Opening a bookstore according to a ready-made business plan with calculations from scratch
A bookstore, with the correct calculation of the financial plan, in the first year can bring 50-100% of net profit, while not requiring large expenses for solving production issues.
Market and Competition Analysis
The negative factors that most affect the decline in business profitability are:
- Loss of interest in reading.
- Lack of a state program for the popularization of literature.
- High rental rates.
- Competition from other industries (information technology).
However, there are positive factors that a business founder should pay attention to first. These include:
- Growth in the welfare of citizens.
- There is relatively little competition (especially in the regions).
- Relatively low prices for books, as well as their rapid growth.
- Development of technologies.
Market and competition analysis clearly shows that the distribution system is represented by several niches. A competent boss should draw up a clear plan of work with each of them, taking into account the needs.
Starting from a publishing house, a book can go to a book fair, to a corporation, to a large wholesaler (independent store, stalls), to an online store, to the post office, to a distribution center of bookselling chains, to a company store publishing houses. It is easy to determine that the best assortment of goods is obtained by an independent outlet that cooperates with a serious large wholesaler.
For information on how to open your own bar from scratch, read here.
The correct choice of the location of the premises ensures attendance, and, consequently, high profits:
- It is most profitable to open a store of any format in large shopping centers or supermarkets, that is, where there is a constant flow of people.
- Renting a separate room is also a good option, especially if it is located in the central part of the city and on the ground floor. However, renting may not be so profitable if there are already several large stores in the center with a similar assortment and having a regular clientele.
This is the age of computer technology. Artificial intelligence is slowly but surely replacing everything in its path. As analysts predict, the press will soon disappear completely. Glossy editions have electronic versions.
It would seem that paper, printing, letters do not correspond to the modern age, but if you look at the problem from a different angle, it becomes clear that a living book with pages, a binding, the smell of typography is a real treasure today, which is not often, but gets to the true connoisseurs of beauty.
It's nice to go to the store, breathe in the scent of the fresh press, feel the rustling pages, go over the introduction and choose a partner for some interesting evenings! The bookstore is a business for intellectuals. In addition to pleasure for the soul, this business can bring high income. Developing a bookstore business plan with calculations and implementing it is easy.
- artistic ;
- educational ;
- children's ;
- literature about art;
- special (professional);
- separately highlight related products (office supplies).
They don't save here, because the future of the whole project depends on diversity. The more interesting the content, the more purchases customers will make.
In addition to books, you can hold meetings between readers and writers with the possibility of purchasing new items autographed by your favorite author. Readings are organized for young visitors. Events and promotions have a positive effect on the image and arouse consumer interest. Especially if this has not yet been done in your city.
- a full-fledged store;
- a shop;
- a stall.
The store is a large trading platform with shelves and small sofas, so that the buyer can get acquainted with the book in a comfortable environment conducive to buying. A smart decision would be to provide for the ability to electronically search for the desired position. As a rule, such shops, in addition to literature, also distribute office supplies, board games, small souvenirs, etc.
Stalls mean a small room, which is most often located on the streets near public transport stops, bus stations, airports. The assortment is appropriate - newspapers, magazines, brochures of different genres, crosswords, stationery. They are designed for the middle class of buyers and children.
The kiosk presents novels, detective stories, children's stories on the road, on the way to work or dacha. The choice in the stall should be relevant. Hardly anyone would want to read about animal husbandry fifty years ago. Modern news bulletins fly like hot cakes. Profitability is achieved by mass. Inexpensive newspapers are bought every day, but one hardcover volume once a month.
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 fans to read.
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 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:
- students (educational literature and fiction),
- students (teaching aids and thematic books),
- parents (materials on education and children's literature),
- specialists (printed publications aimed at professional development or personal growth),
- casual passers-by (if the point of sale is located near places mass flow of people).
The main competitive advantages should be as follows:
- a good location,
- the conclusion of exclusive contracts with agencies for book series,
- powerful advertising campaign.
The printing industry is experiencing a new round of revival today. Reading literature in paper form is not only pleasant, but also fashionable. From an entrepreneurial point of view, there are not very many stores offering this format of publications, but nevertheless they present quite a lot and serious competition for each other. In order not to be mistaken in choosing an idea for your enterprise, we suggest considering a bookstore business plan. This segment of the market attracts mainly true connoisseurs of paperback and hardcover books. And here lies the main problem: what to trade, how to determine which books will be in maximum demand among the population? This problem can be solved by purchasing a quality bookstore business plan with market research in this area.
What are the advantages of business
- this product group does not have an expiration date;
- many publishers are ready to conclude an agreement with a deferred payment, when you pay money only for the sold product, and the remaining unsold units return it to the manufacturer after 3-4 months.
Among the negative aspects, the main one is that some books may be irrevocably out of date. This is especially true for school and university textbooks, since the curriculum of educational institutions is prone to frequent changes.
Having firmly convinced that your business will deal with this particular group of goods, you can start registering your company. If you intend to be the sole owner of the business, then individual entrepreneurship will be the best form of doing business. In addition, registration with the tax office and obtaining a taxpayer certificate is due. Next, the issue will have to be settled with such authorities as SES and fire supervision.
The amount of investment at this stage can reach 20 thousand rubles, depending on the premises that you choose for your store.
The advantage is that a license for this type of business is not needed.
Premises and location
Usually book lovers pay little attention to the room where books are sold. They are more interested in the products themselves, but nevertheless they should not neglect this stage.
As you know, books are quite cumbersome, requiring a lot of space both in the hall and in the warehouse, and therefore you will need a room with an area of at least 100-150 square meters. If the format of your store involves the sale of second-hand books or rare tomes, then you can save money on rent by finding a basement, but always warm and dry, so that customers feel comfortable and the books do not deteriorate.
Due to the rapid development of various Internet technologies and e-books, the share of printed books on the market has significantly decreased. But, despite this, the paper versions of the books are selling very well. People read, read and will read. This business has changed due to the format and to some extent moved to the Internet trade, but many entrepreneurs who open a book business receive good income and know how to develop their business in the future. In this article, we will try to cover the main steps for starting a small bookstore and try to suggest options for possible ways of developing this business in the future.
It is from the choice of the format that the future target audience will be formed. Having studied the market, you will be able to offer your customers exactly the assortment that they need, but knowing the portrait of the target customer, you will be able to shape marketing steps more efficiently and get maximum profit from minimum costs.
There are several main business formats for selling books:
- scientific literature. This, as a rule, is specialized literature, for example, on economic legal or engineering topics. The target audience is university students and young professionals who want to improve their qualifications.
- fiction. There is already a wider range of books: novels, comedies, short stories and others. This is perhaps one of the most sought-after types of books among buyers.
- children's literature. Also a very good niche. Opening books, coloring books, fairy tales and so on are especially popular.
- books for self-development. This niche sells well through online stores. Now a lot of people are thinking about their personal growth and increasing motivation, it is these books that are very popular lately.
Also, if we talk about the format, then before you open a bookstore from scratch, you need to clearly understand whether you will sell goods exclusively through the store, or through the Internet platform or social networks. We advise beginners to start comprehensively and use all channels to attract a target audience, which later becomes regular customers.
For book retailing, you will need to obtain all permits and documents to conduct business.