People make the decision to open their own business for several reasons. This may be discontent caused by low salaries, relations with management at the place of work, loss or risk of loss of a job, and even a simple desire to make decisions independently - to become your own boss. You don’t have to go far for ideas for starting your own business - they hang around. It remains only to make a choice and proceed with its implementation. Do not get involved in something very complicated, for a start it is best to try trading. Moreover, the sale of goods running, in constant demand, with a long shelf life, bringing business owners a stable income. Detergents and cleaning products fit favorably into this category, hygiene products - household chemicals.
Where to begin?
Everything must begin with a plan. You can make it yourself, you can download a rough plan from the Internet, you can order adapted from the specialists adapted to the place of opening of the future business in household chemicals. If it is supposed to use borrowed funds at the opening of a household chemistry store, the plan should be drawn up by a specialist. An investor loves accurate and verified numbers and calculations. The simplest plan should take into account the following information.
Market conditions
Due to the constant demand for these products, their wide range, the wide variety of wholesale suppliers, the lack of a license to trade this type of product - the competition is very high. And this means limited store profits. To reduce competition, a careful selection of the location of a household chemistry store is needed.
Choice of premises
The place for the store should be removed from the main competitors and as close as possible to the potential consumer or his movement (for example, from work home or to buy groceries, to transport). This will allow, after the opening of a household chemistry store, to limit advertising to a quality outdoor, illuminated sign in the dark, decorated with product displays with display windows.
Area 25-30 square meters. m. will be sufficient for convenient placement of goods and limit the cost of rent. Good ventilation will be required - household chemicals are very flavored, and the "bouquet" will cause discomfort for buyers.
Equipment
You can use the self-service option with control devices at the exit and payment for the counter by the scanner.
You will need:
• racks;
• counter and display cases;
• packing table;
• control devices;
• computer and barcode scanner;
• carts, etc.
To reduce the cost, a service option by the seller is also possible with the placement of goods in shop windows and on shelves behind shop windows along the walls of the store.
Assortment of main and additional goods
It should contain both household chemical goods known to the consumer and new products of different price categories. Mandatory presence of widely advertised brands. Perhaps the addition of goods for household needs, perfumes, cosmetics, etc.
Suppliers can be found via the Internet by downloading the price lists of wholesalers or direct manufacturers. The latter is more profitable if there are sales representatives of the manufacturer in the city who deliver directly to the household chemistry store.
Store Profitability
If all of the above was completed as thoroughly as possible and buyers appeared, then the store will start generating revenue from the purchase of the first buyer. But profit should be calculated no earlier than six months later. The initial revenue will go to payments to creditors, rent, salaries, taxes, purchase of a new product, etc. The profit of the store largely depends on the patency in this place and the solvency of local residents, so it can vary greatly. An approximate landmark of the order of 2-5 thousand. $ / Month.
To increase profitability, we need a competent pricing policy for household products of different categories and fame. Small margins at the beginning of the store will allow you to compete with supermarkets and create your own clientele. For example, for a popular product, a margin of at least 15% can be set, but for other positions it is already possible 20-50%.
When opening a household chemistry store, it is important to consider that new customers will first evaluate it: whether to go there or not. And the high cost for some customers (and not only low-income) will be the main obstacle to making a purchase, and this is the loss of a potential regular customer.
It is necessary to carefully monitor the dynamics of "price - turnover - profit." While raising the price of a product brings profit growth, it can be increased.
Another financial attractiveness of the household chemicals business is that you can start with small investments and gradually increase with increasing profitability.
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