Business for the wholesale sale of semi-finished products. How to open a workshop for the production of semi-finished products at home
Semi-finished products have become an integral part of the diet of almost every family. Dumplings, dumplings, cabbage rolls and much more can be found on store shelves and can be prepared at home in a few minutes. It's fast, tasty and inexpensive. It is these main factors that attract customers, given the pace of modern life in big cities, such product options often help out many. In this article we will talk about how to open a business selling semi-finished products in your city, and what you need to consider to make it profitable.
Business Features
The first thing you need to consider before you start a convenience food retail business is whether there is a target audience in the area in which you want to start the business. If it is a small city, then you need to look for premises somewhere in the center, but if it is a large city, you need to look for options near food markets or student dormitories. Students usually spend a lot of money on various types of semi-finished products, since they do not know how to cook, especially if the town is small and there is also a university, then such a business may definitely suit you.
The second point is that it is not necessary to look for a full-fledged rental space; you can consider options for renting kiosks, for example, in shopping malls with other products.
The third factor is the quality of the products. Your semi-finished products should be fresh and, above all, tasty. When searching for suppliers, take this factor into account and in the future constantly check the quality of the products sold and listen to customer feedback.
Premises and equipment
We have already discussed above where to look for premises to open a convenience food store. Now let's discuss some points. When selecting a room, you can look at options from 10 – 15 sq.m. and more. If you rent a kiosk, you will already organize display cases differently and the space there is usually 4 - 5 sq.m.
Another important point. An excellent solution would be to trade on the market. Yes, it is in the grocery market that such a specialized retail outlet can enter. If you are starting from scratch, then you can definitely try to work there, and your investment will be minimal.
Equipment for trading frozen semi-finished products you will need:
- refrigerated display cases;
- refrigeration chambers;
- electronic balance;
- furniture for the seller’s workplace;
- cash machine.
Rules for trade in semi-finished products
Trading in products requires the entrepreneur to prepare all the necessary documents for trading. Here is the basic list of what is needed:
- you must be registered as an individual entrepreneur.
- you must indicate OKVED for trading in semi-finished products. For Russia this is - 51.11 . For Ukraine - 46.11 .
- have on hand all quality certificates for products.
- obtain permission from the SES and fire service.
- decorate the buyer's corner.
Assortment and search for suppliers
Such outlets are usually divided into two types:
— they sell products from various manufacturers and have a very wide range of goods;
— they sell semi-finished products from one plant and are their representatives, while the design of the outlet is made in the corporate style of the manufacturer’s trademark.
But still, in order to open a store of frozen semi-finished products, you will need to have the following popular items in your assortment:
- vareniki;
- dumplings;
- pancakes, cheesecakes, pancakes;
- cutlets and minced meat, and other semi-finished meat products;
- semi-finished confectionery products;
- pizza;
- frozen vegetables, fruits and berries;
- cabbage rolls and pasties;
- crab and fish sticks and so on.
In fact, the assortment of such a store can be very wide, but, as a rule, it is limited only to popular goods.
To find suppliers, you need to either look for great deals on wholesale grocery markets, or directly contact manufacturers, but at the same time, first think through how you will deliver the products to the store.
How much do you need to start?
The investment will be small, but you will need to spend a little money on purchasing or renting equipment. Before opening a store of semi-finished products, especially from scratch, you will need to make a competent calculation of investments in the business. Below we present the main expense items and approximate amounts, but you will need to recalculate all expenses for your business.
- Room rental – $200 – $250. Consider utility costs. Since you will have many refrigerators, the cost of maintaining them also needs to be considered.
- Taxes - $150
- Salesperson salary - $200
- Initial purchase of goods – $4000 – $5000
- Purchase of equipment – $2200 – $2600
- Transportation costs - $60.
How much can you earn?
If you choose the right place for trading, you can sell good volumes of products. Calculating earnings is actually not easy. But we don’t have a business plan, just an idea that you can develop further.
The average markup on semi-finished products is 30% - 50%.
By establishing high-quality service and constantly fresh and tasty goods, you can make a good profit from sales. Over time, the business can be scaled up by opening several such outlets throughout the city.
Conclusions. As a business, trading in semi-finished products is a very relevant niche, even during a crisis. Let's highlight the main pros and cons. Pros: a sought-after product, not a very perishable product, a wide segment for expanding the range. The downside is competition from large retail outlets; for small towns this is not a problem, and the second point is the difficulty of finding a place for retail.
What can you say about this business? We are waiting for your answers.
- Project Description
- Description of products and services
- Marketing Plan
- Production plan
- Recruitment
- Financial plan
- Which equipment to choose
- Manufacturing technology of semi-finished products
- Similar business ideas:
We bring to your attention a standard business plan (feasibility study) for opening an enterprise for the production of semi-finished products. This business plan can serve as an example for obtaining a bank loan, government support or attracting private investment. Using the example of an enterprise in the Ulyanovsk region.
A typical business plan for opening an enterprise for the production of semi-finished products in a small town. Using the example of an enterprise in the Ulyanovsk region.
Project Description
The goal of the project is to open a workshop for the production of semi-finished products in the village. Mullovka, Melekessky district, Ulyanovsk region. The production of semi-finished products is a promising business area. This statement is explained by the fact that the demand for semi-finished products is steadily growing. There are more and more busy people in society who do not have time to prepare homemade food. Semi-finished products allow you to prepare your favorite dish in a matter of minutes, while saving a significant part of your precious time.
Despite the large number of enterprises that have opened today, there is still a shortage of high-quality semi-finished products at affordable prices. This niche is what our company plans to fill.
Opening a workshop for the production of semi-finished products is also beneficial from an economic point of view. The main indicators of the economic efficiency of the project are as follows:
- Net profit per year = 1,535,277 rubles;
- Farm profitability = 17%;
- Project payback = 8 months.
Where to start opening a workshop for the production of semi-finished products
To implement the project, it is planned to receive subsidies in the amount of 300 thousand rubles within the framework of the state program to support small and medium-sized businesses in the Melekessky district - grants for start-up entrepreneurs. Also, own funds in the amount of 700 thousand rubles will be allocated for the implementation of the project. The total investment in the project will be 1 million rubles.
Opening a workshop for the production of semi-finished products also has its own social indicators:
- Registration of a new business entity in the Melekessky district;
- Creation of 12 jobs in the district;
- Receipt of additional tax payments into the budget of the Melekessky district.
How much money do you need to open a workshop for the production of semi-finished products?
All funds received under the state program to support small businesses will be used to purchase fixed assets. The cost estimate for the project is presented in the form of a table:
Which taxation system to choose for an enterprise
The organizational and legal form of our enterprise will be a limited liability company - Simbirsk Pelmeni LLC. The director of the enterprise is Ivan Ivanovich Ivanov, she is also the initiator of the project. The taxation system for the workshop for the production of semi-finished products will be the simplified taxation system (STS).
The actual location of Simbirsk Pelmeni LLC is located at the address: Ulyanovsk region, Melekessky district, r.p. Mullovka.
What documents are needed to open a workshop for the production of semi-finished products?
Currently, practical activities have begun to implement the project:
- Simbirsk dumplings LLC was registered at the local INFS branch;
- A building was purchased to house production. Room area - 1168 m2. The building is currently being renovated in order to comply with all SES and fire safety requirements of the production facility;
- There is a preliminary agreement with the company Elves LLC for the purchase of equipment for a workshop for the production of semi-finished products;
- Preliminary agreements have been concluded for the supply of semi-finished products to stores in Dimitrovgrad and Samara.
Description of products and services
The initial range of products produced by the workshop will include:
- Homemade dumplings, wholesale price 130 rubles/kg;
- Amateur dumplings, wholesale price 110 rubles/kg;
- Russian-style dumplings, wholesale price 90 rubles/kg;
- Homemade cutlets, wholesale price 110 rubles/kg;
- Amateur cutlets, wholesale price 90 rubles/kg.
As the enterprise develops and new sales channels are established, the range of products will increase.
About 150 kg of finished products will be shipped daily. The average wholesale selling price will be 106 rubles/kg.
The technology for the production of semi-finished products includes such stages as: meat acceptance, primary processing of carcasses, culinary cutting, meat sorting, preparation of semi-finished products, packaging of finished products.
Our company will use only high-quality raw materials. This includes: cooled or chilled beef of the first and second categories (GOST 779-55), meat pork (GOST 7724-77), veal, baking flour (GOST 26574-85). Raw materials will be sourced from local wholesalers, large agricultural producers and farms. All incoming raw materials will undergo strict veterinary control.
Marketing Plan
The main competitors of our enterprise will be similar manufacturers located in the Melekessky district and the city of Dimitrovgrad, as well as manufacturers from other regions. The range of products produced by competitors is very wide, and the price range is also quite significant. However, as research shows, there is a shortage of high-quality “home-produced” semi-finished products in retail outlets. The demand for such products is always high, and there is often no supply.
The competitiveness of our products will be achieved primarily through a competent ratio of price and quality of goods. Sales of manufactured products are planned to be carried out through the following sales channels:
- Sales through retail points of sale, shops and pavilions;
- Sales through wholesale organizations;
- Concluding supply contracts for local chain stores.
The main markets for the products are the city of Dimitrovgrad and the Melekessky district, as well as the cities of Ulyanovsk and Samara. Currently, there is an agreement to supply products to LLC Chain of Supermarkets (Dimitrovgrad), LLC Saturn (Dimitrovgrad) and LLC New Product (Samara).
Advertising of manufactured products is planned to be carried out by posting information on bulletin boards, in the media, on the Internet, as well as during personal visits to commercial enterprises.
How much can you earn from selling semi-finished products?
Total monthly revenue of the enterprise will be 1,030 thousand rubles.
However, this revenue figure will be achieved only after 6 months of operation of the workshop. Because before reaching large production volumes, it is necessary to establish sales channels for products and win the trust of consumers.
Thus, the enterprise’s annual revenue will be 10,815,000 rubles.
Production plan
The production of semi-finished products will be carried out in a premises with a total area of 1168.88 m2. In this case, the workshop itself will be divided into appropriate sections:
- Area for receiving and cutting up animal carcasses;
- Semi-finished products production area, which has sub-areas for the production of minced meat and dough;
- Packaging and labeling area;
- Storage area for raw materials and finished products;
- Room for working staff;
- Shower and toilet rooms;
- Accounting and production administration office.
The enterprise will comply with all norms and sanitary rules imposed on such facilities by regulatory authorities. The workshop premises will have good lighting, ventilation and air exchange with an influx of clean outside air. The walls, floors and ceilings bordering the refrigerator compartment will be insulated. All workplaces where personnel come into contact with unpackaged products will be equipped with sinks with hot and cold water supply.
What equipment to choose for the production of semi-finished products
The main equipment required for the production of semi-finished products includes: a dumpling machine, a dough mixing machine, a flour sifter, a meat grinder, a blast freezer, a split system, a freezer, a refrigerator, a chest.
When choosing equipment, the main emphasis is on reliability, ease of operation, availability of spare parts, low cost and, accordingly, high payback rates.
Recruitment
The planned staffing of the workshop for the production of semi-finished products will include 12 people.
Financial plan
The cost of raw materials for the production of semi-finished products, per 1 kg of products produced, is as follows:
Taking into account the planned production volume of semi-finished products, the annual costs for raw materials and ingredients will be 6,011,250 rubles.
The monthly expenses of the enterprise will be 750,737 rubles, and the annual expenses will be 9,008,850 rubles.
The main expenses of the enterprise are the costs of purchasing raw materials for the manufacture of semi-finished products - 67% of total expenses per year. In second place are the costs of paying wages to workshop workers - 19% of total costs.
Net profit based on annual sales of semi-finished products will be 1,535,277 rubles. The profitability of the workshop for the production of semi-finished products is 17.0%. With such indicators, the project will pay for itself in 8 months.
The enterprise will make tax contributions to various levels of the budget of the Ulyanovsk region up to 498,682 rubles per year.
Where to start producing semi-finished products
At the initial stage, we will need to register a new subject of production activity. After which you need to rent or purchase property and build a production facility yourself.
How much money do you need to start a business?
When starting the production of semi-finished products, the amount will be taken into account based on the final product. For example, when establishing the production of semi-finished meat products (dumplings, cutlets, etc.), 1 million rubles are needed. This does not take into account the construction of the structure or the cost of rent, without paying staff.
How much can you earn from the production of semi-finished products?
The full payback period for the production of semi-finished products is eight months. After this time, we can talk about receiving net profit. The net annual profit from the production of semi-finished products will be 1.5 million rubles. Taking into account the expansion of production areas and access to additional markets for finished products, net income from the production of semi-finished products increases significantly.
Which equipment to choose
To establish the production of semi-finished meat products, you will need to purchase:
- dumpling machine and freezer;
- blast freezer and vibrating meat sifter;
- dough mixing machine and refrigeration chamber.
What documents are needed to open
registration documents as a subject of production activities;
- documents for the production facility (lease agreement, ownership documents);
- permission from the sanitation station;
- permission from the fire inspection;
- agreement for the purchase and supply of equipment for the production of semi-finished products;
- contracts for the supply of semi-finished products;
- an agreement with the company for the removal and disposal of production waste;
- agreements with employees and collective agreements;
- job descriptions, etc.
Which tax system to choose for registering the production of semi-finished products
A simplified taxation system for the production of semi-finished products is the best option.
Many residents of large cities visit stores with semi-finished products, so the demand for these products is growing, as is the range of offers. Therefore, opening a convenience food store can be a profitable business. A business plan for a convenience store will help you think through important organizational and financial aspects of the business, and our example will show a picture of the potential profitability of the business.
Project Summary
It is planned to open semi-finished food stores in a big city, because... It is in megacities that the rhythm of life does not allow spending much time in the kitchen. We will rent a small premises for the sale of semi-finished products in a residential area in a heavily traveled area, close to the market and public transport stop.
Store opening hours: from 09:00 to 20:00.
Assortment: weight semi-finished products.
Our customers:
- Middle-aged men and women (80%).
- Young people, students (15%).
- The rest (5%).
Our competitors:
- Similar grocery stores nearby.
- Supermarkets.
- Grocery stores with a department of semi-finished products.
Main business risks:
- Big competition.
- Purchasing low-quality goods from a supplier.
- Inflated prices.
- Poor choice of supplier.
Each of the above risks can lead to a decrease in the number of buyers.
To gain your place in the market in this niche, you must initially select a location with good traffic and a minimum of competition, at least in the area of one residential area. We can fight supermarkets with better quality goods, an individual approach to each customer, and competent customer consultation, because in supermarkets there is no personal communication.
To ensure that our store always has fresh and high-quality semi-finished products, we will find a reliable supplier who will bring good products and can guarantee quality.
It is important to purchase goods correctly; the risk of the first unsuccessful purchase of semi-finished products is especially high. To understand what there will be demand for, it is necessary to analyze the range of competitors and observe customers. The first purchase will be minimal; demand is determined and what else buyers want to see on the shelves.
To minimize risks, you need to be prepared for changes in the external environment; reserve money should be included in the budget for this. A business plan for a convenience store with calculations will allow us to analyze the main costs and take into account potential risks in the budget.
Registration
In order to legally operate, you must register. To do this, we go with an application to the local tax service, register as an individual entrepreneur, and choose a simplified taxation system - 15%. We also need to register OKVED code 47.29 “Retail trade in other food products in specialized stores.”
We will also need to obtain permission to operate the premises from the fire department, Rospotrebnadzor and SES. It will take about 7 business days. We will need about 10 thousand rubles for registration and obtaining permits.
Search for premises
We will open a store in a residential area on the first floor of a basement apartment building. A retail area of 20 square meters will be sufficient. m. The room is 10 sq. We will place an additional refrigerator and equip a place for the seller. The cost of renting such premises in a residential area of a large city will be about 20 thousand rubles.
We will make cosmetic repairs to the room - paint the walls and ceiling. It will cost about 20 thousand rubles.
We will spend about 5 thousand rubles a month on utilities, mainly for active consumption of electricity, because refrigeration equipment must work day and night.
It is planned to rent the premises for a long term, so a corresponding agreement will be concluded with the landlord. We immediately pay 2 months of rent.
Search for commercial equipment
For a convenience store, you need to purchase refrigeration equipment, consumables and a chair for the seller. To reduce investments in equipment, you can purchase used refrigerators in good condition.
Estimate in the table:
| Name | price, rub. | Quantity | Amount, rub. |
| Refrigerator for p/f | 20 000 | 3 | 60 000 |
| electronic scales | 5 000 | 1 | 5 000 |
| Refrigerator for warehouse | 30 000 | 1 | 30 000 |
| Consumables (gloves, equipment, bags, containers) | 10 000 | – | 10 000 |
| Technical equipment for store cleaning | 2 000 | – | 2 000 |
| Cash machine | 7 000 | 1 | 7 000 |
| Seller's chair | 1 000 | 1 | 1 000 |
| Total | 115 000 |
Equipment must be kept in good condition, systematically unloaded, washed and temperature controlled. Every malfunction must be responded to quickly, since the safety of semi-finished products depends on refrigerators.
Staff
The owner himself can sell in the store in shifts with a hired salesman. As profitability increases, a second salesperson will be hired. The store will be open daily from 08:00 to 20:00. Employees are rotated according to a 3/3 scheme. The seller's responsibilities also include receiving goods and cleaning the store. The seller's salary is set at 20 thousand rubles.
Suppliers and goods procurement
When choosing suppliers, you should pay attention to live reviews on the Internet, terms of cooperation (delivery times, pricing policy), availability of product quality certificates. It is advisable to conduct targeted tastings to understand what we are selling and to make it clear to the producers that the product is under control.
First purchase:
| Name | Wholesale price, rub. |
| Pork and beef dumplings (manufacturer No. 1) | 230 |
| Pork and beef dumplings (manufacturer No. 2) | 200 |
| Pork and beef dumplings (producer No. 3) | 160 |
| Rabbit dumplings | 265 |
| Chicken dumplings (manufacturer No. 1) | 160 |
| Chicken dumplings (manufacturer No. 2) | 130 |
| Dumplings with potatoes, cabbage, mushrooms, cottage cheese | 130 |
| Dumplings with cherries, strawberries | 160 |
| Manti | 200 |
| Khinkali | 200 |
| Chebureks | 230 |
| Chicken cutlets | 160 |
| Pork cutlets | 200 |
| Lula kebab | 200 |
| Fish cutlets | 160 |
| Chicken nuggets | 160 |
| Meat zrazy with mushrooms and cheese | 200 |
| Sausages, kupaty | 335 |
| Stuffed cabbage rolls | 160 |
| Chicken chops | 200 |
| Frozen strawberries, berries | 230 |
| Pork chops | 300 |
The markup on goods is set at 150%. The purchase is small, with the expectation of forming the main assortment. As soon as a particular category of goods runs out or there is good demand for it, the seller promptly orders more delivery. In the table we present different numbers of semi-finished products, meaning different brands.
Marketing and advertising
To attract customers to the store and increase sales, it is initially necessary to analyze competitors, take into account their strengths and weaknesses, assortment and pricing policy, promotions and offers. We will use promotional offers jointly with suppliers: for example, the promotion “Dumplings with potatoes 1 kg + 200 g free” or 2 packages of dumplings with a 30% discount (wrapped together), etc.
We will attract customers by distributing flyers near the store, installing a sign, and branding the facade with images of dumplings, khinkali and cutlets.
In addition, a tool such as tasting works great in this area.
Every month you will need to spend money on printing and distributing flyers. The monthly estimate will be about 5 thousand rubles.
Expenses and income
Now we will analyze the start-up and monthly costs, calculate the estimated profitability, profitability and, as a result, the payback period of the start-up investment.
Start-up costs
It is planned to allocate 235,000 rubles to start the business, not including the cost of purchasing goods. We will subtract them from the estimated planned profit for the month.
Monthly expenses
Income
The first two months will be trial months, this is the period of attracting regular customers and forming a current assortment.
Estimated sales plan for the 1st month of store operation:
| Name | Retail price, rub. | Quantity | Amount, rub. |
| Pork and beef dumplings No. 1 | 350 | 20 | 7 000 |
| Pork and beef dumplings No. 2 | 300 | 20 | 6 000 |
| Pork and beef dumplings No. 3 | 250 | 30 | 7 500 |
| Rabbit dumplings | 400 | 15 | 6 000 |
| Chicken dumplings No. 1 | 250 | 20 | 5 000 |
| Chicken dumplings No. 2 | 200 | 20 | 4 000 |
| Dumplings with potatoes, cabbage, mushrooms, cottage cheese No. 2 | 250 | 30 | 7 500 |
| Dumplings with potatoes, cabbage, mushrooms, cottage cheese, cherries No. 2 | 200 | 40 | 8 000 |
| Manti | 300 | 20 | 6 000 |
| Khinkali | 300 | 20 | 6 000 |
| Chebureks | 350 | 20 | 7 000 |
| Chicken cutlets | 250 | 15 | 3 750 |
| Pork cutlets | 300 | 15 | 4 500 |
| Lula kebab | 300 | 20 | 6 000 |
| Fish cutlets | 250 | 20 | 5 000 |
| Chicken nuggets | 250 | 20 | 5 000 |
| Zrazy | 300 | 15 | 4 500 |
| Sausages, kupaty | 500 | 10 | 5 000 |
| Stuffed cabbage rolls | 250 | 20 | 5 000 |
| Chicken chops | 300 | 20 | 6 000 |
| Frozen strawberries, berries | 400 | 20 | 8 000 |
| Pork chops | 450 | 10 | 4 500 |
We calculate operating efficiency and profit as follows. The average purchase price in a store is 300 rubles. At least 35 customers are expected to be served daily. In total, this gives revenue of 10,500 rubles. After deducting the share of suppliers, 3,500 rubles of profit will remain.
Thus, the store will bring in 105 thousand rubles per month.
We calculate the profitability indicator.
First we calculate the difference between income and expenses:
105,000 – 50,000 = 55,000 rubles.
Now we calculate the tax payment:
55,000 x 0.15 = 8,250 rubles.
Accordingly, the net profit will be:
55,000 – 8,250 = 44,750 rubles per month.
Let's calculate the profitability:
(44,750 / 260,000) x 100 = 17%.
This profitability is acceptable for the start-up period of a convenience store. By the 5th-6th month it is planned to achieve an indicator of 30%, which is considered excellent for this area.
235,000 / 44,750 = 5 months. The payback period is acceptable. So within six months it is planned to fully recoup the initial investment and invest the profit in expanding the range of products.
Eventually
A grocery store is a profitable business. It is important to competently formulate an assortment, select quality products and reliable suppliers, and also ensure appropriate refrigeration conditions for all purchases of semi-finished products. The plans are to increase the retail space by purchasing a greater variety of products. In a year, we are considering opening 2 more similar retail outlets.
