Bookstore business plan: how to build a smart business
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Selling books is not just a business, it is a contribution to the cultural development of the country. There are not enough bookstores, but the competition is quite serious. Therefore, the idea of opening a bookstore must be fully prepared, that is, it is necessary to competently develop a business plan for a bookstore, carefully consider the concept of the future business.
The first step is to decide on a business idea. A bookstore with exclusive books, a small shop with a wide assortment to satisfy the taste of the entire readership, or a bookstore, chain of stores - the choice is yours.
It is also necessary to decide what assortment will be: either only books and periodicals, or also additional goods, such as stationery, goods for creativity, multimedia goods. Decide what you want and what options you have.
The most optimal form of organizing such a business is an individual entrepreneur. Plus - in the simplified accounting, low taxes. Trade in printed products, in accordance with the law, is carried out without a license.
It is necessary to study the presence of potential competitors, the range of products they offer, their pricing policy. This will help you choose the right assortment for your store and set competitive prices for products.
The next step is the selection of the premises.
Bookstore business plan can be ordered from specialists or downloaded from the Internet. The chosen niche underwent a transformation when from 2021 to 2021 there was an outflow of readers to electronic versions of publications. However, the demand for books not only remained, but also increased - in 2021 Russia became the leader in the number of lovers of reading.
Step-by-step opening instructions
How much does it cost to open a bookstore?
The relevance of the idea is based on the expressed interest of representatives of different sexes and ages to books. An important role is played by the financial availability of printed publications and their beautiful design. Nowadays, new authors and genres have appeared, for example, fantasy and hit-and-miss. Separately, one should highlight such a direction as fairy tale therapy, designed for a children's audience.
Books are purchased as a gift, there are even book collections illustrated by famous artists and adorned with precious stones and gold.
Market description and analysis
You can characterize the market niche associated with books like this:
- In 2021, there was a sharp decrease in the number of printed copies of books published over 7 years. At the same time, the financial indicator fell by 5 billion rubles.
- There are about 2,000 bookstores registered in Russia.
- The average cost of a book is 400 rubles, depending on the economic zoning. The difference in price for the same book in Moscow and small towns is from 200 rubles.
- Since 2021, there has been a rise in the price of a printed unit by 10%.
- 59% of Russians read books every day.
- Since 2021, a law has come into force to protect authors from pirates, which has reduced the appearance of free books on the Internet.
- 40% of purchases are made between the ages of 35-45. In Russia, 50% of books are purchased through online stores, in Europe this figure reaches 80%.
- The most popular literature is school literature (22%). Then there are works of art and children's works (20% each). Materials related to art and geography are sold least of all (less than 5%).
The main buyers of books are represented by the following categories of people:
Despite the active introduction of electronic editions, a large number of people are ready to purchase printed products. To open your own business in this area, you will need to draw up a high-quality business plan for the book business, which should include all the nuances of the upcoming investment.
Relevance of the book business
The book business has recently been influenced by several factors that cast doubt on the relevance of this case:
- it is noted that the audience of readers is not growing, and in some aspects it starts to decrease due to the emergence of a large number of third-party types of leisure.
- the second big problem is piracy, which thrives on any type of activity where copyrights are held. If the consumer himself does not suffer from piracy, then the publisher faces financial losses due to the incorrect calculation of the payment associated with the acquisition of illegally produced books by the audience.
But these two factors do not always have such a serious impact on business. There are examples when, in the current conditions of a falling market, the return on investment of a bookstore was less than one year.
Sales Market Description
Before drawing up a business plan for a bookstore, you need to decide on a sales market. The aim of the project is to open a bookstore that will meet the needs of customers of all ages and interests. The last 12 years of book production have allowed the transition from planned production to a flexible model. The quality of domestic products, which previously could not compete with foreign printing houses, also improved.
The volume of book production is now at a level that bookstores cannot handle. The reason for this development of events is the lack of retail outlets. There is currently a shortage of bookstores in Russia. Influence on the industry can help or hinder the development of the industry.
Positive factors influencing the book business:
- little competition in small towns;
- increase in the solvent population;
- development of information technology;
- the market is not reached saturation level;
- prices for domestically produced books are increasing.
Despite the fact that in recent years, modern gadgets have significantly supplanted book production, there remains a huge number of people for whom it has not lost its relevance. The domestic market offers a wide range of books written by both modern authors and classics. The high consumer demand for such products makes many people think about starting a business in this direction. For a successful and quick start, they need to develop a bookstore development strategy with calculations, as well as small capital.
Relevance of this business
Planning the opening of a store that will sell books by a business entity should start with an analysis of this business area. It is extremely important to assess the relevance of this area, as well as its competitiveness. The entrepreneur must also take into account all possible risks that can lead to the loss of funds.
Stages of organization
A bookstore business plan should include all organizational and financial aspects, so that the business entity can avoid serious mistakes:
Client search, advertising
When developing a business plan for a store, a business entity should include in this document a section dedicated to advertising and activities aimed at finding buyers. It is planned that the retail sale of books will be carried out through the outlet, therefore the following categories of people should be considered as the target audience:
For a successful bookstore opening, an entrepreneur needs to carry out a set of promotional activities:
Required equipment, material selection
The business plan of the bookstore should contain the production part and all the main organizational points. A business entity must precisely comply with its conditions. According to the developed plan, the first stage of the organizational measures provides for the search for premises in which the outlet will be located.
When choosing a place for a store, a business entity should take into account such important factors:
After the premises have been selected, the entrepreneur needs to conclude a lease with its owner. Before "settling in" he will have to make cosmetic repairs to update the interior and make it more stylish and modern. You may have to zone the room using shelves and partitions for these purposes. As for the equipment of the outlet, for these purposes the business entity will have to purchase:
Perhaps you will say - well, what kind of bookstore can we talk about these days, when everyone (and especially young people) have switched to online media and read only books in electronic form. Yes, in a way it is. But you will be surprised when you find out that in our one of the most reading countries in the world, there are still those who like to walk between the bookshelves of the store, breathe in the typographic smell of books, and flutter the pages. And be sure to find something interesting, something that you want to read.
The situation in this regard has improved after the adoption of an amendment to the law on piracy on the Internet. Today, free literature is almost impossible to find. So after the rampant closure of bookstores, the business is slowly getting back on its feet. And even despite the presence of large chain stores, small bookstores “around the corner” are always loved by book lovers.
Therefore, let's consider what it takes to open a bookstore, how to organize a business correctly, what nuances you need to take into account, how much you need to invest at the start and what the expected profit is.
How to open a bookstore
The main points of the bookstore business plan:
There are two ways to open a bookstore: a franchise and an independent business. The first case is much simpler, but it is associated with rather big investments: it will be necessary to pay a lump-sum fee and then pay monthly royalties. But at the same time you get an “older brother” who not only has experience, but will also willingly share it with you.
If you choose this path, then for advice - to the franchisor. In this article, we will consider opening an independent bookstore.
Market and competitor analysis will give you an idea of the bookstores in your city or one of its districts, their formats, assortment and strategy of operation.
Large chain stores are, of course, a serious competitor. But they have a weak point - a single strategy that does not always work in a particular city. You shouldn't open your store door-to-door with a networker, but a well-thought-out format can become more attractive to customers.