Is selling at a food stall really the business of the 90s? A true story from the life of a businessman

Many beginning entrepreneurs focus on businesses that do not require large financial investments..

Opening a kiosk attracts young businessmen because this business does not require business skills or significant financial expenses.

Beginners of small businesses begin their journey by searching for answers to pressing questions: how much does a retail pavilion cost and how to open a food stall from scratch. The business plan describes in detail all the nuances that a novice entrepreneur will face.

Having studied this information, a businessman who does not have much start-up capital will learn how to open a stall on the street of any locality.

Features of a business plan

The business plan below for opening a trade pavilion contains information that will allow you to open your own kiosk selling various small piece goods. This could be food, stationery, toys, trade in confectionery and baked goods, etc.

A novice entrepreneur should know that the type of goods sold in a stall does not play a fundamental role.

The scheme for organizing a trading business is the same for goods of any kind, even if you plan to open a tent for tourists.

Old and new acquaintances: stalls

The most interesting thing is that the mentioned features of this business have not undergone fundamental changes in 25 years. Still, novice entrepreneurs, who do not have the funds for a more expensive business, open one trading stall after another. And this is good from a market point of view, because they increase the overall level of competition, whether it is a grocery store or a tobacco stand.

As before, an entrepreneur, when establishing his “stall” business, must draw up a business plan with planning of the main financial indicators: net profit, profitability, payback period, approximate assortment (at least 50 items).

Registration

The first thing every aspiring businessman needs to do is register a future enterprise. The optimal organizational and legal form is an individual entrepreneur. It is considered beneficial for many reasons, including a simplified form of individual entrepreneur reporting and minimal tax fees.

If you plan to sell products to legal entities, then you will need to open a limited liability company. This organizational and legal form is more difficult when running your own business.

To register an activity, you need to contact the tax office of the district administration. The authority at your place of residence or the area in which you plan to install the kiosk will be suitable.

My small business

Every day, morning and evening, I came to the kiosk and delved into the trading activities. It was necessary to conclude a bunch of contracts with suppliers, some of them needed to be met personally. Every evening I collected the proceeds from the cash register - this was the most pleasant moment.

For the first six months, trading went very well: about 50,000 rubles came out monthly. net profit, for that kind of money I worked at my main job for 2 months.

Profits mainly came from the sale of beer and cigarettes.

Happiness didn't last long

But the happiness did not last long - soon a federal law banning the sale of beer in stalls came into force, and a couple of months later the sale of cigarettes was also banned. The income from my business fell sharply; there was no way to pay high salaries to sellers.

As a result, I lost valuable employees. Instead, I had to ask my mother and brother to sit on weekdays, and work on weekends.

I tried to make up for the loss of income from the sale of cigarettes and beer with another range of goods: bakery and confectionery products, vegetables, fruits and even children's toys - but all this did not give any tangible result.

There was a good profit only in the summer from the sale of juices, water and ice cream.

Closing the stall

The time has come to pay taxes. Most of the earnings had to be transferred to the tax and pension fund. It became clear that such a business did not generate significant income. In addition, the constant running between my main job and the kiosk was quite boring, and I no longer had any interest or desire to trade myself on weekends and work my ass off.

Selecting a location

The stall usually sells groceries and everyday goods. Therefore, it is recommended to open a retail outlet in walk-through areas where there is a large flow of potential customers, regardless of the time of year.

It is better to place a stall closer to multi-storey buildings, office centers, educational institutions, at public transport stops and other crowded places.

To install a kiosk, the future owner must select a free plot of land with an area of ​​6-8 m2. Opening hours depend on the location of the mini-store and what goods will be sold there. Due to the fact that the stall sells everyday food products, this must be a daily regimen.

A mini-shop can operate around the clock if it is located near a nightclub. Also, a 24-hour stall can successfully operate in places with significant crowds of people, for example, at a train station, near an entertainment center, etc.

ATTENTION! It makes no sense for a stall to operate around the clock if it is located in a residential area, near educational institutions and businesses that operate during the day.

Stall equipment and staff

It is impossible to open a kiosk that will generate profit without purchasing the necessary equipment. It is individual for each owner, it all depends on what product will be sold. There is a general list of equipment that must be available:

1. A safe in which the proceeds will be stored.
2. In the winter season, you cannot do without a heater.
3. Refrigerators must be provided for stalls selling food products. If necessary, an oven or microwave may be required.
4. Scales and chair for the seller.

Depending on what product will be in stock, shelves or racks are needed. It is advisable to install water and electricity. The retail outlet should be located so that there is a toilet nearby.

To work at the kiosk, you also need to hire staff - sellers. It is advisable that they have experience in the field of trade, as well as skill in handling a cash register. You will have to decide in advance on your work schedule. If there are several sellers, you can set a shift schedule, for example, every other week.

Kiosk opening hours are usually set from 8 a.m. to 8 p.m. If the kiosk is located near a busy highway, a 24-hour schedule will be convenient. The amount of payment is determined by the entrepreneur, but it should not be lower than the market average, otherwise it will be difficult to find people to work with.

If a retail outlet will sell food products, sellers must have health certificates.

The seller must understand the modern market and be responsible for ordering goods from suppliers. It is advisable to hire a security guard or install an alarm system to avoid robberies.

You need to decide on the product that will be sold. There is no need to purchase a large assortment right away. It is better to observe what buyers ask more. It is much more profitable to initially find regular suppliers with quality goods. The assortment should depend on the time of year. For example, in the summer, ice cream, cold drinks and beer are in great demand. The selection of assortment also depends on the place of sale. Near educational institutions, office buildings, metro stations or train stations, bakery products, fast food, hot tea and coffee will be best sold.

Outlet assortment

With a small initial capital, it is not recommended to experiment with the assortment. It is worth paying special attention to products that are in constant demand among potential consumers.

It is necessary to analyze which categories of daily products are popular and what buyers usually pay attention to when making a purchase. It is also necessary to take into account all the costs that arise when selling various products.

Food products may expire and spoil if refrigeration equipment is unavailable or damaged. It is also worth considering where to store perishable products during a power outage. Include these expenses at the initial stage of business planning.

Market situation

Nowadays, citizens' incomes are declining, and this entails a decrease in their purchasing power. According to Rosstat, in 2015, real disposable income of Russians fell by 4%, and in the 1st quarter of 2020 - by another 3.9%.

According to Romir research, approximately 70% of our compatriots in 2015-2016. began to save up to 10% on the essentials: groceries, clothing, shoes, and other non-food items of daily demand.

Sociologists distinguish four types of buyers depending on their chosen cost-saving strategy (see Table 1).

Similar trends are observed in online sales (see Fig. 1).

Fig.1. How e-commerce is growing in Russia*

*Data is presented excluding online orders of prepared food, tickets, digital goods, and wholesale purchases

In 2020, according to Vedomosti, they grew by only 3% taking into account inflation (excluding - by 16%). This is 2.5 times less than in 2014 (8% taking into account inflation). In the average online store, the receipt “grew” by 8% and amounted to 4,050 rubles, the number of orders also increased by 8% (increase to 160 million)

According to Data Insight statistics, buyer interest has shifted from electronics and household appliances to budget products: inexpensive clothing and consumer goods. At the same time, the share of premium brands and expensive goods has decreased. The leaders are sporting goods, products for animals and children's assortment.

Summary : the market situation makes us think about creating a fairly wide assortment designed for an audience interested in saving money. At the same time, the quality must be acceptable, since competition in the low and medium segments has been and remains high. The sales strategy should be focused on different categories of citizens and take into account their preferred methods of saving.

Recruitment

Undoubtedly, opening a stall is a business that has several undeniable advantages . Firstly, you will need some financial resources for promotion. Secondly, only 1-2 employees will be required.

The employee’s responsibilities include selling and accounting for goods, as well as consulting potential clients.

It also doesn’t hurt to take care of security, since in recent years there have been cases of stalls being burned. To do this, you need to contact a security company that provides such services. The exact number of employees required to organize the work of a kiosk depends directly on the number of working hours.

If you plan to open a 24-hour mini-store, then you will have to hire 2 workers - one for the day shift, and the second for the night shift. If the retail outlet will be open not only on weekdays, but also on weekends, it is necessary to provide for this fact and organize shift work for the mini-store employees.

Recruitment

Much depends on the operating mode. As a rule, one or two workers are enough. For example, if the stall operates only during the daytime, then one person is enough. But for the night shift a replacement will be required.

For the first month or two, it is advisable to work independently, especially if this is your first business. Gain experience, analyze the point and, whatever one may say, save on hiring an employee. As a rule, employees are hired when there is a certain profit or an additional outlet opens.

As for friends and acquaintances. The option is not the most attractive, but you can save money here too. However, a friend may take advantage of the situation, shirking work, or worse, borrowing food/alcohol. On the other hand, a hired worker can steal or make money past the cash register, but this is not so difficult to find out when there is the most inexpensive camera.

Remuneration should not be the market average, because... It will be difficult to find workers. Another point is the issue of security. Even in today's calm times, you can encounter inadequate buyers who have superficially studied their rights and believe that everything is allowed to them.

ATTENTION! The abundance of private security companies will allow you to settle on the optimal option, but again, if you are a man, then it is more advisable to work independently for the first time and evaluate the contingent of buyers.

Market analysis

An important stage of any new business is to conduct a market analysis in which the entrepreneur plans to open his own business. If you plan to open a retail outlet, first of all you need to go around all the mini-shops, pavilions and stalls that operate nearby. After this, you need to analyze the information received.

All the advantages and disadvantages of retail outlets must be taken into account when opening your own stall. In some cases, you need to decide how profitable it is to open your own mini-store in the chosen area. If there are a large number of potential competitors located nearby, it is sometimes better to look for another location.

How to open a stall and register it

Many people dream of starting their own business; the main area is trade. The stall can be installed indoors (shopping center, train station or metro station) or outdoors, built, bought, rented. If the kiosk is indoors, there is no need to spend money on a heating device, and the level of security increases. But rents are higher and there are almost no vacant buildings.

If a business is opened without partners, you need to register an individual entrepreneur, which has a number of advantages:

• minimal costs when preparing documentation
• simple accounting
• convenience of taxation

Registration is carried out at the place of permanent residence. It is quite possible to go through the procedure yourself. But if in doubt, it is better to involve specialists.

Important! It is worth considering that in large cities, since 2020, multifunctional centers are engaged in registering individual entrepreneurs.

Before going to the center or inspection, you must select the type of taxation (USN), determine the OKVED code (47.8), and pay the state fee (800 rubles). The simplified tax system involves 2 methods of calculating tax: 6% of the amount received at the cash desk, or 15% of the difference between income and expenses. The state duty can be paid at a bank or on the Tax Inspectorate website.

To register you need:

Open your own business

• application (form P21001)
• application for the application of the selected taxation
• passport
• TIN (if there is a certificate)
• receipt certifying payment of the duty

Individual entrepreneur status is provided after 3 days. 2 certificates are issued: on enterprise registration and tax registration, and an extract from the Unified State Register of Individual Entrepreneurs. The data is sent to the Pension Fund and the Federal Compulsory Medical Insurance Fund by a tax officer, and certificates are sent by mail.

But this is only the first step if you buy a ready-made structure or build it. You will need to rent a plot of land, which is registered with the municipality (administration). If the settlement is large, tenders are organized. Small towns have fewer problems. Permission for installation is issued by the Department of Architecture, approval is required from the Department of Trade.

After installing the kiosk, you need to coordinate the documentation with Rospotrebnadzor and firefighters in order to receive a sanitary passport certifying that all standards have been met. In some localities, it is mandatory to conclude contracts for disinfection and disinfestation, garbage removal or disposal of lighting fixtures containing mercury. There are products whose trade requires a license.

If a salesperson is hired, he must have a health certificate.

List of documents

As mentioned above, first of all, the future entrepreneur must register the business as a private entrepreneur by contacting the tax office at his place of residence. You must also submit an application allowing the entrepreneur to switch to a simplified taxation system.
You can solve these issues yourself or use the services of companies specializing in providing such services.
The next step is to obtain a package of documents for permission to install a kiosk. According to the law, in order to set up a mini-store in a city, an entrepreneur must obtain permission from the municipality.

If you plan to open a retail outlet in a rural area, the necessary document is issued by the village administration. In most cases, the procedure for obtaining a permit does not cause problems, but if the business is planned to open in a large city, the possibility of installing stalls may be regulated by special tenders.

They are held in cases where several kiosks are registered for 1 place. To do this, you need to submit 2 applications - 1 on your own behalf, and the other on behalf of a friend. Another important document is permission, which must be obtained from the Department of Urban Planning and Architecture. Then it needs to be agreed upon with the department of trade of your city.

After the new trade pavilion is installed, it is necessary to coordinate the relevant documents with the sanitary and epidemiological station and the fire inspectorate. Documents for obtaining permission from the fire inspectorate:

• Statement.
• Insurance.
• Registration certificate.
• Agreement for rental and installation of fire alarms.

For the sanitary and epidemiological station, you need to collect the same package of documents and additionally prepare a sanitary passport of the facility, sanitary records of the staff, an assortment of goods sold and an agreement for regular waste removal.

Having completed the first part of the procedure, the future businessman must then begin organizing his own business. To do this, you need to visit Rosstat and the Pension Fund, where you also need to register and collect permitting documents. You will also need to visit the Federal Compulsory Compulsory Medical Insurance Fund, where you will need to obtain an insurance certificate.

ATTENTION! According to statistics, you can quickly collect a package of documents necessary to open a stall. With the right approach, this process will take 7-30 days.

Registration of organizational form

Registration formalities will cost 2 thousand rubles (payment of state duty - 0.8 thousand rubles, production of a seal - 0.5 thousand rubles, opening a current account - 1 thousand rubles). However, it is reasonable for an entrepreneur to register in such a way that he can then receive compensation for the above-mentioned expenses from the employment center.

Before opening a stall, an individual must acquire the status of an entrepreneur. It is recommended that you first familiarize yourself with the Federal Law “On Registration of Legal Entities and Individual Entrepreneurs”, as well as consult on the choice of OKVED codes that correspond to the chosen business.

Preparation of registration documents includes:

• application for registration of individual entrepreneurs (form P21001);
• originals: TIN certificates and passport;
• copies of four passport spreads (photo, date of receipt, registration, note about a previously issued passport - on the last page), as well as a copy of the TIN certificate;
• receipt of payment of state duty (cost - 800 rubles).

This package of documents is submitted to the center of the Federal Tax Service of Russia, where state registration takes place within 5 days.

For the success of any business, it is recommended to advertise. To do this, you must first order leaflets and hire promoters to distribute advertisements in crowded places. The business card should contain the following information:

1. where the stall will be located;
2. operating hours of the outlet;
3. assortment that will be offered to customers.

If you have additional capital, it is recommended to place the billboard in close proximity to the shopping pavilion.

List of kiosk equipment

The most important thing is the structure. If it is rented, all that remains is to furnish it from the inside. When renting a plot of land, you will have to choose one of three options:

• hire carpenters for construction
• buy a ready-made “box”
• buy a mobile structure

The ideal option for a novice businessman is to rent from the municipality. The initial investment will be minimal, since most of these structures already have utilities.

Buying a ready-made pavilion is faster and easier. It will be delivered and installed in one day, all that remains is to connect the utilities. You can find a supplier who will make a burglary-resistant door, security roller shutters, and a reinforced floor for a street kiosk. Some manufacturers of similar structures offer blinds, shelving, air conditioners and other useful equipment.

The arrangement of the premises depends on the type of product. If food is sold, a refrigerator is needed. In any case, sellers cannot do without shelving, display cases, scales, a cash register, a table and a chair. If there is no heating system, you will have to use an electric heater in winter. In a highly competitive environment, a bright sign is desirable.

Equipment

When considering what is needed to open a retail outlet that will fully function, it is necessary to pay special attention to the acquisition of equipment. The list of required inventory is small, which gives the business an important advantage.

To open a mini-store, there is no need to purchase expensive equipment and a large number of different equipment. In order to open a stall you need to buy basic and auxiliary equipment:

• kiosk;
• refrigeration showcase;
• racks for displaying goods;
• a cash register that needs to be registered with the tax office;
• scales for weighing weighted goods;
• table, chair for the seller.

Today there are a large number of companies offering commercial equipment. Therefore, it will not be difficult for the future stall owner to select the equipment necessary for the operation of the outlet that will suit his design.

It is also necessary to bring communication systems to the kiosk. The best option is an autonomous water supply and heating system.

IMPORTANT! It is necessary to coordinate with suppliers the time of delivery of products; it is advisable to organize it outside of working hours.

Trade equipment and assortment

Let's assume that we have decided on a location. How are things going with the product? The main rule, if this is your first experience, is not to experiment with products and stick to consumer products. As a rule, these are food and alcohol. Do not expand the range of products that spoil. For example, fermented milk, sausages or cheeses.

At first, analyzing purchasing power will greatly help. It is not difficult to collect statistics on the products sold, gradually placing more emphasis on them. Occasionally dilute products with other items.

What equipment will be needed? Firstly, this is a cash register that needs to be registered . What will it take?

1. Apply.
2. Provide your passport to the cash register.
3. Documents for renting premises, which will be certified by the master of the technical service center.
4. Additional documents from the Tax Inspectorate

In the warm season, a refrigerator will become indispensable . You can additionally buy an ice cream stand. In the cold season - heat it if there are problems with heating.

Scales are also useful, especially if bulk products are sold . Of course, you can order ready-made packages, but, for example, bulk sugar will become an undeniable advantage among buyers. They will be more willing to come knowing that they can take the product based on their needs.

Racks and shelves for goods ranging from canned foods to alcoholic beverages. There won’t be much space, so the abundance of shelves will make any assortment visually wider.

Free cellophane bags will be a definite plus . This is now common practice for supermarkets, but not always for small spaces.

It is advisable that the toilet room is nearby. The problem is easily solved if the store is located in a shopping center, but, for example, the lack of a toilet in a shopping kiosk at a bus stop will become a problem for the staff. Let's note a broom, mop, a set of sponges, cheap towels or rags, detergents, etc.

A plus would be a microwave oven, which performs a wide range of tasks.

There are many companies that provide equipment, so there are no problems with this. You can choose tools to suit your wallet and even design.

Expenses

To calculate how much it costs to open a mini-store and what the payback period is, you should consider the financial component of the project. List of expenses that will go into opening a retail space:

1. Buying or building a kiosk - 60,000-110,000 rubles.
2. Purchase of a refrigerated display case - 10,000 rubles.
3. Purchase of scales - 3000 rubles.
4. Cash register with registration with the tax office - 7,000 rubles.
5. Preparation of documentation with the costs of possible fees - 10,000-50,000 rubles.
6. The seller's salary is 120,000 rubles. in year.

Total: the minimum amount of financial costs for starting a business is 210,000 rubles, the maximum is 300,000 rubles. With a trade margin of 25-35% for each unit of goods sold, the right location and a well-chosen assortment, the payback period for financial investments is 6-12 months.

ATTENTION! An analysis of the operation of functioning stalls shows that the payback period for such a retail outlet is up to 12 months.

The exact period depends on the location of the stall, the type of goods sold, and the store’s operating hours. It is worth considering that with a 24-hour work schedule, the profit can be much greater.

Based on the above calculations, it can be argued that opening a stall will not require large expenses. This business is profitable and can generate good income.

Buy or rent

So, having decided on a place for a trade tent in the city or on the outskirts, you should decide on installing a kiosk. What is more profitable - buying or renting? The issue is controversial and depends on region, location and other factors.

For example, we managed to buy building materials cheaper than the market price. The future owner can independently equip or build a stall. Invite friends to help or hire a team of specialists from Central Asia.

But, in general, other things being equal, it is always more profitable to rent a room. Especially when there is no guarantee that the trade tent will grow and its income will exceed expenses. Of course, you shouldn’t immediately rent space in a central department store.

You should test the waters and settle on budget options . By the way, there’s a paradox: people in the center are, on average, richer than in residential areas, so low and reasonable prices can scare them away. For example, if you have your own furniture production workshop and you have opened a small store.

IMPORTANT! You can also rent premises from the city administration. As a rule, all communications are connected there.

Advice for those wishing to open a stall

At the opening stage, it is important to choose the right suppliers. The main criterion is reliability. Timely delivery and honesty in payments are required.

You need to pay attention to:

Stall for rent

• popularity of brands
• breadth of assortment
• purchase price

No less important are such nuances as the possibility of deferring payments and receiving products for sale, bonuses and discounts.

A business will not make a profit if:

• the range does not correspond to demand (too wide or vice versa)
• prices are above average on the market
• Working hours are inconvenient for customers
• the owner strives to buy products cheaply, without paying attention to quality
• illiterate salespeople who don’t want to work were hired

If trading is not going well, it is advisable to review the work schedule and change it. Trade volumes can increase if you open earlier and close later.

If the kiosk is near a shopping center, the products should be completely different or favorably differ in price. It’s worth going around the nearest retail outlets and setting a price that is at least a couple of rubles different from competitors. It has long been known that those who became rich were not those who sold high, but those who sold a lot.

To sell unusual or specialized products, opening an online store may be a good option. In such a situation, the pavilion will serve as a pick-up point.

Stall financial plan

In this section of the kiosk business plan, we will consider in detail the material and financial component of opening a business, the cost of opening and payback.

• Purchase and installation or construction – 55 – 150 thousand rubles;
• Refrigeration unit – 20 thousand rubles;
• Scales and cash register – 20 thousand rubles;
• Paperwork, extortions, bribes - 10 - 100 thousand rubles;
• The salesperson's salary is 120 thousand rubles per year;
• Total: starting capital for opening a kiosk – 225 – 410 thousand rubles.

As an analysis of the market in general and the operation of kiosks in particular shows, the payback period for a kiosk usually ranges from 2 to 6 months . It all depends on the opening hours, location of the kiosk and the type of goods sold in it.

What will be sold at the stall?

The owner must determine the product to be sold. You shouldn't buy a wide variety of products right away. Initially, you should observe what customers ask. It is much more profitable to find a permanent supplier with quality goods. The assortment largely depends on the time of year. For example, in the summer it is ice cream, soft drinks, beer.

When the stall is located near schools, institutes, office buildings or a train station, bakery products, tea, and coffee will be in demand.

What do you need to open a vegetable stall? To do this, the owner must purchase specialized commercial equipment:

• a freezer necessary for storing vegetables;
• refrigerated display case;
• racks;
• special slides.

When selling vegetables, as well as other products, stalls must fully comply with sanitary rules. Internal walls should not have cracks; it is recommended to cover counters with waterproof material.

Hygiene rules must be observed at the kiosk. The owner should take this into account before opening a stall. It is necessary to provide a washbasin with soap, a brush and a clean towel.

Vendors should store clothing in closets or on an open hanger covered with a cloth.

Products should not be stored on the floor in open containers, and retail sales should not be carried out near containers with garbage.