Business plan for the production of advertising souvenir products

Business registration

At first, in order not to spend money on renting premises, you can work from home. In this case, you don’t have to register your business and, accordingly, don’t pay taxes. When the business begins to develop, it is advisable to open an LLC and choose the production of souvenirs. Thanks to this, you will have the opportunity to enter into agreements for the supply of goods with legal entities. This line of activity is not licensed, so you do not have to obtain any additional permits or approvals.

Registration and registration of business

To legally run a business in the form of a gift and souvenir store, you need to legally register it. First of all, an entrepreneur should determine the form.

The basic ones in Russia include two:

• Individual entrepreneur or individual entrepreneurship;
• LLC or limited liability company.

Each option has its own advantages and disadvantages. For example, opening an individual entrepreneur is cheaper, but the entrepreneur bears financial responsibility in the event of bankruptcy. The LLC risks only the established capital, but a package of papers must be completed.

In addition, it is worth choosing the form of taxation. With incomes of less than sixty million a year, it makes sense to consider a simplified system.

For some types of business, the simplified tax system is not suitable. It is worth studying in detail the advantages and disadvantages of all forms of taxation.

In addition to directly registering a company, to make it easy to run a business, it is worth paying attention to collecting documentation.

The package depends on the location, but you cannot do without the following documents:

• product certification;
• business license;
• conclusions of the SES and fire inspection;
• guard long-term agreement with the tenant of the premises or evidence of ownership.

If you approach the preparation of documentation carefully, this will allow you to focus from the very beginning on business development, and not on solving current aspects with various departments.

Entrepreneurship must be legalized, otherwise there will be more fines and sanctions. Violations of the law will lead to bankruptcy and closure of the business.

Room

To save money at the start, you can initially work in a garage or any other heated room at home. By the way, souvenirs are one of the most promising business ideas from Europe for the garage. If you do not have a suitable place at home to install equipment for the production of souvenirs, you can rent a room on the outskirts of the city. This will allow you to significantly reduce costs. When your business begins to develop, you will need a spacious building for production workshops, warehouses and offices. It is desirable that the production and sale of souvenirs be carried out in one place. To do this, you can open a small shop near the enterprise.

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Working with us is not just convenient, but also extremely profitable.
Advertising printing must be of high quality, only then will it be able to attract new customers to your company. More details

Souvenir products

We very carefully monitor the latest trends emerging in the souvenir market and constantly update the assortment of our website with new products.
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Types of souvenirs

To make souvenirs, you can use different materials:

1. Products made from acrylic strongly resemble amber jewelry. They are produced in two ways: mechanical and casting. The first method is used to make tombstones and logos. The pouring method allows you to place different objects inside the material. The result is unusual, original souvenirs;
2. Metal products are always in great demand. But their manufacture is a rather labor-intensive process that requires certain skills. Souvenirs are made of brass, aluminum or bronze. Finished products are polished and then decorated with engraving, inlay or enamel;
3. The stone is usually used to make ethnic souvenirs. The master must fully feel the material so as not to disturb the natural pattern. This type of work requires great patience;
4. Glass souvenirs are made using complex innovative technology, consisting of several stages. Laser art design and 3D images on glass are in greatest demand;
5. Tree. Craftsmen who have already worked with wood can easily manufacture custom souvenirs. You can earn decent money on original products made of natural wood;
6. Business souvenirs are the most serious and responsible matter. Such products should contain maximum useful information. The production of souvenir products with a logo must be treated very responsibly, since it is a marketing ploy of the company. To keep corporate customers satisfied, you need to hire an experienced craftsman and a professional designer. Such souvenirs can be made from any materials - stone, glass, wood and others.

How to make money on souvenirs from waste

To launch his business producing original souvenirs, Alexander Dmitriev from the Kaliningrad region only had to agree to pick up chipboard cuttings from the carpentry workshop for free, and buy a color printer, photo paper, sandpaper and glue. The entrepreneur told Biz360 about how to establish the production of unusual memorable souvenirs in a tourist region with low cost and high margins.

Dossier

Alexander Dmitriev

, 33 years old, born and lives in Svetlogorsk (Kaliningrad region). Graduated from the Kaliningrad Higher School of Management with a degree in management. In 2009, after several years of working for hire, he founded his own. He is engaged in the production of souvenirs from furniture production waste. Now they are sold in 16 points in Kaliningrad and Svetlogorsk.

Dismissal as a starting point

Alexander Dmitriev from Svetlogorsk wanted to open his own business even at the time when he worked at a television production enterprise as a personnel manager. The work was quite interesting, but the young man dreamed of his own business.

The events of 2009 were a powerful impetus for Alexander to start working for himself. Then, due to the financial crisis, the enterprise where he worked was closed and the entire staff was fired. Alexander began to think about what to do.

Svetlogorsk, where he lives, is a resort town. Many tourists come there not only in the summer, but almost all year round. It was a logical idea to connect your business with “resort guests”. But what could they be offered that no one else had offered?

While searching for a business idea, Alexander Dmitriev found himself visiting a friend at a furniture production site. He was then very surprised by how much leftover lumber was thrown away. Among the waste were chipboard, plywood, and MDF panels. Alexander asked his friend to give him some of the leftovers, which would have gone into the trash anyway. He came up with the idea of ​​making souvenirs for tourists from waste.

There, in his friend’s workshop, he cut rectangles of different sizes from furniture production waste. At home, using a printer, Alexander applied an image to photo paper and then glued the picture onto the blanks. “I wanted the image to be inside the base, and the frame and painting to feel like one. In the end, it turned out exactly what I wanted - something special. My souvenir paintings turned out to be very unusual and interesting, they caught the eye,” says the master.

Alexander experimented with manufacturing techniques, processing materials in different ways. As a result of these searches, souvenirs were stylized in stone, gold, vintage style, etc. They compared favorably with standard souvenir products traditionally sold in the Kaliningrad region. It is almost all made of amber and is quite the same type. And souvenirs from Dmitriev resemble framed paintings measuring 16x21 or 26x34 centimeters. They are attached to a wall or other surface using a string loop.

Having sold the first 120 souvenirs in three weeks, Alexander earned more than his monthly salary at the enterprise.

Economics of the project

Alexander Dmitriev honestly admits that he is not an artist. Therefore, he cannot make drawings for his souvenirs with his own hands. To do this, he uses a printer and illustrations from the Internet. This also significantly reduces the cost of products.

The entrepreneur notes that he needed little expenses to get started. To produce souvenir paintings, he used and continues to use waste from furniture production, which is given to him free of charge. To produce illustrations, he needed a computer, which he had, and a printer, the purchase of which cost 1.5 thousand rubles. The place for processing souvenirs was our own garage. “In principle, any room with an area of ​​about 3 square meters can serve as a workplace,” says Alexander. He also buys PVA glue, which he uses to glue photo paper with an image to a base of plywood, wood or chipboard.

In 2009, when Alexander Dmitriev registered as an individual entrepreneur, he bought the simplest Epson TX110 printer and refillable cartridges for it. The equipment lasted a full two years. Then Alexander purchased an Epson L800 printer with a continuous ink supply system. It has already cost eight thousand rubles. “Printing on such devices translates ink consumption into money as mere pennies,” says Alexander. Printing an image for one small painting costs about a ruble.

In the process of creating souvenirs, he discovered that photo paper could be replaced with business card paper. It is, in essence, an imitation of canvas. If you put an image on it, you get the full impression that it is a real painting. Alexander Dmitriev buys business card paper in Whatman paper from a store that services a printing house. Cuts 10 A4 sheets from one Whatman paper. Each sheet costs 10 rubles with this approach.

The cost of a souvenir painting made of chipboard measuring 16x21 centimeters is almost 25 rubles. It consists of the following components:

• Cut chipboard – 10 rubles (but it’s more profitable to negotiate with furniture makers and take production waste from them for free);
• Photo paper or business card paper – 5 rubles;
• Photo printing of a picture – about 1 ruble;
• Water-based wood treatment compositions – 4.5 rubles;
• PVA glue (on the basis that one container is enough for 50 paintings) – 1.5 rubles;
• Sandpaper – 2 rubles.

If you stylize the painting as gold or stone, then the costs will increase by 2-5 rubles. Alexander sells such a souvenir for 220 rubles. After deducting the costs of delivering products to the point of sale and deducting taxes, the net profit is approximately 180 rubles. That is, the profit is seven times the production costs! An entrepreneur produces on average 20-25 souvenirs per day. And in a month he sells about 300 pieces.

Points of attraction for tourists and locals

After launching his own business, Alexander Dmitriev began looking for points of sale. Firstly, he agreed with several entrepreneurs selling to tourists that he would sell souvenirs through them. Entrepreneurs buy paintings from Alexander for 200 rubles, and make their own markup of 100 rubles.

“I have a principled position on sales through entrepreneurs. They are used to charging 100% of the cost, but I set the condition that the picture should cost no more than 300 rubles. This has proven to be effective. It is better to make money on a large turnover than to wait for a buyer who will buy a painting at a high price. I had such a case when an entrepreneur from a store at the airport set a price of 770 rubles for a product. And then he complained that my pictures weren’t selling well. While he was selling them there, I managed to turn around three times with other outlets,” recalls Dmitriev.

Then Alexander opened his own store in Svetlogorsk - a pavilion with an area of ​​15 square meters in a shopping center on the shores of the Baltic Sea.

The stable demand for souvenirs prompted Dmitriev to search for additional points of sale. The new sales points were aimed not so much at tourists, but at the local population. “To my surprise, the turnover from them was at the level of “tourist” sales points.”

Local photo studios and flower salons began ordering souvenir paintings from points of sale aimed at locals. For some reason, in flower shops, buyers prefer to buy souvenir paintings along with bouquets.

The theme of souvenirs for different points is different. Where tourists visit, images of the sights of the Kaliningrad region are widely distributed. Local residents often buy stylish pictures, postcards, and vintage images. Most often, Alexander puts on his paintings the works of famous artists, views of the sea, photographs of area attractions, and original pictures in the Japanese style.

For his souvenirs, the entrepreneur uses pictures that he downloads from the Internet. To avoid copyright infringement, images are taken from the public domain. If he finds paintings by contemporary artists, he copies them. As a rule, they all allow the use of their works for free, but with the obligatory indication of authorship and title of the work. Alexander puts this information on the back of the souvenirs.

To expand the souvenir sales network, Alexander personally meets with entrepreneurs who have their own stores and demonstrates their products. “Many are immediately ready to cooperate and take products for sale. My souvenirs are of great interest to buyers. Because you’ll never guess that the painting is made not of stone or clay, but of chipboard or plywood,” he says.

Now products from Dmitriev can be bought in his personal souvenir pavilion in Svetlogorsk and fifteen souvenir shops in Kaliningrad and the region.

By the way, Alexander’s business is a family one. His wife helps deliver goods to locations when Alexander is busy making souvenirs. Of the hired workers, two of them are salespeople in stores. They receive piecework wages: 200 rubles for each time they go to work and 10% of sales.

Sometimes people order portraits and paintings from Alexander as gifts. Their cost is already much higher - 1000 rubles. The entrepreneur has experience working with a local Japanese restaurant: its owner ordered 20 paintings for interior decoration. Dmitriev also regularly collaborates with photographers who ask to make different pictures with their photographs.

Alexander was thinking about taking his souvenirs outside the Kaliningrad region. But it is surrounded on all sides by EU countries. It is impossible to sell your products there without obtaining special permits. Therefore, the entrepreneur focused on expanding the network of sales points in the region. “Thankfully, our region is becoming more and more interesting to tourists every year. For example, we recently hosted the Voting KiViN festival. At this time, I had a surge in sales of souvenirs,” says Alexander Dmitriev.

Equipment

Before purchasing equipment for making souvenirs, you need to decide what products you will offer to customers.
In any case, it is much more profitable to purchase Chinese equipment. This is a fairly successful option, which is distinguished by affordable prices and decent quality. Such machines are designed for six months of intensive continuous work. During this time, you will be able to understand whether it is worth investing heavily in these popular garage business ideas from China. If business begins to flourish, you can purchase better units. For example, it is best to buy milling machines for the production of souvenirs in Germany.

Business format

In the twenty-first century, there are business formats, some of which are implemented in an offline environment, but are increasingly moving to the Internet.
Before drawing up a business plan for a gift store, an entrepreneur should determine his goals and capabilities. Acceptable opening options include:

• retail outlet targeted at a local audience;
• a network of stores or stalls, creating a single recognizable brand;
• online store with delivery or point of issue of products.

Mixed formats are developing effectively. Consumers are gradually switching to online shopping.

The trend can be explained by the following:

1. The range of souvenir products available online is wider; no store can accommodate as many as can be placed on one page on the Internet.
2. The shopping form saves time and money. The second occurs due to the fact that entrepreneurs have lower costs and offer favorable prices.
3. People spend a lot of time online, communicating, studying and shopping on the Internet.
4. To choose a business format, a person should carefully study the market. If we are talking about a local store, then determine where and how potential customers mainly purchase.

Current trends in entrepreneurship indicate a transition of business from the offline environment to the Internet. Even those who are planning to open a retail outlet should consider an online business promotion strategy.

Business profitability

Experts believe that making souvenirs as a business is a fairly profitable activity.
In order for the income to be tangible, it is necessary to include advertising costs in the business plan. If you constantly use effective marketing tools, you will soon have many regular customers. But the best advertisement is the quality of the product. The easiest way to determine the profitability of a business is by example. A small wooden box costs 3 thousand rubles. Its production costs 500 rubles. If you make products to order, you can earn even more. Home production ideas for small businesses are usually highly profitable, since entrepreneurs do not spend money on renting premises and salaries for staff. In addition, materials for the production of souvenir products are inexpensive, which can significantly reduce the cost of production.

How much can you earn from making and selling photo souvenirs?

On average, the price of such a souvenir is from 350 to 400 rubles. The cost of one mug costs about 50–60 rubles.

Considering that one person can carry out production and sell the products with a profit of 300–350 rubles, the amount spent on equipment will soon pay off.

If you are looking at a universal thermal transfer that costs 40 thousand rubles, then the payback for the equipment may come a little later.

It is much more expensive, but the scope for fantasies and their implementation becomes much wider.

The universal thermal transfer can be used not only for photography mugs, but also for T-shirts, mats, puzzles, and metal plates.

Having a heat press, assistants and a desire to expand production, you can look for another business site.

A set of equipment can be purchased separately or found as a ready-made set, which, according to reviews, is much cheaper.

To do this, just type in the search bar: “ sale of equipment for photo souvenirs ” - and see if there are any offers.

Usually a business is sold along with established contacts.

Expenses

To start your own business producing souvenirs you don’t need a lot of money. If you plan to work independently, you need to invest 60–150 thousand rubles. These are expenses for the purchase of equipment and advertising. A craftsman who has all the necessary tools and machines only needs to find 20–30 thousand for advertising and consumables. What kind of mini-production you can open in a private home is up to you, but you should remember that souvenirs bring good income even during a crisis. In addition, this is a very exciting creative activity. If things go well, you can eventually open your own souvenir shop and hire experienced craftsmen as a staff.

What is the souvenir business based on?

Such commerce remains relevant in any museum. For example, the Toy Museum was opened not long ago. Children can even play with some of the exhibits here. The museum presents folk art items, toys that are made directly by human hands, old models of toys that the grandmothers and great-grandmothers of the modern generation played with.

But you cannot buy such gifts in this place. Their authors still produce these things to this day. Some manufacturers even cooperate with organizations from abroad to exhibit their work there.

Most museum visitors have a great desire to buy such exclusive toys. But the craftsmen do not see the benefit of selling their products to the local population at a low price. Foreign buyers offer quite large sums of money to purchase such goods. Although, it should be noted that local visitors, for the most part, are willing to pay a lot of money to buy such a souvenir.

It must be said that the museum could have made much more profit if it had opened a small souvenir shop nearby. The price of admission does not cover the monthly expenses that the museum is required to pay. And many visitors want to buy unique items in memory of what they saw at the exhibition. Moreover, they are willing to pay quite a lot of money for it.

Unfortunately, museums do not receive sufficient funding at present. Therefore, they need some financial support. An excellent alternative would be to open a souvenir shop. Profits from the sale of goods from these shops will help solve many of the financial problems that management faces.

It is noteworthy that in such a place you can even sell air, the main thing is to arrange it correctly. For example, seal it in a jar and call it a ghost. There are countless such options.

Advantages and disadvantages

Experts characterize this area of ​​activity only on the positive side:

• The product price is 3-4 times higher than its cost;
• Minimum expenses;
• High demand for products allows you to receive a stable income;
• A business can be organized right at home, which allows you to significantly save on renting premises.

The only drawback that scares away novice entrepreneurs is seasonality. Sales volumes increase significantly before official holidays - New Year, Christmas, March 8 and others. But this does not mean that production will be idle the rest of the time. If you sign contracts with corporate clients, there will be more than enough work. In addition, you can engage in other activities during the off-season. Making a photo book to order as a business, just like the production of souvenirs, requires a creative approach and a flight of imagination. Therefore, you can try your hand at this area. Photo books to order are a new area of ​​business activity, but despite this, this service is already extremely popular.

Nuances of work

It is worth considering that depending on the chosen niche there will be different seasonal income.

Ideas can be implemented taking into account various events and activities. So, you can meet expectations for events such as:

1. Sport events. Fans, one way or another, buy various souvenirs that symbolize the sport.
2. Lovers often buy gifts for February 14th.
3. Tourists are active during the summer season.
4. Cinema lovers can become active after the next acclaimed film.
5. Author's works are popular almost all year round.

In addition, you can acquire an impressive room in which to place souvenirs in thematic areas. This will greatly simplify the process and reach a larger audience.

At the same time, you should not forget about the possibilities of the Internet and you can always sell souvenirs through social networks, although there will be some problems due to locality. And as your experience grows, you will learn which products will be most in demand at any given time.