Minimum starting capital
443 000 ₽Net profit
6%Profitability
21 monthsPayback period
1. Summary of the project
The goal of the project is to open a bookstore for bookstore retailers. This business plan is designed to justify the economic efficiency of the project. The target audience of the bookstore will be all groups of the population, starting from preschool children. The bookstore assortment will include the following product groups:
fiction;
children's literature;
educational literature;
applied literature;
literature on art, culture, tourism / local history;
professional literature;
gift books;
stationery.
Investments in opening a bookstore will amount to 2, 286, 000 rubles. Funds will be taken from personal savings. The implementation of the project will require a preparatory phase of 3 months, which will be required for registration procedures, search for premises and signing a lease agreement, search for suppliers and conclusion of a supply contract, repair and equipment of premises, hiring and training of employees. The store’s payback period is 21 months.
| Key financial indicators of the project | Units |
|---|---|
Discount rate, % | 17 |
Net present value (NPV), rub. | 3 718 363 |
Project net profit, rub. | 71, 000 - 443, 000 |
Return on sales, % | 6.33 |
Payback period (PP), months | 21 |
Discount payback period (DPP), months | 23 |
Profitability Index (PI)% | 1, 63 |
2. Description of the industry and company
Today, the Russian book market is undergoing a transformation. According to the industry report on the state of the book market in Russia of the Federal Agency for Press and Mass Communications, over the past few years, the domestic book industry has seen a downward trend in traditional book publishing and a steady decline in the volume of the book market. In 2014, the lowest print book and brochure results for 7 years were recorded. Since 2008, the print media of publications published in the country has almost halved - by 45.3%. The sales situation is not so critical: here, the market is shrinking at a slower pace.
From 2011 to 2015, the market volume in monetary terms decreased from 80.5 to 75.2 billion rubles. Among the main factors of stagnation, we can single out a decrease in the readership, a gradual outflow of readers to the network, as well as a decrease in spending on books due to a decrease in purchasing power.
According to experts in the book industry, there are currently around 1, 500-2, 000 stationary bookstores in Russia. Despite the negative trends, some market players record an increase in profits due to an increase in the price of book products, which has begun to grow noticeably in recent years. Only from 2014 to 2015 average check increased by 10-15%. The average price of book products at the end of 2015 - the beginning of 2016 in the regions is at the level of 300-350 rubles, in Moscow - 500-530 rubles. During the crisis and decline in sales, the most powerful players were able to adapt to new market conditions, reducing the financial burden on the business, in particular, renegotiating leases from foreign currency into rubles, and starting to work more actively in the direction of online sales.
The aim of the project is the opening of a bookstore retail bookstore. The target audience of the bookstore will be all groups of the population, starting from preschool children. Given the current trends in the industry, the store will present a universal assortment of books and related products, including - fiction, children's literature, educational literature, applied literature, professional literature, literature on art, culture, tourism and local history, as well as gift and clerical publications products.
The bookstore will be 85 square meters. meters. The building will be located on a street with high pedestrian traffic, on the first line of houses. The location was selected taking into account the maximum coverage of the population, the minimum number of existing competitors, a large number of educational institutions.
The legal form of the store is IP. The tax system is simplified (STS 15%). OKVED code for this business is 52.47 Retail sale of books, magazines, newspapers, stationery and stationery.
The bookstore management structure is linear. Management responsibilities are assigned to the individual entrepreneur. He is subordinate to the administrator who manages the sales staff and an accountant who works on outsourcing.
3.Product Description
The store will provide buyers with books and stationery in the middle price range. The size of the average check will be 350 rubles at an extra charge of 75%. The share of books in the assortment will be 70%. The number of titles of books is 15, 000. The offered products will be divided into sections:
Fiction: non-fiction, classical literature, modern literature, historical literature, detective stories, adventures, romance novels, memoirs, journalism.
- Professional literature: economics, business, finance, computer literature, transport.
Society and culture: literature on art, culture, psychology, philosophy, socio-political topics;
Educational literature: school books, teaching aids for university students, reference books, dictionaries, encyclopedias, phrasebooks.
.Religion, esotericism and more: literature on religion, astrologers, magic, esotericism, mysticism.
Sports and fitness literature: medical literature, sports literature.
Tourism and travel: maps, guides, atlases.
Applied literature and hobbies: cooking, fishing, gardening, gardening, hunting, crosswords and more.
Printing and office supplies: magazines, pencils, pens, notebooks, notebooks, diaries, postcards, calendars and more.
The selection of the book assortment will be based on an analysis of competitors' offers and ratings of the most popular publications and new products.
A book and stationery retailer does not require a license. However, paper products are classified as fire hazardous. In this regard, there are certain requirements for book trading enterprises set forth in WFPB 46-01-95. "Fire safety rules for enterprises and organizations of Roskompechat". It will also be necessary to coordinate activities with Rospotrebnadzor.
4.Sales and marketing of a bookstore
One of the key factors affecting the book market is purchasing power. According to the All-Russian Center for Living Standards, the number of high-income and middle-income Russians in 2015 decreased by 25% and 46%, respectively, while the number of low-income and needy citizens increased by 8 and 28%, respectively. The slowdown in consumption among Russian citizens, the transition to a saving mode and a focus on purchasing only essential goods against the backdrop of continued readers leaving the network as a whole are adversely affecting the book market. The book market is stagnating slowly but stably.
According to the magazine "Book Industry" for 2015, the volume of the printed book market amounted to 48.52 billion rubles. (including purchases by budget organizations - 75.27 billion), while in 2011 the estimated turnover was 53.65 billion rubles. (total turnover - 80.58 billion rubles). It should be noted that the share of bookstores, including regional and federal chains, remains at approximately the same level, while the share of kiosk chains and non-book retail is noticeably declining. The best indicators are shown by online stores, the rate of which increased from 6.69% to 10.16% (for more details, see Table 1).
Table 1. Market size and sales channels *
2011 | 2012 | 2013 | 2014 | 2015 | ||||
estimated turnover billion rubles | channel share, % | estimated turnover billion rubles | estimated turnover billion rubles | channel share, % | estimated turnover billion rubles | estimated turnover billion rubles | channel share, % | |
Printed book market, incl. | 53.65 | 51.73 | 50.38 | 50.15 | 48.52 | |||
Bookstores (including regional chains) | 26.85 | 33.56 | 26.02 | 27.29 | 34, 99 | 26.49 | 25.83 | 34.32 |
Federal networks | 10.98 | 13.72 | 8.87 | 7.86 | 10.08 | 8.47 | 7.96 | 10.57 |
Online stores | 5.49 | 6.69 | 5.93 | 6.27 | 8.04 | 7.22 | 7.65 | 10.16 |
Kiosk networks | 3.86 | 4.73 | 3.97 | 2.99 | 3.83 | 2.18 | 1, 59 | 2.12 |
Non-book retail | 6.47 | 8.08 | 6.95 | 5.96 | 7.64 | 5.79 | 5.48 | 7.28 |
Industry turnover (including budget purchases and unstructured sales) | 80.58 | 78.80 | 78.01 | 76.56 | 75.27 | |||
Budget organizations (libraries. Schools, universities) | 20.53 | 25.56 | 20, 42 | 21.93 | 28.12 | 20.87 | 21.57 | 28.65 |
Unstructured sales (direct sales, registered publications, subscribed publications, etc.) | 6.40 | 7.65 | 6.65 | 5.69 | 7.3 | 5.54 | 5.18 | 6.89 |
* Source: Book Industry Magazine
The key niches for the Russian print market are educational and children's literature. Third place holds fiction for adults (see. Fig. 1). One of the trends in the book industry is the increase in the share of non-book items in sales. Today, the ratio of revenue from book and non-book products is estimated as 75/25 and 70/30. At the same time, the share of non-book products in the assortment is gradually increasing and can reach 30-50%.
Figure 1. The share of enlarged thematic groups in the turnover of the book market in Russia (excluding budget sales and electronic publications)
* Source: Book Industry Magazine
According to market research, the most active book buyers are women, usually middle-aged and older. This is largely due to the fact that it is women who most often acquire children's and educational literature for their children. The most active buyers of bookstores behave before the start of the school year and in the autumn-winter season. Bursts of sales are also recorded in December before the New Year holidays. The traditionally low period is the spring-summer season (with the exception of resort towns).
To attract customers and create a loyal attitude to the bookstore, the store management will pay great attention to advertising. At the stage of opening the store, an advertising campaign will be held with a competitive program and draws of books and other prizes to customers. In the process, the following tools will be used to promote the market:
in-store print advertising: posters, posters, posters, inserts, catalogs;
outdoor advertising: outdoor signboard, billboard advertising;
organization of monthly sales of books / thematic sales;
holding bookmarkets with the exchange of old books for new ones;
maintaining accounts / groups in social networks with the announcement of new arrivals;
cumulative discount system.
holding creative meetings, literary living rooms and other events.
Also, the bookstore will have its own website, which will present a catalog of products, information on product replenishment, discounts and promotions, contact information.
5. Production plan
The location of the store is a street with high pedestrian traffic, the first line of houses. In the immediate vicinity of the store are retail stores selling food, clothing, pharmacies, multi-storey residential buildings (sleeping area), educational institutions (college, school, two kindergartens). Schedule of the store 9: 00-20: 00. The store area is 85 square meters. meters. 100, 000 rubles will be required to repair the store, 459.5 thousand rubles to equip the store with all necessary equipment. The cost of equipment is given in Table. 2.
Table 2. Equipment costs
No. | Name | price, rub. | Quantity, pcs. | Cost, rub. |
|---|---|---|---|---|
one | Bookcase | 8, 000 | thirty | 240, 000 |
2 | Island book stand | 8 500 | four | 34, 000 |
3 | Counter | 8 500 | one | 8 500 |
four | Theft protection system | 50, 000 | one | 50, 000 |
five | Cash machine | 17, 000 | one | 17, 000 |
6 | Signboard | 35, 000 | one | 35, 000 |
7 | Lighting equipment | 20, 000 | one | 20, 000 |
eight | Fire alarm | 15, 000 | one | 15, 000 |
9 | Other | 50, 000 | one | 50, 000 |
Total: | 459, 500 | |||
In addition to the above list for the store, you will need 1C-based software to account for product balances and quickly find the book of interest. Its approximate cost is 26, 500 rubles.
For the work of the store you will need to hire administrative, sales and support staff. The number of staff units is 7. In Table. 3 shows the staffing and payroll. Schedule of sales staff - in shifts. Salary will consist of bids and bonuses for the implementation of the sales plan.
Table 3. Staffing and payroll
No. | Position | Number of people | PHOT, RUB |
|---|---|---|---|
one | Administrator | one | 25, 000 |
2 | Cashier | 2 | 18, 000 |
3 | Shop assistant | 2 | 18, 000 |
Total: | 97, 000 | ||
Deductions: | 29 100 | ||
Total deductions: | 126 100 | ||
The average planned sales volume will be 80 average checks per day or 2432 checks per month with revenue of 850 thousand rubles. It is planned to achieve the planned volume for 3 months of work. Given the preparation period and seasonality factors, the projected payback period is 21 months. The key expenses of the main period will be rent (at the rate of 1 thousand rubles per square meter) and salary to employees (126.1 thousand rubles). You will also need to pay utility bills, accounting services, transportation costs, security services and more. The variable part of expenses will include replenishment of goods and consumables (packages, anti-theft labels, etc.).
6. Bookstore organizational plan
The implementation of the project will require a preparatory phase of 3 months, which will be required for registration procedures, search for premises and signing a lease agreement, selection of suppliers and conclusion of a supply contract, repair and equipment of the premises, hiring and training of employees.
The management of the bookstore will be carried out by an individual entrepreneur. His responsibilities will include strategic business planning, procurement, advertising promotion. Directly, the goods manager will be subordinate to him, who is responsible for organizing and managing sales, monitoring the work of sellers and document management. Sales staff will be represented by sales assistants and sales assistants. Responsibilities of sales consultants will include advising on the assortment of the store, implementing a sales plan for sales and receipts, maintaining order on shelves, receiving goods, pre-sale preparation, merchandising. Cashier-sellers will fulfill the obligations of making purchases through the cash register, advising customers on the assortment of stationery and goods in the checkout area.
7.Financial book plan
Investments in the project will amount to 2, 286, 000 rubles. Funds will be taken from own savings. The expenditure items of the investment period are presented in Table. four.
Table 4. Investment costs
No. | Cost item | Amount, rub. |
|---|---|---|
Real Estate Investments | ||
one | Room repair | 100, 000 |
Room equipment | ||
2 | Equipment purchase | 459, 500 |
Intangible assets | ||
3 | Website creation | 50, 000 |
four | Starting advertising campaign | 30, 000 |
five | Software | 26, 500 |
6 | Logo design | 20, 000 |
Current assets | ||
7 | Current assets | 300, 000 |
eight | Starting Commodity Filling | 1, 300, 000 |
The indicators for projected revenue, store operating costs and net profit for a five-year period are given in Appendix 1. The conditions adopted in the calculations were: reaching the planned sales volume of 3 months, a fixed average check of 350 rubles, a seasonal decline in sales in March July, sales growth August-December.
8. Evaluation of the effectiveness of the bookstore project
When implementing the sales plan, we can talk about the effectiveness of the project, which can bring in 71 thousand rubles. in ordinary months up to 443 thousand rubles. during the peak months. Performance indicators presented in Tab. 5 are exemplary. In the process of activity, the average check for products, taking into account the latest trends in the market, can grow up to 10-15% per year.
Table 5. Project performance indicators
No. | Indicator | Value |
|---|---|---|
one | Discount rate, % | 17 |
2 | Net present value (NPV), rub. | 3 718 363 |
3 | Project net profit, rub. | 71, 000 - 443, 000 |
four | Return on sales, % | 6.33 |
five | Payback period (PP), months | 21 |
6 | Discount payback period (DPP), months | 23 |
7 | Profitability Index (PI)% | 1, 63 |
9. Risks and guarantees of opening a bookstore
Taking into account the situation in the book market of Russia, the project to open a bookstore can be called a project with an increased level of risk. The main risk is associated with the possible low profitability / unprofitability of the store. Higher rental rates, strategic miscalculations when concluding a lease agreement, and improperly chosen location can contribute to increased risks. A well-thought-out assortment, an active marketing policy, and customer loyalty programs will contribute to sales growth. In Tab. 6 presents the main risks and measures to prevent them.
Table 6. Assessment of project risks and measures to prevent their occurrence or their consequences
No. | Risk | Probability of occurrence | Severity of consequences | Prevention measures |
|---|---|---|---|---|
one | Low demand / unprofitable | low | average | Cost reduction, more active work to attract customers, expanding the range |
2 | Shelving, stagnation of books on the shelves | average | low | Revision of assortment policy, identification and rejection of slow-moving positions, assortment formation based on analysis of ratings of the most read / sold books |
3 | Competitive Pressure / Dumping | average | average | Revision of pricing policy (lower prices for one group of goods while increasing to another), cost reduction, increasing customer loyalty |
four | Rent increase | low | average | Conclusion of a long-term fixed-term lease in rubles |
five | Резкое падение покупательской способности вследствие ухудшения ситуации в стране | низкая | average | Выбор эффективной ценовой политики, оптимизация расходов |
6 | ЧС/природный катаклизм | низкая | высокая | Использование пожарной сигнализации, страхование |
10.Приложения
ПРИЛОЖЕНИЕ 1
Основные финансовые показатели проекта в пятилетней перспективе
