How to find the right production niche?
What products are popular, what is profitable to produce, how to determine demand in the market? Answers to these questions can be found based on the results of sociological surveys. Studies conducted over the last decade have shown that the monthly earnings of Russians on store purchases are spent as follows:
- Nutrition;
- Cloth;
- Childen's goods;
- Home renovation;
- Home improvement;
- Goods for transport;
- Rest.
Based on the data presented, it becomes clear that in 2021 in Russia it is profitable to produce something from the indicated categories of goods. Covering all areas at once is a costly and too time-consuming task. Therefore, we offer a list from which you can choose your niche.
Food industry
It always functions, supplying the people with food. Whatever the economic crisis, food products will be liquid in its conditions. However, so are the drinks. But what products are profitable to produce? To open your own business in this cell, you need to choose a direction. For example, a fast food chain. Or, procurement bases for organic products. The first is in demand due to the catastrophic lack of time of the busy part of the population. Secondly, it is gaining momentum due to people who are careful about their health. But there is also a third thing: the production of alcoholic, low-alcohol and non-alcoholic drinks. Such an industry also has a place to exist, due to its profitability.
Or, in general, you can focus on baby food. Now this is a very relevant production in Russia for small businesses.
Meat products
Suppliers of meat will be people raising livestock and poultry, as well as farms involved in this industry. What to produce from animal and poultry carcasses, and is it profitable to produce everything? Perhaps most finished products and semi-finished products will find their buyer. Sausages, jamon, cutlets, minced meat, meat rolls, preparation for barbecue. Let's not whet our appetite further. Better yet, let’s note the main rules of this work:
- Mandatory compliance with sanitary standards;
- Only fresh meat;
- Compliance with storage periods.
Beer production
A mini-brewery is a fairly stable manufacturing business in Russia, despite the current competition. The peak sales of live beer occur in the summer. But nevertheless, this activity cannot be called seasonal. The low-alcohol drink is enjoyed with pleasure in the autumn-winter period. Simply, the amount of liquid goods should be less than in the hot season.
Why will people buy beer from your brewery? Because it:
- Made from natural raw materials;
- Always fresh;
- Always in stock.
Floromat
These are machines, like those that sell tea, coffee, sweets or toys. Only with a content that is unusual for the Russian consumer. Such machines sell fresh flowers. The design is extremely technological, it allows you to provide optimal conditions for the safety of plant cuttings: humidity, temperature, air parameters for 14 days from the date of their placement in the machine. The cost of such a unit is 1,000,000 rubles. Payback – 6 months, profitability – 70%.
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Own quail farm: earnings and losses of the poultry business
Advantages of the idea:
- low competition;
- savings on seller services;
- the ability to form an assortment based on customer needs, requests, and analysis of consumer preferences;
- minimum space, space occupied by machines, therefore, significant savings on rental costs.
Production of natural juices
Making juices at home is not for everyone. Alternatively, people buy these drinks from supermarkets. Having equipped the premises and received all the permitting documentation, you can begin work. The raw materials can be locally produced fruits and vegetables. But the scope of the enterprise can also be expanded by purchasing citrus and tropical fruits (or concentrates) in foreign countries. In any case, the original product must be:
- Manufactured in accordance with established technology standards;
- Natural;
- Various.
Furniture manufacturing
What is now profitable for small businesses in the furniture industry to produce? Products that are essential for furnishing residential and office space are selling well. Provided that the price/quality ratio is acceptable.
Furniture made from wooden pallets
Her popularity is at the peak of her fame. This is due to the affordable price of finished products. This, in turn, is caused by the low cost of the source material. Furniture made from pallets is distinguished by its laconic design and good quality. Fits perfectly into both apartment and country interiors.
Wicker furniture
To manufacture it, you do not need large amounts of money to purchase raw materials. Also, furniture made from wicker and cattails is something that is profitable to produce at home. To implement this idea, a small garage or other utility room is enough. In addition, business in this area does not imply the presence of expensive equipment and high technological knowledge. And the organizer can handle the work himself, having mastered weaving skills.
Glass furniture
Tables, shelves and cabinets are very popular in residential interiors. At first glance, their manufacture is somewhat more complicated than the first two options. But, in essence, there is no complexity as such. Rather, it is extreme accuracy. Glass is a rather fragile material and requires careful handling. You can supplement the assortment with mirrors, which are also good sellers.
Cushioned furniture
Connoisseurs of comfort prefer soft armchairs, sofas and poufs. What kind of production can you open with minimal investment? Of course, a workshop for the production of upholstered furniture. Having made a couple of positions for the display case, further assortment can be included in catalogs. And based on orders, purchase materials to complete the work. The funds for the purchase of fabrics and other raw materials will be the money received from the customer as an advance payment.
Cabinet furniture
It is cheap, practical, and relatively good quality. And therefore, it finds its consumers among the population arranging housing and offices. What is now profitable to produce in the “cabinet furniture” category? The most purchased items remain:
- Wardrobes;
- Hallways;
- Computer tables;
- Dressers;
- Modular kitchens;
- Children's cabinet furniture.
World industrial structure
The industry of the world's countries determines a whole complex of factors without which economic development is impossible. These are enterprises that produce tools, extract raw materials, materials, fuel, energy, and food processing. On this basis, industry is divided into mining and manufacturing, which form an important part of the world economy, trade, and services market.
Of the 7.5 billion people living on planet Earth, more than one billion are employed in industry. Thus, 17% of labor resources are used in the fuel and energy complex, mines, nanotechnology, innovative production, chemical or metallurgical industries.
There are three main groups:
- Old industries: coal, metallurgy, iron ore, textile industry, shipbuilding. Today they are less in demand, so their development is slower. Mainly predominant in developing countries.
- New industries: production of plastics, chemical fiber and aluminum, automotive industry. Like factories, natural resources are concentrated in developed countries. Countries with developing economies are rapidly increasing the production of automobiles, chemicals and plastics.
- Emerging industries: electronics, microbiology, aerospace, computing, robotics and robotics. Such production can be carried out by developed countries and those belonging to new industrial ones.
Countries in Africa or Latin America cannot allow their industries to shift to aerospace or microbiology products. These areas require enormous capital investments, training of highly qualified specialists and the availability of certain resources. There are no difficulties with personnel, but professionals are trying to go to the USA, Canada or Australia.
Problems arise when sufficient funds are allocated from the budget. Therefore, only states with strong and rapidly developing economies are able to support the progress of the latest industries.
Thanks to financing and thoughtful allocation of resources, new centers of industrial production are being formed in the United States, China, India, Germany, Australia, Italy, Brazil, Indonesia, France and Japan. Governments are trying to make areas automated, knowledge-intensive, and introduce robotics. And also create jobs for qualified specialists, make the industry competitive in a particular region and the world.
More information about the structure of industry in the world can be found by watching the video.
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Fuel and energy industry
The main specialization is the extraction, processing of fuel and the production of electricity, its delivery and distribution. Fuel and energy complexes (FEC) are closely connected with other industries, infrastructure facilities of the country, population, educational and medical institutions. This area is capital-intensive and intersectoral in nature.
What industries are included in the fuel and energy complex?
Not a single state in the world can do without the fuel and energy complex. Despite the fact that fuel and electricity are needed by everyone, everywhere, problems often arise with its financing and normal operation. The development of the fuel and energy sector requires constant investment and the purchase of expensive and bulky equipment.
Every year, humanity consumes 11 billion tons of standard fuel.
Most states consume oil (about 36%), coal (28%), and natural gas (28%). The leading countries of the world that are among the top consumers of energy and fuel include:
- USA;
- China;
- Japan;
- Russia;
- Germany;
- India;
- Canada;
- France;
- Great Britain;
- Italy;
- Australia;
- Switzerland.
Previously, coal was more actively used as a fuel, which is one of the primary energy resources. Now this type of natural resource is being replaced by oil and natural gas, the prices of which are several times higher than for coal.
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Fuel and coal industry
The extraction of coal, natural gas and oil is carried out by the fuel industry, which also focuses on the processing of fossil fuels.
The coal industry is recognized as one of the oldest in the world. Occupied leading positions in the industrial sector during the 19th – first half of the 20th centuries. Coal mines were located mainly in Ukraine, Russia, the USA, Britain, and Germany.
Country statistics on coal production
In the 50s and 60s, coal began to be gradually replaced by oil and gas. In 1973, there was a global energy crisis, which made black gold in demand and reduced its prices.
Global coal trade has also picked up. But in many countries there has been a depletion of natural reserves. Therefore, Belgium, Germany, France, Japan, and Britain reduced the production of this type of fuel, giving preference to imports.
At the same time, the coal industry intensified in the United States, Poland, Indonesia, Australia, and Colombia. Coal mined in these countries began to be exported. In the 21st century Coal production increased in China, India, and South Africa, while in Russia, Kazakhstan, and Ukraine it decreased.
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Electric power industry
The electric power industry ensures the operation of factories, factories, mines, and infrastructure of countries. In the modern world, it is actively developing as the field expands due to scientific and technological progress. Electronics and comprehensive automation are important.
Which power plants produce the most electricity?
The leaders in the electric power industry are the following states:
- USA;
- Russia;
- Japan;
- Germany;
- Canada;
- Italy;
- Poland;
- Norway;
- India.
These countries produce more than 100 billion kilowatts in one hour. The ranking of countries leading in terms of electricity generation per capita is headed by the following:
- Norway - 29 thousand kW/h.
- Canada - 20 thousand kW/h.
- Sweden - 17 thousand kW/h.
- USA - 13 thousand kW/h.
- Finland - 11 thousand kW/h.
The global consumption figure is 2 thousand kilowatts of electricity per hour.
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Goods for children
This industry does not have the scale of assortment. This is a very popular production for small businesses in Russia. And even in a competitive environment, the survival rate of an enterprise producing children's goods is very high. So which direction to go?
Wooden toys
Wooden pyramids, puzzles, puzzles, games, construction sets... Parents love such products for their quality and environmental safety, and children love them for their variety and bright colors.
The owner of this business structure needs to have a rich imagination in order to become a leading entrepreneur in the sales market. Even to the point of including the newest business production in Russia - the production of wooden stationary gaming centers.
In addition, you should never forget to monitor the quality of purchased raw materials.
Stuffed Toys
Sewing soft toys can be organized at home. The implementation of this idea is not expensive. It is enough to acquire a sewing machine, draw up the appropriate package of documents for a mini-enterprise, purchase materials, and begin to develop.
How to make production profitable? The more interesting and high quality the toys are, the greater the chances of finding wholesale customers. Therefore, raw materials for goods will not tolerate low quality. Moreover, the product produced is intended for children.
Cardboard books
The task of parents is to create maximum conditions for the development of children. The presence of the Internet is not a reason to abandon paper books. They develop imaginative thinking, hand motor skills, and teach the child to read and retell. An ideal option for little ones are cardboard books.
What is profitable for small businesses to produce in Russia?
Free legal advice: All of Russia » » Contents Business on participation in trade chains “we buy imported goods - we sell to compatriots” ceases to be profitable.
There are many reasons for this, from geopolitical to economic.
For Russian production of any scale today the green light is on.
How to navigate among the opportunities that have opened up, what can a small business bet on?
From the very beginning of economic freedoms in Russia and until recently, domestic small businesses preferred the sphere of trade and services. Often the business model was elementary: we buy abroad, sell at home. Low competition and huge opportunities for choice ensured high profitability of projects.
* – with annual revenue up to 1 billion rubles. (criteria 2014)Source: Rosstat, collection “Small and Medium Enterprises in Russia” 2020
Products for cars
Owners of “iron horses” spend a lot of time in their car. Due to the nature of the job, for many this is a second home. That’s why drivers arrange it as comfortably as possible.
Sewing car covers
Covers made of leatherette, genuine leather, velor and other materials are products that are profitable to produce to order. There is no point in making large batches if a customer has not been found for them. And this is only a plus: you don’t have to spend money on purchasing materials, risking not selling the goods.
Car accessories (mats, mud flaps)
For a car, this is a kind of “consumable item”. Therefore, high-quality small items are always purchased. Their production is not as simple as sewing covers. But still, it is doable. By putting aside fears, you can earn a stable income. Perhaps this is the answer to the question of how an ordinary person can get rich in Russia.
Construction and repair
What is better for small businesses in the production of building materials to produce in Russia? Only those goods that are in systematic demand. Otherwise, there is a huge risk of joining the ranks of unprofitable organizations. This cell is full of competition. But with the right approach, it can be borrowed profitably.
Facing tiles
Tiles for finishing walls and floors, if they are of high quality, are sold fairly quickly. Moreover, it can be sold locally. It is enough to open your own database of building materials and organize a delivery service.
The design of facing tiles is influenced by fashion. Therefore, a business owner always needs to be aware of fashion trends and design styles. In addition, in order to keep up with the times, you need to purchase equipment that supports new technologies.
Wall finishing materials
Decide what type of materials you would like to work with. After all, it could be ordinary wall wallpaper, or it could be bulky paving slabs. The choice of production premises and the amount of equipment costs depend on this.
In one case or another, the relevance of small business production in Russia in this industry is influenced by the quality of the product and the modern technologies by which it is manufactured.
Covering for sports fields and fitness halls
Are you wondering what is profitable to produce in Russia? Covering for children's and sports grounds; flooring for gyms; blind areas near buildings; home lawns, all this is in demand. This niche is called “new”, and this state of affairs portends a successful investment in business.
In the manufacture of such practical goods, simple materials are involved: rubber crumbs; glue, dyes, and colored rubber granules.
But the equipment itself is not very cheap. It consists of basic and secondary mechanisms. You will also need labor and a fairly spacious room. However, the return on investment occurs very quickly if you find the right distribution points.
Double-glazed windows
Over the past decade, metal-plastic double-glazed windows have conquered the Russian market. They are distinguished by: energy-saving features, practicality, tightness, affordable price and simplicity of style. The production of double-glazed windows cannot be called a startup with minimal investments for a small business. But this business operates successfully in a competitive environment. Of course, if your product can please the consumer with a different quality.
What does Russia export, besides oil and gas?
Contrary to the opinion that stopping gas and oil purchases in Russia will plunge the country into poverty and hunger, since there are no other profitable industries here, Russian producers offer a lot to the foreign market. Let's look at what Russia is currently supplying to countries far and near abroad.
- Equipment for the nuclear complex.
The world record holder in the volume of construction of foreign nuclear reactors is Rosatom. 30 power units of nuclear stations, i.e. 41% of all those being built in the world, were built in 2014 by Rosatom. Our country is an exporter of the full cycle of nuclear technologies. From the development stage to commissioning and maintenance of facilities in the future. In addition to the fact that Russia exports components to Belarus, Slovakia, Jordan and Bangladesh and builds nuclear power plants, the state corporation Rosatom further oversees these facilities.
- Financial services.
One of the three world leaders is a Russian brokerage with an annual turnover of over a trillion dollars. It has many foreign branches: Germany, USA, Mexico, China, etc. The company won the “Best Broker in Europe” category in 2013.
- Transport services.
Volga-Dnepr Group of Companies is a global leader as an air carrier of oversized and extra-heavy cargo. Its annual turnover is over 40 billion rubles. About a dozen branches of the carrier are located in the USA, Europe and the East.
- Space technologies.
The commercial use of space is another leading position of our country within the global market. The delivery of cargo, satellites and specialists into orbit brings the Russian treasury more than $1 billion annually.
- Business consulting.
Russia exports, in addition to oil, many different goods and services. One of the most promising is the “export of ideas and information technologies.” The clients of the international company, whose head office is located in Perm, are The Coca-Cola Company, the IMF and the WHO. Its customers (about 450) represent over 70 countries around the world, and more than one and a half thousand projects are being implemented with the help of its analytical software.
- Telecommunications services.
It cannot be said that Russia exports a large amount of goods to Japan and other countries of the East (except China). Exports here are of a different kind – services and information. The capacity of Rostelecom's Transit Europe-Asia transit channel has reached 8 Tbit/s. This fiber optic backbone project has been implemented entirely on land and has proven its reliability over more than 10 years of its existence. In addition, the telecommunications company is implementing a number of international projects.
- Tourism.
Tourists visiting Russia spend over $7 billion annually. It's time to develop your potential. For example, the Turkish tourism market in 2020 brought its smaller country than Russia 32 billion.
- Metallurgy.
Including non-ferrous and ferrous metals, products made from them and ingots, Russia exported $40 billion worth of products from this industry in 2020.
- Chemical industry.
The export of certain fertilizers and chemicals and synthetic rubber, in the production of which Russia is the world leader, brings in over $30 billion a year.
- Agriculture and food industry.
Last year brought the country to the world championship in cereal exports. Russia exports no less agricultural products in 2020 and seeks to develop its capabilities.
- Export of weapons.
The production of the world's popular combat aircraft and helicopters, armored vehicles, and weapons systems for the Navy by the Russian military-industrial complex, as well as large supplies to Algeria, Venezuela and the countries of the Far East, have brought the country to second place in arms exports after the United States.
- Mechanical engineering.
What does Russia export to Belarus, Ukraine, Uzbekistan? Domestic exports of chipless metal molding machines from JSC Gidropress are of interest to our closest neighbors and certain foreign countries.
- Aircraft.
The Russian Helicopters holding company holds the first place in the world in the construction of medium and heavy class helicopters. And already more than sixty Sukhoi Superjet 100 aircraft are used not only on domestic local airlines, but also by Laotian, Indonesian, Swiss and Mexican air carriers.
- Electronics.
Almost half of the simulators purchased in the world for training marine specialists (45%) and more than a third of marine navigation equipment (35%) are supplied by Russia. More than 13 thousand ships of the merchant fleet of different countries are equipped with its products.
Only the most prominent figures in the Russian foreign market are mentioned in this article. Domestic companies that successfully promote exports from the Russian Federation on markets around the world number in the hundreds, and their number is growing.
Read the article: Methods of international trade
Cloth
No matter how many entrepreneurs occupy this cell, tailoring will always be something that is profitable for small businesses to produce. But after purchasing sewing equipment, do not rush to purchase different fabrics. Be interested in demand, look for wholesale buyers, and only then make the goods.
Give preference only to natural and high-quality fabrics. This way you will expand your circle of consumers and win over your competitors. And it doesn’t matter for whom the clothes will be made. On the Internet there are patterns for men's, women's, and children's clothing.
Textile goods for home
The finishing touches in the interior are textiles: curtains, bed linen, cute blankets, cozy carpets. Textiles are always relevant, and organizing a business in this direction is extremely simple. This idea can be classified as one that does not require enormous costs. Therefore, it is quite feasible for beginning entrepreneurs whose budget is limited.
Bed sheets
The bed linen business is very popular now. Having stepped into this field of activity, focus on the quality of the fabric and the printing of the design. This is greatly appreciated by consumers. Do not miss the opportunity to study the pricing policy of raw materials. Try to buy fabrics from manufacturers, bypassing the costs of intermediaries. It will be good if the enterprise also covers the sewing of children's bed linen. Therefore, try to include cartoon-themed materials in your order.
Many clients appreciate it. This advice should not be overlooked if the goal of the work is to rapidly develop the activity.
Of course, no one bothers to supplement the assortment by sewing bedspreads, blankets, towels, and other household goods.
Fabric organizers
It is no coincidence that this position appeared in the form of a separate paragraph. Fabric organizers equipped with pockets for storing small items are know-how that is in great demand. In terms of its novelty, it can be compared with the production of inflatable trampolines for business, which are gradually filling the market. And the costs of producing them are minimal, in contrast to the costs of producing trampolines.
“Yes” to bankers, “no” to factories
The state, through tax policy, imposes an absolute ban on the production of any useful things and goods in our country. What does the Russian tax system allow you to do? For example, trading in foreign consumer goods - a preferential tax regime has been established for such activities. Engage in banking and currency and financial speculation - all this activity is carefully exempted from VAT. Extracting and selling reserves from domestic natural reserves is again a special regime, plus direct bonuses in the form of “reimbursement” from the VAT amounts paid by other sectors and industries of the economy. To extract income from any kind of criminal and semi-criminal activity - such income in the Russian Federation is guaranteed immunity from taxes, which is not the case in any developed country in the world!
But in our country, the only country in the world, the full set of taxes (income tax, VAT and property tax) is imposed only on the manufacturing sector! For enterprises producing tangible goods and products, the actual tax burden exceeds 50%.
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Leisure and tourism
Even the most low-income people always find time to relax. If traveling to foreign countries is not available to them, they give preference to local tourism. Fortunately, the picturesque places of our vast Motherland allow this. What is profitable to produce in 2021 for tourists?
Mobile holiday houses
A very fresh idea, the roots of which originated in the USA.
Externally and internally, a mobile home resembles an ordinary fundamental house-building. But the advantage is that it is transportable. This means your travel will be comfortable and cozy. Taking this interesting project as the basis of an idea, you have every chance to become financially independent.
Tents
A less expensive option for a “mobile house”, but also in demand among budget-conscious tourists.
Occupying this niche, you will have to compete with China. After all, Chinese websites are overflowing with this product in the “tourism” section. Don't be discouraged if you decide to sew tents. Many are skeptical about “consumer goods” from the Middle Kingdom, preferring goods from domestic producers. Take advantage of this and sew only high-quality and practical products.
Backpacks
Well, what kind of hike is complete without a backpack? The best part is that the cost of each is very low. Unlike the selling price. Play on this by making a batch or two of high-quality and functional backpacks. Alternatively, you can release your own line by developing a specific model range. Then the product will have a name and personal admirers.
Personal consultant
A person with unique knowledge, an innovator and inventor, or a highly qualified specialist can easily earn money independently, without bosses and restrictions on the flight of ideas. The following can provide advice: a lawyer, psychologist, nutritionist, economist, programmer, building materials specialist, dentist, etc. The main costs are creating your own website. For starters, you can get by with a group on social networks. The main difference from the service business (which is quite developed in our country) is that orders are not fulfilled here, but only consultations are provided. What does the client gain:
- confidentiality, the confidentiality of his information from the consultant, which cannot be realized if the specialist provides the service directly (for example, keeps records of the client);
- anonymity;
- affordability.
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How to increase profits and make your business successful
This provides a wide client audience, saves time, regulates the number of customers, and receives additional income as the business grows. To build a clientele, you can start a business with a promotion - consult potential clients for free during the first month. Profitability is about 100%, payback is 2-3 months.
Where to start a manufacturing business?
Most likely, the list provided helped you find your niche. But before you invest in it, think again. Weigh all the pros and cons, analyze it, and get started.
- Any entrepreneurial venture begins with a business plan. The more competently it is drawn up, the less risk of incurring losses;
- If you plan to invest your own funds, describe the financial part in detail;
- Perhaps your plan is designed for an investor. In this case, the financial section should be focused exclusively on it;
- Purchase of equipment. It is acceptable to purchase used equipment, but “one-time” mechanisms are extremely undesirable;
- Personnel selection. Of course, only in those production areas where one cannot cope alone. Ensure that your employees are professional. The implementation of the next point depends on this;
- Quality. The further you go, the more difficult it is to get into business. Therefore, enterprises producing high-quality goods are always ahead;
- Price. Regulate product prices so that consumers turn to you. This does not mean that you have to work at a loss. But it is not at all necessary to inflate the cost of products, reducing customer flows to a minimum.