support, and so on. The average monthly income of a pharmacy within walking distance is 3-4 thousand dollars.

Flowers

If, when wondering what you can sell in a small store, you choose flowers, you will never regret it. Investments in opening a flower shop will be only 3-4 thousand dollars, and the average monthly profit will be from one and a half thousand euros. The only serious drawback of such a business is the short shelf life of flowers, and it is possible to understand how much goods should be in stock only through trial and error.

Confectionery

Investments in opening a confectionery store will be approximately 4-5.5 thousand dollars, taking into account the purchase of equipment and the first batch of goods. If there are large franchises in this area in your city, it makes sense to take a closer look at them - as in the case of pharmacies, the investment when buying a franchise will be greater, but the profitability will also be higher. Profit from the sale of confectionery products will range from 800 to one and a half thousand dollars per month. You can increase your income by selling tea and coffee.

What to give up

It is also impossible not to mention options from which, for one reason or another, worth giving up:

• textile products;
• souvenirs;
• books, stationery and computers;
• cosmetics and perfumes;
• men's clothing and shoes;
• jewelry.

Now, knowing what to sell in a small store and what to refuse, you can choose the option that you like and can afford. And even if something doesn’t work out the first time, don’t give up. Remember, success comes to the persistent.

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 brisk 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 chef-butcher 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 no one needs rabbit, horse meat or lamb in a particular region for nothing - simply because this is how it has historically developed 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*

*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 through advertising 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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