The business plan of the store of goods for creativity "Hobby Land"

* The calculations use the average data for the World

1. SUMMARY OF THE PROJECT

This business plan covers the opening of a retail store for creative goods in a city with a population of more than 1 million people. The store will operate in a minimarket format, where goods for creativity, hobbies and needlework with a total assortment of more than 5000 SKU will be presented. The project price segment is medium. The store will be located on one of the central streets of the city, in a rented area of ​​60 square meters. meters.

The volume of investments in the opening of a store of goods for creativity will be 1.7 million rubles. The bulk of the investment will be required to carry out repairs (432 thousand rubles), rent and pay for staff during the first three months of work (507 thousand rubles), stocking (457 thousand rubles), and equipment (244 thousand rubles). rub.). Source of funding - own funds of the project initiator.

Form of business - IP. The tax system is simplified (income minus expense). Reaching the planned sales volume is planned from the third month of operation. The typical payback period of a project is 12 months, the discounted payback period is 12 months. Other performance indicators are presented in Table. 1. business plan.

Table 1. Integrated performance indicators

Discount rate (r-year), %

five

Discount rate (r-month), %

0.41

Payback period (PP), months

12

Discount payback period (DPP), months

12

Net present value (NPV), rub.

1693030

Return on Investment (ARR), %

12.45

Internal rate of return (IRR), %

9.57

Profitability Index (PI)

1, 2

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

Products for creativity, hobbies and needlework are a specialized market with their own unique features. The key of them is the vagueness of borders: completely different products can enter it, starting from beads, knitting products or acrylic paints and ending with board games and specialized literature. According to various sources, the volume of this market in Russia is from 30-40 to 60 billion rubles. As the main trading format, we can distinguish small shops near the house, which have a small area of ​​up to 50 square meters. meters. The formats of supermarkets with an area of ​​up to 300 square meters are much less common. meters. There is also a format for hobby hypermarkets ranging from 500 to 1, 500 square meters. meters, which are represented by the Leonardo network.

The format of our institution will be a retail minimarket of goods for creativity. A wide range of products (more than 5, 000 SKU) in various creative fields, designed for different age groups of the population, starting with goods for school and preschool children, will be presented at the Hobby Land store. The store will operate in the middle price segment and focus on middle-income citizens.

The location of the store will be one of the central streets of the city, whose population is more than 1 million people. The store will be located on the first line of houses, in a place with high traffic, in a rented basement with an area of ​​60 square meters. meters. The room will require repairs and equipping with trade and cash registers. In addition, before the opening, it is necessary to carry out several main stages, including the purchase of goods and posting, to hire and train staff, to conduct an advertising campaign to attract customers. The preparatory period before the start of sales will be 2 months.

Investments in the opening of a minimarket will amount to 1.7 million rubles. In Tab. 2 of the business plan presents the structure of investment costs of the project.

Table 2. Investment costs of the project

No.

NAME

AMOUNT, rub.

The property

one

Room repair (including designer services)

432000

Equipment

2

Set of equipment

244400

Intangible assets

3

Advertising campaign

50, 000

four

Other

10, 000

Current assets

four

Working capital (rent, payroll for 3 months, etc.)

648, 000

five

Commodity filling

457000

Total:

1700400

3. DESCRIPTION OF GOODS AND SERVICES

The assortment of the Hobby Land store will be designed for the following areas of creativity: beadwork, embroidery, knitting, decoupage molding and sculpture, scrapbooking and quilling, art, floristry and more. Consumers will be presented with supplies for creativity, as well as the necessary tools and equipment for work. Also, the range will be supplemented with materials for children's creativity, handmade toys, etc.

Hobby Land store will operate in the middle price segment. Goods of the middle price category will make up about 50% of the assortment, 30% - goods of the low price category, 20% - goods of the high price category. Goods will be purchased from a wholesale company. The nomenclature and variable costs for product groups are given in Table. 3. business plan.

Table 3. Nomenclature and variable costs

No.

PRODUCT GROUP

COSTS UNITS, rub.

TRADING VALUE, %

UNIT COST, rub.

one

Beads

4, 5

250

sixteen

2

Embroidery

34

150

85

3

Knitting

88.5

150

221

four

Decoupage

159

150

398

five

Children's creativity

56.5

150

142

6

Jewelery Making

18

250

63

7

Making toys

79

150

198

eight

Modeling

142.5

150

357

9

Patchwork

252.5

150

631

ten

Scrapbooking and quilling

129

150

323

eleven

Felt felting

49.5

250

124

12

Floristry

23.5

250

82

13

Art materials

174.5

150

436

14

Sewing

33.5

250

117

As an additional source of income and increase the level of profitability of the store, it is planned to conduct master classes, the cost of which will be determined depending on the topic, the number of participants and other factors. For further calculations, this business plan used the average cost per person in the amount of 700 rubles.

4. SALES AND MARKETING

The Hobby Land store will be engaged in direct retail sales through a stationary store. The target audience will be women aged 25 to 45 years with an average income. It is this category of population that is the main buyer of goods for creativity, and also manages the family budget, purchasing goods not only for themselves, but also for children and children's creativity. According to statistics, about 26% of Russians are engaged in needlework. Thus, the potential market for a city with a population of 1 million people will be 260 thousand people. Due to the fact that the actual and available market size is significantly limited by territory and high competition, the company's work will be aimed at creating a base of regular customers by increasing their loyalty, as well as directly stimulating the demand for their goods among the city population.

The following methods will be used for promotion:

  • printed handouts;

  • SMM

  • loyalty program (discount cards);

  • conducting master classes;

  • outdoor advertising (facade sign, street pillars);

  • own site (in perspective);

Particular attention will be paid to merchandising and the location of the store departments. In particular, at the entrance there will be goods of general interest that can attract casual buyers and curious people, and narrower thematic departments will be located inside. Similar departments will be located next to each other. The maximum number of goods to create an image of plenty will be presented on the windows, regardless of the number of stock balances.

About 100 organizations are represented on the city market, which can be divided into direct and indirect. In the broad sense, indirect competitors include stationery stores, bookstores, highly specialized textile stores and other stores, the assortment of which partially coincides with creativity stores. Direct competitors include stores that position themselves as shops for creativity, needlework or a hobby with a similar assortment. In our case, the key ones are 5 stores located in the central part of the city. An analysis of the strengths and weaknesses of competitors in comparison with our store is given in Table. 4 business plans.

Table 4. Key Competitors

Title

Format

Price segment

Strengths

Weak sides

Hobby Land

Convenience Store for Hobbies and Crafts

Average

A wide range of different types of hobbies, convenient location, affordable prices, professional sellers, interior design, the presence of master classes, loyalty programs

Lack of market experience

Masha

Needlework store format "at home"

average

wide range, location on a passable street, reasonable prices

Complaints about the quality of service, the turnover of sales consultants

Master OK

small format store in the shopping center

above the average

Location on a highly walkable place, design design of the store, the availability of original goods

Narrow range, some hobbies not covered

Craftswoman

Branch of the city chain of needlework stores - 5 stores

Below the average

A wide range of products for embroidery and knitting, emphasis on fabrics, textiles, experienced consultants, paid embroidery lessons, a large number of regular customers, low prices

Narrow range for other hobbies

Skillful hands

needlework store format "at home"

average

Professional seller, reasonable prices

Narrow assortment, emphasis exclusively on consumables, lack of loyalty programs, location with a low level of patency

Hand Made Shop

Convenience Store for Hobbies and Crafts

tall

A wide range of goods for needlework, a large number of goods for children, a convenient work schedule, convenient location, a beautifully designed showcase, skillful advertising and positioning, regular replenishment of the assortment, conducting master classes on various types of needlework,

High mark-up

5. PRODUCTION PLAN

The store will be "Hobby Land" will be located on one of the main streets of the city, on the first line of houses. To reduce the rent, a basement was chosen, which, due to the narrow specialization of the store, will not greatly affect the flow of customers. The size of the room will be 60 square meters. meters. The room requires repairs. Three small departments will be created inside, where goods for various types of needlework will be placed. Given the creative direction of activity, it was decided to use the services of a designer to create an interior design. The cost of design and maintenance services will be 72 thousand rubles. Total investments in the repair of the premises will amount to 432 thousand rubles.

For the store to work, it will be necessary to purchase equipment: racks, counters, furniture for the cash register, cash register and more. A list of everything needed is shown in Table. 5 business plans.

Table 5. List of equipment

No.

Name

price, rub.

Quantity

Cost, rub.

one

Wall shelving

4500

20

90, 000

2

Cash Equipment

28, 000

one

28, 000

3

Island shopping rack

3500

6

21000

four

Perforated shopping rack

2200

eight

17600

five

Cash desk

15, 000

one

15, 000

6

Theft protection system

15, 000

one

15, 000

7

Case for storage of bags (12 cells)

13000

one

13000

eight

Rotating stand

3200

four

12800

9

Signboard

12000

one

12000

ten

Furniture for staff

10, 000

one

10, 000

eleven

Other

10, 000

one

10, 000

Total:

244400

A wholesale company from Moscow will act as suppliers of goods. The purchase will be made based on customer requests for each item based on ABC analysis. Larger batches will purchase the most popular goods, in smaller batches - goods of narrower demand, necessary for representation on the shelves. Delivery of products to the store is carried out with the assistance of a transport company. The store will be open daily from 10:00 to 20:00. Master classes are planned to be held at least 2 times a month, their time will be determined based on practical experience and the wishes of customers.

The production plan of the project is calculated based on the “restrained” scenario of the development of events and the achievement of the sales plan in the amount of 516 thousand rubles. in the first year of work, 620 thousand rubles. - in the second year of work, 670 thousand rubles. - in the third year of work (given the proceeds from sales and the holding of master classes).

6. ORGANIZATIONAL PLAN

The legal form of business will be an IP with a simplified taxation system (income minus expense). The project will be led by its initiator with experience in doing business. He will be in charge of procurement, marketing policy, financial management, strategic planning, and at first, the responsibilities of one of the senior sellers. Direct sales will be managed by sales consultants.

Sellers should be fluent in handicraft products, give quality advice and recommendations to customers, and help increase the average bill. Also, their duties will include conducting master classes. The staffing of the store is given in Table. 6. Accounting will be outsourced.

Table 6. Staffing and payroll

No.

Position

Salary, RUB

Number of people

PHOT, RUB

Sales staff

one

Oldest salesman

30000

one

60, 000

2

Shop assistant

20000

3

60, 000

Total:

90, 000

Social Security contributions:

27000

Total deductions:

117000

The preparatory period before the opening of the store will take 2 months. Stages of the project:

  • creation of a design project - 5-7 days;

  • premises preparation and repair - 30 days;

  • purchase and installation of equipment - 3 days;

  • search and hiring of personnel - in parallel with the maintenance - 14 days;

  • purchase of goods, delivery, posting of goods, merchandising - 5-9 days;

  • advertising campaign (after creating a design project) - 7-8 weeks;

  • start of sales.

7. FINANCIAL PLAN

The financial plan of the project includes all revenues and expenses of the enterprise (for more details see Appendix 1). Revenue includes revenue from operating activities, which are understood as retail sales of goods and income from workshops on needlework.

The investment costs of the project are set out in Table. 1. They include the costs of repair and equipment, starting advertising campaign. Also in the structure of these costs there is a working capital fund to cover their deficit in the first months of the store, including rent, payroll and other expenses for 3 months. Another item of expenditure includes merchandise filling the store.

Variable costs are reflected in Tab. 3 business plans. These include the purchase and costs of transporting goods to the store, as well as 30% of the proceeds from the workshops, which go into the pocket of the leaders, which are sellers. Fixed costs of the store are presented in Table. 7. Fixed costs include depreciation of fixed assets, which is calculated on a straight-line basis for a 5-year life. The payroll and social security contributions are shown in Table. 6 business plans.

Table 7. Fixed costs of the enterprise

No.

NAME

Amount in months, rub.

one

Rent (including utilities)

30000

2

Advertising

7000

3

Bookkeeping

6000

four

Depreciation deductions

4073

Total:

47073

8. EVALUATION OF EFFICIENCY

Evaluation of the project’s effectiveness is based on simple and integrated performance indicators calculated for a 5-year period of work (see Table 1). To take into account changes in invested money over time, we adopted a discount rate of 5%, which reflects the lack of innovation of the selected type of activity.

The simple payback period (PP) is 12 months, the discounted payback period is 12 months. The net present value (NPV) in our case is positive and amounts to 1, 693, 030 rubles. The project’s efficiency is also evidenced by a profitability index (PI) of more than 1, and an internal rate of return (IRR) of 9.57% in excess of the discount rate.

9. RISKS AND WARRANTIES

For strategic planning, it is necessary to take into account all possible risks that are possible in the process of activity. These include both internal and external threats. For more information about the risks, the likelihood of their occurrence, the severity of the consequences (evaluated on a 5-point scale) and prevention measures, see Table. 9 business plan.

Table 9. Possible risks and ways to prevent them

Risk factor

Probability of occurrence

Severity of consequences

Risk and mitigation measures

Fall in demand due to a sharp decrease in the solvency of the population

2

four

- reduction in advertising costs, rent

- purchase of goods in larger quantities to keep prices

- image advertising campaign

Material costs, as well as customer complaints caused by the quality of the goods, manufacturing defects

2

3

- timely removal of marriage

-failure from low-quality goods

- change of supplier in case of his fault as a commodity (conscious delivery of commodity residues, expired goods, etc.)

Damage to goods due to poor transport

2

2

- selection of a bona fide transport company,

- ensuring standards for the transport of fragile and perishable goods

Increased competition, the emergence of new players

2

3

- brand promotion and loyalty formation by a complex of methods (discount and accumulation cards, master classes, etc.)

Liquidity drop, overstock

2

2

- conducting ABC analysis

- taking into account the influence of trends on demand

- a policy of constant rotation of goods, the offer of new products to the buyer

10. APPLICATIONS

ANNEX 1

Three-year production plan and key financial indicators

Mikhail Semynin

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08/18/2019