1. A brief investment memorandum. As you know, in 2017, along with China and Spain, Russia became one of the three most reading countries in the world, ranking second in the world ranking of the research company GfK.
59% of Russians said they read daily or at least once a week. Also positive on the sales of bookstores is the adoption of amendments to the «anti-piracy law» in 2015, according to which the law also extends to books, so it is now more difficult to find free books on the Internet, and it is easier for users to buy or order them in the store.
These data confirm the fact that despite the development of modern gadgets and technologies, book production is quite popular and in demand. Consequently, the opening of a bookstore can become a profitable business,
In cities with a population of 1 million people with a population of up to 4 million people, an average of 90 to 140 bookstores are opened on average.
The amount of initial investment is 1 594 327 rubles.
Profitability of the project 26.6%
Break-even point is reached for the tenth month of work.
The payback period is from 24 months .
The average net profit: 226,090 rubles.
2. Description of business, product or service
Before starting the project, you need to decide which bookshop you will open. We offer the following options for consideration:
- A bookstore with exclusive books;
- A small shop with a wide range of goods (including related products);
- Book supermarket.
In this business plan, we will consider the option of opening a small bookshop with a wide range of products, since such a project requires a relatively small amount of investment.
The goods provided by your bookstore can be divided into groups and presented as follows:
| Product group name | Name of the subgroup of goods |
| Book production | Children’s literature |
| Foreign literature | |
| Fantastic | |
| Historical Literature | |
| Educational, methodical literature and dictionaries | |
| Fiction | |
| Stationery | |
| Board games |
It is undesirable to introduce all categories of books in the beginning, it is better to cover more narrow, but the most popular subjects. Such a structure of purchased goods is optimal for a beginner shop and will meet the needs of not all but relatively large public. Over time, it is recommended to expand the range, introducing periodicals, gift products, various genres of books, souvenirs, etc.
According to the Association of Internet Trade Companies, online purchases today are made by only half of Russian Internet users, and in Europe and the United States this figure exceeds 80%, so the Internet market in Russia is in the stage of significant growth. Opening a bookstore you can not ignore such a sales channel as your own website, so you will need to take care of opening your own site, where users can get acquainted with the assortment and place an order.
The book business has a seasonal character: the maximum sales volume falls on the period from September to March, but in summer the demand for books usually falls. The operating mode of the bookstore: every day from 10: 00-21: 00.
3. Description of the market
Potential buyers of your bookstore’s products can be conditionally divided into the following types:
- Parents who will purchase textbooks, developing materials, children’s table games for their children;
- Students and students who need methodical aids and other educational literature, as well as stationery and board games (monopoly, etc.);
- Customers who purchase thematic literature (for example, fans of fiction);
- Casual passers-by, for example, on their way home after office supplies.
According to the research of the Federal Agency for Press and Mass Communications, 35-44-year-olds (41%) and respondents with higher education (40%) most often buy books, this must be taken into account when developing your store’s advertising campaign.
We will carry out a SWOT analysis of your project’s activities.
| Strengths of the project | Weaknesses of the project |
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| Project Capabilities | Threats to the project |
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4. Sales and marketing
Promotional tools to increase the visibility of your bookstore can be conditionally divided into online and offline methods. Here are the main areas that will need to be mastered to stimulate your sales.
Offline promotion:
- A week before the opening, you should hire promoters to distribute flyers in crowded places near the store;
- A bright and noticeable sign will help to inform random passers-by about your store;
- You should cooperate with institutions whose customers can become your customers. For example, if you distribute flyers, coupons that give discounts on purchases, in schools, cafes, universities, you can achieve that, then students and customers will come to buy the shares, and in the future will be your regular customers.
Online promotion:
- Modern business is difficult to imagine without having a convenient website, as more and more purchases are made through the Internet channel. Therefore, in parallel with the opening of the point of sales, you need to think about creating an online store in which the user can get acquainted with the catalog of basic goods and make a purchase. Website promotion should start contextual advertising;
- Creating a group in social networks «VKontakte» and «Facebook» will increase the loyalty of customers to your brand. Their promotion should begin with targeted advertising;
- E-mail newsletter with information about promotions and discounts for registered customers on the site.
Examples of promotions that can be offered to customers:
– «1 + 1 = 3» – when buying two goods (possibly a certain category), the third position in the check is given as a present;
– The discount coupon is 300 rubles. when buying for 2 000 rubles.
5. Production plan
Denote the main stages of the opening of the bookstore.
Registration in state bodies
Before opening a bookshop, you need to register as an individual entrepreneur. If we talk about the taxation system, it is more expedient to choose a tax that is simplified from 6% of income.
At registration you will need to specify the following OKVED:
-47.61 Retail trade in books in specialized stores. This group includes retail trade in books of all kinds, but does not include the retail sale of second-hand or antiquarian books;
-47.62 Retail trade in newspapers and stationery in specialized stores. This group includes the retail sale of office stationery, such as pens, pencils, paper, etc., in specialized stores;
-47.62.1 Retail trade in newspapers and magazines in specialized stores;
– 47.62.2 Retail trade of paper and office goods in specialized stores
Room search and repair
A bookstore can be placed on an area of 80-90 sq.m. The main requirement for accommodation: high pedestrian traffic, a separate entrance and convenient transport interchange. Also, there should be at least two rooms in the room: the first one is the sales hall, the second is the auxiliary room (warehouse) for the goods, which have been deposited but not laid out in the main hall. It is not necessary to look for a room in the center of the city, a bookstore can quite successfully work and be in demand, being in the sleeping area.
Rent for a room that meets these requirements will be about 50,000 rubles per month. Perhaps you will need to repair, in particular, painting the walls, replacing the doors, this will have to allocate at least 50 000 rubles.
Purchase of necessary equipment and inventory
To open a bookstore you need the following equipment:
- Racks mounted and floor;
- Cash registers;
- Shelves;
- Chairs and tables;
- Cabinets for goods in stock;
- Wardrobe and chairs for the utility room.
The full list and prices can be viewed in the table below:
| Name | amount | Price for 1 pc. | total amount |
| Commercial equipment and inventory | |||
| Floor rack | 25 | 6,000 | 150,000 |
| Suspended shelving | 18 | 2 399 | 43 182 |
| Table for the arrangement of goods | 5 | 1 700 | 8,500 |
| Chair | 6th | 800 | 4 800 |
| Cash machine | 1 | 37,000 | 37,000 |
| Interior items | 10,000 | ||
| Cashier Counter | 1 | 6,000 | 6,000 |
| Anti-theft gates | 2 | 21 500 | 43,000 |
| Computer AcerExtensa | 2 | 27,000 | 54 000 |
| Showcase for office supplies | 2 | 16,000 | 32 000 |
| Barcode Scanner | 1 | 2 500 | 2 500 |
| Signboard shop | 1 | 40,000 | 40,000 |
| Expendable inventory * | 10,000 | ||
| Furniture and stock inventory | |||
| Computer AcerExtensa | 1 | 27,000 | 27,000 |
| Shelf for goods | 4 | 7,000 | 28 000 |
| Table | 1 | 1 800 | 1 800 |
| Furniture and equipment for personnel | |||
| Wardrobe | 1 | 5,500 | 5,500 |
| Table | 1 | 3 900 | 3 900 |
| Chair | 6th | 800 | 4 800 |
| Microwave | 1 | 3,000 | 3,000 |
| Electric kettle | 1 | 2,000 | 2,000 |
| Storage racks | 1 | 12,000 | 12,000 |
| Total | 528 982 | ||
* The expendable inventory includes: paper, check tape, price tags
Supplier search
The search for reliable wholesale book suppliers is one of the key
moments in the opening of the bookstore. Since at first the volume of purchases will not be very large, it is more profitable to work with suppliers, and not directly with publishers, since the latter, as a rule, establish a considerable amount of minimum purchase of books. Search for suppliers is more expedient to conduct on the Internet, such enterprises establish a system of discounts, give acquaintance with the content of the book in the online store, provide an opportunity to work on pre-order, etc. In addition, it is better to stock up reserve providers for each of the product groups that will be able to help you out in case of unforeseen circumstances.
Staff search
The key employees of your store will be: sales consultants, cashier, merchandiser, marketer, accountant, general manager. Since most of the staff should not have any special skills, many can be found through the social services. network or friends. Over time, it will be possible to hire a purchasing specialist who will contact directly with suppliers, since there are a lot of product names, but at first you can fulfill these duties. An accountant and marketer should be hired on a remote basis to save space and minimize costs for computers and equipment.
Marketing Policy
Denote the main types of costs that you will face in the process of implementing an advertising campaign:
- Creation and promotion of an online store – 150 000 rub .;
- The budget for contextual advertising is 15,000 rubles;
- Promotion of the group and profile in the social network – 10 000 rubles;
- Promo leaflets – 2 000 rubles.
- Payment for e-mail services – 3,500 rubles.
Calendar plan for opening a bookstore
| Stage / duration of execution, weeks. | 1 week | 2 weeks | 3 weeks | 4 weeks | 5 weeks. | 6 weeks |
| IP Registration | ||||||
| Search for suppliers and purchase | ||||||
| Launching an advertising campaign | ||||||
| Purchase of inventory and equipment | ||||||
| Room search | ||||||
| Repair of premises and installation of equipment | ||||||
| Search frames |
6. Organizational structure
Since the bookstore will work every day, it is necessary to hire two sales consultants who will work on schedule 2/2 from 09: 30-21: 30. The duties of sales consultants include:
- Keep track of the availability of sufficient goods in the trading floor and, if necessary, replenish it;
- To help buyers when choosing a product, to advise buyers on the range of goods offered for sale in the store, on consumer properties and product features;
- To participate in the promotion of sales of certain types of goods, in the advertising promotions of the store;
- To help the merchandiser or the store manager to accept the goods;
- To prepare the goods for sale: unpacking, assembling, manning, checking the operational properties, etc.
- Monitor the availability of price tags for the goods, their correct placement and the correct indication of all information in the price tag (product name, price, etc.);
- Participate in the inventory;
- Watch for leftovers of goods and in case of approaching the quantity to the minimum threshold to inform the director about it;
- To resolve disputable issues with buyers in the absence of representatives of the administration.
Salary of the seller-consultant – 13 000 rubles. (salary) + 5% from the sale to stimulate sales volumes. The basic requirements for candidates for a post-perfect knowledge of products, affability, pleasant appearance, competent speech, experience in sales is welcomed.
Also you will need to hire two vendors-cashiers, working in shifts, whose duties include:
- To ensure the safety of funds;
- Serve customers at the checkout and keep cash records;
- After closing the store, check cash at the checkout, in case of an error, identify and eliminate it;
- Interact with the accountant in issues related to the movement of cash;
- Participate in the inventory;
- In the absence of a sales consultant, perform his duties.
The salary of the seller-cashier is 16,000 rubles.
Special attention should be paid to finding a marketer for your store. The basic requirements for this employee – the experience of conducting advertising campaigns. Wages will be maximally tied to the degree of implementation of the sales plan (11 000 salary + 22 000 rubles for the fulfillment of the sales plan). The duties of a marketing specialist include: interaction with partners about promotional leaflets and shares, interaction with the site’s creator, development and promotion of groups in social networks, advertising campaigns for contextual advertising. This employee will work remotely, with daily reporting on the results of the work done to the CEO.
In addition, you need to find a merchandiser (which can be part-time), which several times a week will receive goods and place it in the back room, helping sellers with the layout of books in the hall. The salary of the merchandiser is 10,000 rubles per month. You will also need an accountant on a remote basis with a salary of 6,000 rubles per month.
As for the director, the payment for his work will also depend on the fulfillment of the plan (20,000 rubles – salary, 18,000 – bonus for the fulfillment of the plan). The director deals with the issues of supply, distribution of cash flows, control of employees, selection of personnel, decides on the appointment of bonuses.
Staff salaries in the first month of work
| General Wages Fund | |||
| Staff | The number of employees | Salary per 1 employee (rub.) | Salary total (rub.) |
| Leader (salary + bonus) | 1 | 38,000 | 38,000 |
| Shop assistant | 2 | 17,046 | 34,092 |
| Seller-cashier | 2 | 16,000 | 32 000 |
| Accountant | 1 | 6,000 | 6,000 |
| Marketer | 1 | 33,000 | 33,000 |
| Merchandiser | 1 | 10,000 | 10,000 |
| Cleaner | 1 | 9,000 | 9,000 |
| General fund s / n | 162 092 | ||
7. Financial plan
Investments in the opening of the bookstore look like this:
| Name | Amount | The cost of 1 piece, rub. | Total amount, rub. |
| Equipment and inventory | 528 982 | ||
| Cosmetic Repair | 1 | 50,000 | 50,000 |
| IP Registration | 1 | 4,500 | 4,500 |
| Website creation | 1 | 150,000 | 150,000 |
| Promotion of group and profile in social networks | 1 | 10,000 | 10,000 |
| contextual advertising | 1 | 15,000 | 15,000 |
| Promotional materials | 1 | 5,000 | 5,000 |
| Lease (security deposit) | 50,000 | ||
| Initial purchase of goods | 440 000 | ||
| Total | 1 253 482 |
Current expenses in the first month of work are presented below:
| Planned costs in the first month of work | |
| Variable costs | 249,290 |
| Wage | 162 092 |
| Deductions from the FOT (30% of the salary of full-time employees) | 46,828 |
| Purchase cost of goods | 40 370 |
| Fixed costs | 91 555 |
| Rent (80 sq.m.) | 50,000 |
| Advertising, marketing, printed materials | 26,000 |
| Depreciation** | 2 500 |
| Unexpected expenses | 7,000 |
| Taxes of the USN | 6,055 |
| Total expenses | 340 845 |
** Depreciation is accrued on a straight-line basis over 5 years.
The total amount of initial investment is 1 253482 rubles.
The forecast of financial indicators of the enterprise for 2 years:
| Product group name | Subgroup | Indicators | 1 | 2 | 3 | 4 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 50 | 72 | 96 | 124 | ||
| Income | 18,750 | 27,000 | 36,000 | 46 500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 62 | 79 | 102 | 120 | ||
| Income | 21,080 | 26,860 | 34 680 | 40 800 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 44 | 62 | 80 | 98 | ||
| Income | 12 980 | 18,290 | 23 600 | 28,910 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 32 | 44 | 56 | 68 | ||
| Income | 12,640 | 17 380 | 22 120 | 26,860 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 29 | 37 | 45 | 53 | ||
| Income | 10,730 | 13 690 | 16 650 | 19 610 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 96 | 140 | 184 | 252 | ||
| Income | 3,744 | 5 460 | 7 176 | 9,828 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 10 | 18 | thirty | 42 | ||
| Income | 21,000 | 37 800 | 63 000 | 88 200 | ||
| Total revenue | 100,924 | 146,480 | 203 226 | 260 708 | ||
| Variable costs | 249,290 | 273 434 | 307,574 | 339 189 | ||
| Wage | 162 092 | 166 648 | 172 323 | 178 071 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 46,828 | 48 194 | 49,897 | 51 621 | ||
| Purchase cost of goods | 40 370 | 58,592 | 81,290 | 104 283 | ||
| Expendable inventory | 0 | 0 | 4,065 | 5 214 | ||
| Fixed costs | 91 555 | 94 289 | 97 694 | 101 142 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 6,055 | 8,789 | 12 194 | 15 642 | ||
| Total expenses | 340 845 | 367 723 | 405,268 | 440,332 | ||
| Net profit | -239 921 | -221,243 | -202,042 | -179,624 | ||
| EBITDA (PE, including taxes and depreciation) | -184,538 | -161,760 | -137,452 | -109,860 | ||
| EBIT (PE, including taxes) | -187,038 | -164 260 | -139 952 | -112 360 | ||
| Accrued Cash Flow (taking into account the initial investment) | -1 493 403 | -1 714,646 | -1,916,688 | -2,096,312 | ||
| Cumulative net income | -239 921 | -461 164 | -663 206 | -842,830 | ||
| Product group name | Subgroup | Indicators | 5 | 6th | 7th | 8 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 152 | 180 | 208 | 236 | ||
| Income | 57,000 | 67,500 | 78,000 | 88,500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 138 | 156 | 174 | 192 | ||
| Income | 46,920 | 53,040 | 59 160 | 65 280 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 116 | 134 | 152 | 170 | ||
| Income | 34 220 | 39 530 | 44 840 | 50 150 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 80 | 92 | 104 | 116 | ||
| Income | 31 600 | 36 340 | 41,080 | 45 820 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 61 | 69 | 77 | 85 | ||
| Income | 22 570 | 25,530 | 28,490 | 31 450 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 320 | 388 | 456 | 524 | ||
| Income | 12 480 | 15 132 | 17,784 | 20 436 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 54 | 66 | 78 | 90 | ||
| Income | 113 400 | 138 600 | 163 800 | 189,000 | ||
| Total revenue | 318 190 | 375 672 | 433 154 | 490 636 | ||
| Variable costs | 370 805 | 402 420 | 400 249 | 427 380 | ||
| Wage | 183 819 | 189,567 | 169 326 | 171 625 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 53 346 | 55,070 | 48,998 | 49,688 | ||
| Purchase cost of goods | 127 276 | 150 269 | 173 262 | 196 254 | ||
| Expendable inventory | 6,364 | 7 513 | 8 663 | 9,813 | ||
| Fixed costs | 104,591 | 108 040 | 111 489 | 114,938 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 19 091 | 22 540 | 25,989 | 29 438 | ||
| Total expenses | 475 396 | 510 460 | 511 738 | 542 318 | ||
| Net profit | -157 206 | -134,788 | -78 584 | -51,682 | ||
| EBITDA (PE, including taxes and depreciation) | -82,269 | -54 677 | -1 097 | 29 943 | ||
| EBIT (PE, including taxes) | -84,769 | -57,177 | -3 597 | 27,443 | ||
| Accrued Cash Flow (taking into account the initial investment) | -2,253,518 | -2,388,306 | -2,466,890 | -2,518,572 | ||
| Cumulative net income | -1 000 036 | -1 134,824 | -1,231,408 | -1 265 090 | ||
| Product group name | Subgroup | Indicators | 9 | 10 | eleven | 12 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 264 | 292 | 320 | 348 | ||
| Income | 99,000 | 109,500 | 120,000 | 130 500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 210 | 228 | 246 | 264 | ||
| Income | 71 400 | 77 520 | 83,640 | 89 760 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 188 | 206 | 220 | 234 | ||
| Income | 55 460 | 60,770 | 64 900 | 69,030 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 128 | 140 | 152 | 164 | ||
| Income | 50 560 | 55,300 | 60,040 | 64,780 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 93 | 101 | 109 | 117 | ||
| Income | 34 410 | 37 370 | 40,330 | 43,290 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 592 | 660 | 728 | 796 | ||
| Income | 23,088 | 25,740 | 28,392 | 31 044 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 102 | 114 | 126 | 138 | ||
| Income | 214200 | 239400 | 264600 | 289800 | ||
| Total revenue | 548 118 | 605 600 | 661,902 | 718 204 | ||
| Variable costs | 454 512 | 481 643 | 508,218 | 534,792 | ||
| Wage | 173,925 | 176,224 | 178 476 | 180 728 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 50,377 | 51 067 | 51 743 | 52 418 | ||
| Purchase cost of goods | 219 247 | 242,240 | 264 761 | 287 282 | ||
| Expendable inventory | 10,962 | 12 112 | 13,238 | 14,364 | ||
| Fixed costs | 118,387 | 121 836 | 125 214 | 128,592 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 32,887 | 36 336 | 39,714 | 43,092 | ||
| Total expenses | 572 899 | 603 479 | 633 432 | 663 385 | ||
| Net profit | -24,781 | 2 121 | 28 470 | 54 819 | ||
| EBITDA (PE, including taxes and depreciation) | 60,984 | 92 024 | 122,427 | 152 830 | ||
| EBIT (PE, including taxes) | 58 484 | 89 524 | 119 927 | 150 330 | ||
| Accrued Cash Flow (taking into account the initial investment) | -2 543 353 | -2,541,232 | -2 512 762 | -2,457,943 | ||
| Cumulative net income | -1 289 871 | -1 287,750 | -1 259 280 | -1 204 461 | ||
| Product group name | Subgroup | Indicators | 13 | 14 | 15 | 16 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 376 | 404 | 432 | 460 | ||
| Income | 141 000 | 151 500 | 162,000 | 172 500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 282 | 300 | 318 | 336 | ||
| Income | 95 880 | 102 000 | 108 120 | 114 240 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 248 | 262 | 276 | 290 | ||
| Income | 73 160 | 77,290 | 81 420 | 85 550 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 176 | 188 | 200 | 212 | ||
| Income | 69,520 | 74 260 | 79,000 | 83 740 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 125 | 133 | 141 | 149 | ||
| Income | 46 250 | 49 210 | 52 170 | 55 130 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 864 | 932 | 1,000 | 1 068 | ||
| Income | 33,696 | 36 348 | 39,000 | 41 652 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 150 | 162 | 174 | 186 | ||
| Income | 315 000 | 340 200 | 365 400 | 390 600 | ||
| Total revenue | 774,506 | 830 808 | 887 110 | 943 412 | ||
| Variable costs | 561 367 | 587 941 | 614 516 | 641 090 | ||
| Wage | 182 980 | 185 232 | 187,484 | 189 736 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 53,094 | 53,770 | 54,445 | 55 121 121 | ||
| Purchase cost of goods | 309,802 | 332 323 | 354 844 | 377 365 | ||
| Expendable inventory | 15,490 | 16,616 | 17 742 | 18 868 | ||
| Fixed costs | 131 970 | 135 348 | 138 727 | 142 1055 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 46 470 | 49 848 | 53 227 | 56,605 | ||
| Total expenses | 693 337 | 723,290 | 753 243 | 783 195 | ||
| Net profit | 81 169 | 107 518 | 133 867 | 160 217 | ||
| EBITDA (PE, including taxes and depreciation) | 183 233 | 213 636 | 244,039 | 274 442 | ||
| EBIT (PE, including taxes) | 180 733 | 211 136 | 241 539 | 271 942 | ||
| Accrued Cash Flow (taking into account the initial investment) | -2,376,774 | -2 269 256 | -2 135 388 | -1 975 171 | ||
| Cumulative net income | -1 123 292 | -1,015,774 | -881,906 | -721,689 | ||
| Product group name | Subgroup | Indicators | 17th | 18 | 19 | 20 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 488 | 516 | 544 | 572 | ||
| Income | 183,000 | 193 500 | 204 000 | 214 500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 354 | 372 | 390 | 408 | ||
| Income | 120 360 | 126 480 480 | 132 600 | 138 720 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 304 | 318 | 332 | 346 | ||
| Income | 89 680 | 93 810 | 97,940 | 102,070 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 224 | 236 | 248 | 260 | ||
| Income | 88,480 | 93 220 | 97 960 | 102 700 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 157 | 165 | 173 | 181 | ||
| Income | 58 090 | 61 050 | 64,010 | 66 970 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 1 136 | 1 204 | 1 272 | 1 340 | ||
| Income | 44 304 | 46,956 | 49,608 | 52 260 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 198 | 210 | 222 | 234 | ||
| Income | 415 800 | 441 000 | 466 200 | 491 400 | ||
| Total revenue | 999,714 | 1 056 016 | 1 112 318 | 1 168 620 | ||
| Variable costs | 667 665 | 694,240 | 720,814 | 747 389 | ||
| Wage | 191,989 | 194 241 | 196 493 | 198 745 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 55,797 | 56,472 | 57,148 | 57 823 | ||
| Purchase cost of goods | 399,886 | 422 406 | 444 927 | 467,448 | ||
| Expendable inventory | 19,994 | 21 120 | 22 246 | 23,372 | ||
| Fixed costs | 145 483 | 148 861 | 152 239 | 155 617 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 59,983 | 63,361 | 66,739 | 70 117 | ||
| Total expenses | 813 148 | 843 101 | 873 053 | 903 006 | ||
| Net profit | 186 566 | 212,915 | 239,265 | 265,614 | ||
| EBITDA (PE, including taxes and depreciation) | 304,846 | 335 249 | 365 652 | 396,055 | ||
| EBIT (PE, including taxes) | 302 346 | 332 749 | 363 152 | 393 555 | ||
| Accrued Cash Flow (taking into account the initial investment) | -1 788 605 | -1 575 690 | -1 336 425 | -1,070,811 | ||
| Cumulative net income | -535 123 | -322 208 | -82 943 | 182 671 | ||
| Product group name | Subgroup | Indicators | 21 | 22 | 23 | 24 |
| Books production | Educational, methodical literature and dictionaries | average price | 375 | 375 | 375 | 375 |
| amount | 600 | 628 | 656 | 684 | ||
| Income | 225,000 | 235,500 | 246 000 | 256 500 | ||
| Fiction | average price | 340 | 340 | 340 | 340 | |
| amount | 426 | 444 | 462 | 480 | ||
| Income | 144 840 | 150 960 | 157,080 | 163 200 | ||
| Children’s literature | average price | 295 | 295 | 295 | 295 | |
| amount | 360 | 374 | 388 | 402 | ||
| Income | 106 200 | 110 330 | 114 460 | 118 590 | ||
| Foreign literature | average price | 395 | 395 | 395 | 395 | |
| amount | 272 | 284 | 296 | 308 | ||
| Income | 107 440 | 112 180 | 116,920 | 121,660 | ||
| Historical Literature | average price | 370 | 370 | 370 | 370 | |
| amount | 189 | 197 | 205 | 213 | ||
| Income | 69 930 | 72 890 | 75 850 | 78 810 | ||
| Stationery | average price | 39 | 39 | 39 | 39 | |
| amount | 1 408 | 1 476 | 1,544 | 1 612 | ||
| Income | 54,912 | 57 564 | 60 216 | 62 868 | ||
| Board games | average price | 2 100 | 2 100 | 2 100 | 2 100 | |
| amount | 246 | 258 | 270 | 282 | ||
| Income | 516 600 | 541 800 | 567 000 | 592 200 | ||
| Total revenue | 1 224 922 | 1 281 224 | 1 337 526 | 1 393 828 | ||
| Variable costs | 773 963 | 800 538 | 827 112 | 853 687 | ||
| Wage | 200,997 | 203 249 | 205 501 | 207 753 | ||
| Deductions from the FOT (30% of the salary of full-time employees) | 58 499 | 59 175 | 59,850 | 60,526 | ||
| Purchase cost of goods | 489 969 | 512 490 | 535 010 | 557 531 | ||
| Expendable inventory | 24,498 | 25 624 | 26,751 | 27,877 | ||
| Fixed costs | 158,995 | 162,373 | 165 752 | 169 130 | ||
| Rent (80 sq.m.) | 50,000 | 50,000 | 50,000 | 50,000 | ||
| Advertising, printed materials | 26,000 | 26,000 | 26,000 | 26,000 | ||
| Depreciation | 2 500 | 2 500 | 2 500 | 2 500 | ||
| Unexpected expenses | 7,000 | 7,000 | 7,000 | 7,000 | ||
| Taxes of USN (6% of revenue) | 73,495 | 76 873 | 80 252 | 83,630 | ||
| Total expenses | 932 959 | 962 911 | 992 864 | 1 022 816 | ||
| Net profit | 291 963 | 318 313 | 344 662 | 371 012 | ||
| EBITDA (PE, including taxes and depreciation) | 426 458 | 456 861 | 487,264 | 517 667 | ||
| EBIT (PE, including taxes) | 423 958 | 454,361 | 484,764 | 515 167 | ||
| Accrued Cash Flow (taking into account the initial investment) | -778,847 | -460 534 | -115,872 | 255 139 | ||
| Cumulative net income | 474 635 | 792,948 | 1 137 610 | 1 508 621 | ||
The data of the table are calculated on the basis of the average prices for each of the group of goods, and the optimal ratio of the assortment. According to the neutral forecast, a positive financial result will start to be generated for the tenth month of the store, while a full return on investment can be expected for the 24th month after the opening. The maximum volume of revenue falls on textbooks and fiction, as well as board games, the minimum – for stationery (due to a low average check). It is worth noting that the financial forecast is calculated on the assumption that sales will be carried out not only at the point of sale, but also via Internet channels. The profitability of business will be 26.6%.
8. Risk factors
As in any other type of business, the project of opening and running a bookshop is accompanied by certain risks. We list the main of them:
– The risk of reducing the activity of customers due to the gradual transition from paper books to electronic materials. To reduce the risk it is necessary to diversify the range of products;
– Risk of rising prices and delays in deliveries. In addition to the main suppliers of books, it is necessary to have in stock 10-15 verified counterparties who will be able to supply you with a batch of goods, and with which it will be possible to agree on discounts and possible concessions, in case the main unfavorable conditions are put forward;
– Risk of growth in the number of competitors. In this case, it is advisable to monitor your competitors’ offers, their shares, bonus programs and prices. This will allow you to offer competitive advantages to customers.
