Own business: open a garden equipment and tools store

* The calculations use the average data for the World Starting investments:

1 200 000 - 1 400 000 ₽

Revenue:

1 000 000 ₽

Net profit:

250 000 ₽

Profitability:

25%

Sale of garden equipment and tools is relevant, since a large percentage of Russians have their own plots. But due to the increase in the number of networkers, the price of an error with the choice of location and pricing policy increases.

More than half of all residents of the Russian Federation have a summer residence, a garden plot or live in private households. Work on the site is quite laborious and the use of modern gardening equipment and tools will greatly facilitate the care of it. This business is quite simple and does not require large initial investments. We will analyze in detail how to ensure success and good profitability for this business.

Gardening equipment: concept and grouping of assortment

Gardening equipment is necessary for any person who is either engaged in the cultivation of vegetables and fruits, or cares for the site of his house or summer house. Work on the site is quite difficult and time-consuming, so the use of special equipment and tools facilitates this work and allows you to get the best yields of crops grown.

Conventionally, the entire large family of gardening equipment can be divided into three main groups: gardening equipment, gardening equipment and gardening equipment. As the name implies, gardening equipment is designed to process the garden, gardening equipment - for the garden. Gardening equipment is used to care for both the garden and the garden. It includes cars, mini-cultivators, aerators and more.

Between different types of garden equipment, the line is usually not clear. Therefore, in the future, by the whole complex of garden equipment, we will understand all the equipment and tools that are used to care for the land and plants growing on it.

The most popular types of gardening equipment are equipment and tools for lawn care or grass mowing, tree care, as well as soil cultivation tools.

Who uses gardening equipment: market features

Gardening equipment is used by people living in private households or having summer cottages, since without them you can’t maintain your land in good condition.

26% of all Russian citizens live in private households. This amounts to about 38 million people. About 30% of Russian citizens own land or cottages, which is about 42 million more people. Thus, the number of people in the Russian Federation who in any way take care of their garden or garden makes up the majority of the population. All this forms a market for gardening equipment, which, it would seem, should grow every year.

However, the actual market trends for gardening equipment and tools are not so rosy. In 2015, this market almost halved. This is due to a sharp drop in the national currency of the Russian Federation in relation to major world currencies. If after the crisis of 2008 the recovery in demand in this segment occurred within 2 years, then in 2016 and 2017 this growth is not observed, it is, according to experts, no more than 10% per year.

The main reasons for this fall, as well as the lack of sustainable trends for market recovery, lie on the surface and are understandable. The vast majority of gardening equipment is produced either abroad or is quasi-imported, that is, produced using foreign equipment or involving foreign components. The depreciation of the ruble, which causes a sharp increase in prices for gardening equipment, and a drop in real incomes of the population, together determine the overall downward trend of the market.

Private buyers of gardening equipment put off purchases, expecting lower prices and generating deferred demand. Corporate clients of this market, such as utilities, leshozes, landscape design companies, also do not increase their budgets for the purchase of equipment and tools.

The market of gardening equipment has the greatest potential in the segments of gasoline lawn mowers, lawn mowers and brush cutters, which is associated with a developing tradition of lawn care and the artistic formation of bushes and trees.

Also, the segment of gasoline blowers and snow throwers has some positive potential, due to the fact that in winter this technique makes life easier for any homeowner or summer resident.

Also, due to the increase in prices for centralized water supply, which causes an increase in the cost of irrigation in cottages and gardens, various types of pumps for lifting water from wells and from natural reservoirs are popular.

Traditionally, the demand for garden tools and equipment falls at a slower pace in regions with a high standard of living. All these tendencies together determine market consolidation, that is, predominant sales are observed among large players, mainly large chain hypermarkets of garden and household goods.

But at the same time, the format of the garden equipment store “near the house” has every chance of successful functioning. In our opinion, sales in such a store should be based on inexpensive tools and simple gardening equipment of the economy segment.

Assortment of garden equipment and tools store

We list the main necessary assortment of a small store selling garden equipment and tools.

  1. Several types of garden hoses for watering the most common diameters: an inch, three quarters and a half inch. Set of nozzles and diffusers for them.

  2. Garden Saws.

  3. Garden shears and secateurs.

  4. Rakes, shovels, forks, hoes.

  5. Wheelbarrows garden two or three names of various loading capacity.

  6. Watering cans, plastic and metal buckets.

  7. Chainsaws.

  8. Two to three names of trimmers or lawn mowers for lawn care.

  9. Motor-cultivator or walk-behind tractor.

  10. Drainage and watering pumps.

  11. High cutters and brush cutters.

  12. Garden shredder (shredder).

  13. Garden vacuum cleaners of various capacities.

  14. Portable electrical extension cords.

Each type of equipment and tool should be presented in 2-3 names or sizes. It is also necessary to expand the sold range by offering each type of sold assortment in different price ranges. But, in any case, in our opinion, you should offer equipment or tools of a low price segment. There are two reasons for this. Firstly, the more expensive the equipment and tools, the more difficult it is for your store to compete with large chains that buy large bulk goods. And the more expensive the product, the greater the difference between the price offered by your store and a large supermarket. Secondly, the purchase of an expensive tool or equipment for sale requires a large number of working capital invested in the purchase of goods, in other words, in the warehouse. These funds, in fact, are the same investment costs that you need to allocate at the same time.

Whenever possible, all tools should be equipped with consumables. That is, for example, when selling chainsaws, the range should include motor oils and gasoline, trimmers should be accompanied by fishing lines.

Where to locate a garden equipment and tools store

For any retail store, the most important factor determining its success is location. The financial results of the business will mainly depend on how correctly you choose a point of sale.

A garden equipment and inventory store should be located in the immediate vicinity of its buyer. Currently, given the fall in demand for gardening equipment, the only factor in the competitiveness of a small store compared to a large hypermarket is its location "at home".

The location of a store of this specificity and format in the area of ​​central streets with high traffic will not be advisable for several reasons. Firstly, the cost of renting such premises will be quite high. Secondly, it will be easier for a buyer to call in a large garden hypermarket than to call in your store on purpose, even if it is closer.

The store can be located both in the sleeping areas of cities, focusing on summer residents who will purchase goods immediately before the trip to the summer cottages, and in close proximity to garden associations and summer cottages.

Both that, and another option have the poles and minuses. When the store is located in a residential area, some customers will in any case be dragging themselves to a hypermarket or a large store, which will most likely have a maximum of 20-30 minutes by car. But patency in such areas is much higher. That is, the consumer will be able to purchase garden products "at home" and at a convenient time to gather at his dacha or plot.

Holiday villages or gardening associations, as a rule, are located quite far from large hypermarkets, moreover, often the necessary tools or equipment are necessary “right now” and it is not convenient for the buyer to travel far behind him. This is a big plus for sales. However, the population density that resides in the immediate vicinity of SNT or villages is very low. In this case, you can set a large margin on the product, but can not count on a large flow of customers.

The optimal store area, as a rule, is no more than 100-150 m2. This is due to the fact that filling a large area with a product is quite expensive. The lack of working capital is a constant problem of a store of this format. As a rule, at least 1 million rubles will be set aside in your goods, which is a significant enough amount for a small business.

We recommend opening a new store in a rented building. The business we are considering is very competitive and the place, already following the opening of the store, may be unsuccessful. Therefore, we recommend the acquisition of a building as a property after the actual launch of the store and the running-in of the business model.

The cost of renting a room depends on its location and area and is about 40 thousand rubles per month.

Please note that the presence of a large hypermarket of building materials and equipment near your store will certainly not make your business work profitable.

How to increase the profitability of a garden equipment store

As mentioned above, it’s hard for a small store to compete with a large chain retailer. But there are several ways to improve the efficiency of such a business.

To begin, consider the possibility of providing equipment for short-term rent. Not all buyers consider it appropriate to purchase, for example, a chainsaw if they need to cut one tree. Many people prefer to rent a saw for one or two days.

The average cost of renting a tool is about 500 rubles per day. For rent you can provide chainsaws, trimmers, lawn mowers, apparatus for welding polymer pipes, welding machines and other inexpensive tools and equipment.

It is easy to calculate that such a rental, for a store, pays off quickly enough. If the equipment will be rented twice a week, then a chainsaw worth 7 thousand rubles will pay off within 2 months. And its service life, even with not the most accurate application, will be at least six months - a year. In fact, on average, as a result, when renting equipment, it pays for itself 2-3 times during its service life.

Additionally, customers will purchase consumables for the leased equipment, which will also increase the efficiency of the garden equipment store as a whole.

Legal registration of a garden equipment store

To open a garden equipment store, the best option would be to register as an individual entrepreneur (IP). A fairly simple and inexpensive procedure for registering IP in conjunction with clear reporting forms makes this form the most attractive for a small store.

As a tax system, it is better to choose a single tax on imputed income (UTII). A clear and simple tax calculation and payment scheme makes this form of taxation the most attractive.

For regions, the amount of tax payable, for a store with a sales area of ​​about 100 m2, will be about 150 thousand rubles per quarter. Since the amount of UTII is calculated depending on the region, you can determine the tax amount yourself using the calculator on the website of the Federal Tax Service of Russia.

Be careful when using UTII calculators presented on various sites on the Internet for calculating online. There are times when the calculation using them gives inaccurate data.

Please note that the amount of UTII is calculated depending on the area of ​​the trading floor of the store. Therefore, if at its opening working capital is not enough to purchase enough for the quantity of goods, it is possible to envisage the layout of the store so that part of the room is reserved for the warehouse and utility rooms, which are not taken into account when calculating the tax, and part - for the trading floor. As you recoup the business and the store begins to make a profit, you can direct part of the profit to expand the range of goods and gradually increase the area of ​​the trading floor as necessary.

When opening a garden equipment store, you need to comply with the requirements of the SES, Rospotrebnadzor and the fire inspection. A list of the necessary documents that may be required to open a store is best found in the regional divisions of these services at the place of registration of the store, as the requirements may vary for each region.

On the facade of the building in which your store will be located, you must place a sign. To do this, you must provide the local administration with a package of documents that will coordinate the text and content of the sign. This procedure is regulated by the Federal Law "On Advertising" dated 08/18/2019 N 38-ФЗ. To coordinate the sign, in addition to the package of documents, you will need to provide its layout, so you should take care of this in advance.

You will need to purchase and use a cash register for doing business. It will cost about 15 thousand rubles, along with the necessary software package. you have the right to reimburse the value of the cash register by reducing UTII (single imputed income tax) by this amount, but not more than 18 thousand rubles. The condition for such a deduction is compliance with the deadlines for registering the online cash register with the tax office. The tax periods for which the deduction can be received are 2018 and 2019. For individual entrepreneurs on UTII, engaged in retail trade with the involvement of employees, it is necessary to register the cash register from February 1, 2017 to July 1, 2018. If the organization will register the cashier later, then the deduction will not succeed. Before applying this deduction, be sure to consult with the tax office about its legality.

It is advisable to purchase additional software for accounting and warehouse. Of course, the owner of a small store knows the whole assortment as a keepsake, but as the offer expands, it becomes more and more difficult. We recommend using such software (software) already from the moment the assortment line of the store is formed. The cost of such software is different, but there are also free options.

UTII taxation does not imply the maintenance of complex accounting. Therefore, for bookkeeping and tax reporting, you can either attract a third-party outsourcing accounting company, or keep such reports yourself. For this business, in the case of independent accounting, we recommend trying online services for bookkeeping and reporting.

The main code used in OKVED is 08/18/2019 "Retail sale of garden equipment and tools in specialized stores."

Costs and profits of a garden equipment store

Consider the costs of creating a business selling garden equipment and tools. We will single out the two most significant cost groups: investment (initial costs) and operational (current) costs.

Investment costs include, first of all, the costs of purchasing commercial equipment and furniture, redecorating the premises, the costs of opening a company and the costs of the initial purchase of goods.

The cost of purchasing commercial equipment will amount to approximately 150 thousand rubles, since complex and expensive equipment is not required.

Cosmetic repairs will cost about 200 thousand rubles. The costs of opening a company, including the purchase of a cash register, the necessary software and signs will be about 50 thousand rubles. The initial purchase of goods will cost no less than 800 thousand - 1 million rubles. Total amount of initial investments will be about 1.2 - 1.4 million rubles. We clarify again, in our opinion, this is the minimum amount of initial investment in the product, depending on the assortment, the total amount can be much larger. Of these, net investment costs will be 400 thousand rubles.

Operating expenses, in terms of fixed costs, include:

  1. Labor costs . To ensure a comfortable mode of work of the staff, it is necessary to hire two sellers. Их заработная плата составит 50 тысяч рублей в месяц.

  2. Отчисления на социальные нужды . Для данной с заработной платы отчисления составят около 18 тысяч рублей.

  3. Расходы на текущее обслуживание здания и коммунальные платежи составят порядка 15 тысяч рублей.

  4. Аренда помещения будет стоить около 40 тысяч рублей в месяц.

  5. Уплата ЕНВД. Она составит порядка 50 тысяч рублей в месяц, в зависимости от региона. Эту сумму вы можете уменьшить на сумму отчислений на социальные нужды, но не более чем на 50%. Таким образом, фактическая сумма уплаченного налога составит 25 тысяч рублей.

  6. Прочие расходы, на которые мы отведем около 10 тысяч рублей в месяц.

Итого текущие затраты на обеспечение функционирования магазина садового оборудования составят около 158 тысяч рублей в месяц. Имея эти данные мы можем приблизительно рассчитать уровень точки безубыточности магазина садовой техники. Примем среднюю наценку вашего магазина в 30% от закупочной цены. При данных параметрах точка безубыточности по выручке составит 527 тысяч рублей. То есть именно эту на сумму вам необходимо продавать в месяц, чтобы данный бизнес показал нулевую прибыль. Таким образом, при объеме реализации магазина в 1 миллион рублей, этот бизнес обеспечит чистую прибыль на уровне 250 тысяч рублей в месяц. Соответственно, срок окупаемости магазина составит менее двух месяцев.

Методы снижения затрат магазина садовой техники

Для руководителя такого бизнеса необходимо понимать основные методы снижения затрат, чтобы максимизировать прибыль, ведь деньги сэкономленные – это деньги заработанные.

Основные способы снижения издержек:

  • Автоматизация основных бизнес-процессов . Одним из методов снижения затрат является автоматизация бизнес-процессов. Основным направлением снижения суммы вложений в оборотные средства будет оптимизация запасов на складах, что возможно сделать за счет специального программного обеспечения.

  • Экономия энергоресурсов . Используйте энергосберегающие технологии, например, энергосберегающие лампы. Обязательно поставьте счетчики на воду и тепло.

  • Выбор лучших поставщиков . Лучший поставщик, это не только то, который предлагает лучшую цену, но и может предложить отсрочку платежа по поставляемым товарам. На первых этапах вы постоянно будете испытывать недостаток оборотных средств и наличие отсрочки позволит существенно увеличить выручку и прибыль магазина.

  • Перевод части процессов на аутсорсинг . Зачастую аутсорсинг оказывается дешевле, чем содержание отдельного специалиста в штате. В основном, для магазина садовой техники, на аутсорсинг можно перевести бухгалтерию, клининговые услуги, охранные услуги, текущий мелкий ремонт помещения магазина.

To summarize

Бизнес по открытию розничного магазина по продаже садовой техники и инвентаря рентабелен и окупается достаточно быстро. Одним из важнейших факторов эффективности работы является выбор правильного его местоположения. Сам рынок достаточно конкурентен, этот бизнес особенно чувствителен к выбору правильной ценовой политики и предлагаемому ассортименту.

Anton Vodolazov, business consultant, candidate of economic sciences

Contact the author:

(c) www.clogicsecure.com - a portal to business plans and guidelines for starting a small business 08/18/2019


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