Business lawyer > Starting a business > Business ideas > Business ideas in the LPR: how you can make money in the young republic
During the fighting in the LPR, small and medium-sized businesses began to decline. Citizens' incomes have dropped sharply, and some private enterprises have closed. However, today there is a surge in development in the republic and some niches in the business space need to be filled. If you live in this state and want to open your own business, then below in the article we will look at the most profitable business ideas in the LPR.
Production plan
Store format
The business creation project begins with determining the outlet option:
- Hypermarket - store area of 5 thousand square meters, a wide range of food products and household chemicals. Located on the outskirts of the city. Combines shopping and entertainment areas: cinema, bowling alley, shops.
- Supermarket - size 1 - 2.5 thousand sq.m., location in areas with high traffic.
- Grocery store - outlet area up to 1 thousand sq.m. The assortment is represented by products of daily consumption, the products are always delivered fresh. The pricing policy depends on the traffic and prestige of the area where the store is located.
- A mini market is a store that sells everyday goods. Area up to 500 sq.m., with a self-service system.
- A grocery store is a retail outlet with a narrow range of products (meat, milk, baked goods, tea and coffee, sweets).
- Retail outlet “near the house” - Area up to 50 sq.m. Located in residential buildings with high traffic. Occupies directly a separate building or the first floor of a high-rise building. The assortment consists of everyday goods. This store format is recognized as a quick payback and low-cost option. Suitable for beginner businessmen.
Selecting a location
The successful location of a grocery store affects the profitability of the business and its payback period. Factors that positively influence the profitability of the grocery business that are worth paying attention to:
- High customer flow. It is advisable to choose rental areas with accommodation of two thousand people or more. This is roughly a small residential area.
- Neighborhood near the retail outlet of social facilities: bus stations, schools, hospitals, stadiums, universities, work enterprises.
- Lack of large competing supermarkets nearby.
Shop rental
At the initial stage of business, it is quite enough to rent out premises. Recommended size 35 - 50 sq. m. Particular attention should be paid to the presence of communications into the building. It is imperative that they be properly registered with the control authorities. The following must be provided to the store: electricity, sewerage, heat and water supply, ventilation. The premises should include: a sales area, a warehouse and a toilet room. An approximate plan is shown in the figure, monthly rent for a store with an area of 62.14 sq. m. will cost 50,000 rubles.
Working hours are set from 8.30 to 24.00, without lunch break. This way, residents of nearby houses will have the opportunity to buy groceries in the evening.
Beauty Salons
Business in this direction is developing rapidly. This is due to the fact that people always want to look beautiful, especially girls.
Salon
Of course, you can do without a number of procedures, however, you cannot do without a haircut and hairstyles. Long hair bothers men the most. Accordingly, a beauty salon or a small hairdresser will always be in demand among people, regardless of their financial situation and the economy as a whole.
To open a business you will need:
- start-up capital
- registration of individual entrepreneur
- premises rental
- purchase of furniture and special equipment
- obtaining permission from the necessary authorities (fire inspection, sanitary service, etc.)
- experienced staff
Additionally, you need to find suppliers of professional cosmetics.
Advantages:
- beauty salon is in demand among all segments of the population
- high profitability
Flaws:
- Large financial influence is required at the initial stage of business
- Slow payback
Of course, a beauty salon brings good profit to the owner, however, if it opens in a large city. Accordingly, if you live in a small town, then investing in such an enterprise would not be the best decision.
The list of profitable business ideas that will bring profit in the LPR does not end here. But it’s worth remembering that each of them has its positive sides and disadvantages, however, it’s up to you to decide which one to invest in.
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Organizational plan
List of required documents
The list of documents may vary depending on the specifics of the trade. Detailed information can be obtained from tax and regulatory authorities. quote Important! An individual entrepreneur is liable for debts and obligations with his personal property. When creating an LLC, there may be several founders; they do not bear personal liability to creditors; Procedure for completing documents:
- registration of legal form: individual entrepreneur, joint-stock company or LLC.
- obtaining a certificate of entry of the store into the trade register;
- drawing up a store lease agreement (purchase and sale agreement);
- coordination of activities with the fire service;
- obtaining a sanitary and epidemiological certificate and a building passport from Rospotrebnadzor;
- obtaining a license to sell certain categories of goods (alcohol, cigarettes);
- inspection of meters of measuring instruments;
- certification of workplaces, obtaining medical certificates for employees;
- concluding an agreement for garbage removal and rental of containers for solid household waste;
- drawing up cash service regulations, purchasing cash registers, cashier-operator journal. If necessary, drawing up an agreement with the bank for collection services;
- design of a consumer corner in the sales area. It should include a Book of Reviews and Suggestions, the Consumer Protection Law, and emergency phone numbers.
Choice of taxation system
After registering the organization with the tax authorities, we select the type of economic activity (OKVED).
For trading enterprises, OKVED 52.1 “Retail trade in non-specialized stores” has been established. The most acceptable taxation system for individual entrepreneurs is UTII. It is advantageous to apply such a taxation system if actual income significantly exceeds imputed income. The tax will increase in proportion to the area of the sales area (for example), and will not depend on the volume of revenue. Tax calculation formula: 15% * (1800 * S sq.m.) * K1 * K2, where 1800 is the basic yield;
- 1 - coefficient for retail trade in food products, set for each constituent entity of the Russian Federation;
- 2 — deflator coefficient.
Pros and cons of ready-made solutions
Often there is no point in reinventing the wheel; it’s easier to take a ready-made solution . In particular, there are already sets of equipment for:
- sewing store;
- gift boutique;
- outlet selling sweets and gingerbread;
- cell phone salon;
- cosmetics store;
- and a tea shop.
According to entrepreneurs, these projects have significant advantages, which include a well-thought-out convenient layout, and, of course, an easy and cheap start (in relation to individual developments). Of course, businessmen strive for originality, however, as experience shows, in this case, “the game is not worth the candle.” It makes more sense to spend time on window dressing and lighting.
Expenses for the purchase of commercial equipment
For the successful operation of a grocery store, it is necessary to purchase and install commercial and refrigeration equipment. You can save money by purchasing used equipment, leasing or renting it. Some trading companies provide their equipment free of charge under conditions of long-term cooperation. For security and control purposes, it is necessary to install a video surveillance system in the store and equip an emergency call button. Necessary equipment for a retail store
| Name | quantity | unit price | Price |
| Retail store equipment | |||
| Shelf | 3 | 6 000,00 | 18 000,00 |
| Rack | 3 | 4 000,00 | 12 000,00 |
| Showcases and counters | 2 | 20 000,00 | 40 000,00 |
| Installation services | 20 000,00 | ||
| Refrigeration equipment | |||
| Refrigerated chambers for food products | 2 | 15 000,00 | 30 000,00 |
| Refrigerator for low alcohol drinks | 1 | 25 000,00 | 25 000,00 |
| Refrigerator for soft drinks | 1 | 25 000,00 | 25 000,00 |
| Installation services | 20 000,00 | ||
| Accessories | |||
| Scales | 1 | 7 000,00 | 7 000,00 |
| Cash machine | 1 | 30 000,00 | 30 000,00 |
| Baskets for goods | 10 | 300,00 | 3 000,00 |
| Consumables (bags, belts for scales) | 5000 | 3,00 | 15 000,00 |
| Installation of cash register equipment | 25 000,00 | ||
| Installation of video surveillance and alarm systems | 70 000,00 | ||
| Total | 340 000,00 | ||
Emphasis on practicality
Having decided on a shopping center, a businessman must decide on the attractiveness of his store. “When I saw the sector that was offered to me for rent in the shopping center, the first thing I wanted to do was renovate it so that the store would be bright and memorable,” says individual entrepreneur Irina Akopova. “However, after consulting with experts and weighing all the pros and cons, I decided to spend money on high-quality commercial equipment and effective lighting.”
Indeed, renovation is always not only an expensive project, but also time-consuming. That is why the newly minted businesswoman decided to buy interesting display cases at the Moscow Trade Equipment Factory and furnish her point so that the goods and price tags were the first to catch the buyer’s eye. “I equipped the walls with hanging display cases VP1 at a price of 11,500 rubles apiece, and in the corners I installed four corner displays VPU-800-1 at 17,440 rubles each,” says the woman. “In this way, defects on the walls were masked and all the goods were provided for review.”
Marketing plan
Selection of assortment
When forming product names, you should study the offers of competing stores. Include missing items in your list. In a sales area of 50-60 sq.m. You can display up to 500 product names.
| Product groups | Share of total sales, % | Average price of goods, rub. | Sales per month, units | Sales per month, rub. |
| Daily consumption goods | ||||
| Meat and meat products | 13 | 450,00 | 1300 | 585 000,00 |
| Bakery products | 7 | 20,00 | 700 | 14 000,00 |
| Milk products | 11 | 45,00 | 1100 | 49 500,00 |
| Consumer goods | ||||
| Pasta, flour, sugar, salt, cereals | 12 | 35,00 | 1200 | 42 000,00 |
| Vegetables fruits | 7 | 105,00 | 700 | 73 500,00 |
| Sweets | 4 | 68,50 | 400 | 27 400,00 |
| Mayonnaise, ketchup, seasonings | 2 | 45,00 | 200 | 9 000,00 |
| Canned food and marinades | 7 | 50,00 | 700 | 35 000,00 |
| Semi-finished products | 8 | 180,00 | 800 | 144 000,00 |
| Coffee Tea | 10 | 60,00 | 1000 | 60 000,00 |
| Low alcohol products | 8 | 55,00 | 800 | 44 000,00 |
| Grocery | 6 | 63,70 | 600 | 38 220,00 |
| Products in seasonal demand | ||||
| Ice cream | 2 | 25,00 | 200 | 5 000,00 |
| Cold drinks | 3 | 35,00 | 300 | 10 500,00 |
| Total | 100 | 10000 | 1 137 120,00 | |
The percentage of sales from product categories is shown schematically in the diagram.
It is recommended to set the markup on first-time consumption goods at around 20%, for other groups of goods up to 30%.
Monthly income from sales is 1,137,120 thousand rubles, taking into account the retail price. The monthly purchase price for the goods presented is about 880 thousand rubles.
Commercial advertising expenses
Business expenses for starting a business are presented below.
- Printing services for the production of leaflets and business cards - 5,000 rubles.
- Promoter services for distributing leaflets - 3,000 rubles.
- Registration of a retail outlet for the opening - 8,000 rubles.
- Carrying out promotions and sweepstakes. Presentation of gifts - 50,000 rubles.
- Advertising on television, newspapers - 20,000 rubles.
The total cost of advertising and opening is 86 thousand rubles.
Financial calculations
To determine the profitability of a business, it is necessary to draw up a detailed financial calculation of expenses and income.
| Income and expenses report 1st month | Amount, rub. |
| Sales proceeds | 1 137 120,00 |
| Initial opening costs | |
| Registration of individual entrepreneur | 5 000,00 |
| Obtaining permits from regulatory authorities | 15 000,00 |
| Repair and design of premises | 120 000,00 |
| Workwear for employees | 2 400,00 |
| Business expenses | 86 000,00 |
| Purchase of commercial equipment | 340 000,00 |
| Unexpected expenses | 10 000,00 |
| Monthly expenses | |
| Shop rental | 50 000,00 |
| Payment for communication services | 1 200,00 |
| Garbage removal | 5 000,00 |
| Detergents | 3 000,00 |
| Utility fee | 10 000,00 |
| Purchase of goods | 880 000,00 |
| Accounting services | 10 000,00 |
| Labor costs | 79 005,36 |
| Profit tax UTII (preliminary calculation) | 15 000,00 |
| Total expenses | 1 631 605,36 |
| Total revenue | -494 485,36 |
| Report on income and expenses 2nd and subsequent months | Amount, rub. |
| Sales proceeds | 1 137 120,00 |
| Monthly expenses | |
| Shop rental | 50 000,00 |
| Payment for communication services | 1 200,00 |
| Garbage removal | 5 000,00 |
| Detergents | 3 000,00 |
| Utility fee | 10 000,00 |
| Purchase of goods | 880 000,00 |
| Accounting services | 10 000,00 |
| Business expenses | 10 000,00 |
| Labor costs | 79 005,36 |
| Profit tax UTII (preliminary calculation) | 15 000,00 |
| Total expenses | 1 063 205,36 |
| Total revenue | 73 914,64 |
Based on available sales data, we prepare a profit and loss report. In subsequent months, sales revenue will grow by 8% per month. This effect is achieved thanks to monthly commercial expenses (leaflets, catalogues) in the amount of 10 thousand rubles.
| Financial performance indicator | 1 month | 2 month | 3 month | 4 month | 5 month | 6 month |
| Sales proceeds | 1137120,00 | 1137120,00 | 1228089,60 | 1326336,77 | 1432443,71 | 1547039,21 |
| Product cost | 880000,00 | 880000,00 | 950400,00 | 1026432,00 | 1108546,56 | 1197230,28 |
| Total revenue | 257120,00 | 257120,00 | 277689,60 | 299904,77 | 323897,15 | 349808,92 |
| Opening costs | 492400,00 | 0,00 | 0,00 | 0,00 | 0,00 | 0,00 |
| Salary with accruals | 79005,36 | 79005,36 | 79005,36 | 79005,36 | 79005,36 | 79005,36 |
| Administrative expenses | 79200,00 | 79200,00 | 79200,00 | 79200,00 | 79200,00 | 79200,00 |
| Business expenses | 86000,00 | 10000,00 | 10000,00 | 10000,00 | 10000,00 | 10000,00 |
| Taxes | 15000,00 | 15000,00 | 15000,00 | 15000,00 | 15000,00 | 15000,00 |
| Total net profit | -494485,36 | 73914,64 | 94484,24 | 116699,41 | 140691,79 | 166603,56 |
