Gift shop business plan

* The calculations use the average data for the World

1. Summary of the project

The goal of the project is the opening of a souvenir shop in the city of Taganrog for the retail sale of souvenir products. This business plan is designed to justify the effectiveness of the project. The business idea is to create a souvenir shop with a unique assortment of souvenir products, equally oriented both to citizens and guests of the city. It will include handicrafts, designer interior and decor items, objects of art, dishes, symbolism, jewelry, textiles, accessories and much more. As a competitive advantage, it is supposed to abandon the “one supplier” policy and establish contacts with designers, artists and craftsmen of the city and the region in order to dominate the range of handmade goods.

The cost of the project to open a souvenir shop will be 2, 078, 000 rubles. Opening funds will be taken from personal savings without borrowing funds. The payback period is 23 months. The preparatory period before the start of sales is 2 months.

Key financial indicators of the project

Discount rate, %

18

Net present value (NPV), rub.

3 921 081

Project net profit, rub.

45, 000 - 300, 000

Return on sales, %

eight

Payback period (PP), months

23

Discount payback period (DPP), months

27

Gift Shop Profitability Index (PI)%

1.9

2. Description of the industry and company

Today, the gift and souvenir market is a diversified industry with many areas that belong to two main segments: advertising, souvenir and consumer. The first includes promotional souvenirs, business souvenirs, and VIP souvenirs related to the activities of companies. The consumer segment includes products demanded by customers in retail. In recent years, the market has seen a trend of gradual abandonment of retail stores by cheap manufacturers (usually Chinese) in favor of domestic or expensive foreign ones. More and more players are opening up in the country with their own production and a clearly defined assortment offer, which helps them to win unoccupied niches. The main place of concentration of gifts are large cities and tourist centers. A feature of the industry is that consumers of gift products are almost all groups of the population. The main demand for gift products is fixed on the eve of the holidays: New Year, Christmas, March 8, February 23, Valentine's Day. In principle, gifts can be absolutely any items. However, from a retail sale, the goods sold presuppose originality and a “sales legend”: a store consultant should be able to interest a buyer with a gift and explain why the item is unique.

The aim of this project is to open a souvenir shop in the city of Taganrog for the sale of souvenir products. The competitive advantage of the store is supposed to make a wide range of handmade goods, which will surpass the mass production in its number. This implies a rejection of the “one supplier” policy, a widespread series of ordinary souvenir shops, and the organization of active work in cooperation with designers, artists and craftsmen of the city of the region. The assortment of the store will include handicrafts, designer interior and decor items, objects of art, dishes, symbolism, jewelry, textiles, accessories and much more.

The store itself will be located in the Central district of the city of Taganrog, in the historical center, on a street with high traffic, a large number of attractions and places of trade. The target audience of the project will be the townspeople who want to get an unusual gift and guests of the city of various ages who decided to leave a memory of visiting Taganrog. Taganrog, located on the shores of the Sea of ​​Azov, is a city with a developed tourist infrastructure, cultural traditions are strongly developed in the city (the heritage of A.P. Chekhov), which annually attracts tens of thousands of tourists to the city and contributes to an increase in sales of souvenir products.

For the store, a retail space of 30 m2 will be taken on a long-term lease, the facade will be repaired and refurbished, and necessary equipment will be purchased. The gift shop will have a daily work schedule from 9:00 to 20:00. The work of sales staff will be organized in shift mode. At the initial stage, two sellers will be listed on the staff of the store. The organization of procurement, the search for new suppliers, strategic business planning will be entrusted to the entrepreneur. The legal form of the store is IP. The simplified tax system was selected as STS 15% (income minus expenses).

3.Description of goods of a gift shop

Souvenir products that will be presented in the store will relate to various types of goods, including handicrafts, designer interior and decor items, objects of art, dishes, symbolism, jewelry, textiles, accessories and more (more about products and price ranges for the main product groups are in Table 1).

Table 1. Product List

No.

Name

Description

Cost, rub.

one

Souvenirs with symbols / memorials of the city

Magnets, trinkets, plates, mugs, spoons, flasks, watches, coats of arms, pennants, table figurines, badges, T-shirts, hats, knives with engraving

30 - 8 000

2

Books

Books on local history, gift editions, books dedicated to famous citizens

200 - 15 000

3

Printed products

Calendars, diaries with symbols, guides, cards, photographs, paper bags, postcards, letters

50 - 2 000

four

Pictures / Icons

Landscapes, still lifes, portraits, icons, icon cases, panels

500 - 40 000

five

Dishes

Wood dishes, ceramics, gzhel, porcelain

150 - 18 000

6

Toys

Soft toys, ceramics, nesting dolls, rag dolls

100 - 10 000

7

Interior items, decor

Watches, figurines, jewelry, candles, candlesticks, piggy banks, designer decorative products, chests, globes, vases, caskets, frames, table lamps

100 - 35 000

eight

Board games

Chess, Checkers, Dominoes

250 - 30 000

9

Textiles and Accessories

Pillows, scarves, bags, wallets

150 - 5, 000

ten

Bijouterie

Beads, bracelets, earrings, pendants, designer jewelry

50 - 3, 000

The store will operate in the middle price segment (average check - 1000 rubles) and focus on a wide audience of customers. Products will be purchased in small wholesale from local manufacturers of souvenir products, and designer goods will also be purchased from urban artists and designers. They will purchase both finished products and their projects for transferring orders to small enterprises. To prevent problems with demand volatility, the store’s assortment will be replenished with thematic goods for the New Year and spring holidays.

4. Sales and marketing

The target audience of the gift shop is not limited to any narrow category and is aimed at people of different sex, age, social status. The concept of the store contains the basic requirement of modern, sophisticated buyers - this is the originality of the gift. According to the research of COMCON in the field of consumer preferences of residents of Russian cities, the top three most popular gifts are original souvenirs (74%). Alcohol (72%) and office supplies (69%) follow. The opening of a souvenir shop is indirectly facilitated by the reduction of outbound tourism in favor of domestic tourism. According to the Federal Tourism Agency, at the end of 2014, domestic tourism grew by 30%. These trends dictate new economic realities: it is much cheaper for Russians to relax without leaving the country. This fact plays into the hands of both the development of domestic infrastructure and the souvenir industry, as tourists are one of the most active buyers of souvenir products.

Today in Taganrog there are about 40 stationary souvenir shops that position themselves as gift shops. However, in most cases we are talking about clothing, leather goods, cosmetics, perfumes, etc. Souvenir products can be found in 14 stores. As can be seen from Table. 2, the format of stores and their assortment matrix can vary significantly. It is worth noting that only two stores have a wide range of local souvenirs and actively collaborate with local designers and artists. In other stores, souvenirs with the specifics of the city and region are often limited to magnets, calendars and other products with prints and do not exceed 20%.

The largest number of competitors in the souvenir market of the city operates in the segment of the lower and middle price series. Their assortment is based on domestic and Chinese products. In the segment above the average, there are chain souvenir shops located in shopping centers, and shops with the most original types of products (ethnic souvenirs, jewelry). These shops do not carry any specifics of Taganrog or the Don region. In addition, there are non-stationary points of trade that open in the warm season. The number of souvenirs offered in them is significantly lower, while the goods are not unique and are designed for an impulse purchase.

Table 2. Analysis of existing competitors

Competitor

Format

Range

Price category

Schedule

Location

Competitor 1

Specialized local souvenir shop

Books, photographs within the framework, ceramics, souvenirs, postcards, magnets, casting, porcelain, crystal, paintings, calendars, guides, Russian folk craft (Khokhloma, hand weaving)

Medium, below average

Daily from 10:00 to 18:00

City center, freestanding, 1st floor

Competitor 2

Fun & Gift Shop

Comic gifts, New Year's gifts, cash souvenirs, plaques, pennants, frames, cubes, mirrors, mugs, trays, textiles, 3D frames, medals, watches, Valentine's Day gifts, erotic gifts, anti-stress, making gifts with symbols / photo to order

average

Daily from 10:00 to 20:00

Downtown, commercial building

Competitor 3

Antistress Toy Store

Antistress toys, rollers, headrests and pillows made of polystyrene granules

average

Daily from 10:00 to 22:00

City center, 2nd floor of the mall

Competitor 4

Supermarket of stationery, souvenirs and gifts

Stationery, souvenirs, gifts, household goods, cosmetics. Range of over 20, 000 items

above the average

Daily from 10:00 to 22:00

City Center, Mall, Level 0

Competitor 5

Charms and Amulets Shop (2)

Talismans, charms, amulets, meditation items of various peoples of the world, Feng Shui souvenirs

average

Tue-Sun 9: 00-19: 00, Mon-day off

Mon-Sat from 9:00 to 19:00,

sun from 10:00 to 19:00

City Center, Western District, freestanding

Competitor 6

Handmade designer jewelry and jewelry store

Handmade designer jewelry and jewelry

below average, average

Mon-Sat 9 a.m. - 6 p.m.

City center

Competitor 7

Gift & Jewelry Store

Gifts, souvenirs, jewelry, perfumes

average

Daily from 10:00 to 19:00

City center, premises on the 1st floor of a two-story building

Competitor 8

Shop local and Russian souvenirs

Painting, graphics, sculpture, photo, ceramics, a wide range of designer and vintage jewelry, batiks, rag dolls, ceramics, plaques, porcelain, caskets, Khokhloma, Gzhel, Semenov’s toy, metal products, Zhostovo painting, mugs, plates, magnets, posters, calendars, books

average

Daily from 10:00 to 19:00

City center, 1st floor of an office-commercial building

Competitor 9

Gift and souvenir chain store

Board games, toys, dolls, dishes, interior items, caskets, stationery

above the average

Daily from 9 a.m. to 8 p.m.

City center, detached building

Competitor 10

Gift Shop Network

Gifts, souvenirs, dishes, porcelain, lamps, caskets, figurines, binoculars

below the average

Daily from 8 a.m. to 8 p.m.

City center, detached building

Competitor 11

Custom-made souvenir shop

Photo souvenirs, drawing a photo on various goods

average

Daily from 10:00 to 20:00

City center, detached building

Competitor 12

Gift Shop Network

Travel and picnic items, knives, crossbows, accessories, auto gifts, interior design items, clothes

medium above average

n / a

City center, shopping center, East region, shopping center

Competitor 13

Shop of goods from India

Souvenirs, textiles, cosmetics, handmade goods, seasonings, home decoration

Medium Above Average

Daily from 9 a.m. to 6 p.m.

City center

Competitor 14

Gift Shop & Wedding Supplies

Magnets, figurines, wedding goods, jewelry, piggy banks, lighters, paintings

average

n / a

City center

As the competitors' experience shows, the most effective format for selling souvenirs is not trading through the counter barrier, but presenting the goods as a “person” on the principle of self-service. In the souvenir store planned for opening, it will be possible to “touch” and “turn” all products into purchase before buying. The seller-consultant who knows the assortment and history of each item will help determine the choice. The main ways of promoting the market will be: printed handouts (leaflets, flyers, etc.), maintaining groups / accounts on social networks (Vkontakte, Faceebook), outdoor advertising (signboard).

5. Production plan

Location of the gift shop - The central district of the city of Taganrog. The store will be located in the historic city center, on a high traffic street with a large number of attractions and places of trade. The outlet will be well visible, illuminated in the evening and at night. Car parking will be available for visitors to the gift shop. The area of ​​the premises is 30 square meters. meters. 60 thousand rubles, 188 thousand rubles will be needed to repair the premises and front works. - to equip the store with the necessary commercial equipment. In Tab. 2 shows the main costs of the equipment of the gift shop.

Table 2. Equipment costs

No.

Name

price, rub.

Quantity, pcs.

Cost, rub.

one

Wall shelving

8, 000

6

48, 000

2

Wall panel

6, 000

four

24, 000

3

Shelving island

5, 000

2

10, 000

four

Lighting equipment

10, 000

one

10, 000

five

Fire alarm

15, 000

one

15, 000

6

Cash machine

16, 000

one

16, 000

7

Cash register counter

7, 000

one

7, 000

eight

Split system

18, 000

one

18, 000

9

Outdoor sign

30, 000

one

30, 000

ten

Other

10, 000

one

10, 000

Total:

188, 000

For the gift shop you will need 2 full-time sellers (see Table 3). There are no strict requirements for work experience, but retail experience is welcome. The main criteria in the selection of personnel are sociability, ability to work with people, responsibility, decency, friendliness, desire to develop professionally. There will also be requirements for a good knowledge of the history of the Don region and the city of Taganrog, illustrious fellow countrymen, since for the success of the business all personnel must have a direct keen interest in history, art, needlework. Schedule of staff - shift 2/2.

Table 3. Staffing and payroll

No.

Position

Number of people

PHOT, RUB

one

Seller

2

20, 000

Total:

40, 000

Deductions:

12, 000

Total deductions:

52, 000

Considering the average check of a souvenir shop in the amount of 1000 rubles, 120 shoppers per month (4 shoppers per day) will be enough for the shop to make a profit. The threshold revenue level, ensuring the company break-even, will be 120, 000 rubles. The planned sales volume will be at the level of 20 customers per day, which will allow you to expect a net profit of $ 100, 000. This business plan contains a relatively pessimistic development scenario in which the sales plan can be reached by the 8th month of the project. The expenses of the main period of the store’s operation will include: rent (25 thousand rubles), salaries to sellers (52 thousand rubles with deductions), replenishment of the product range, transportation costs, advertising, utilities, security services, etc.

6. Organizational plan

The preparatory period of the project will be 2 months, which will be needed to go through registration procedures, establish partnerships and establish contacts with souvenir suppliers (most of the contacts already exist), staff selection, repair and equipment of the premises. Responsibilities for leadership will be assigned to the individual entrepreneur. He will be responsible for all organizational aspects of the business, negotiations with the landlord, provide control over the work of sellers, engage in strategic promotion of the company, conduct procurement of goods, search for new supply channels. Responsibilities for the daily work of the gift shop will be entrusted to two sellers who will be engaged in sales, consulting, working with CCM.

7. The financial plan of the gift shop

Investments in the opening of a gift shop will amount to 2, 078, 000 rubles. Opening funds will be taken from personal savings. The main items of investment costs are presented in Table. 4. The store’s indicators for project revenue, fixed and variable costs and net profit are presented in Appendix 1. Conditions adopted in the calculations:

- The average check for souvenir products in the amount of 1000 rubles .;

-increase in wages to employees by 20% for the 3rd year of the store;

- An increase in the number of customers over time due to the increasing popularity of the store.

Table 4. Investment costs

No.

Cost item

Amount, rub.

Real Estate Investments

one

Repair of premises and front works

60, 000

Room equipment

2

Set of equipment

188, 000

Intangible assets

3

Registration procedures, obtaining permits

20, 000

four

The cost of finding supply channels (transport, telephone calls, etc.)

10, 000

Current assets

five

Current assets

300, 000

6

Starting Commodity Filling

1, 500, 000

8. Evaluation of project effectiveness

The calculations allow us to say that the project is commercially viable. In Tab. 5. reflects key performance indicators.

Table 5. Project performance indicators

No.

Indicator

Value

one

Discount rate, %

18

2

Net present value (NPV), rub.

3 921 081

3

Project net profit *, rub.

45, 000 - 300, 000

four

Return on sales, %

eight

five

Payback period (PP), months

23

6

Discount payback period (DPP), months

27

7

Profitability Index (PI)%

1.9

9. Risks and warranties

Gift shops are well-established retail businesses. As the experience of Russian entrepreneurs shows, the success of a business largely depends on two main factors: the degree of uniqueness of the assortment and the desire of the entrepreneur to invest in business development. These two postulates will lie in the concept of this store. Активная позиция по постоянному обновлению ассортимента, удивлению клиента, поиску новых каналов поставки уникальных товаров ручной работы в противовес пусканию бизнеса «на самотек» и сотрудничеству с ограниченным числом поставщиков заложены в концепцию магазина. Тем не менее, в процессе деятельности магазин может столкнуться с прогнозируемыми и непрогнозируемыми внешними рисками, которые могут внести трудности в работе и развитии магазина. Анализ основных рисков – в Табл. 6.

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

Неустойчивость спроса на продукцию

average

average

Постоянное обновление ассортимента, сезонные обновления товарного предложения, использование маркетинговых инструментов

2

Резкое падение платежеспособности аудитории

low

average

Пересмотр ценовой политики, сокращение издержек, более точечная работа с клиентом, активная работа в социальных сетях

3

Усиление конкуренции на рынке

low

average

Расширение уникального ассортимента, использование маркетинговых инструментов

four

Rent increase

low

average

Заключение договора аренды на длительный срок с фиксированной платой в рублях

five

Риски, связанные с человеческим фактором/трудности с персоналом

low

low

Прописывание всех аспектов деятельности в трудовом договоре, обеспечение всех условий для комфортной работы, поиск новых кадров

6

ЧС, природный катаклизм, катастрофа техногенного характера

low

high

Страхование, использование сигнализации

10. Applications

ANNEX 1

Key financial indicators of the project in a five-year perspective

(c) www.clogicsecure.com - a portal to small business business plans and guides

08/18/2019

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