Business plan for the production of household chemicals. How to open a household chemicals store: is it profitable or not? Where to buy products

In order for a business in this direction to be successful and have prospects for expansion, it is necessary to take into account many nuances at the opening stage. What these nuances are and how to open a hardware store correctly, we will tell you in this article.

Best for a small store Dormitory urban neighborhoods with high population density are suitable. It is advisable that within the block there are no other points selling household chemicals, including chain multi-department stores: Lenta, Pyaterochka, Dixie, etc.

The store premises may be small - 50-60 sq. m., but it should be located in an accessible place in full view of people.

Search for suppliers and selection of assortment

The success of a retail store largely depends on the reliability of suppliers and their pricing policy.

It is most convenient to work directly with manufacturers, but not all of them ship goods in small wholesale, and independent delivery will not be cheap at all.

It is convenient to cooperate with official dealers of factories operating in the region - their prices are quite low, and they deliver goods regularly.

You need to constantly search for profitable suppliers to always have backup options in case of unforeseen situations.

The store's assortment should include products of different price categories. And cheap powders for pensioners, and high-quality products for dishwashers or washing machines, etc.

Organizational matters

Before opening a store, it is necessary to resolve all issues with government agencies and prepare the necessary documents.

• firstly, you need to register an individual entrepreneur with the tax office;
• secondly, it is necessary to choose a system of accounting and taxation;
• thirdly, you need to obtain work permits from the SES (Rospotrebnadzor) and fire inspection authorities.

Store equipment and personnel

No special equipment is required for a store selling household and household products. Standard counters and display cases in the sales area, racks and shelves in the warehouse - this will be enough for the first time.

Having a cash register is mandatory when working on the Simplified Taxation System, and when choosing UTII, you can do without it.

The store will need permanent employees: two cashiers working in shifts, a security guard and a cleaning lady. An accountant and driver can be hired to perform specific tasks for a specific time.

Profitability calculation

It is quite difficult to calculate whether household chemicals are profitable in a particular city or area without knowing the specifics of demand, product range and the presence of competitors. However, the overall profitability figures will be approximately as follows.

Initial investment in the store

• Registration of individual entrepreneurs, obtaining permits - 50 thousand rubles.
• Equipment – ​​100-150 thousand rubles.
• Purchase of the first batch of goods – 250-400 thousand rubles.

Monthly investment

• Rent, utilities – 70-80 thousand rubles.
• Salary, taxes – 75-100 thousand rubles.
• Purchase of goods – from 200 thousand rubles.
• Advertising – 10 thousand rubles.

Profit from the sale of household goods through retail stores in the city is 15-17%. With monthly revenue of 300-400 thousand rubles, net profit will range from 45 to 70 thousand rubles.

Household chemicals need to be prepared for the fact that their payback will not be quick. Gradual development of the market, attracting customers with advertising, increasing volumes and assortment will allow you to earn good money in a year or two. At the initial stage, you should stock up on patience and perseverance.

Many aspiring entrepreneurs, thinking about starting their own business, consider opening a store. What does a person who decides to become an entrepreneur need and how to open a household chemicals store from scratch? Is it profitable?

Everyday goods

Unlike food, cleaning products and washing powders have a long and sometimes unlimited shelf life; in addition, they are used up quickly. This is especially true for personal hygiene products and washing powders. This means that goods are in high demand among buyers. Storing such inventory does not require refrigeration or other special commercial equipment.

A well-organized, thoughtful and well-located store selling cosmetics and cleaning products will be popular with good housewives and will not leave its owner without profit even in a crisis. In addition to all of the above, this type of trade does not require licensing. So, what does it take to open a household chemicals store?

Business plan for a household chemicals store

Before taking concrete steps in this area, it is necessary to draw up a business plan for a store selling household chemicals, which must include an analysis of competitors and an assessment of the presence of potential buyers in the most suitable places for the store. The walkability of a location and pedestrian traffic are no less important than the absence of competitors nearby.

To open, it is important to decide on the choice of target audience, to understand who will be the buyer of these products. A business plan for a household chemicals store should include calculation of financial investments, reaching the break-even point and analysis of demand.

Registration

Which organizational and legal form to choose for running the business of a store is the choice of each entrepreneur. Both individual entrepreneurs and LLCs have pros and cons. It all depends on the size of the budget and the correct assessment of the planned profit. You can make your choice either independently or by getting a free consultation at the Small Business Development Center. It will also help in choosing.

Retail trade is one of the most pressing areas of business demand. Choosing a category of household goods allows you to get a profitable business that brings in stable revenue. In order to create a promising and successful enterprise, you need to carefully study all the features of the chosen direction. Analysis of the selected market segment, information about the main competitors, as well as the subtleties and nuances of future activities should form the basis of the business plan for this project. Below we propose to consider the question of how to open a household chemicals store from scratch and discuss a few of the most important points.

Household chemicals belong to the category of everyday products, similar to food products

Household chemicals store: is there any benefit?

Trade in household chemicals differs significantly from the process of selling food products. Most of the products presented in this group have a very long shelf life. It should also be noted that washing powder, cleaning products and other representatives of this category are consumed quite quickly. This factor contributes to the consistently high demand for household chemicals. One of the specific features of this direction is the absence of the need to purchase specific commercial equipment in the form of freezers or refrigerated display cases.

According to experts, competent organization of this project can bring large profits due to the high and stable demand for cosmetic and cleaning products.

One of the main advantages of this business is that there is no need to obtain a license to conduct trading activities. In order to create a retail outlet, an entrepreneur just needs to register with the control authorities and begin implementing a business plan.

Steps to open a retail outlet

Before registration, the future businessman needs to create a detailed business plan dedicated to this project. This document should include a qualitative analysis of the current market. Particular attention should be paid to the level of competition in the selected segment, the level of consumer demand and the most popular goods. Based on the information received, you can choose the format of the future outlet, its location and methods of business promotion.

Based on the portrait of potential customers, the entrepreneur needs to choose the optimal location for the future store. Rented properties must be located in high traffic areas. In addition to all of the above, you need to create a financial model of the future enterprise with a payback period for the project and a forecast of the expected profit.

Household chemicals are a very popular business

Selecting a trading format

At this stage, it is very important to decide on the vision of the future outlet. Today, there are five main formats of stores specializing in the sale of household chemicals. Each of these formats has unique features in the form of the scale of the project and the amount of capital investment:

1. Small pavilions and kiosks located near the metro and bus stops.
2. Trade stalls located in wholesale and retail markets.
3. Small shops.
4. Retail outlets located in large shopping centers.
5. Supermarkets.

The format of the future outlet is the basis for drawing up a business plan. The breadth of the assortment, the advertising campaign budget and other important points depend on this parameter.

Conditions for the premises

As mentioned above, the procedure for selecting real estate for rent depends on the chosen format of the future project. In practice, it is better to give preference to those properties that are located near busy roads and have parking for several cars. The area of ​​the sales floor should be directly proportional to the available assortment.

Renting real estate with an area of ​​one hundred square meters is impractical when the assortment consists of a dozen product items. It is important to consider that the rented area must comply with all sanitary standards and fire service requirements.

Store location

Many experts do not recommend choosing those premises that are located on the ground floors. Choosing such a property can significantly reduce the number of potential buyers. If you choose a residential building to locate a retail outlet, you must obtain the consent of the residents to install a sign. In addition to the permission of local residents, you will need to draw up a contract with the management company.

At the next stage, the entrepreneur needs to draw up a plan for carrying out repair work. In most cases, only purely cosmetic repairs are carried out. You should use an original design only if you have a large budget. “Betting on recognition” of a store can bring positive results only in the case of high consumer traffic. The cost of repair work can vary from fifteen to one hundred thousand rubles.

The success of trade largely depends on the range of products offered and the cost of products

Necessary equipment

The main advantage of this direction is the absence of the need to purchase specific trading equipment. In order to present the entire product in a favorable light, you need to take care of high-quality lighting. To display goods, you can use standard retail racks, shelves and display cases. You will also need to purchase special slides for storing bulky goods and powders.

The cost of setting up a sales area depends on the chosen store format. In the case where the area of ​​the rented property is less than thirty square meters, it is enough to invest about one hundred and fifty thousand rubles in the arrangement of the hall. To this amount you need to add the costs of purchasing a cash register and its registration. When organizing a large store, you will need to purchase baskets for goods and organize a storage room for customers’ belongings.

Hiring

In order for the store to be fully operational for ten or twelve hours during the day, it will be necessary to introduce a shift schedule. This means that an entrepreneur needs to hire several cashier salespeople. In addition, you will need to include a merchandiser and an accountant on the staff. As practice shows, the salary of salespeople is based on the amount of a fixed salary and bonus payments (as a percentage of profit). The introduction of bonuses increases the level of motivation of employees and increases the productivity of their work.

Until a permanent customer base is formed, an entrepreneur can take on the role of a merchandiser or salesperson. This step will allow you to carefully study all the specifics of the chosen direction, become familiar with the shortcomings of the business and identify possible risks.

Product range

The composition of the initial assortment is one of the main issues. In order for the store to generate regular profit, it is necessary to offer its visitors all kinds of essential goods. This category includes both household chemicals themselves in the form of cleaning agents and detergents, as well as related equipment (gloves, mops, sponges). You can dilute the assortment by introducing cosmetics and inexpensive perfumes.

One of the mandatory components of the assortment is additional inventory. Many people visit such stores in order to purchase special napkins and rags for cleaning various surfaces. In order to reach an additional audience, you need to include car care products in the form of polishes and shampoos.

The main secret of successful trading is the establishment’s walking distance to a wide range of potential consumers

Advertising and marketing: attracting buyers

A business plan for a household chemicals store must necessarily contain information about the chosen methods of promotion on the market. When drawing up a plan for the marketing development of a future retail outlet, it is necessary to give a competent name to the project. The chosen name for the store should be easy to remember and reflect the essence of the entrepreneur’s proposal. Similar names include “Cosmetic Paradise”, “Everything for the Home” or “Moidodyr”. The sign for the store should be stylized to match the chosen name.

In order to attract the first visitors, you need to develop a competent advertising campaign. In the first days after opening, you can offer discounts and low prices on the most popular products. This category includes dishwashing detergents and washing powders. You can recoup the funds lost through such promotions by selling related products.

A well-structured marketing strategy allows you to create a large customer base interested in visiting the store again . As practice shows, the level of store traffic depends on the size of the advertising campaign. In order to attract consumer interest to a small retail outlet, it is enough to organize the distribution of sheets and installation of billboards near the store. As additional methods of promotion, you can use specialized thematic Internet resources and social networks. Advertising in print publications and other media is advisable only in the case of large retail chains.

In order to create a base of regular customers, you need to think about methods of motivating repeat purchases. These methods include various loyalty programs in the form of savings and discount cards. In addition, you need to find suppliers who can provide the most in-demand products at low prices. The low cost of in-demand goods will allow you to beat your competitors and make large profits due to high sales volumes.

What is the profitability?

In order to calculate the benefits of opening a household chemicals store, you need to take into account criteria such as the specifics of consumer demand, the level of competition in a particular region and the size of the assortment offered to customers. Below we propose to consider the average financial model of such an enterprise.

To register a business, register yourself as a private entrepreneur, select the field of activity according to the classifier, and the taxation system

Initial Investment

The primary item of organizational expenses is the cost of registering a business and obtaining permits. As practice shows, the amount of this article varies from ten to fifty thousand rubles. Many experts recommend that beginners refrain from going through the registration procedure on their own and entrust this task to specialized companies. The next item on the list of initial investments is the cost of purchasing commercial equipment. In order to equip a sales area with display cases, racks and shelves, you will need to invest at least one hundred thousand rubles.

The issue related to the formation of the initial assortment deserves special attention. Here you need to take into account both the available budget and the chosen trading format. The cost of creating a product line can vary from two hundred and fifty thousand to half a million rubles.

Current expenses

Monthly expense item includes:

1. Costs of renting real estate and paying utility bills- from seventy to one hundred thousand.
2. Expenses for employee salaries and taxes- from seventy-five to one hundred thousand.
3. Replenishment of the assortment– from two hundred thousand to half a million rubles.
4. Advertising expenses- about ten thousand.

Estimated payback periods

Calculating the rate of return on investment is one of the main components of financial models. As practice shows, the average monthly revenue of such stores varies from three hundred to four hundred thousand rubles. Most of this amount should be redirected to cover the store's operating expenses. The level of net income of the entrepreneur himself varies from fifty thousand rubles. Based on this information, we can conclude that the profitability of this enterprise is about twenty percent.

The current business plan for a household chemicals store can be implemented in any locality

Beginners in this business need to understand that the rate of return on invested capital is about one year. Despite the relatively low entry threshold, all possible risks must be taken into account. Gradual entry into the market and constant work aimed at attracting new customers can help increase the profitability of the enterprise.

In order to avoid losses, it is very important to find high-quality suppliers who can supply the necessary products at a low cost. Various promotions can help attract the attention of potential buyers. Weekly discounts on certain product groups, two-for-one promotions and other types of bonuses will help you earn the trust of your customers.

In contact with

The business plan justifies the possibility of opening a household chemicals store. To substantiate the positive results of opening a store, the necessary amount of calculations was carried out, which can later be used as the basis for your business plan. The calculations performed made it possible to show the profitability of the business project and take into account the accumulated experience and results of work on other similar developments and take into account the features of the FCMG market. The calculations are made in Excel, which makes them easy to change. You will be able to independently assess the financial attractiveness of opening a household chemicals store, determine investment goals, payback periods and profitability. You will also be able to present your own business project to a banking or financial credit organization.

Summary

Objective of the project: launch of a household chemicals store in Ulan-Ude

Project objectives: launching a convenience store on the household chemicals market for a wide target audience of 14 years and older with low and average incomes relative to the region.

Initiator of the project

The initiator is a private entrepreneur who wants to open a household chemicals store. According to him, there are no convenience stores in the city with the main category of goods being household chemicals. The initiator has experience in trading in the non-food FCMG sector and believes that such a store will be able to generate income and pay for itself within an acceptable time frame.

Investment costs

Initial capital investment (in rubles):

1. Registration with tax authorities: 14000 rub..
2. Security deposit for renting retail space: RUB 36,000.
3. Obtaining permission from sanitary authorities: 10000 rub.
4. Finishing of the retail area: 150,000 rub..
5. Making a sign: 25,000 rub..
6. Entrance refurbishment: 30,000 rub..
7. RUR 267,800.
8. Purchase of goods: 400,000 rub..
9. Starting advertising costs: RUB 56,000.

Total investment: RUB 988,800, rounded to 1 million rubles

The work space is a one-room apartment on the ground floor of a residential building, converted by the owner into commercial real estate, with its own exit to the street. The reconstruction of the premises was agreed upon and carried out by the owner several years before the start of the project. The fire alarm required for household chemical stores has already been installed.

Project financing

Investments are planned in the amount of 1.5 million rubles. Capital expenses are 1 million rubles, working expenses are 500 thousand rubles. The initiator plans to invest in opening the store: 700 thousand of his own funds and 800 thousand rubles. receives in the form of a loan received from a bank at 14% per annum.

Project payback

Planned payback for a household chemicals store:

• NPV - 5103.52 rubles;
• The simple payback period for the store is 24 months;
• The discounted payback period for the store is 25 months.

Suppliers and contractors

The rented area will undergo cosmetic renovations. The sales area and ventilation system are being updated, which is required to comply with SNIP. The renovation allows the interior to be decorated in the same style. The repairs are carried out by a team of builders selected by the project initiator.

Furniture and equipment will be purchased from a company that supplies equipment to commercial enterprises. The supplier was selected by the initiator, who had experience working with the supplier company, was familiar with its pricing policy and had discounts.

Services

Main groups of products presented in the store:

• Hygiene products (soap, shampoos, toothpaste, etc.)
• Hygiene products for children
• Products for washing and treating fabrics and leather goods
• Fertilizers and reagents
• Household goods, garden tools, disposable tableware
• Packaging materials

ATTENTION!!!

Practice shows that by ordering a business plan from specialists, you will save time, increase the quality of the finished document by 4-5 times and increase the chances of receiving investment by 3 times.

Investment plan

Investment size

Capital investments amount to 1.5 million rubles, of which:

• working capital: 500 thousand rubles.
• capital investment for opening a store: 1 million rubles. (rounded up from RUB 998,800)

Investments in capital funds are given below:

Name of works/products/services	Quantity		Price
Registration with tax authorities
Security deposit for renting retail space
Obtaining permission from sanitary authorities
Room renovation
Making a sign
Refurbishment of the entrance
Purchase of commercial equipment and furniture:
Cash register with bank card acceptance
Barcode reader
Storage Sections
Rear trade stands
Trade counters with showcase
Counter table
Baskets
Purchase of goods
Launching a video on the radio
Group on VK and Odnoklassniki
Total investment

Investment work plan

The work and investments necessary for their implementation will be carried out according to the following schedule:

The amount to pay for the patent for the first half of the year is paid for 6 months. the amount is included in the calculation, but can be paid out of profit. All other patent payments are paid from profits.

Production plan

Room

Work space - a one-room apartment on the ground floor of a residential building with a total area of ​​38.5 m², of which 12 m² is a sales area (room), 7.5 m² is an office space, 4 m² is a warehouse converted from a bathroom, 2 m² - bathroom There are two entrances: the main one from the street, the second from the yard, through the entrance of a residential building.

Equipment

Equipping the store by purchasing the necessary equipment and furniture from a supplier company that professionally sells and supplies equipment for retail businesses. The purchase amount is included in capital investments.

Store time

The store will be open from 8.00-21.00 without breaks and weekends. On Fridays an inventory of goods is carried out.

Sales process

The procedure for selling consumer products classified as “Household Chemicals” product group for retail outlets is regulated by the provisions of Section 10 of the Decree of the Government of the Russian Federation “On approval of the Rules for the sale of certain types of goods ...” No. 55 of January 19, 1998 (as amended on December 23, 2016) According to this document, it is mandatory to:

1. Providing the consumer with complete information:
   • Name of product;
   • information about the manufacturer;
   • data on the chemical composition of the product and possible hazardous, potentially hazardous and harmful substances;
   • about the procedure for use;
2. Certificate of conformity and technical certificate (for products with statutory requirements requiring confirmation of its suitability when used for construction purposes);
3. Ensuring the required storage conditions for goods, with legally established special storage requirements.
4. Products must undergo pre-sale preparation before display:
   • the container used during transportation is removed;
   • information about the manufacturer and composition of the product is checked;
   • goods are sorted by types and groups;
   • checking the integrity of packaging containers. For household chemicals in aerosol packaging, the functioning is checked;
   • the availability of instructions on how to use the product is checked;
   • quality is verified based on external signs;
   • price reconciliation against invoices and price tags.
5. Providing merchandising. Arrangement into groups and types, according to the purpose of the products, and in order to ensure better visibility.
6. Testing the functioning of products in aerosol packaging is prohibited in enclosed spaces.

Sales are carried out in the following sequence:

• Greeting and establishing contact with a possible client;
• Clarification of needs;
• Offering products that can satisfy needs;
• Overcoming objections;
• Making a sale;
• Farewell to the buyer.

Cost of services

The margin on goods is set at 40% of the sales price.

Marketing plan

To promote the store starting from 2 months. From the beginning of the project the following marketing tools are used:

1. Launching a video on the radio
2. Group on VK and Odnoklassniki
3. Advertisements in local newspapers
4. Preparation and distribution of advertising leaflets

In the future, SMM promotion, direct marketing and distribution of leaflets and advertising booklets are carried out.

The target audience

Target audience: residents of nearby houses. Mostly family women over the age of 18, married and with children (80%), men over the age of 18. For the latter, a special group of products is being introduced into the assortment: car cosmetics.

Below you can see the seasonality graph:

Competition and location

A residential area with a high population density.

The main competitor is convenience stores that are part of federal or regional chains. The problem is that chain stores have the opportunity to receive goods with a minimum margin, received directly from manufacturers with a minimum margin, and a wider range. This approach makes it possible to implement a dumping policy and provide profitability due to sales volumes at lower prices. An example of such stores is Magnit-cosmetics, Fix-price, etc.

The emergence of a chain store, especially one that is part of a federal-level chain, significantly worsens the competitive situation. Individual stores have the opportunity to compete with chain stores only if their assortment includes high-quality, inexpensive products from brands that are not represented in chain stores of household chemicals.

Range of services

The sales structure of a household chemicals store is shown in the figure:

Note. The sales structure does not include goods classified as household chemicals and used in construction work, such as, for example, paints and varnishes and various adhesives for construction purposes. Products classified in these categories are reserved and if diversification of the assortment is necessary, this category will be introduced first. Another direction for expanding the range could be mass-segment cosmetics, primarily deodorants, mousses, etc.

Price policy

Average price level, close to the boundaries of the lower price segment. The products are designed for people with low and middle incomes who are prone to visible savings. Therefore, it will be necessary to introduce preferential programs, periodic temporary discounts, sales, etc., i.e. It is necessary to use every opportunity to attract customers and ensure loyalty.

Volume of sales

The number of buyers per day is planned at 50 people, on average buying 4 items.

Below you can see the plant's load chart:

Sales volume is presented in the table

Product groups	Average unit cost	Quantity per month	Sales amount per month (thousand rubles)
Household chemicals for cleaning the premises
Hygiene products (soap, shampoo, toothpaste)
Hygiene products for children
Detergents for washing and treating fabrics and leather goods
Air fresheners, repellents, disinfectants
Fertilizers and reagents
Cleaning equipment and workwear
Household goods, garden tools, disposable tableware
Car cosmetics and chemicals for cars
Packaging materials
Adhesive materials (glues, tapes, etc.)
TOTAL

SWOT analysis

	Force: Close location to potential buyers Product quality Presence of brands not represented in online retail Wide range of household goods	Weaknesses: Low margin Ensuring sanitary and fire safety conditions Small warehouse area Heterogeneous product range
Possibilities: Additional items in the assortment; prompt response to customer requests customer retention	Discounts and other forms of customer retention Selection of products that meet consumer needs discounts and loyalty programs	search and expansion of the assortment due to high-margin goods storage optimization through logistics
Difficulties and threats: low customer demand the arrival of chain discounters in the “close to home” format, including those specializing in household chemicals limited number of well-known brands sanitary requirements	increasing advertising, which focuses on discounts and benefits for the buyer use of brands not represented in online retail consider the possibility of selling “catalog” brands (for example, Amway)	carrying out external examination for compliance with sanitary and fire requirements monitor the assortment of “network stores” and conduct discount promotions on those goods whose prices are higher in network stores

Advertising strategy

Provide widespread advertising in your area. The main direction is mass direct mail. To do this, you need to consider the possibility of cooperation with the post office. The second direction is distributing leaflets. If possible, introduce a system of discount coupons for repeat purchases. If your business develops and additional retail outlets open, you can introduce a system of savings cards.

The website and support of the group on the social network is secondary. It is possible to organize additional discounts for customers and group members who make advance orders online and delivery services. Website and group maintenance is outsourced.

Organizational plan

Form of doing business

The main form of doing business as an individual entrepreneur with a patent system. The patent form for a household chemicals store allows you to save on costs during the first year and simplifies taxation and filing reports with the Federal Tax Service.

The cost of the patent is 30,500 rubles. in year. In the first year, a third of the cost of the patent is paid in the first half of the year and the rest during the 2nd. Starting from the 2nd year, the cost of the patent is paid in equal installments.

Personnel and staffing structure

The initiator is the director of the store and carries out management.

The structure of positions and salaries is as follows:

The store director has irregular working hours.

There are 2 sellers in the store, working on a 2-by-2 schedule.

The store director receives goods, monitors the store's workload, ensures its smooth operation, controls the sales schedule, interacts with customers in case of complaints, monitors advertising, accepts online orders, makes deliveries, provides information about stores and purchases of supplies and equipment.

The process of organizing sales of household chemicals:

1. The decision to purchase and receive goods for sale is made by the store director;
2. Delivery is made by the store director or the supplier's delivery service;
3. The received goods are arranged by the seller together with the store director;
4. Direct sales are carried out by the seller, who, after selling the product, pushes it through the cash register.
5. The director receives a sales report daily.
6. The inventory is carried out by the director together with the seller at the end of the seller’s 2nd shift and before his replacement leaves.
7. The results of the daily report and periodic inventory are sent to the accountant.

Financial plan

Project financing

Initial investments are planned in the amount of 1.5 million rubles, of which:

700 thousand rubles. own funds.

800 thousand rubles. bank loan at 14% per annum for 5 years secured by an apartment.

Funds in the amount of 600 thousand rubles. There are initial investments, consumables, which the bank credits in payments of 200 and 400 thousand rubles. within 2 and 3 months, another 200 thousand rubles. for working capital in the 4th investment month.

The project initiator spends funds on registering an individual entrepreneur

Calculation of loan payments differentiated (equal payments for the loan body and interest on the total balance) for 5 years

Return of own funds to the project initiator after repayment of the loan within 2 years. in equal shares taking into account inflation, but without interest, starting from the 3rd year

Project payback indicators

Calculations of the return on investment for a household chemicals store were carried out for a 10-year period. Basic indicators:

• contributions to social funds 30% of the payroll, of which the Pension Fund - 22%, the Compulsory Medical Insurance Fund - 5.1%, social insurance - 2.9%;
• patent rate 30,500 rub. in year;
• annual inflation 10%.

Payback of the project without discount (simple) - 24 months.

Efficiency indicators were calculated at a discount rate of 16.85%:

• NPV - 5103.52 rubles;
• IRR - 5.9%;
• The payback period taking into account the discount is 25 months.

Risk analysis

Calculations have shown that the business project of a household chemicals store is interesting for both the initiator and the investor. The investor can receive a return on time, and the project initiator can receive a salary, and after repaying the loan, a refund taking into account inflation.

When implementing a project, it is necessary to highlight difficult-to-predict changes in economic conditions, the assessment of the impact of which on a business project has certain difficulties. These include the following risks:

• decrease in purchasing power. The population is cutting costs, and the cost of utilities and rent will continue to grow at the same pace. Risk countermeasures: control of costs and price levels, focus on cheaper goods that allow maintaining the planned margin;
• opening of chain stores of household chemicals in the same area. The biggest problem is created by federal networks. Price competition will increase sharply. The task is to diversify the business in a timely manner: introduce brands that are not available at the competitor’s outlet; use loyalty programs; expand the range with new product items (mass segment cosmetics; household chemical products used in construction, etc.).

conclusions

Calculations have shown that the opening of household chemicals stores in Ulan-Ude shows positive planned indicators, allowing return of investment to both investors and the initiator, as well as obtain additional profit. The level of risks is assessed as increased, because associated with the low level of purchasing power of the population and the development of network retail. This requires significant organizational and marketing work.