Business idea: trade in building materials
Opening your own business in trade is a good idea for start-up investments in any region of the country, because many categories of goods are quite relevant, you can make good money on them. The trading business is a mine of ideas that can be easily implemented even by a beginner in entrepreneurship. Depending on the region and the demand for the product, you can open a competitive outlet or choose a new direction and become the first in the city to open a similar business. The main thing is to understand the peculiarities of popular directions in trade and highlight one that will generate income in the future even in times of crisis.
Bulletin board business
The first thing that aspiring entrepreneurs think about is how to make money on the Internet, because most types of activities have long gone online and are rapidly developing there.
You can start trading on the Internet on free message boards, online auctions.
You can implement the following on the Internet:
- Personal items (clothes, shoes, equipment) that for some reason have become unnecessary.
- You can start reselling goods (for example, from Chinese trading platforms). When reselling, pay attention to the most popular categories, see what competitors are offering.
- It is profitable to sell accessories and cosmetics, famous brands.
- At online auctions there is a demand for mobile accessories and various gifts.
Of course, it is more profitable to start a business on your own website or on the page where you will offer your goods, but online trading platforms look very good to start.
What products are in great demand
The list of goods for which demand never falls includes several categories. You can start building a business in trade based on them, or you can choose a narrower area and develop in it.
The following are in constant demand:
- Food (meat, fish, sweets, bread, vegetables, etc.).
- Alcohol and tobacco products.
- Personal hygiene products (shampoos, creams, detergents for the apartment).
- Clothes and footwear.
- Seasonal goods (ice cream, cold or hot drinks, charcoal, and so on can make a lot of money).
You can also pay attention to the manufacture of chewing gum, small candies, small bars, which are usually found at supermarket checkouts - such a product is in demand, but people do not perceive it as a purchase.
Which product is suitable for making money
Choosing trade as a business line, do not forget that this rather popular area is associated with certain risks. Modern business ideas in trade are a series of long-term plans for the development of one's own business, based on an in-depth analysis of the market segment, offers and pricing policies of competitors, a marketing company and the ability to establish long-term relationships with suppliers.
Popular Business Ideas of the Year
The idea of making money on sales is not new, but in order to implement it, it is necessary to develop a clear business plan, taking into account investments and possible risks. According to statistics, only 10% of start-up entrepreneurs achieve quick and stable results in this direction - and then only when they put consumer demand and flexible pricing policy at the forefront.
Even the best business ideas in trade require additional refinement and some kind of adaptation to the terrain, opportunities of potential buyers and proposals of competitors.
Pay attention to a number of popular and demanded areas of business in trade:
- Food. Most likely, a small grocery store will be successful in a residential community or residential neighborhood where there are no large supermarkets and food markets.
- Opening an online store with goods relevant to your region can also be profitable. Consider options for wholesales, promotional offers, seasonal discounts, offer fast delivery, flexible payment. This is generally what attracts the majority of online shoppers.
- Sales of homemade products. In this case, focus on quality. It is known that homemade sausage, meat, dairy products, baked goods and cookery are always in demand, and their home delivery will be an additional bonus that will help attract customers.
Take a look at the trade business ideas below. Conduct an analysis - could you implement this or that idea of earning money in your region?
Trading Business Basics
When starting your small business in the trade, follow three basic "commandments" known to many successful entrepreneurs. This is the search for new opportunities in the procurement and sale of goods, attracting new customers and retaining regular ones.
To translate the business idea of a store into reality, you need a high-quality economic plan. Markups for common products should not exceed 10-15%, and the cost of products may be slightly lower than that of competitors. In this case, the profit will be more influenced by the turnover, and not the price. Conversely, if you are selling exclusive products from famous brands, you should not drop prices too low. A quality product of a well-known brand will always find its buyer sooner or later.
In the current economic conditions, the idea of starting your own business is becoming more and more popular. The thing is that a private enterprise opens up a whole range of advantages that were previously unavailable. At the same time, you should not hope that your own business is devoid of any difficulties and unpleasant moments. From the very beginning, you need to understand that in order to achieve any positive results, it will be necessary to make a lot of efforts. Today, trade in building materials is almost the most popular business idea.
The demand for construction products is quite high among the domestic consumer. The thing is that a fairly large number of people make repairs in their houses, apartments or country houses. This is why they often turn to the retail building materials business for help. On the other hand, there are individuals or legal entities who are engaged in large construction projects. Given the large volumes, representatives of the second group can be found in the wholesale trade in building materials.
Buy or build from scratch
People who decide to trade in building materials often have the following question: should I buy a ready-made hardware store or is it better to create one myself from the very beginning? Although both options have their advantages and disadvantages, buying a ready-made business is considered a more profitable solution to this issue, since in this case it will be possible to assess the profitability and profitability of this particular store in a certain area. Thus, it is believed that buying a ready-made store and re-registering it for yourself is the right decision. In addition, experts say that the costs of both the purchase and the creation of a store are approximately the same. For those who have decided to start their business from scratch, it will be useful to remind you that you need to register a legal entity for the trade in building materials. LLC can be called whatever you like. The main thing is that this name does not repel potential customers.
Types of building stores
Fortunately, for an ordinary consumer, the number of places where you can buy building materials of various types is now very large. The whole set of points of sale of building materials according to the offered assortment and retail space can be conditionally divided into the following groups:
- small shops up to 100 sq. m with an assortment of about 200 items;
- large stores (construction supermarkets) with a total area of about 200 sq. m, offering their customers 5-15 thousand articles of goods;
- warehouse stores with an area of up to 2500 sq. m. and a trade assortment of up to 1000 articles.
At this stage, you should immediately determine what type of store you are going to open. It is very important here to assess your own strengths and existing demand as correctly as possible in order to avoid possible financial problems in the future. For example, if you have a dream to open a construction supermarket, but in a territory where there is no strong consumer demand for construction products, then it is better to give up this dream. It is much more profitable to open a small hardware store in order to balance supply and demand.
Location for a hardware store
One of the leading areas of small business is trade. Almost every day, people need to buy something, from breakfast cereal to cars. Therefore, there will always be demand for this area, but the supply will not be long in coming.
How to open it correctly, where to start, what to choose, what not to do, every future businessman should understand for himself.
Among all spheres, trading is the most demanded, but at the same time and risky. Selling and reselling for more - what could be a more obvious way to make money? If you do it right, then pretty quickly you can even "not touch" the business: all the work will be done by hired employees.
Every year thousands of private entrepreneurs decide to start trading, but among them a small percentage gets the planned profit. Why doesn't it work to open and develop your own business? There are many reasons for this, but the main problems of unlucky traders are:
- insufficient start-up capital;
- not quite the right market segment;
- a lot of competition;
- inability to lead trade;
- lack of a marketing campaign;
- lack of a clear plan for their work.
Don't assume that trading business is 100% hit. No entrepreneur is immune from unplanned risks, changes in market preferences, and problems with suppliers. But if you can resist, then you can achieve a good profit in a short time. The main thing is to start with a clear understanding of what will happen in the coming years.
Important! If you are not confident in your entrepreneurial talents, then you should attend special courses and classes in trade, study the relevant literature, and enlist the support of those who have been doing this for a long time.
Step: sphere selection
Do you know someone who sells cheap tanning products? Can you arrange supplies to the northern regions of the country? Forget it, you can't start your own business on this. It is important to focus not on what can be sold cheaper, but to look for what the buyer needs in a particular region.
Trade in clothing and footwear
Garment trading potentially allows high margins. However, for this it is necessary to find suitable suppliers who will provide not only high-quality and cheap goods, but also seldom found on the market. But it takes a lot of time to find such suppliers, and it is risky to send goods that have not been tested by the local market for sale, so most often entrepreneurs sell the same clothes as their competitors. The marginality, accordingly, turns out to be low, but this ensures the stability of demand.
Seasonality is present, the assortment will have to be constantly changed
It is also important to take into account changes in fashion and trends, some product may suddenly become very popular, demand will grow by thousands of percent, and in a year no one will remember this product
In the face of declining real income, second hand is a good option. Such a business will allow achieving a sufficient level of profitability and payback, and the costs of starting a business are small. Also, there is no strong competition in small towns. But there are also disadvantages, a significant part of the audience avoids shopping in thrift stores, others do it stealthily and feel a sense of shame, which means that demand will be limited.
Children's clothing can be singled out as a separate subcategory. Children are constantly growing and need new clothes on a regular basis. Children regularly stain and tear it. The average parents will be the last to save on their child, all this guarantees a stable and high demand for children's clothing and footwear. Accordingly, the average markup in this segment is higher than the average.
Is it profitable to sell toys? Or is it better to open a baby food store?
On a psychological level, even the most frugal parents will not miss the opportunity to pamper their baby with a new toy, tasty and healthy snack, or pretty clothes. Many sources say baby products will become the best-selling products on the internet in 2021. This conclusion was made on the basis of statistical data from previous years. It turns out that you can sell everything that is intended for children.
In this case, the entrepreneur wins on the assortment, quality of goods, and competitive prices.