29.03.2024

Business plan for a bookshop

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:

  1. Parents who will purchase textbooks, developing materials, children’s table games for their children;
  2. Students and students who need methodical aids and other educational literature, as well as stationery and board games (monopoly, etc.);
  3. Customers who purchase thematic literature (for example, fans of fiction);
  4. 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
  • Wide range of goods;
  • The opportunity to purchase a book or other product online on the site;
  • Availability of a website, sites in social. networks;
  • Calculation through various forms of payments;
  • Flexible discount system for customers;
  • Quality service;
  • Presence of cards of regular clients with various bonus shares;
  • Convenient location of the store.
  • Seasonality of business, as a consequence, a decline in sales in certain periods;
  • The possibility of theft from customers and staff.
Project Capabilities Threats to the project
  • The possibility of increasing the range of goods;
  • The possibility of creating a network of bookstores not only in your city, but all over the country;
  • The possibility of attracting different authors for presentations of their books in your store.
  • Decrease in demand for book editions;
  • Growth in the number of competitors.

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:

  1. A week before the opening, you should hire promoters to distribute flyers in crowded places near the store;
  2. A bright and noticeable sign will help to inform random passers-by about your store;
  3. 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:

  1. 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;
  2. 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;
  3. 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:

  1. Creation and promotion of an online store – 150 000 rub .;
  2. The budget for contextual advertising is 15,000 rubles;
  3. Promotion of the group and profile in the social network – 10 000 rubles;
  4. Promo leaflets – 2 000 rubles.
  5. 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.

Leave a Reply

Your email address will not be published. Required fields are marked *