business ideas: Business plan store bags and accessories

* The calculations use the average data for the World

1. SUMMARY OF THE PROJECT

This business plan addresses the opening of a leather goods retail store in a city with a population of less than 200 thousand people. The goal of the project is to satisfy the demand of the local population for genuine leather and eco-leather products at affordable prices and to make stable profits. The store will specialize in the sale of men's and women's bags and accessories, working in the price segment “medium” and “medium minus”.

The store will be located in a local shopping center with an area of 9.3 thousand square meters. meters. The sales area of the store will be 64 square meters. meter. Investments in the opening of the store - 1.6 million rubles. Source - own funds.

The planned turnover of the store is 500 thousand rubles, net profit is 100 thousand rubles, return on sales is 20%. Reaching the planned sales volume is planned for 4 months of work. The simple payback period of the project is 17 months, the discounted payback period is 19 months.

Table 1. Key project indicators

Discount rate (r-year), %	15
Discount rate (r-month), %	1, 171
Payback period (PP), months	17
Discount payback period (DPP), months	nineteen
Return on sales (ROS), %	20

2. DESCRIPTION OF THE INDUSTRY AND COMPANY

Leather goods are usually divided into three categories. The first includes toilet accessories, including handbags, gloves, belts, belts, etc. The second category includes items of storage, for example, wallets, credit cards and more. The third category consists of suitcases, bags and travel bags.

The largest share of the Russian market is occupied by imported products, whose share is estimated at about 70%. According to IndexBox analysts, since in recent years, the leather goods market (leather goods and shoes) has been showing a fall due to the 2014-2015 crisis. The most sensitive drop occurred in dollar terms - from $ 23.1 billion in 2014 to $ 13.6 billion in 2015. The volume of imports from 2013 to the end of 2015 in physical terms decreased by 45% - from 85 to 45 million tons.

In the context of a real reduction in salaries (in 2015, a decrease in salaries compared to 2014 by 9%) and income (by 4.3%), the country's population switched to a savings model of consumption. It is characterized by deferred demand, an increase in the share of expenditures on essential goods, the rejection of imported products in favor of domestic products, and the transition from higher to lower price segments.

Our project provides for the discovery of leather goods in a city with a population of less than 200 thousand people. The store will be located in a shopping center with an area of 9.3 thousand square meters. m., located in the historic city center. The sales area will be 64 square meters. meter. The store will specialize in retail trade in natural and eco-leather products - women's and men's bags, accessories and small leather goods. On the shelves will be presented the products of several manufacturers - brands from France, Turkey, Russia and China. The price segment of the store is “average” and “average minus”.

The legal form of business will be IP, the tax system will be simplified (STS 15%). Management responsibilities will be assigned to the project proponent. The store staff will include three sales consultants.

Starting investments in the opening of the store will amount to 1.6 million rubles. The starting costs items (Table 2) will include the costs of real estate, equipment, intangible assets and working capital.

Table 2. Investment costs of the project

No.	NAME	AMOUNT, rub.
The property
one	Room repair	256, 000
Equipment
2	Equipment	476, 600
Intangible assets
3	Registration and registration	20, 000
four	Advertising campaign	40, 000
five	3 month rental	108, 000
Current assets
6	Current assets	300, 000
7	Purchase of starting assortment	400, 000
Total:		1, 600, 600

3. DESCRIPTION OF GOODS AND SERVICES

The assortment of the store will include natural and eco-leather products for men and women. The price segment of the store is “average” and “average minus”. The store will feature products from Russian, French, Turkish and Chinese manufacturers. Products will be delivered to the store in packaging suppliers. Bags collections are planned to be updated twice a year - in the spring and autumn, and also depending on the level of demand.

Table 3. Variable costs

No.	PRODUCT GROUP	VARIABLE COSTS, rub.	TRADING VALUE, %	RETAIL PRICE, rub.
one	Women bag	1330	125.5	2999
2	Women travel bag	1550	113	3299
3	Clutch bag	960	108	1999
four	Women's backpack	1310	106	2699
five	Women's wallet	590	103	1199
6	Purse	730	100	1459
7	Cosmetic bag	450	99.5	899
eight	Female belt	240	100	479
9	Men's belt	345	111	729
ten	Suitcase	4050	85	7499
eleven	Men's bag	1450	100	2899
12	Female gloves	450	99.5	899
13	Men's gloves	490	100	979
14	Housekeeper	200	99.5	399
15	Business card holder	170	100	339

4. SALES AND MARKETING

The target audience of the store is women aged 20 to 45 years (70% of the assortment) and men aged 30 to 45 years (30% of the assortment). The largest share of consumers belongs to the middle class. The key criteria for choosing leather products for most buyers are price (paramount to 50% of buyers), product quality (20%), appearance (15%), fashion compliance (10%). The main trend in recent years is the expansion of tastes in the color palette, the purchase of several bags for the season, the popularity of buying sets in the same style (bag, belt, small leather goods, etc.). Thus, the competitive advantages of the store will be an affordable price with a high quality product, a variety of choices in color and style solutions, the possibility of selecting leather goods sets.

Due to the location in the shopping center of the city, there is no need for large investments in advertising. To create a loyal customer base, a loyalty system will be developed - discount cards for regular customers. When the store starts, an opening action will be held with discounts on goods. Investments in advertising at the start of the project will amount to 40 thousand rubles, the volume of the advertising budget in the main period of work will depend on the level of demand and current tasks. In particular, it is planned to advertise new seasonal collections, sales of old collections, and more. Printed flyers, leaflets, banners and more will serve as advertising media.

5. PRODUCTION PLAN

The leather goods store will be located on the rented area of the shopping center. The location of the shopping center is the historical center of the city with a population of less than 200 thousand people. The room has an area of 80 square meters. meters with the size of the trading floor 64 sq. meter. The premises of the trading floor will require repairs in the amount of 256 thousand rubles. (at the rate of 4 thousand rubles per sq. m.). The store must be equipped with trading, cash registers and other equipment, the cost of which is 476.6 thousand rubles (Table 4).

Table 4. The list of equipment

No.	Name	price, rub.	Quantity	Cost, rub.
Trade software
one	Wooden wall shelving frame	8, 000	13	104, 000
2	Shelf (1)	1, 200	52	62, 400
3	Low wood showcase (1)	23, 000	2	46, 000
four	Wooden display case low (2)	16 500	2	33, 000
five	Wood counter	25, 000	one	25, 000
6	Corner showcase	12, 000	2	24, 000
7	Wooden island shelving	22, 000	one	22, 000
eight	Wooden display case high	20, 000	one	20, 000
9	Shelf (2)	1, 400	eight	11, 200
Cash Equipment
ten	Cash Register and Cash Drawer	12, 000	one	12, 000
eleven	Cashless payment terminal	18, 000	one	18, 000
Store decoration
12	Advertising sign	13, 000	one	13, 000
13	Interior elements	20, 000	one	20, 000
Other
14	Theft protection equipment and consumables + installation	51, 000	one	51, 000
15	Employee uniform	2, 500	2	5, 000
sixteen	Other (consumer corner, calculator, price tags, etc.)	10, 000	one	10, 000
Total:				476, 600

The planned sales volume of the store is set at around 500 thousand rubles. per month. With this turnover, the pre-tax profit of the store will be 120 thousand rubles, net profit will be about 100 thousand rubles. To reach the breakeven point, the store will need to monthly sell goods worth at least 265 thousand rubles.

6. ORGANIZATIONAL PLAN

The legal form of business will be an IP with a simplified taxation system (“income minus expenses”). OKVED activity codes 2 - 08/18/2019 “Retail sale of leather goods and travel accessories in specialized stores” and 08/18/2019 - “Retail sale of clothing accessories (gloves, ties, scarves, belts, suspenders, etc.)” in specialized stores.

The store will be headed by an individual entrepreneur, whose duties will include hiring and managing personnel, procurement policy, advertising and strategic planning. The store staff (see Table 5) will include two sales consultants. Their main responsibilities will include consulting customers on products, working with the cashier, and participating in inventories. Key requirements for candidates: work experience, ability to work with people, goodwill, responsibility. To motivate staff, a system of material incentives will be used (percent of sales and bonuses based on the results of work). Payment of labor will occur according to the formula “salary + 1% of sales”.

Table 5. Staffing and payroll

No.	Position	Salary, RUB	Number of people	PHOT, RUB
Sales staff
one	Shop assistant	20, 000	3	60, 000
Total:				60, 000
	Social Security contributions:			18 120
	Total deductions:			78 120

For the implementation of the project, a preparatory period of 3 months is required for the repair, equipment supply, execution, etc.

7. FINANCIAL PLAN

The financial plan is drawn up for a three-year period and takes into account all the income and expenses of the project. Revenue refers to revenue from operating activities, other income items are not provided. Starting investments in the opening of a leather goods store will amount to 1.6 million rubles. Start-up cost items are presented in Table. 2 business plans.

Variable costs (Table 3) will include the wholesale cost of goods, packaging, and shipping costs. Fixed costs (Table 6) include rent, accounting, depreciation and other expenses. The size of depreciation deductions is made by the linear method based on the useful life of fixed assets of five years. For a detailed financial plan, see Appendix 1.

Table 6. Fixed costs of the enterprise

No.	NAME	Amount in months, rub.
one	Rent	36, 000
2	Depreciation deductions	7 070
3	Bookkeeping	6, 000
four	Selling expenses	1, 000
five	Management expenses	500
Total:		50 570

8. EVALUATION OF EFFICIENCY

The project will pay for itself for 17 months of work. The discounted payback period at a discount rate of 15% is 19 months. The planned turnover of the store is 500 thousand rubles. per month, net profit - 120 thousand rubles. Return on sales - 24%. The risk reduction of the project is affected by a favorable location, which guarantees a constant influx of customers.

9. RISKS AND WARRANTIES

Project risks may be related to external and internal factors.

Internal factors include: choosing the wrong pricing policy - regular demand analysis, price monitoring of competitors are needed; unskilled staff (complaints about work, outflow of customers) - hiring staff with experience, probationary period, the presence of a staff motivation system; ineffective procurement policy - knowledge of markets and major trends, trial purchases are necessary.

External factors include:

- the emergence of direct competitors - the problem is solved due to the presence of a unique selling proposition, work on creating a base of regular customers (loyalty system);

- increase in procurement prices - a solution due to margin margin, increase in retail prices without loss of demand, transition to new suppliers and change in procurement policy;

- losses due to theft - the presence of theft protection system;

- a decrease in the relevance of sales (the influence of fashion); - monitoring the market situation, analysis of consumer behavior, conducting surveys.