Despite the presence of a large number of electronic media, bookstore products have become more and more in demand lately, so a bookstore has every chance of becoming a profitable business with proper organization and marketing.
This is a good start for those who love books and understand literature. The implementation of the idea will not require huge investments and will not lead to serious losses. Since the competition in this area is quite high, it is important to choose the right niche and plan a development strategy not only for the first time, but also for the future. But before that, it is worth conducting a SWOT analysis of the book business, assessing its strengths and weaknesses.
Business pros and cons
Like any other type of business, selling book products has its advantages and disadvantages.
Among the advantages:
- The ability to choose a format with the prospect of expanding the range and creating a network of stores;
- Constancy of demand, regardless of the time of year;
- Small initial capital and payback period of the project;
- Lack of expiration dates;
- Wide range of target audience.
Among the cons:
- Sufficient fullness of the market;
- The trade margin is 1.8-2 times.
How to open a bookstore – step by step instructions
Opening a bookstore comes with many nuances. These are the size of the settlement, the presence of competitors, and the solution of organizational issues with the purchase of everything necessary and the hiring of personnel.
First of all, you need to decide on the format of the business, since not every one of them is relevant. For example, a standard bookstore is losing its popularity every year. And, on the contrary, the format of a shop with narrow specifics and exclusive literature is becoming more and more interesting.
IT IS ALSO NOT RECOMMENDED TO OPEN A LARGE-FORMAT OUTLET FOR BEGINNERS.
It is better to start with a small shop with a specific specialization, for example, selling children’s and educational literature, fiction, for which demand is relatively stable, or a point with a diverse, in-demand product range.
This will allow you to try several format options and choose the most popular one.
In general, the list of goods offered by bookstores is quite wide.
It can be made up of:
- fiction – fantasy, detective stories, novels, adventures;
- children’s literature – colorful illustrated editions with stories and fairy tales, collections of poems;
- educational and methodical literature – manuals, dictionaries, textbooks, maps;
- professional and applied literature – books on military and medical topics, on cooking, astrology, tourism, architecture, etc.
- comics and posters;
Board games and sets for creativity.
The generated assortment list depends on the format of the point, the population of the city, the market situation. Before compiling it, you should study the rating of the most popular publications on the websites of well-known online stores.
Demand and competition analysis
This stage involves studying the domestic market for the level of demand, target audience, the number of competitors, their offer and prices. According to market research, the bulk of buyers are middle-aged and older women who purchase books for themselves and their family members. The target audience is represented by all population groups: children, teenagers, students, working men and women, people of retirement age.
The main competitors of offline outlets are online stores offering books at low prices. It is difficult to compete with them, but with the right marketing policy with the allocation of competitive advantages, it is quite possible to become a worthy market participant.
Finding a suitable room
To trade books, you will need to find a suitable room in the central part of the city, on busy streets, near residential buildings of the first line, next to educational organizations, shops, shopping centers. Sufficient area to accommodate a small store – 30-50 square meters. m., larger – 80-90 sq. m.
The room must meet the relevant sanitary standards and fire safety requirements, because book products are classified as fire hazardous, have a separate entrance and transport interchange nearby. The territory of the bookstore should be divided into a trading floor and an auxiliary storage room.
THE INTERIOR SHOULD BE DONE IN A LACONIC UNIFORM STYLE.
walls can be decorated with posters with illustrations of famous works, thematic photographs, etc. It is necessary to create a cozy pleasant atmosphere, soft lighting, convenient arrangement of shelving with the ability to quickly search for the desired publication.
Wood harmonizes perfectly with books, so it is advisable to purchase shelving and shelves made of this material. Above the entrance you need to hang a bright, memorable sign, beautifully decorate the shop window, put benches next to the racks for visitors to relax. Renting a room will cost 30-50 thousand rubles. depending on the area, not counting the cost of cosmetic repairs.
Registration of permits
A book business will need to be registered with the tax office as an individual entrepreneur with one owner or an LLC with several founders by submitting a package of necessary documents with an application form. A suitable taxation system is the simplified tax system with the payment of 15% of the difference between income and expenses or 6% of total income, OKVED code – 52.47.
For the retail sale of books and stationery, a license is not required, but it will be necessary to coordinate the activities with Rospotrebnadzor and obtain permission from the fire service, which will check the store premises for compliance with the fire safety rules of Roskompechat organizations VPPB 46-01-95.
Purchase of furniture and equipment
For full-fledged work, the bookstore will need to be equipped with appropriate equipment and furniture:
|Name||Price per piece||Quantity||total amount|
|Counter||5 thousand rubles||one||5 thousand rubles|
|showcase||15 thousand rubles||one||15 thousand rubles|
|Anti-theft frames||22 thousand rubles||one||22 thousand rubles|
|Hanging racks for product display||2 thousand 500 rubles||1025 thousand rubles||25 thousand rubles|
|floor racks||5 thousand 500 rubles||12||66 thousand rubles|
|Shelves||2 thousand rubles||four||8 thousand rubles|
|Table||4 thousand rubles||one||4 thousand rubles|
|Chairs||1 thousand rubles||four||4 thousand rubles|
|Benches for visitors||2 thousand rubles||3||6 thousand rubles|
|Cupboard||5 thousand rubles||one||5 thousand rubles|
|Computer or laptop||28 thousand rubles||one||28 thousand rubles|
|Cash machine||36 thousand rubles||one||36 thousand rubles|
|Signboard||30 thousand rubles||one||30 thousand rubles|
|Total:||254 thousand rubles|
Turntables, slides, cabinets, hinged panels can also be useful. To quickly search for a book of interest and inventory accounting, you will need to install software based on 1C, the cost of which will be 27 thousand rubles.
Purchase of goods
The next stage is the purchase of book products and related products. Suppliers will be self-printing publishing houses, for example, Litera, Makhaon, Azbuka, AST. They provide wholesale buyers with a discount of up to 40%, but the volume of minimum orders is not always suitable for the store owner.
Therefore, for starters, you can work not directly with publishers, but look for wholesale intermediaries among local regional companies, information about which is easy to find on the Internet. It is better to conclude agreements with two or three suppliers in case of preventing supply disruption under unforeseen circumstances.
As for the purchase prices, it is impossible to give a specific price for the book, which can cost 50, 200, or 3,000 rubles. You don’t have to buy all the goods. Part of it can be taken for sale by paying the publisher only delivery, and the rest after the sale of books. On average, the purchase of goods will require investing from 150-300 thousand rubles.
The number of staff is calculated based on the format of the outlet. So for a small store with an area of fifty squares, you will need to hire four sales assistants with a shift work schedule, a part-time cleaner, a manager and a purchasing manager. Moreover, the functions of the last two specialists can be performed by the business owner, and the accounting department can be outsourced.
Salespeople need to be well-read, educated, up-to-date and up-to-date with the latest book trends to easily suggest the right book to the customer and tell what it is about. In order to motivate sales, it is worth setting a salary for them from a fixed rate and a percentage of the proceeds.
How much to invest at the start
Starting investments also depend on the format of the store and vary from 400 to 900 thousand rubles. and more.
The main items of expenditure are listed below:
- Rent and preparation of premises – 100 thousand rubles;
- Purchase of the necessary equipment and signs – 254 thousand rubles;
- Purchase of the first batch of goods – 250 thousand rubles;
- Software installation – 27 thousand rubles;
- Registration of a business and obtaining permits – 10 thousand rubles;
- Marketing and contingencies – 40 thousand rubles.
Total – 681 thousand rubles.
This is an average value, the final amount can be either less or more than the given. Current expenses will include: payment of wages, utility bills, rent, taxes, purchase of goods and consumables, etc.
When planning the expected income, suppose that the minimum daily revenue from fifteen customers with an average check of 400 rubles. will amount to 6 thousand rubles, per month it is 180 thousand rubles, of which 60 thousand rubles. – net profit. With these values, investments will pay off in a year and a half of work, and profitability will reach 11%.
Being engaged in the book business, you need to be prepared for possible risks that can affect the development and profit of the store.
Among the most likely of them:
- Dumping of prices by competitors, the way out of which is a revision of the pricing policy with a decrease in the price of one group of goods by increasing another.
- A low level of demand, which can be corrected by active outdoor and online advertising, revision of the product range, implementation of a customer loyalty program – sales, bonuses, promotions, gifts, etc.
- The stagnation of some books on the shelves and as a solution to the problem – the rejection of slow-moving positions, lower prices for them, compiling an assortment list based on the rating of the best-selling books.
Trading books requires a responsible and thoughtful approach with preliminary calculations and planning for each stage of the implementation of the idea. Otherwise, mistakes cannot be avoided. But in case of success, the entrepreneur receives a stable income, prospects for further expansion and a thriving business.