In this material:
- Starting a business
- Selecting a sales location
- Buying or renting a stall
- Stall equipment and staff
- Costs of opening a stall
- Choose a similar franchise
For those who want to start their own business, information on how to open a stall will be useful. If you build this business wisely and sell goods that are in high demand, for example, food, then within six months you can recoup your investment in the stall. You don't need to invest a lot of money in starting a business. They can be used to start if there are no significant savings to start a business.
Features of a business plan
The business plan below for opening a trade pavilion contains information that will allow you to open your own kiosk selling various small piece goods. This could be food, stationery, toys, trade in confectionery and baked goods, etc.
A novice entrepreneur should know that the type of goods sold in a stall does not play a fundamental role.
The scheme for organizing a trading business is the same for goods of any kind, even if you plan to open a tent for tourists.
Fast food kiosk
Dynamism is a characteristic feature of our time. Many people eat on the go during the working day. These are your potential clients if you consistently implement the appropriate business plan. A fast food stall with donuts, grilled chicken, and shawarma is especially in demand during lunch breaks.
It must be equipped with a spacious refrigerator. When growing, you should not purchase large quantities of raw materials. For example, for hot dogs, even with brisk trade, you should not purchase more than 45 kg of sausages and 300 buns per outlet. Everything is tested by practice. Keep records. Produce what is in demand.
Registration
The first thing every aspiring businessman needs to do is register a future enterprise. The optimal organizational and legal form is an individual entrepreneur. It is considered beneficial for many reasons, including a simplified form of individual entrepreneur reporting and minimal tax fees.
If you plan to sell products to legal entities, then you will need to open a limited liability company. This organizational and legal form is more difficult when running your own business.
To register an activity, you need to contact the tax office of the district administration. The authority at your place of residence or the area in which you plan to install the kiosk will be suitable.
Selecting a location
The stall usually sells groceries and everyday goods. Therefore, it is recommended to open a retail outlet in walk-through areas where there is a large flow of potential customers, regardless of the time of year.
It is better to place a stall closer to multi-storey buildings, office centers, educational institutions, at public transport stops and other crowded places.
To install a kiosk, the future owner must select a free plot of land with an area of 6-8 m2. Opening hours depend on the location of the mini-store and what goods will be sold there. Due to the fact that the stall sells everyday food products, this must be a daily regimen.
A mini-shop can operate around the clock if it is located near a nightclub. Also, a 24-hour stall can successfully operate in places with significant crowds of people, for example, at a train station, near an entertainment center, etc.
ATTENTION! It makes no sense for a stall to operate around the clock if it is located in a residential area, near educational institutions and businesses that operate during the day.
Kiosks and logistics
Choosing a crowded place for this outlet is a necessary condition for success. Before opening a stall, you should choose its location wisely. Typically, these are crowded transport stops and markets in residential areas. Busy streets (in the same residential areas) with a stable flow of people to/from work are also suitable.
Knowledgeable people recommend opening at least 3 stalls at the same time. If in one, for example, the daily sales of cigarettes have decreased, then this is compensated by the other two. In this case, with an average retail markup of 30%, an average monthly profit of $1.5 thousand from each kiosk is achieved, the profitability ranges from 15 to 20%.
For business sustainability, a kiosk entrepreneur should buy goods from at least five interchangeable wholesalers. It is enough for an entrepreneur in the tobacco business to have three such suppliers.
It is important to take into account cost-effective logistics. Indeed, how can you open a stall if delivering goods to it is unprofitable? The location should also be selected taking into account transportation costs. To minimize them, entrepreneurs add to their kiosk infrastructure a small warehouse, equipped in a favorable location in the private sector. This increases the profitability of goods delivery routes.
Outlet assortment
With a small initial capital, it is not recommended to experiment with the assortment. It is worth paying special attention to products that are in constant demand among potential consumers.
It is necessary to analyze which categories of daily products are popular and what buyers usually pay attention to when making a purchase. It is also necessary to take into account all the costs that arise when selling various products.
Food products may expire and spoil if refrigeration equipment is unavailable or damaged. It is also worth considering where to store perishable products during a power outage. Include these expenses at the initial stage of business planning.
Cigarette trade
If an entrepreneur wants to start selling cigarettes, then he should be guided by the requirements of Federal Law N 87-FZ “On Restricting Tobacco Smoking,” which prohibits opening a tobacco stall near schools and kindergartens. However, the attractiveness of such a business lies in the ability of kioskers to sell cigarettes at prices lower than in stores. Therefore, the customers of tobacco kiosks are usually those who buy in blocks.
In addition, when purchasing goods, you should take certified products that take into account the restrictions of the same law on the content of tar and nicotine in smoke.
When selling, you should be guided by the maximum retail price indicated on the pack.
Recruitment
Undoubtedly, opening a stall is a business that has several undeniable advantages . Firstly, you will need some financial resources for promotion. Secondly, only 1-2 employees will be required.
The employee’s responsibilities include selling and accounting for goods, as well as consulting potential clients.
It also doesn’t hurt to take care of security, since in recent years there have been cases of stalls being burned. To do this, you need to contact a security company that provides such services. The exact number of employees required to organize the work of a kiosk depends directly on the number of working hours.
If you plan to open a 24-hour mini-store, then you will have to hire 2 workers - one for the day shift, and the second for the night shift. If the retail outlet will be open not only on weekdays, but also on weekends, it is necessary to provide for this fact and organize shift work for the mini-store employees.
Market analysis
An important stage of any new business is to conduct a market analysis in which the entrepreneur plans to open his own business. If you plan to open a retail outlet, first of all you need to go around all the mini-shops, pavilions and stalls that operate nearby. After this, you need to analyze the information received.
All the advantages and disadvantages of retail outlets must be taken into account when opening your own stall. In some cases, you need to decide how profitable it is to open your own mini-store in the chosen area. If there are a large number of potential competitors located nearby, it is sometimes better to look for another location.
To rent or not to rent land?
Land is rented for a kiosk with a foundation. Non-stationary stalls as movable property are issued with a permit for non-stationary trade. This area is regulated by Federal Law No. 381-FZ “On the fundamentals of state regulation of trading activities...”.
How to rent a plot of land for a stall? It's a whole procedure. You should contact the regional state property committee with an application indicating its location and area. Wait about a month for a response. Once approved, you can fence the area. But that is not all.
Next, you should obtain a cadastral passport for it from the cadastral chamber. After this, an independent examination of the site is carried out. With the received documents, you again contact the State Property Committee. He publishes an advertisement in newspapers and takes a month's pause. If there are no complaints from citizens, then a lease agreement is concluded.
List of documents
As mentioned above, first of all, the future entrepreneur must register the business as a private entrepreneur by contacting the tax office at his place of residence. You must also submit an application allowing the entrepreneur to switch to a simplified taxation system.
You can solve these issues yourself or use the services of companies specializing in providing such services.
The next step is to obtain a package of documents for permission to install a kiosk. According to the law, in order to set up a mini-store in a city, an entrepreneur must obtain permission from the municipality.
If you plan to open a retail outlet in a rural area, the necessary document is issued by the village administration. In most cases, the procedure for obtaining a permit does not cause problems, but if the business is planned to open in a large city, the possibility of installing stalls may be regulated by special tenders.
They are held in cases where several kiosks are registered for 1 place. To do this, you need to submit 2 applications - 1 on your own behalf, and the other on behalf of a friend. Another important document is permission, which must be obtained from the Department of Urban Planning and Architecture. Then it needs to be agreed upon with the department of trade of your city.
After the new trade pavilion is installed, it is necessary to coordinate the relevant documents with the sanitary and epidemiological station and the fire inspectorate. Documents for obtaining permission from the fire inspectorate:
- Statement.
- Insurance.
- Registration certificate.
- Agreement for rental and installation of fire alarms.
For the sanitary and epidemiological station, you need to collect the same package of documents and additionally prepare a sanitary passport of the facility, sanitary records of the staff, an assortment of goods sold and an agreement for regular waste removal.
Having completed the first part of the procedure, the future businessman must then begin organizing his own business. To do this, you need to visit Rosstat and the Pension Fund, where you also need to register and collect permitting documents. You will also need to visit the Federal Compulsory Compulsory Medical Insurance Fund, where you will need to obtain an insurance certificate.
ATTENTION! According to statistics, you can quickly collect a package of documents necessary to open a stall. With the right approach, this process will take 7-30 days.
Conclusion
A bad entrepreneur is one who has no strategy. This should be realized even before opening a stall. Flexibility in manipulating the assortment will be required. If, for example, your competing neighbors sell large quantities of the same type of goods, then you should go beyond this range, expanding it, and sell in small quantities.
Although it must be admitted that such a business has added risks: city authorities are removing kiosks from central streets, explaining this by the fact that they do not comply with the general plan. Based on the latter circumstance, residential areas have become the “patrimony of kiosks” in cities.
To begin with, do not buy, but rent stalls. You will be able to avoid the formalities associated with renting land and focus directly on trading.
Remember! You only have one chance to please the buyer - the first week and a half of work. Its effectiveness is an indicator of the adequacy of your business plan. Give it your all. If trade has not started within two months, change the kiosk, renew the lease. This, of course, is an additional expense, but what can you do? After all, you are looking for “your way” into business. It must have dynamics.
For the success of any business, it is recommended to advertise. To do this, you must first order leaflets and hire promoters to distribute advertisements in crowded places. The business card should contain the following information:
- where the stall will be located;
- operating hours of the outlet;
- assortment that will be offered to customers.
If you have additional capital, it is recommended to place the billboard in close proximity to the shopping pavilion.
Equipment
When considering what is needed to open a retail outlet that will fully function, it is necessary to pay special attention to the acquisition of equipment. The list of required inventory is small, which gives the business an important advantage.
To open a mini-store, there is no need to purchase expensive equipment and a large number of different equipment. In order to open a stall you need to buy basic and auxiliary equipment:
- kiosk;
- refrigeration showcase;
- racks for displaying goods;
- a cash register that needs to be registered with the tax office;
- scales for weighing weighted goods;
- table, chair for the seller.
Today there are a large number of companies offering commercial equipment. Therefore, it will not be difficult for the future stall owner to select the equipment necessary for the operation of the outlet that will suit his design.
It is also necessary to bring communication systems to the kiosk. The best option is an autonomous water supply and heating system.
IMPORTANT! It is necessary to coordinate with suppliers the time of delivery of products; it is advisable to organize it outside of working hours.
Trade in vegetables and products
Let's look at how to open a vegetable stall. An entrepreneur must purchase a specialized set of commercial equipment: a freezer (for the intermediate preservation of vegetables purchased from wholesalers), a refrigerated display case (if necessary), shelving, and special slides.
When selling vegetables, as well as other food products, kiosks must comply with sanitary rules that have been in constant force since the middle of the last century (N 158-54 of 05/06/1954). Interior walls should be free of cracks, painted with light oil paint, and counters covered with waterproof, light-colored material.
Hygiene rules should also be taken into account. This is one of the indispensable aspects taken into account immediately before opening your stall. A washbasin, soap, a brush, and a clean towel should be provided.
Sellers' clothing is stored either in closets or on an open hanger, but hung.
It is prohibited to store vegetables on the floor in open containers; a retail outlet with vegetables, fruits, and food products cannot be located closer than 25 m from garbage containers or sewer latrines, and from non-sewered latrines - at a distance of at least 50 m.
Expenses
To calculate how much it costs to open a mini-store and what the payback period is, you should consider the financial component of the project. List of expenses that will go into opening a retail space:
- Buying or building a kiosk - 60,000-110,000 rubles.
- Purchase of a refrigerated display case - 10,000 rubles.
- Purchase of scales - 3000 rubles.
- Cash register with registration with the tax office - 7,000 rubles.
- Preparation of documentation with the costs of possible fees - 10,000-50,000 rubles.
- The seller's salary is 120,000 rubles. in year.
Total: the minimum amount of financial costs for starting a business is 210,000 rubles, the maximum is 300,000 rubles. With a trade margin of 25-35% for each unit of goods sold, the right location and a well-chosen assortment, the payback period for financial investments is 6-12 months.
ATTENTION! An analysis of the operation of functioning stalls shows that the payback period for such a retail outlet is up to 12 months.
The exact period depends on the location of the stall, the type of goods sold, and the store’s operating hours. It is worth considering that with a 24-hour work schedule, the profit can be much greater.
Based on the above calculations, it can be argued that opening a stall will not require large expenses. This business is profitable and can generate good income.
