Want to open your store? Think a hundred times! The real story of a failed family business
Figure 1. Internet business selling handbags can be a very profitable idea
Opening an online store is a business that does not require large initial investments and credit financing. An online store has a lower financial threshold for a product to enter the market than a store with a similar turnover in the classical sense. However, as practice shows, in the course of the formation of such a business as Internet commerce, it is necessary to pay attention to some aspects that can lead to the collapse of the entire plan for the origin and development of your business.
Business plan and demand
First of all, if you have a business plan for an online store of women's handbags, you must clearly follow each of its points, without retreating a single step. And in general, in any business, following the plan is 50% of success. Otherwise, human psychology interferes with the work. Psychology in business calculations is not the best assistant.
Women's handbags are good merchandise. Why? Because it has a good cost / price ratio. If you find several suppliers with reasonable prices, find a warehouse at a low price, then you can get a good markup corridor. As a result, the price of our product will be within the market average, and the costs will remain low.
The second plus in favor of women's handbags is that they are women's! Few women or girls have only one handbag, and this collection is constantly growing. This safely maintains the high demand for bags. However, as practice shows, this product is somewhat subject to seasonality.
Before the start
A business plan is the foundation for future success. The business plan needs to reflect the available investment or personal funds that can be mastered in the business. You need to determine the costs of maintaining staff, developing and maintaining the website, workers, premises, utilities and all costs, including the initial purchase of a batch of handbags.
You can safely add 10-15% of unforeseen costs to the resulting amount of theoretical costs. The fact is that unforeseen expenses cannot be planned, but you can calculate the amount of money for them and put them in a distant box. It will definitely come in handy.
From word to plan
We need a website. Rule number 1 - do not spare money for a good website. In no case should you trust a friend or relative to create a site, since the worst decision in business is to work with such people. Often, as a result of such a relationship, personal priorities become higher than the common cause. It is necessary to use the services of a company, the price of which is average or slightly higher in the market.
Two caveats at once. First, a site like this on a lamoda cannot cost less than 150 thousand rubles, but at the same time an average online store can be made and quickly launched in a budget of 50-60 thousand rubles. The development of unique large online stores can go up to 500 thousand rubles. The second is to create a good website for an online store for 5 thousand rubles. it will not work, no matter how advertising persuades you.
It will be very good if you have a qualified IT specialist who will write a competent technical specification for the site - this can predetermine success and save a lot of nerves and money later.
For the vast majority of women, accessories sometimes play a more important role than clothing. Actually, the designers have already emphasized that well-chosen shoes, a bag, jewelry or a belt can save even an unsuccessful or unfashionable image. In the women's wardrobe, bags have a special place, because different items are chosen for different purposes: more capacious and voluminous - for carrying or storing the necessary things, small and original - for decorating and complementing the image, etc. The accessory is selected by color and style, it can match or contrast with shoes, belt, gloves, scarf and headgear.
Moreover, bags are interesting and necessary not only for young ladies, but also for men and even children. This is why opening your own store to sell these accessories can be a very lucrative business.
Leather goods: features and nuances of activity
Before starting a bag store from scratch, you need to understand the various aspects and features of this business.
- Selling bags can be profitable at any time of the year, since your main target audience - ladies - wants to have fashionable and new accessories every season. The store can be diversified with other goods that will not take up much space (umbrellas, wallets, wallets, key holders, hats, scarves and gloves, belts and belts, glasses), but they can profitably expand your assortment and make the point of sale relevant without reference to seasonality ...
- The competition in this business is quite big: bags are sold in markets, in spontaneous retail outlets, large and small shops, elite boutiques. Of course, the whole difference lies in the quality of the product and its price. You should focus on the potential target audience and make a choice: for which consumer and with what level of income your store will be designed.
- Having defined the previous point, you can figure out where to look for suppliers. If the concept involves the sale of high-quality stylish products or exclusive latest fashion innovations, then you will have to work directly with manufacturers and well-known brands. Direct deliveries will protect you from fakes or consumer goods. However, if you want your business to pay off as quickly as possible, add to the assortment and goods for the middle class, supplies of which can be ordered from wholesale companies.
- Think about how you could differentiate yourself from your competitors. Perhaps organizing a small haberdashery will not be as promising as opening a bag and suitcase store, for example. People always need to go somewhere or to travel somewhere and travel big bags / suitcases are as necessary as small beautiful accessories. In addition, having come to you for one product, a person can purchase several new items at once, if he finds everything he needs from you. Get the customer interested in a discount on the second purchase, develop discount cards, come up with bonuses or small gifts - and he will come back to you again or recommend the store to his friends.
At the very start
Draw up a business plan for yourself to understand the procedure, take everything into account and not miss anything important:
- analyze the situation with similar stores in your city (in megacities it is more difficult to do this. Then monitoring will have to be done in the district), study all the strengths and weaknesses of entrepreneurs who have been in this business for a long time ;
- find a suitable premises;
- register your business and obtain trade permits;
- select a supplier;
- fill out the store and start working.
Experts advise you to work independently at first so that you can assess the situation with demand, analyze the amount of revenue on different days, etc. Advertising can be done for your store on the fly.
Since everything is supposed to be legal, you will need to register a business before opening a bag shop. You will not have any difficulties at this stage, since special licenses or permits for this type of trade are not needed.
Just choose the form of your activity: individual entrepreneur, LLC, and also decide whether you will register as an individual or as a legal entity. Usually it is enough to register an individual entrepreneurship. Plus it will cost you less. Of course, if you are planning to create a whole chain of stores, it is worth considering registering an LLC.
The taxation system can be general (OSN), simplified (STS) or UTII (single tax). Next you will need:
Investments Profit Payback 1. 80.0077.00 per month16 months
The world market for clothing and accessories is one of the most profitable. Due to the transience of fashion and the fragility of goods, people are constantly buying new things. Today we want to demonstrate how you can snatch your piece from this market. We will tell you how to open a bag shop in 9 steps and what financial results you should focus on.
About the niche
If you look in general, the competition in the niche of bags is simply huge, but despite this, each person has his own tastes and requirements for bags. Some people like expensive things, the cost of which starts from 40. 00 rubles, others are cheaper, and to someone give sports or youth. As a result, this competition is fragmented and you can find your place in the niche. Of course, when choosing your place, you need to build on the target audience of your city.
The portrait of a typical customer will look like this: girls and women from 25 to 55 years old, less often men. However, for certain categories of bags, these categories can be narrowed down: for example, clutches and miniature handbags are more suitable for young girls, sports backpacks for students and travelers, purses for middle-aged men.
Each business has its own risks, and in the case of a bag shop, it is worth considering its assortment. If the goods are too cheap and of poor quality, they will not be bought. But elite models at inflated prices are not a pleasure for the masses. Therefore, the first batches of purchases should be averaged both in terms of prices and in terms of a set of models. Those categories that will acquire the greatest demand in the next batch can be purchased in increased volumes.
In order not to torment you for a long time, we will immediately provide calculations of a business plan for a small store of bags and accessories, which we will consider later in the article.
1. 80. 00 rubles will be enough to open a small shop. Costs can be reduced even further, but we'll talk about this in more detail later in the article.
The monthly costs of maintaining our business will amount to 148.00 rubles. Unfortunately, it is difficult to do something about reducing these costs. The only option is to replace the sellers with yourself and your relatives, or choose a cheaper place to rent, but then the number of customers will be less, since the place will be less passable and the profit, accordingly, will fall.
A bag is an irreplaceable accessory that complements the image of a woman or a man. There is always a demand for it. In the arsenal of a modern fashionista there are several stylish clutches of different colors and models for every season. Girls are ready to pay big money for a new thing, even if there is no need to buy it. A business plan for a bag shop contains all the data you need to get started successfully.
Project description and business specifics
The goal of the project is to open a retail bag shop in a city with a population of more than 200,000 people to meet the demand of local residents for goods made of leather and leatherette, and to generate stable profits.
The outlet will be located in one of the shopping and entertainment centers. The business is aimed at men and women with average or lower middle income. Own funds will be used to implement the project.
- bags are always in demand, regardless of the season, since the main target audience is women for whom it is important to have fashion accessories;
- a high level of competition in this niche;
- to form a wide assortment, you will have to look for several suppliers of bags and accessories and cooperate with manufacturers of goods;
- the chances of success will increase if the store will present not only women's and men's bags, but also suitcases, wallets, wallets and other leather goods that help create a stylish look.
Market analysis: target audience, competition and risk assessment
The target audience of the bag shop is girls and women aged 16-50 years. This group of potential buyers makes up 80% of the total number of customers. The remaining 20% are men aged 25-50. It is important to decide in advance on the concept of the store - which social group the business will be focused on.
Women with a high level of income buy bags from famous brands, and they do it spontaneously and with enviable regularity. Girls with middle incomes prefer practical models, as they cannot afford to update their wardrobe and accessories every season. Men also value style and quality; they choose genuine leather goods. These can be purses, portfolios, folders for documents. Young guys prefer backpacks.
Attention! In addition to bags, in leather goods you can sell belts, wallets, key holders, business card holders, umbrellas, sunglasses and other accessories. A varied assortment will attract more potential customers.
In every city there are many outlets selling bags and related products. The level of competition in this area is quite high. Leather goods are sold in local markets, in expensive boutiques and hypermarkets. Do not write off online shopping. Girls willingly order bags online. In this regard, you will have to conduct a thorough analysis of existing competitors - research their assortment and prices of goods. This information will help you stand out favorably against their background and compile a list of competitive advantages.
- Errors in assortment formation. Buying only inexpensive, average quality goods, it is easy to spoil the store's reputation, and the prevalence of overly expensive items on the windows will scare off most of the buyers with average incomes.
- Bad location of the outlet. The store should be located in a place with high traffic, for example, in a shopping and entertainment center or near a clothing market.
- Destabilization of the economic situation.
- New competitors appear.
- Force majeure - fire, natural disaster, etc.
Organizing a business selling bags
The organizational plan of the company implies specific actions that will ultimately lead to the launch of the project. It includes several stages of work:
More and more young people refuse to work as hired employees and decide to open their own business. We all love to read the success stories of entrepreneurs, but we often don’t think about the fact that a huge percentage of projects fail and people lose money.
Today Reconomica magazine offers its readers a real story from the life of a young family from the Belgorod region. Young people decided to start a family business: they opened a shop selling bags. What came of this, read the article.
Family Business Idea
Good day. My name is Yana Aleksandrovna Ukolova, I am 30 years old, I live in Alekseevka, Belgorod Region.
I would like to share with our readers our unsuccessful experience of running a small business: in 2021. my husband and I opened a shop selling bags in our city, but the idea was not crowned with success and after six months we had to close it. I believe that this story will save many people from the irrational investment of finances.
You can't live without money
I will say right away that the idea of starting a business was utopian for us. The thing is that, by nature, my husband and I did not possess the gift of hucksters who could "fuse" their goods in any form, of any quality and in any quantity. It is a pity that we realized this too late.
The idea to start some kind of family business came to us at the moment when the child was born. With finances, it became somehow a little tight at once, my husband worked a lot, but he could not earn much. I got something like 6,000 rubles. up to 1.5 years, then nothing at all, this is our state.
We lived in a private house - we had the opportunity to grow some vegetables / fruits / berries, to keep livestock too, so we were provided with the most necessary things in terms of food. But this did not make it easier and money was still needed, which prompted thoughts of starting a business.
What to trade?
My husband insisted that we start selling beer and snacks, while I leaned towards souvenirs, perfumes and jewelry.
So, after several months of controversy, we found the very "golden" mean: to start trading in bags.