Startup offer

Shop — confectionery (sweets from all over the world)

Food

Size of share: 50%
1000000 руб.
Location: Russian Federation, Gelendzhik
Project Stage: "Project stage" not selected
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Project Summary

Sweets are a common and popular product in any city, however, the greater the flow of people, the greater the demand. The opening of a sweet shop in the resort town of Gelendzhik is being considered. The shop will be small, in the form of a large department with goods and a small confectionery shop for the production of hand chocolate and various sweets, designed for passing buyers with different income levels.

During the high holiday season from May to November, 4.5 million people arrive in Gelendzhik. On average, a family of 3 people spends 10 000 rubles for 7 days on rest and from 500-1000 rubles on souvenirs and souvenirs for friends and relatives. The capacity of the market of gifts and souvenirs is approximately 3 150 000 000 rubles per year

The schedule of the store is from 10:00 to 00:00, without interruptions. One day a month – technical, accounting of goods.

The priority is to sell only the highest quality, fresh sweets from around the world and handmade sweets of our own production at the best price.

Main competitors:

·         There are no similar shops/departments in the city.

Strategy, a store that offers a wide range of fresh and high-quality products from around the world, plus sweets made directly on the day of sale, has every chance to gain a foothold in the niche and receive a decent income due to regular customers, and people who want to find an original gift for relatives and friends.

Main risks:

Name of risk
Decision
The emergence of a strong competitor nearby
It is necessary to attract maximum buyers, to win your audience. In no case should the quality of products deteriorate. Systematic analysis of direct competitors, monitoring of prices, strong and weak is required
A sharp rise in price of renting a room
Conclude a long-term lease agreement
Big jump in the cost of products at this supplier
There has to be a choice between multiple manufacturers and suppliers so that ones products can be replaced by another at a more affordable price.
Unsuccessful first purchase
Analyze the range of competitors. If there is a competitor nearby, you should not buy identical products, it is better to choose the products of another supplier
Low-quality products
Carefully choose suppliers and include mandatory tasting in the contract. Prescribe in the contract the return of stale and low-quality sweets
The cost of production is an important factor in demand, because at least 40% of buyers will be permanent. They must be confident in the quality and affordable price, otherwise you will have to look for another sweet shop. To minimize additional costs and make the price of sweets as affordable as possible, it is important to purchase equipment and rent a room at the best price. To do this, a business plan for a sweets store is drawn up with calculations, where all start-up and monthly expenses are prescribed, an estimated profit is determined and the profitability of investments is calculated.

Registration of business
To open a sweet shop, you will need to register with the tax authorities. For a small store, it will be enough to register as an individual entrepreneur, while choosing the UTVD.

Choose the OKVED code 47.24.21 "Retail trade in confectionery and flour products".

It is also necessary to obtain permission for the premises from the fire authority and Rospotrebnadzor, because food will be sold.

The cost of registration and obtaining permits is about 5 thousand rubles.

Finding a room
The profitability and popularity of the sweets store depends on its location, because in 50% of cases these are impulse purchases. Therefore, we will open a shop in an actively passable place near a major transport stop, a market and with a good transport interchange.

For a sweet shop, a room of 35-50 square meters will be enough. m The cost of such a room will be 30-40 thousand rubles. In the store it will be necessary to make cosmetic repairs and fulfill all the requirements of Rospotrebnadzor and the fire authority.

For the interior decoration of the store, you need to lay in the starting budget of 100 thousand rubles.

Personnel
For the store to work, you will need at least one sales assistant who will work in tandem with the owner on a 7/7 schedule, plus one confectioner who will work 5/2.  No more employees will be needed. The sellers salary will depend on the volume of sales: the minimum rate + %. We will pledge 20 thousand rubles for the salary of the seller. Payment of the confectioner depends on the volume of production, the minimum rate + %. We will lay 25 thousand rubles.

Purchase of equipment
Equipment for the store. We will need the following:

Name
Price, rub.
High rack, open (5 pcs.)
7 000
Closed showcase (2 pcs.)
9 000
Refrigerated display case (2 pcs.)
10 000
Sellers chair
2 000
Cash register (online)
35 000
Alarm system
5 000
Containers and materials for packaging and confectionery accessories
40 000
Additional costs
20 000
Total
125 000
First purchase
If equipment or clothing can lie and wait for the buyer, sweets tend to deteriorate. After 2-3 days, cookies and cakes will not be as tasty as we would like. Therefore, it is important to choose suppliers who give a guarantee for high-quality and fresh products, offer tasting of new products and meet halfway in cases of defects and unsuccessful deliveries of goods.

Before making the first purchase, you should study the reviews about the brand and suppliers, conclude a cooperation agreement and conduct a tasting of selected items. Only this will give at least a minimal share of quality assurance.

The first purchase should consist of the most popular and popular categories of sweets. We will purchase:

·         Chocolate sweets (30-40 species).

·         Marshmallows (white, pink, chocolate-covered).

·         Jelly candies (20 kinds).

·         Turkish delight.

·         Muffins (with and without fillings).

·         Custard cakes, "potatoes", etc.

·         Biscuits in assortment.

·         Sweets on a stick (50 species).

·         Peanuts in chocolate (in dark and milk chocolate).

·         Chocolate (50 types).

Marketing & Advertising
First, we analyze the target audience, the level of demand, as well as competitors, assortment and pricing policy. Next, we prepare for the opening and use standard advertising tools.

Estimate of the advertising budget in the table:

Name
Amount, rub.
Sign at the entrance
10 000
Branding the store from the outside
30 000
Flyers with great deals and novelties
10 000
Free tastings 2 times a month or samples of sweets on the showcase
10 000
Total
60 000
Every month you will need to spend about 10 thousand rubles on a small number of flyers, organizing profitable promotions and conducting tastings.

Expenses and income
Now we will sum up the result of all expenses, summarize in general tables to calculate the profitability of the project. Here we will form an indicative sales plan for the 2nd month of work.

Start-up costs
Item of expenditure
Amount, rub.
Typography
5 000
Rent a room for 2 months
80 000
Repair
100 000
Purchase of commercial equipment
128 000
Advertisement
60 000
Total
373 000
In addition, do not forget about the first purchase of goods. We will deduct it from the revenue for the month. We set a 150% markup on products.

Monthly expenses
Item of expenditure
Amount, rub.
Rent of premises
40 000
Phot
45 000
Utility bills
5 000
Advertisement
10 000
Total
100 000
Revenues
The first month will be a technical opening and the formation of an assortment. By the 2-3rd month, the plans are to reach a stable level of sales.

The average margin on the goods is in the amount of 150%. That is, from the purchase of goods for 700 thousand rubles per month, we will receive an income of 1,050,000 thousand rubles. Minus monthly expenses and tax on imputed activities, about 800 thousand rubles will remain. Sales depend on the season slightly, but there is a slight drop in demand in the winter as there are fewer tourists.

Profitability will be about 100% and has prospects for growth.

The payback period of start-up investments will be from 2 to 3 months, subject to successful work.

The Bottom Line
A sweet shop is a very profitable business. Especially if you choose the right location, an assortment for which there will be constant demand, and use a minimum number of advertising tools to attract buyers. The plans for the year are to open 2 more such small stores and 1 department in the shopping and entertainment center under a single brand, a single brand.

With successful work and a well-developed model, investments for each subsequent point can be fought off very quickly.

Download: Summary of the Candy Store Project from around the world.docx (22 kilobytes)

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