How to open your own household chemicals store.

11.10.2019

To open a household chemicals store from scratch and achieve high profitability, you need to analyze the market and competitors, create an assortment of products, and select a suitable premises. It will take a lot of time to register an enterprise and obtain permits. In many ways, efficiency and profit levels will depend on the ability to find wholesalers who supply products at discounted prices. Proper display of goods, carrying out advertising campaigns - all this affects the amount of income received. Therefore, you need to understand all this in detail.

The relevance of opening a household chemicals store

Many aspiring entrepreneurs want to open a household chemicals store in a small town. This is not surprising, because such products belong to everyday goods. Every person makes purchases in such stores with different frequencies every month.

As a result, only one family spends from 2,000 to 4,000 rubles per month. Some people spend significantly more, preferring branded products.

Modern citizens are accustomed to making their own purchases, so it is better to spend a little more money, but give customers the opportunity to choose the products themselves and pay for them at the checkout. Having a sales consultant will be an additional plus.

Benefits of working in the household chemicals industry

An aspiring entrepreneur, before opening his own business, must figure out whether the direction he has chosen is profitable or not. To do this, you need to evaluate all the advantages and disadvantages of the idea.

Selling household chemicals is an idea that can bring good income. The prerequisites for this are the following advantages:

high demand for products, and for the most part it does not depend on the economic situation in the country and in a particular family;
ease of starting a business - there is no need to license your activities or have any specific education;
long shelf life of products makes it possible not to constantly monitor demand - this can be done once a month or less often, the main thing is to ensure that the most popular product is always in stock.

In terms of demand among the population, a household chemicals store can only be compared with grocery stores. People go to them for shopping very often. Therefore, there is no doubt about the profitability of such a retail outlet. At the same time, storing household chemicals is much easier than storing food.

One of the disadvantages is the high level of competition - it will not be easy to win your place in the market. In many ways, the level of income will depend on the correct choice of location and marketing strategy. To attract your customers, you can offer a system of discounts or loyalty programs, exclusive products.

Registration moments

Opening a household chemicals store from scratch will require registering your business. It should be noted right away that this type of activity does not fall under the licensing law. This means that you will not have to obtain the corresponding document. But you won’t be able to completely avoid paperwork. You will have to get the following documents:

permission from the SES;
permission from the fire department;
an official lease agreement for the premises (if it is owned, an appropriate certificate will be required);
quality certificates of conformity for the supplied products (you need to request them from your wholesale suppliers);
agreement for garbage and solid waste removal, recycling of fluorescent lamps, if available.

It will be impossible to do without officially registering your activities. The organizational form here can be any. But in a small town it is more appropriate to use an individual entrepreneur, especially if a new businessman opens a store. When registering in the application, you will need to indicate OKVED code 47.75 - “Retail trade in cosmetics and personal care products in specialized stores.”

Choosing a tax system is an equally important stage. The level of profit received and tax deductions will depend on it.

If the store area is less than 150 m2, then you can choose UTII. Otherwise, you should stick to the simplified tax system “income minus expenses.” This is the simplified version that you should choose, because the markup in this area is not too large, and there are other costs.

Premises for a household chemicals store

Sometimes even experienced entrepreneurs don’t know where to start opening a household chemicals store. One of the most important points is choosing the right location for trading. The store must be located in a crowded or residential area. The last option is acceptable if there are a large number of residents nearby and there are no competitors. The most successful placement methods are considered to be the following:

on the first floors of residential buildings in houses and areas with a large number of residents;
on the first floors of large shopping centers.

Entrepreneurs are often afraid to open household chemicals outlets near supermarkets. They explain this by the fact that such establishments already have the corresponding goods. But in fact, it turns out that supermarket visitors actively buy household chemicals from nearby stores as well. This demand is explained by a much larger assortment and a more favorable price.

If you plan to open a small store, then a room with an area of 100 m2 will be enough. On them it will be possible to place the sales floor itself with shelving, a warehouse and a room for staff and their belongings.

Equipment purchase

As such, expensive equipment for a household chemicals store is not required. It will be enough to purchase the following:

racks and shelves;
showcases;
KKM (1 - 2 pieces will be enough);
storage chambers;
carts and baskets.

If you plan to open a self-service store, then you should additionally think about installing CCTV cameras and a panic button. This will protect against theft and illegal intrusion into the premises.

Definition of assortment

The level of income and profit will depend on two components - the breadth of the product range and the price of the product. You should not inflate the cost, since the level of competition in this niche is high. It is better to focus on average market prices. The list of products sold should include the following categories of goods:

hair care products (including shampoos, masks, conditioners);
shower gels and soap (liquid and bar);
oral care products (toothbrushes and pastes, mouth fresheners);
baby products (diapers, creams, etc.);
napkins, toilet paper;
detergents and sponges, rags;
laundry detergents (powders, bleaches, conditioners).

Additionally, the store can display products from related categories - perfumes, stationery, underwear, hosiery and costume jewelry.

When deciding on an assortment, you need to think not only about product categories, but also about their prices.

It is better to make the cost of popular products less than that of competitors, since buyers usually remember the prices for such products. But cheaper products can be sold at higher prices.

Where to buy products?

It is very important to find wholesale suppliers of goods. You can purchase products at wholesale stores or from private traders. It is important that they provide quality certificates. They may be needed by buyers or regulatory authorities.

The markup on household chemicals ranges from 10 to 35% on average. Moreover, the number of items usually varies from 5,000 to 10,000 varieties of goods.

You can try to arrange the supply of goods directly from manufacturing plants. Then the size of the markup will be even more impressive, which means the store’s profit level will also increase.

Advertising: the most effective methods of promotion

The correctness of the marketing strategy will largely determine the attitude of potential buyers towards the store and their interest in the newly emerged outlet. The more advertising there is, the more clients will appear, but here you also need to know when to stop. The greatest emphasis should be placed on the following promotion formats:

distributing leaflets near the store;
posting posters nearby;
posting advertisements on the Internet - on city forums, in local groups;
advertising on TV.

The last promotion option is more appropriate for large stores, so it is not advisable for small retail outlets to use it.

You can additionally attract customers by developing your own loyalty program. It may involve the accumulation of bonuses, the issuance of discount and savings cards, and the holding of promotions.

The specialty of the store could be the sale of a separate line of products. It may be a well-known brand that is loved by Russians. You can give it a separate stand or stained glass window and offer the most favorable prices.

Financial results

Opening a small store will require an investment of 300,000 - 500,000 rubles in a small town. For large cities, the starting capital may be 2-3 times higher. The profit level per month can reach 100,000 - 200,000 rubles and more. The profitability of such a business is about 15 - 20%. Payback on average can vary from 6 months to 2 years.

The correctness of the strategy and respectful attitude towards the client are the keys to success, which can multiply the entrepreneur’s profit. And coupled with high quality service and the presence of loyalty programs, you can acquire regular customers in just a few months.

There is always a demand for household chemicals: neither seasonal fluctuations nor the crisis affect it. After all, even in the most difficult times, people want to live in beautiful, well-maintained housing. Every day we clean, do laundry, wash dishes, take a shower...

Manufacturers meet customers halfway and offer high-quality and inexpensive products of various categories - on store shelves you can find disinfectants, detergents, laundry detergents, cleaning products, disinfectants and, of course, cosmetics.

Today we will talk in detail about how to draw up a business plan for a household chemicals and cosmetics store.

Selling household chemicals is an excellent choice for a budding entrepreneur

Due to the specific characteristics of the goods themselves, trading household chemicals has many advantages. In particular, this is explained by the fact that:

most funds are spent quite quickly, and the average family replenishes their reserves at least 1-2 times a month;
Almost all products have a long shelf life and do not require special storage conditions;
due to the fact that the average cost per unit of goods is low, you can immediately purchase a fairly large assortment;
as an entrepreneur, you can choose any format of trade - from a drive-thru store to a hardware market.

Of course, it will not be easy to compete with major market players - almost every city has its own chain of household chemical stores. However, there are always places that have not yet been “captured” by networkers. In addition, it should be taken into account that it is simply impossible to present in one store the products of all brands that are on the market at once. And you can use this factor to your advantage.

Step 1. Organizational issues and registration

A lot depends on the store format you choose. If we are talking about a small retail outlet, it will be enough to register as an individual entrepreneur.

However, if you are drawing up a business plan for a household chemicals and cosmetics store with the prospect of developing into a chain of stores, you should immediately take this into account and open an LLC.

In the case of a small store, you can limit yourself to trading from behind the counter. But if the size of the premises allows, it is better to organize self-service or mixed trade (some of the products are put away in display cases, and some are placed on shelves for free access).

Trade licensing is not required in this case.

In addition, it is important to choose the name of the household chemicals store. It should be simple, bright and memorable, because this is the “face” of your business. If you really don’t have enough imagination, you can choose the name of a “classic” type of household chemicals store - for example, “Housewife”, “Cinderella”, “Domovenok”, “Shine”. You can use beautiful women's names or flower names. They are not too complex and are well recognizable. Remember that “whatever you call the ship, that’s how it will sail.”

Step 2. Selecting a room

It’s no secret that the right choice of premises is one of the main factors of your success. Sleeping areas can be “cut off” immediately - as a rule, they have long been monopolized by large supermarkets and department stores with a large selection of products, to which people have long been accustomed.

But on the central streets of the city, a household chemicals store will be very useful. Ideally, you can rent a room located near grocery stores or right on the territory of one of them. Why is this so? It’s all very simple: at the same time as food products, people, as a rule, also purchase household chemicals.

The area of the room must be at least 100 m2. Naturally, it must undergo high-quality repairs. The rental price in modern shopping centers ranges from 5 to 20 dollars per 1 m2.

Step 3. Determine the assortment

When drawing up a business plan for a household chemicals and cosmetics store, you definitely need to decide on the range of products that you will offer to your customers. It is desirable that in your store customers can find not only household chemicals, but also personal hygiene products, as well as cosmetics and perfumes.

Which products sell out the fastest? First of all this:

face, body and hair care products;
shaving products;
cleaning and detergents;
shoe care products;
decorative cosmetics and perfumes;
washing powders;
hosiery products;
all kinds of beautiful gift sets.

If you do not plan to create a highly specialized store selling luxury products, it is better to focus on mid-price products that are in great demand.

Separately, it is worth mentioning that in order to increase trade turnover, it is recommended to reduce the trade margin at the initial stage. It’s hard to imagine that customers will bypass a store that offers the goods they need at affordable prices.

The number of product items should vary between 5-15 thousand. That is, available products should be aimed at citizens with different levels of income.

Step 4. Purchase of equipment

Go ahead. How to equip a household chemicals store? The basic set includes counters, racks and display cases. Behind the counter there is a cash register area (it is advisable to have 1-3 cash registers at your disposal). Shelving is located in the sales area, along the walls and in the center of the room.

It is important that there is a sufficiently large distance between them so that customers can move freely around the store. If we are talking about a self-service store, there should be shopping baskets and cells at the very entrance where people can leave their things.

You can save a lot of money by buying used equipment. However, in pursuit of cheapness, you should not grab the first counter offer. How well your store is designed directly determines its image and, as a result, your profit. Therefore, if you can’t find used equipment in good condition, it’s better not to skimp and buy new one - the money spent will quickly pay off.

Opening a household chemicals store in Russia can easily be considered a promising solution. The expected volume of the segment in 2016 is 202.7 billion rubles. Product consumption is growing, and therefore the industry is surviving the crisis period well. The characteristic features here are fierce competition, specialization of goods, as well as the hegemony of large producers - transnational corporations. Even after the launch of the import substitution program, foreign companies remain the key players. Domestic factories are completely dependent on foreign raw materials.

Manufacturer's name		A country	Most Popular Brands
			Ariel, Fairy ,Tide, Mr.Proper, Dreft, "Myth", Ace, Lenor, Comet
		Germany	Prill, Pemolux, Pemos, Persil, Laska, Somat, Clin, Losk, Vernel, Deni, Bref
"Nefis Cosmetics"			Bimax, Aos, “Forest Glade”, Sorti, “Feather” “Biolan”, Love, “Healing Herbs”
Reckitt Benckiser	Germany		Cillit Bang, Calgon, Harpic, Vanish, Mortein, Finish, Woolite
"Nevskaya Cosmetics"			“Sarma”, “Eared Nanny”, “Lotus”, “Regular”, “Max”, “Index”, “Villus”, “Mr.
	England (British-Irish corporation)		Glorix, Domestos, Cif
			“BOS”, “Stork”, “Lapis Lazuli”, “Kapel”, “Cashmere”, “Yat”

The rating reflects the preferences of domestic consumers, and therefore should be taken into account when creating the store’s assortment. Data on market segmentation will also help in compiling a product line. In 2016, household chemicals are understood as:

· dishwashing detergents;

· washing powders, gels and capsules;

· cleaning agents;

· insecticides.

At the same time, the main share of sales is made up of the first two categories. In 2014, the purchase of liquid detergents reached 130 million liters. The growth in demand for products is due to changes in the lifestyle of Russians. Already about 11% of families have purchased dishwashers. With the spread of automatic machines, the frequency of washing clothes has increased to 2 - 3 times a week.

The business plan for a household chemicals store will need to take into account consumer behavior. For this purpose, you can use materials from marketing research and social surveys. Thus, according to the report of the scientific and technological revolution monitoring center, Russians have become more demanding about product safety. Buyers prefer products that do not contain harmful phosphates, chlorine or sodium perborate. For example, bleaches based on hydrogen peroxide are of increased interest.

Demand for generic goods has fallen. Specialized developments came first: powders for colored clothing, gels for delicate cleaning of materials, care products for ceramic surfaces, etc. The selection criteria were:

· price;

· safety for the environment;

· minimal toxicity;

· presence of natural components;

· hypoallergenic.

Interestingly, the top sellers were washing powders packaged in 3-5 kg bags. Once popular packs of 400 gr. have lost their relevance. Brands are also of great importance to Russians.

Please note that only the powder produced under the BiMax brand can be called a completely Russian product. The reason for this phenomenon is considered to be the low quality of domestic household chemicals. Many developments of transnational corporations have the best characteristics and are sold at an affordable price.

Experts agree on the characteristics of the modern consumer:

· reads labels;

· compares the promised and actual results;

· Well versed in assortment.

Information about certification, successful testing, and laboratory research has a noticeable influence on the buyer’s choice. The country's population prefers to use technological and modern products.

Rules for registering a business and opening a store

In most cases, trade in household chemicals is carried out on behalf of an individual entrepreneur. In practice, there are also sellers operating in the form of an LLC. We discussed in detail the procedure for registering these types of businesses in previous articles. You can also get acquainted with the latest information.

Table No. 2 Basic requirements for a household chemicals store

Evaluation criterion	Options	Note
	Not less than 18 sq.m.	The restriction was introduced by GOST R 51773-2009
Communications	Lighting, heating, staff toilet, ventilation	The list of requirements is the same for all non-food retail outlets
Location	Detached or attached buildings, non-residential floors of apartment buildings	The store must have an isolated entrance, an area for unloading goods, and separate garbage containers
Fire safety	Evacuation plans, instructions for personnel on rules of conduct in case of fire, fire extinguishing equipment	The owner of a retail outlet is obliged to organize training for employees to follow instructions once every 6 months, introduce a smoking ban in warehouses, closed premises, and in the entrance area of the store (with the placement of appropriate signs), ensure regular checks of the condition of fire fighting equipment, and also exclude obstruction of passages, maintain fire safety distances
Sanitary and hygienic standards	Notification to territorial bodies of Rospotrebnadzor	The notification procedure and document form were approved by government decree No. 584 of July 16, 2009

Retail trade in household chemicals is carried out by taxpayers who have chosen OKVED during registration for the following classifier positions:

Note! When registering with the state, an entrepreneur indicates at least 3 activity codes. There is no maximum limit. We recommend that you include all possible items in your application. The optimal number of OKVED will be 5 – 6.

The future entrepreneur will also have to choose a tax regime. Each of the existing systems has its own characteristics. We provided a comparative description in one of the previous articles. UTII and simplified tax system are suitable for small retail outlets.

Legal features of sales of household chemicals

Legal regulation of commercial activities is carried out by dozens of regulations. In addition to general documents, the future entrepreneur will have to study a number of industry instructions and standards. In particular, we recommend paying attention to the following sources:

· sales rules approved by government decree No. 55 of January 19, 1998 (section 10);

· decision of the Customs Union Commission No. 299 of May 28, 2010 (requirements for consumer labeling);

· Decree of the Government of the Russian Federation No. 390 of April 25, 2012 (fire safety regime for retail facilities);

· order of the Ministry of Trade of the RSFSR No. 117 dated 10.1191, taking into account the provisions of Chapter 25 of the Tax Code of the Russian Federation (norms for losses during transportation).

It is these regulations that determine the specifics of the work of a household chemicals store. The owner of the outlet is obliged to ensure compliance with the established requirements under the threat of sanctions.

1) Pre-sale preparation

All goods received at the warehouse must undergo preliminary inspection. The responsible employee is obliged to assess the integrity of the packaging, the availability of information about the composition, properties, rules of use and storage. At the same time, store employees study the accompanying documents, checking data on quantities, articles and grades. Products are removed from shipping containers, grouped according to their intended purpose and placed on display cases.

At the federal level, a number of strict requirements for product information have been established. The packaging must contain the following information:

· Name;

· information about the manufacturer;

· list of components;

· details of the technical certificate, if required;

· rules of use and storage.

Failure to comply with the instructions may result in lengthy legal proceedings and sanctions from regulatory authorities. Thus, an entrepreneur from the Smolensk region had to defend his interests in an arbitration court. The owner of the store was brought to administrative responsibility for selling “Volshebnitsa” dishwashing detergent. There was no information about the composition on the packaging. He was able to defend his case and get the punishment overturned only in the cassation court. In this case, the argument was a violation of a procedural rather than a material nature (resolution of the FAS CO in case A62-4477/01 dated 02/03/03).

2) Sales procedure

Retail sales of household chemicals are permitted in different formats. Acceptable options for organizing a business are:

· traditional stationary store;

· self-service halls;

· warehouse stores;

· virtual platforms;

· trade from a car (depending on the region).

Household chemicals are classified as goods that are not subject to exchange or return regulations. This means that customers will be able to refuse products after payment only if they are confirmed to be of poor quality. Let us also remind you that upon purchase, the visitor has the right to inspect the packaging and read all the certificates and instructions. Checking products in aerosol cans inside a store is prohibited.

3) Documentation of the point of sale

When organizing sales, do not forget about the obligation to inform the potential buyer. The outlet must have a so-called consumer corner. The standard set of documents available in the public domain includes:

· copies of registration certificates;

· printed version of the law on consumer protection;

· book of suggestions and complaints;

· a copy of the notification of the territorial bodies of Rospotrebnadzor about the start of trading activities;

· evacuation plan in case of fire;

· contact details of regulatory services;

· list of persons served out of turn;

· layout of control scales if the goods are sold by weight;

· rules approved by Decree of the Government of the Russian Federation No. 55.

Note! The complaint book must be stitched with clerical thread and sealed. All sheets in the document are numbered to avoid unauthorized deletion of negative reviews. The absence of certain documents on the information stand threatens the entrepreneur with an administrative fine.

Thus, in the Novosibirsk region, the owner of a retail store was brought to justice. The inspectors did not find a printed version of the rules for the sale of certain goods in the consumer's corner and imposed a punishment in accordance with Art. 14.15 Code of Administrative Offenses of the Russian Federation. Considering case No. F04-3817/2006 (23794-A45-19), the FAS ZSO confirmed the legality of the sanctions.

In addition, employees of household chemical stores are required to have documents for the goods. The standard package includes waybills, instructions for storage and use, invoices, certificates or declarations of conformity.

4) Organization of settlements with visitors

The procedure for registering transactions for the sale of goods at retail depends on the chosen mode. Until 2018, UTII payers are not required to use cash register equipment. It is enough for them to issue customers a sales receipt indicating the name, quantity and cost of the product. In this case, the lack of documents confirming the purchase will not be an obstacle to filing claims.

If the simplified tax system is chosen as the tax system, you will have to register a cash register. Registration of the device is free of charge upon application from the store manager. The equipment must meet modern requirements, that is, have a device for transmitting fiscal data to the operator.

In addition to a cash register, you will have to open a current account. The law contains a direct indication of concluding an agreement with a bank only in relation to legal entities. In fact, an entrepreneur will also need the tool. Experts made this conclusion after analyzing the rules on paying for goods with cards. A special terminal must be installed at the point of sale. The device is issued only after opening a current account.

In conclusion, let us draw attention to the need for a detailed elaboration of the scheme of relationships with suppliers. Despite the fact that the Russian market for household chemicals is monopolized by foreign companies, you will not have to go through customs procedures. The overwhelming number of retailers successfully cooperate with official dealers and wholesale stores. The parties determine the terms of transactions independently, guided by civil law.

The business plan justifies the possibility of opening a household chemicals store. To justify the positive results of opening a store, the necessary amount of calculations was carried out, which can later be used as the basis for your business plan. The calculations performed made it possible to show the profitability of the business project and take into account the accumulated experience and results of work on other similar developments and take into account the features of the FCMG market. The calculations are made in Excel, which makes them easy to change. You will be able to independently assess the financial attractiveness of opening a household chemicals store, determine investment goals, payback periods and profitability. You will also be able to present your own business project to a banking or financial credit organization.

Summary

Objective of the project: launch of a household chemicals store in Ulan-Ude

Project objectives: launching a convenience store on the household chemicals market for a wide target audience of 14 years and older with low and average incomes relative to the region.

Initiator of the project

The initiator is a private entrepreneur who wants to open a household chemicals store. According to him, there are no convenience stores in the city with the main category of goods being household chemicals. The initiator has experience in trading in the non-food FCMG sector and believes that such a store will be able to generate income and pay for itself within an acceptable time frame.

Investment costs

Initial capital investment (in rubles):

Registration with tax authorities: 14000 rub..
Security deposit for renting retail space: RUB 36,000.
Obtaining permission from sanitary authorities: 10000 rub.
Finishing of the retail area: 150,000 rub..
Making a sign: 25,000 rub..
Entrance refurbishment: 30,000 rub..
RUB 267,800.
Purchase of goods: 400,000 rub..
Starting advertising costs: RUB 56,000.

Total investment: RUB 988,800, rounded to 1 million rubles

The work space is a one-room apartment on the ground floor of a residential building, converted by the owner into commercial real estate, with its own exit to the street. The reconstruction of the premises was agreed upon and carried out by the owner several years before the start of the project. The fire alarm required for household chemical stores has already been installed.

Project financing

Investments are planned in the amount of 1.5 million rubles. Capital expenses are 1 million rubles, working expenses are 500 thousand rubles. The initiator plans to invest in opening the store: 700 thousand of his own funds and 800 thousand rubles. receives in the form of a loan received from a bank at 14% per annum.

Project payback

Planned payback for a household chemicals store:

NPV - 5103.52 rubles;
The simple payback period for the store is 24 months;
The discounted payback period for the store is 25 months.

Suppliers and contractors

The rented area will undergo cosmetic renovations. The sales area and ventilation system are being updated, which is required to comply with SNIP. The renovation allows the interior to be decorated in the same style. The repairs are carried out by a team of builders selected by the project initiator.

Furniture and equipment will be purchased from a company that supplies equipment to commercial enterprises. The supplier was selected by the initiator, who had experience working with the supplier company, was familiar with its pricing policy and had discounts.

Services

Main groups of products presented in the store:

Hygiene products (soap, shampoos, toothpaste, etc.)
Hygiene products for children
Products for washing and treating fabrics and leather goods
Fertilizers and reagents
Household goods, garden tools, disposable tableware
Packaging materials

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Investment plan

Investment size

Capital investments amount to 1.5 million rubles, of which:

working capital: 500 thousand rubles.
capital investment for opening a store: 1 million rubles. (rounded up from RUB 998,800)

Investments in capital funds are given below:

Name of works/products/services	Quantity		Price
Registration with tax authorities
Security deposit for renting retail space
Obtaining permission from sanitary authorities
Room renovation
Making a sign
Refurbishment of the entrance
Purchase of commercial equipment and furniture:
Cash register with bank card acceptance
Barcode reader
Storage Sections
Rear trade stands
Trade counters with showcase
Counter table


Baskets
Purchase of goods

Launching a video on the radio
Group on VK and Odnoklassniki


Total investment

Investment work plan

The work and investments necessary for their implementation will be carried out according to the following schedule:

The amount to pay for the patent for the first half of the year is paid for 6 months. the amount is included in the calculation, but can be paid out of profit. All other patent payments are paid from profits.

Production plan

Room

Work space - a one-room apartment on the ground floor of a residential building with a total area of 38.5 m², of which 12 m² is a sales area (room), 7.5 m² is an office space, 4 m² is a warehouse converted from a bathroom, 2 m² - bathroom There are two entrances: the main one from the street, the second from the yard, through the entrance of a residential building.

Equipment

Equipping the store by purchasing the necessary equipment and furniture from a supplier company that professionally sells and supplies equipment for retail businesses. The purchase amount is included in capital investments.

Store time

The store will be open from 8.00-21.00 without breaks and weekends. On Fridays an inventory of goods is carried out.

Sales process

The procedure for selling consumer products classified as “Household Chemicals” product group for retail outlets is regulated by the provisions of Section 10 of the Decree of the Government of the Russian Federation “On approval of the Rules for the sale of certain types of goods ...” No. 55 of January 19, 1998 (as amended on December 23, 2016). According to this document, it is mandatory to:

Providing the consumer with complete information:
- Name of product;
- information about the manufacturer;
- data on the chemical composition of the product and possible hazardous, potentially hazardous and harmful substances;
- about the procedure for use;
Certificate of conformity and technical certificate (for products with statutory requirements requiring confirmation of its suitability when used for construction purposes);
Ensuring the required storage conditions for goods, with legally established special storage requirements.
Products must undergo pre-sale preparation before display:
- the container used during transportation is removed;
- information about the manufacturer and composition of the product is checked;
- goods are sorted by types and groups;
- checking the integrity of packaging containers. For household chemicals in aerosol packaging, the functioning is checked;
- the availability of instructions on how to use the product is checked;
- quality is verified based on external signs;
- price reconciliation against invoices and price tags.
Providing merchandising. Arrangement into groups and types, according to the purpose of the products, and in order to ensure better visibility.
Testing the functioning of products in aerosol packaging is prohibited in enclosed spaces.

Sales are carried out in the following sequence:

Greeting and establishing contact with a possible client;
Clarification of needs;
Offering products that can satisfy needs;
Overcoming objections;
Making a sale;
Farewell to the buyer.

Cost of services

The margin on goods is set at 40% of the sales price.

Marketing plan

To promote the store starting from 2 months. From the beginning of the project the following marketing tools are used:

Launching a video on the radio
Group on VK and Odnoklassniki
Advertisements in local newspapers
Preparation and distribution of advertising leaflets

In the future, SMM promotion, direct marketing and distribution of leaflets and advertising booklets are carried out.

The target audience

Target audience: residents of nearby houses. Mostly family women over the age of 18, married and with children (80%), men over the age of 18. For the latter, a special group of products is being introduced into the assortment: car cosmetics.

Below you can see the seasonality graph:

Competition and location

A residential area with a high population density.

The main competitor is convenience stores that are part of federal or regional chains. The problem is that chain stores have the opportunity to receive goods with a minimum margin, received directly from manufacturers with a minimum margin, and a wider range. This approach makes it possible to implement a dumping policy and provide profitability due to sales volumes at lower prices. An example of such stores is Magnit-cosmetics, Fix-price, etc.

The emergence of a chain store, especially one that is part of a federal chain, significantly worsens the competitive situation. Individual stores have the opportunity to compete with chain stores only if their assortment includes high-quality, inexpensive products from brands that are not represented in chain stores of household chemicals.

Range of services

The sales structure of a household chemicals store is shown in the figure:

Note. The sales structure does not include goods classified as household chemicals and used in construction work, such as, for example, paints and varnishes and various adhesives for construction purposes. Products classified in these categories are reserved and if diversification of the assortment is necessary, this category will be introduced first. Another direction for expanding the range could be mass-segment cosmetics, primarily deodorants, mousses, etc.

Price policy

Average price level, close to the boundaries of the lower price segment. The products are designed for people with low and middle incomes who are prone to visible savings. Therefore, it will be necessary to introduce preferential programs, periodic temporary discounts, sales, etc., i.e. It is necessary to use every opportunity to attract customers and ensure loyalty.

Volume of sales

The number of buyers per day is planned at 50 people, on average buying 4 items.

Below you can see the enterprise load chart:

Sales volume is presented in the table

Product groups	Average unit cost	Quantity per month	Sales amount per month (thousand rubles)
Household chemicals for cleaning the premises
Hygiene products (soap, shampoo, toothpaste)
Hygiene products for children
Detergents for washing and treating fabrics and leather goods
Air fresheners, repellents, disinfectants
Fertilizers and reagents
Cleaning equipment and workwear
Household goods, garden tools, disposable tableware
Car cosmetics and chemicals for cars
Packaging materials
Adhesive materials (glues, tapes, etc.)
TOTAL

SWOT analysis

Force:

Close location to potential buyers
Product quality
Presence of brands not represented in online retail
Wide range of household goods

Weaknesses:

Low margin
Ensuring sanitary and fire safety conditions
Small warehouse area
Heterogeneous product range

Possibilities:

Additional items in the assortment;
prompt response to customer requests
customer retention

Discounts and other forms of customer retention
Selection of products that meet consumer needs
discounts and loyalty programs

search and expansion of the assortment due to high-margin goods
storage optimization through logistics

Difficulties and threats:

low customer demand
the arrival of chain discounters in the “close to home” format, including those specializing in household chemicals
limited number of well-known brands
sanitary requirements

increasing advertising, which focuses on discounts and benefits for the buyer
use of brands not represented in online retail
consider the possibility of selling “catalog” brands (for example, Amway)

carrying out external examination for compliance with sanitary and fire requirements
monitor the assortment of “network stores” and conduct discount promotions on those goods whose prices are higher in network stores

Advertising strategy

Provide widespread advertising in your area. The main direction is mass direct mail. To do this, you need to consider the possibility of cooperation with the post office. The second direction is distributing leaflets. If possible, introduce a system of discount coupons for repeat purchases. If your business develops and additional retail outlets open, you can introduce a system of savings cards.

The website and support of the group on the social network is secondary. It is possible to organize additional discounts for customers and group members who make advance orders online and delivery services. Website and group maintenance is outsourced.

Organizational plan

Form of doing business

The main form of doing business as an individual entrepreneur with a patent system. The patent form for a household chemicals store allows you to save on costs during the first year and simplifies taxation and filing reports with the Federal Tax Service.

The cost of the patent is 30,500 rubles. in year. In the first year, a third of the cost of the patent is paid in the first half of the year and the rest during the 2nd. Starting from the 2nd year, the cost of the patent is paid in equal installments.

Personnel and staffing structure

The initiator is the director of the store and carries out management.

The structure of positions and salaries is as follows:

The store director has irregular working hours.

There are 2 sellers in the store, working on a 2-by-2 schedule.

The store manager receives goods, monitors the store's workload, ensures its smooth operation, controls the sales schedule, interacts with customers in case of complaints, monitors advertising, accepts orders via the Internet, makes deliveries, provides information about stores and purchases of supplies and equipment.

The process of organizing sales of household chemicals:

The decision to purchase and receive goods for sale is made by the store director;
Delivery is made by the store director or the supplier's delivery service;
The received goods are arranged by the seller together with the store director;
Direct sales are carried out by the seller, who, after selling the product, pushes it through the cash register.
The director receives a sales report daily.
The inventory is carried out by the director together with the seller at the end of the seller’s 2nd shift and before his replacement leaves.
The results of the daily report and periodic inventory are sent to the accountant.

Financial plan

Project financing

Initial investments are planned in the amount of 1.5 million rubles, of which:

700 thousand rubles. own funds.

800 thousand rubles. bank loan at 14% per annum for 5 years secured by an apartment.

Funds in the amount of 600 thousand rubles. There are initial investments, consumables, which the bank credits in payments of 200 and 400 thousand rubles. within 2 and 3 months, another 200 thousand rubles. for working capital in the 4th investment month.

The project initiator spends funds on registering an individual entrepreneur

Calculation of loan payments differentiated (equal payments for the loan body and interest on the total balance) for 5 years

Return of own funds to the project initiator after repayment of the loan within 2 years. in equal shares taking into account inflation, but without interest, starting from the 3rd year

Project payback indicators

Calculations of the return on investment for a household chemicals store were carried out for a 10-year period. Basic indicators:

contributions to social funds 30% of the payroll, of which the Pension Fund - 22%, the Compulsory Medical Insurance Fund - 5.1%, social insurance - 2.9%;
patent rate 30,500 rub. in year;
annual inflation 10%.

Payback of the project without discount (simple) - 24 months.

Efficiency indicators were calculated at a discount rate of 16.85%:

NPV - 5103.52 rubles;
IRR - 5.9%;
The payback period taking into account the discount is 25 months.

Risk analysis

Calculations have shown that the business project of a household chemicals store is interesting for both the initiator and the investor. The investor can receive a return on time, and the project initiator can receive a salary, and after repaying the loan, a refund taking into account inflation.

When implementing a project, it is necessary to highlight difficult-to-predict changes in economic conditions, the assessment of the impact of which on a business project has certain difficulties. These include the following risks:

decrease in purchasing power. The population is cutting costs, and the cost of utilities and rent will continue to grow at the same pace. Risk countermeasures: control of costs and price levels, focus on cheaper goods that allow maintaining the planned margin;
opening of chain stores of household chemicals in the same area. The biggest problem is created by federal networks. Price competition will increase sharply. The task is to diversify the business in a timely manner: introduce brands that are not available at the competitor’s outlet; use loyalty programs; expand the range with new product items (mass segment cosmetics; household chemical products used in construction, etc.).

conclusions

Calculations have shown that the opening of household chemicals stores in Ulan-Ude shows positive planned indicators, allowing return of investment to both investors and the initiator, as well as obtain additional profit. The level of risks is assessed as increased, because associated with the low level of purchasing power of the population and the development of network retail. This requires significant organizational and marketing work.