Trading business: drawing up a business plan, preparing a package of documents, choosing an assortment, pricing, taxes and profits

2024 Author: Howard Calhoun | [email protected]. Last modified: 2023-12-17 10:16

The trading business is great for those who decide to try their hand at working for themselves. Many aspiring entrepreneurs start trading because buying something more expensive and selling it cheaper is the most obvious way to make money. But trading should not be considered a hit, because no businessman is immune from unforeseen risks, problems with suppliers or changes in market preferences.

Choosing a field of work

The choice of goods for sale depends on the following factors: the desire of the businessman to work with certain positions and the demand for goods in the selected area. In Russia, the trade sector occupies 50-55% of all activities of small businesses. According to Yandex, most often open clothing stores, grocery, alcohol markets and points of sale of tobacco products. Quite a bit behindmedicines and cosmetics.

In any crisis, it is profitable to trade in anti-stress products. Only for some it is alcohol, others buy sweets, and some citizens buy sedatives. There is always a need for funeral paraphernalia, organic products, children's products and products for pregnant women. The easiest option is hot baking. Products from China remain popular, but quality items should be chosen.

The organization of a trading business should begin with the selection of goods for sale, because the desired location of the premises, marketing activities, design, and so on depend on this. To understand whether there will be a demand for a product, you can advertise on the Internet before ordering the first batch and see if there are responses or not. Interested buyers can be answered that you have already sold the previous batch and are waiting for the goods to arrive. Don't forget to notify the customer later that the product is already in stock.

Starting capital

Starting capital is needed absolutely for any business. The money will be used to prepare and open the project. Even for the organization of the work of a small stall, you need at least a thousand dollars. And this is the minimum amount, in the presence of which you will have to do a lot on your own and negotiate discounts. If we are talking about renting or buying a store, a retail outlet (container) on the market or purchasing land for construction, then the required amount increases several times.

Startup Entrepreneursoften decide to take out a loan to start a business. This is not the best idea, because the procedure itself is not available to everyone. In order for the bank to give money, you need to interest managers in your project, provide a detailed business plan for the outlet and have at least some of your own funds.

In order not to burn out, you must first conduct a thorough analysis of demand. This work can be done independently or entrusted to a marketing agent. If the result of the analysis is positive, then you can start your own business. The product must be carefully studied, to know its features, characteristics and manufacturing process. You will need to establish relationships with suppliers and transport companies. In addition, a development strategy in this area should be considered.

So in business, not only a good idea is important, but also the right organization. You cannot open a shopping center without a well-thought-out business plan. The same applies even to a small stall or outlet.

Official registration

It is quite simple to set up an individual entrepreneurship on your own, but you will have to deal with paperwork for a long time, fill out forms and go to different authorities. It seems to be difficult only the first time. It is necessary to submit an application to the Federal Tax Service, collect the necessary documents for the tax authority, and in three working days receive a certificate of registration of an individual entrepreneur and an EGRIP entry sheet.

IP must be opened at the place of residence, but if this is not possible, then it is opened at the place of temporary registration. You can also register usingdigital signature. Registration fee is 800 rubles. Then the entrepreneur must choose an activity code, that is, at the time of opening a business, you already need to know what kind of business you plan to do.

After you fill out the application, but you do not need to sign it. The document is signed in the presence of a registrar or a notary, if the IP will be opened through a trustee. Then the state duty is paid at the bank, the taxation system is selected. For a novice entrepreneur, the best option would be a simplified scheme.

For the registration authority, you need to prepare a copy of the passport, an application, a receipt, a notification of the transition to the simplified tax system, a power of attorney (required only if the documents are submitted by an authorized person). After submitting the documents, you need to wait three days. The entrepreneur receives information about the results by e-mail. To receive paper documents, you need to make a request to the MFC or the Federal Tax Service.

Interaction with suppliers

Commercial businesses need reliable suppliers. Most vendors can be found online, but it's worth going to page 10 or even 20 because rare vendors pay due attention to the beauty and functionality of the site or engage in search engine optimization. You need to write or call the company, find out the minimum order quantity and cost.

Often they find suppliers at various fairs, exhibitions and conferences where professionals gather. You can meet both experienced players,and newcomers who decided to declare themselves. At such events, everyone is open to conversation and will answer your questions. Also, suppliers will give samples to see or give samples. It is also possible that in your city there is a small factory or a regional warehouse that deals in exactly the products you need.

Place for an outlet

Trading business is your own store, shopping center or at least a point. Experienced entrepreneurs say that success at first depends primarily not on the scale, but on the favorable location. There should be convenient access to the place (parking nearby, public transport and metro stops), a significant flow of people or vehicles near the outlet. It is desirable that there are no competitors nearby or their number would be minimal, but this is not always possible to achieve.

Internet trading

E-commerce trading business is beneficial in that you do not need to look for premises and hire staff (at first you can manage on your own), but you still need to attractively and conveniently design the site, which also costs money. You need to pay programmers, designers, optimizers, advertisers, photographers (product photos must be of high quality) and copywriters (description of each position). Trading through the World Wide Web is both more convenient and more difficult, because you will have to face the intricacies of Internet promotion, the difficulties of registering such a business, and so on.

Human factor

For a stationary outlet, you need to hirestaff. At the minimum, there can be one distributor in the state, at the first stages, the owner of the outlet himself can play his role. Small trading business (like any other area where there is interaction with people) requires care and respect for customers. Points where you can order the goods you like, which are currently out of stock, enjoy a good reputation. You can implement discount programs, hold promotions to attract customers, and so on.

Product range

It is not immediately clear what kind of goods to buy and in what quantity. The situation will clear up in one or two months of trading. Then you will already know your potential buyer and his needs. In addition, the trading business requires updating the assortment from time to time. It is best to order a little bit of everything for the implementation. It should be borne in mind that expensive and exclusive goods are sold very slowly, and first a turnover is needed. Assortment must necessarily include related products. Experience shows that the income of a trading business from the sale of such positions can be up to 30% of the profit.

Basic expenses

Examples of trading business provide an opportunity to navigate the cost of opening a point. An example calculation is shown below.

Rent of retail space will cost about 192 thousand rubles a year. This figure is taken from the average cost of renting commercial real estate in Russia, so it can be very different from the actual prices in your area. The purchase of goods will costone million rubles a year, the salary of employees will be 190 thousand rubles. Additional expenses - 50 thousand rubles a year. This includes payment for the services of an accountant and a shift salesperson. The total is 1.3 million rubles. This is an approximate amount of investments subject to the lease of a retail outlet with an area of 10 sq. m.

Business will start to pay off at a markup of 25-30%. Gradually, you need to start developing: invest profits in opening new outlets, rent your own warehouse, hire a permanent accountant and your own driver.