1. A brief investment memorandum. Many people are attracted to the idea of opening a business selling goods that are guaranteed to be in demand among the population. That is why many start their business with the opening of a grocery store or cafe, there are people will always be.
However, you can also confidently say that people will continue to consume alcoholic beverages. And one of the most popular types of alcohol is beer.
The advantage of selling beer before selling other alcoholic beverages is that you do not need to purchase a license to sell it. Nevertheless, this type of business in itself is not at all simple and will require you to know many nuances and pitfalls. In this case, opening the first store will be much easier on the franchise of a large trading network. An example of successful development in the market of draft beer is the chain of stores Piv & Co..
Experienced players of the beer market will develop a development strategy for you, tell you about the most profitable shares, share the secrets of fighting against competitors, and also connect you to the EGAIS system.
However, you can start business in this area on your own. So you can save on acquiring a franchise, but you will have to go through the discovery steps yourself, and you will learn from your mistakes.
So, first of all you need to decide on the format of the institution. You can open as a small outlet at the exit from a large supermarket, and a full-fledged store with a separate entrance and a wide range. This business plan is designed specifically for the opening of a separate store.
The next step is to define the target audience and product range. After all, you can limit sales to several varieties of beer, and you can expand the range through snacks, soft drinks, cigarettes and other related products.
After that, you have to choose the location, the conclusion of the lease and the design of the premises. At this stage, you will have to do a lot of work. And below you will find out what to pay special attention to.
Registration of business and obtaining permits is a particularly important stage of the opening. Moreover, in 2016 the procedure of trade became more difficult due to tightening of control by the state.
And if you think that it’s easy to pick up sellers in a draft beer store, then we’ll tell you about the difficulties that are ahead of you in the process of work.
Investments in this type of business are considerable. But the bulk of investment is in working capital, and the sales equipment can be rented from the supplier.
The total cost of investments is 1,457,000 rubles.
Break-even point is reached in the first month of operation.
The payback period is from 5 months.
2. Description of business, product or service
The idea of the project is to open a store, the main product of which is beer. This drink is presented in a wide range: more than 20 types of draft beer. In addition, the buyer will be able to purchase additional snacks, as well as souvenir products: mugs, glasses, etc.
The list of products is as follows:
- Draft beer: light, dark, unfiltered;
- Beer bottled imported;
- Non-alcoholic drinks: lemonade, kvass, juices, water;
- Cigarettes: more than 200 titles;
- The accompanying goods: lighters, chewing gums, chocolates, coffee, tea, chewing sweets, sweets, condoms, tobacco for hookah;
- Seasonal goods: non-frosting, liquid for ignition, coals, kebab kits;
- Snacks weight: fish snacks, squid, meat snacks, pistachios, peanuts, crackers, smoked cheese;
- Snacks in assortment: nuts, chips, crackers, seeds, popcorn.
In the assortment, revenue is as follows:
The cost of draft beer ranges from 60 to 250 rubles. per liter. The margin is from 50 to 100% depending on the type of beer, as well as on the state of the competitive environment.
The volume of beer sales depends strongly on the seasonality factor. High demand is observed from May to September, while in winter revenues barely cover current expenses. In the cold season, the beer shop exists at the expense of regular customers. Therefore, in order to eliminate the risk of being left without profit in cold weather, from the beginning of the opening it is necessary to actively develop a circle of regular customers. It is better to open the store during the period from March to May, as in this case you have an opportunity to earn a large client base by the winter season.
It is worth noting that the preferences for the assortment vary throughout the year. In summer, the consumer prefers «light» varieties of beer, and in winter stops the choice of «strong». Proceeding from this, it is necessary to regulate the trade balances, and also to form the optimal order size. The faster the product will be updated in your store, the more buyers will go to you.
3. Description of the market
The target audience of the project consists mainly of men – 70% of the total number of target audience. Age – from 18 to 55 years. Women make up 30% of Central Asia. A large share of sales falls on people aged 25 to 35 years.
The beer shop is visited by regular customers who regularly consume beer in large quantities, as well as people from passing traffic who have entered the store on the way. The latter account for about 25% of all buyers.
The main flow of customers is the residents of the nearest houses. That is why the location in the city center for this type of business is not profitable in advance.
Direct competitors of the store of draft beer are the same retail outlets. Equally serious threat is also represented by large federal networks selling cheap bottled beer. However, the development of a unique trade proposal will help to bypass competitors and take a free niche in this business. The emphasis can be made on a wide range of products, at high quality of service or on the provision of discounts and bonuses to regular customers.
The main asset of your company is a stable reputation. Therefore, special care should be taken to maintain order in the store. To do this, you need to set the alarm button to call the guard, and hang a CCTV camera. If you do not want to spend money on buying a camera, you can install a dummy. This will positively affect both the discipline of sellers and the behavior of buyers.
Among the advantages over competitors are:
- High quality products – only proven suppliers and the best varieties of beer;
- Organoleptic properties – all types of draft beer are many times superior to any bottled according to taste and useful characteristics. Even in closed kegs, such beer is stored for 30 to 60 days, and in open form no more than 7 days. Thus, it is a natural product that retains many useful vitamins and minerals;
- A unique bonus system for buyers – a multi-level program motivates you to bring friends and make purchases exactly in your store;
- All varieties are always present;
- Absence of overdue goods – there is a constant rotation;
- Every event is held;
- Cozy, good-natured atmosphere in the store, nice interior;
- 24-hour format of the store;
- Availability of related products – snacks and cigarettes;
- The presence of soft drinks – selling kvass and lemonade.
With the competent management of one store, the owner of the business has the opportunity to develop his own trading network. And since one shop covers a circle of customers within a radius of 500-1000 m, then you can open additional points even in one area. In this case, your company becomes famous in a wide range of beer lovers, and a positive reputation ensures a continuous flow of customers.
4. Sales and marketing
At the opening of the store, the main attention is paid to the development of the signboard, the decoration of the facade, and also to the servicing of the first customers.
The store sign should be bright, memorable and easily viewed from all sides of the street. This is necessary in order to make finding your store for customers as convenient as possible.
Attracting customers and increasing sales is achieved through the provision of customers with club cards and discounts, as well as entertainment events that stimulate lotteries and rallies.
Each conducted action should be actively advertised: printed on posters and banners, voiced to customers at every purchase.
Examples of shares:
- 10% discount for the purchase of more than 3 liters of beer;
- When buying a certain type of beer, crackers as a gift;
- Call a friend and get a 10% discount.
The number of shares is limited only by your imagination. The main thing is to constantly monitor the results of ongoing advertising campaigns, highlighting the most successful options.
Also on sale you can enter additional products that are stylistically suitable for the design and concept of the store. For example, matches, lighters, toothpicks, glasses and so on.
A good way to attract and retain a client is to develop a bonus accumulation system. In order to use it, the client must purchase a bonus card.
- With each purchase, 5% of bonuses accumulate;
- Bonuses are unlimited, that is, they do not burn with the passage of time;
- Bonuses «bind» people to the store. That is, if there is a choice, the customer always comes to the store where he has a discount or bonuses;
- Many people are already accustomed to and love the system of accumulation of bonuses (use cards Gazprom, Lukoil, Sberbank);
- Payment for the purchase of bonuses can be made in full or in part (you can also set a limit – «no more than 20%»);
- Increased bonuses can attract customers and even entice them from competitors (for example, a 30% stake on the bonus card);
- Advantages of the bonus card before the discount is that of all accumulated bonuses, no more than 70-75% is spent, while a discount is always granted.
Customer loyalty also increases such additional services as the ability of the buyer to pre-order, and then pick it up at the appointed time.
Track the reaction of buyers to every action you conduct. Ask them personally, arrange surveys, get a book of feedback and suggestions – so you’ll be on time to learn about changes in customer needs.
5. Production plan
State registration. To open a beer store, it is enough to register as an IP. Ltd. is required for the wholesale sale of beer beverages. The chosen taxation system is the USN (6% of income);
- Search of premises, conclusion of the lease agreement;
- Repair work, design;
- Purchase of equipment, installation;
- Obtaining permission from SES and the Fire Service;
- Staff recruitment;
- Search for suppliers and formation of working capital;
- Installation of a cash register, as well as connection to the EGAIS system;
- Notification of Rospotrebnadzor on the commencement of activities;
- Conducting a marketing campaign;
- Beginning of work.
When choosing a room, one must proceed from the assortment of products offered, the proximity of competitors, the fire safety standards, and also take into account the contingent of passing traffic of people.
Thus, to the premises for the organization of the store, which provides more than 20 varieties of beer, you can make the following demands:
- District-residential area;
- The size of the room – at least 40 sq.m., 1 floor, the presence of two exits (according to the norms of the Fire Inspection);
- Location – at a distance of at least 100 m from general education and medical institutions;
- The entrance to the store must be located on the first line, not in yards;
- Absence of competitors in walking distance.
To ensure that your store is perceived by the consumer not as a cheap pub, but as a real brew of draft beer, you need to pay attention to the name of the store, its exterior design, as well as the interior design. To do this, you should use the services of a designer, purchase building materials, make repairs, order a sign. If you buy a franchise of a beer store, then the design project is already included in the price.
The next step is the purchase and installation of equipment. Often, distributors of large beer factories offer equipment rental or even provide it for free. Terms should be negotiated separately with each specific supplier.
After you have completed the repair and installed the equipment, you need to obtain the permits of the Fire Station and SES. As a rule, if the premise has already been leased before, and you did not redevelop, then the necessary documents from the landlord already exist.
At the stage of recruitment you will need to conduct interviews and select two suitable candidates for the vacancy of the seller. In addition, you need to hire an accountant for outsourcing.
When choosing suppliers, it should be noted that imported beer costs several times more than Russian-made beer. It is better to work with one large supplier, who on time delivers fresh high quality beer.
On January 1, 2016, the Russian Federation introduced a law on the introduction of a system of alcohol control and accounting through the EGAIS system. To connect to the system, it is necessary to purchase a cash register complex compatible with the EGAIS, an UTM system and a JaCarta key with an electronic signature. In cooperation with the company Piv & Co., you do not have to keep records yourself, this responsibility is borne by the parent company. You only need to register and follow the instructions from the franchisor.
It remains to notify Rospotrebnadzor about the beginning of the trade and announce the date of the festive opening of the store. A competent opening campaign will provide you with a flow of customers on the first day of work.
6. Organizational structure
At the first time, the only representative of the administrative staff of the company is the director. His duties include:
- Search for suppliers and conclusion of contracts;
- Development and implementation of marketing campaigns;
- Drawing up sales plans for 1, 3, 6 months;
- Control over the timely opening and closing of the store;
- Disposal of the company’s financial resources;
- Personnel selection and wage delivery;
- Regular payment of rental payments, as well as the extension of the lease;
- Monitoring the activities of competitors;
- Development of company development strategy.
To ensure the continuity of the store should hire sales people. At the opening stage, there will be enough two sellers working on the schedule – 2 working days after 2 days off. The seller’s salary is 500 rubles. per shift + 2% of total revenue per month. The fixed part is issued daily at the closing of the shift, and the percentage is paid once at the end of the month. This method of payment motivates sellers to increase sales.
The beer shop assumes a certain specificity of work:
- First, the possibility of incorrect behavior on the part of buyers. In order to make the work of the seller more comfortable, a video surveillance system is installed in the store. And at the entrance it is necessary to post an announcement about the presence of video cameras, even if in fact a dummy is installed. In addition, you can strictly prohibit the service of people in a state of intoxication.
- Secondly, working with alcohol products in a spill attracts the seller in terms of opportunities to deceive and conduct fraud. The video surveillance system will prevent this behavior of your employees.
In this regard, it is important to seriously approach the selection of personnel, as well as to develop a checklist for assessing the quality of the seller. Here are some examples of such an internal document:
- Clean working area;
- Neat appearance;
- Friendly customer service;
- Informing all customers about the availability of the bonus program and the existing promotions;
- Cleaning after working hours;
- Regular removal of commodity balances;
- Forming an order for suppliers;
- Cashier control, keeping a register of purchases.
For each item, evaluation criteria should be developed. If one of the conditions is not met, a penalty is imposed.
To submit the report, you need to hire an accountant for outsourcing. Also need to hire a cleaner, and in the winter will have to use the services of a janitor.
7. Financial plan
Initial investments in the beer store include:
- A down payment;
- Investments in equipment;
- Current expenses (including working capital).
A detailed list of investment costs is presented in the table. The total cost of investments is 1,457,000 rubles.
Investments | Cost, rub.) |
---|---|
All-inclusive payment | 350,000 |
Equipment | 450 000 |
Repair work | 140 000 |
Commercial equipment (furniture) | 70 000 |
Cashbox | 120,000 |
Refrigerator 2pcs. (beer and fish) | 30 000 |
Medium temperature showcase | 90 000 |
Recurrent costs | 657 000 |
For rent | 50,000 |
Internet and telephony | 2,000 |
Utilities | 16,000 |
Maintenance of POS | 3,000 |
other expenses | 3,000 |
Salary to employees | 60,000 |
Janitor, mare | 8,000 |
Purchase of goods | 500 000 |
Advertising (external design) | 5,000 |
Promotions | 10,000 |
TOTAL | 1 457 000 |
In cooperation with the company Piv & Co., you have to buy only get a medium-temperature display case. The rest of the equipment (defoamer, coolers, beer columns, reducers) you get free of charge.
The company’s revenue depends on the flow of customers. On average, 150 to 250 purchases are made per day. The average check is 200 – 250 rubles. Profitability of sales – 27%.
The ratio of income and current expenses, as well as the amount of profit in the first months of the store, is shown in the table.
Month of work | January | February | March | April | May |
---|---|---|---|---|---|
Income (rubles) | 1 450 000 | 1 350 000 | 1 350 000 | 1 680 000 | 2 260 000 |
Gross profit (from profitability accounting) | 391 500 | 364,500 | 364,500 | 453 600 | 610 200 |
Expense (rub.) | |||||
For rent | 50,000 | 50,000 | 50,000 | 50,000 | 50,000 |
Internet and telephony | 2,000 | 2,000 | 2,000 | 2,000 | 2,000 |
Utilities | 16,000 | 16,000 | 16,000 | 16,000 | 16,000 |
Maintenance of POS | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
other expenses | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 |
Salary to employees | 60,000 | 60,000 | 60,000 | 65,000 | 70 000 |
Janitor, mare | 8,000 | 8,000 | 8,000 | 8,000 | 8,000 |
Advertising | 5,000 | 5,000 | 5,000 | 5,000 | 5,000 |
Promotions | 10,000 | 10,000 | 10,000 | 10,000 | 10,000 |
Total expenses (RUR) | 157 000 | 157 000 | 157 000 | 162,000 | 167,000 |
Net profit (rubles) | 234 500 | 207 500 | 207 500 | 291 600 | 443 200 |
Accrued Cash Flow (taking into account the initial investment) | -1 065 500 | -858,000 | -650 500 | -358,900 | 84 300 |
Download an example of a business plan of coffee with you with the calculations you can from the attached file.
Break-even point is reached for the first month of operation.
The payback period is from 5 months.
8. Risk factors
The main risk factors are related to changes in legislation, which often entail many difficulties for doing business. So, for example, in 2016 introduced a unified system for controlling the volume of turnover of alcohol products EGAIS. All wholesalers and manufacturers of alcohol should be connected from January 1, 2016, and retailers from July 1, 2016. At the same time, many legal aspects of the system are not fully developed: there is no regulatory framework that regulates the timing of information and the resolution of disputes. For example, it is not yet clear how to proceed if the buyer has made a refund of alcoholic beverages.
In addition, if you decide to supplement your assortment with additional alcohol products, you will need to obtain a license, the issuance of which may take two to three months. In addition, a license is issued only to a legal entity, so you will have to register an LLC.
Another serious risk of loss of profit is the emergence of competitors in the same area. Reduce this risk is possible through the development of a network of its own stores. Thus, a territorial monopoly is achieved in the draft beer market.
During the decline in the purchasing power of the population, a change in the demand for certain types of beer is possible. Reduce the risk of non-compliance of the assortment with the needs of customers will allow regular collection of customer feedback and analysis of sales in the assortment.
Internal risks are the unfair work of sellers. It is necessary to monitor their work every day. It is advisable to hire people who do not drink alcohol and are not interested in stealing it.
Another risk of unprofitable activity of an enterprise may be an unsuccessful time of opening a store. As mentioned before, it is better to open a beer store with the onset of spring, on the eve of the May holidays.
In general, if at the opening you will follow all the recommendations given, as well as monitor the competitors’ market, knowing about innovations in time, your business promises to be successful and bring a stable profit from the first months of operation.