Anything can happen in life. If a person suddenly loses his job, then there is no need to despair. Now there are many different ideas for starting your own business. For example, if you open a retail outlet in the market (even a small one), approaching this issue wisely, this will give a person a permanent job and a stable income for a long time. In other words, even if someone has no experience in this area, it is still worth trying this actually interesting type of activity. It's better to start small to reduce risks. After all, it’s never too late to expand your business.
Of course, for a business to start generating income, you must first think it through carefully and then invest a lot of work. The owners of successful businesses were also initially inexperienced and started with small trade, but patience, hard work and skill brought them fruit in the form of stability and prosperity. A huge advantage of running your own business is independence from your employer.
How to decide what to sell in the store
To open your own point, you need starting capital. If you don’t have one, you can take out a loan. But before you run headlong to the bank, you need to decide in which market the trading place will be located. Everyone knows that there are food, clothing, construction, automobile, mixed and other fairs.
After a market has been selected and, accordingly, an approximate category of goods (in a clothing market, for example, you cannot sell spare parts for cars), you need to study what is most in demand among the population. You also need to take a closer look at whether traffic in the chosen location is good (the presence of a sufficient number of customers), what goods are missing there, you need to study the prices and, using your intuition, decide what exactly will be sold in the planned store.
That is, in order not to burn out, it is necessary to do in-depth marketing research.
An important point is that it is located near the market and how popular the place is.
It is better to sell a product that a person is well versed in. If, for example, someone has a pharmaceutical education, then it is possible. Or a person has extensive experience in a construction organization - then the best option for him would be to open a point in the construction market. A win-win option that does not require large expenses is a food outlet. That is, even if the market is new and has not yet gained popularity, there will still be no problems with the clientele. For example, if you open a mini-cafe, then the sellers themselves will eat there.
After carefully segmenting the market and deciding which product will be sold, you need to start looking for wholesale suppliers whose selling price is low and the quality of the product meets high requirements. That is, using the Internet, newspaper advertisements or other methods, it will be necessary to study many manufacturers in detail, negotiate with them and look at samples of what they offer. Only after analyzing everything well can you make a final decision with whom to cooperate. In doing business, this moment is almost the most key factor influencing the success of the entire business.
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Necessary information for opening any retail outlet
So, regardless of what market is chosen and the product that will be sold, there is a basic set of rules that any aspiring businessman needs to know. After making the final decision, you need to contact the market administration and find out the conditions regarding the rental of the premises. It should be noted that in each market they may differ from each other, especially when it comes to rental prices. At the first stage, you can take not the entire room, but, for example, half of the pavilion.
Then you will need to officially register your business. For retail trade, the most profitable is the UTII, or patent system. Until the business gets going, it is best not to hire a large number of salespeople at the initial stage, since it will be difficult to pay salaries at first. Therefore, one assistant will be enough. Working on your own can save you money to pay your taxes.
Naturally, an important point is to design the point in such a way that it matches its format. The presence of various advertising banners, booklets, business cards, a varied assortment of the store, promotions and bonuses - all this will attract the buyer. He tends to return to places where he was treated with care. The product must be stored in dry and ventilated areas, otherwise it may become damp and moldy - this will definitely scare away the buyer.
The profitability of a store will be different for each individual case. But approximate calculations can be made. For example, for large goods, experts advise marking up no more than 20-30% of the purchase price. You can bet 100% on smaller items. The payback will depend on how much is paid for renting the premises, on the product itself, since it may be of such a format that in some seasons its sales increase, and in others they may fall. And also from other equally important factors. On average, a small retail outlet pays for itself in approximately one year, and a larger one in two years.
There are a large number of queries on the Internet about what is on the market, but specific answers are difficult to find, so in this article we will try to give a comprehensive answer to this question. So, before opening your point on the market, you need to decide what you will trade.
This may be a food group of goods or a non-food group. If your goal is to make money on turnover, we recommend starting to trade agricultural products (cucumbers, tomatoes, onions, garlic, etc.). And if you plan to make money on price, then start selling clothes.
To open a point on the market, state registration is required, there is nothing complicated here, you need to register as an individual entrepreneur and choose a simplified form of taxation.
It is also worth taking care of choosing a supplier; now it is not easy to find a good supplier, but it is quite possible.
Extra charge:
Not all goods have the same markup; for some goods it is 20-30%, and for others it is 100%. For small items such as pens, key chains, you can put a 200 - 300% markup.
And for fruits and vegetables - from 5 to 15%. How much can you earn per day at your outlet in the market? It depends on many factors: seasonality, traffic, even the weather.
For example! In vegetable markets, turnover can be 1000 – 2000 UAH/day. And for clothing (depending on the season) 3000 – 7000 UAH/day.
And a couple more tips for trading in the market. The administrator in the market is the main person! Therefore, try to establish friendly relations with him.
Open more points. The more points you have on the market, the more profit. Gradually open more and more new points.
Agree to rent a warehouse - if there is a lot of goods, and at first you can store it at home or in the garage.
Of course, such amounts of earnings are available under very good conditions, but 200 - 500 UAH from one point is quite realistic
Don't trust anyone! I took a loan, so I have to pay it back! and if your product is damaged or confiscated! what's next?
Everything is detailed and clear, but for this you need initial capital and not bad!!!
If you need capital, take a loan from a bank. If you are not confident and afraid, then there is no place for you in business.
Sergey, you ****. Loans for peasants.
Even if so, what’s wrong? Who doesn’t want to live well and in abundance? I think if you take out a certain amount of credit for your business, you can make money, but at first it won’t be easy
Indeed...sitting with a penny in your pocket and dreaming of business is stupid!! Many started with loans
Damn, what if you’re getting into business precisely because you’ve already taken out consumer loans?
Dmitry, then open a thrift store. You don’t need to pay for the things that are brought to you initially. The goods are paid for only upon sale. price things as low as possible and set your own markup. or take things for sale.
a consignment store for CHILDREN'S clothing will bring more profit
Is it really possible to trade on the market without a cash register?
Do you need a loan of any kind? do you need a loan to start your business? do you need a loan for any purpose? Here is your help, as we offer loans to individuals and businesses at low and affordable interest rates. Interested loan candidates please contact us at [email protected] to get their loan today.
Trading on the market, according to many, remains the easiest and most accessible way to make money for beginning entrepreneurs. What documents are needed to open your own retail outlet? Are there any nuances that are worth knowing in order to “program” a business for profitability? Let's figure it out together.
Advantages and disadvantages of trading on the market
Market trading as a business has a number of undeniable advantages that encourage entrepreneurs who do not have retail sales experience to engage in this particular type of activity.
What are the advantages of such commerce?
1. Market trading is one of those types of business that do not require special knowledge and experience. Let’s clarify right away: you will have to study certain information at the stage of opening your own business in any case, the rest will come with time.
2. Opening a retail outlet at the bazaar costs a relatively small amount. Start of trading of grocery products at the market...
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Writing a business plan:
1. At the market, we look at how competitors’ places are decorated. We decide how we will arrange it for ourselves. We remember the total figure from the estimate.
2. We ask the market administration for the conditions and cost of rent, the amount of the first payment. We find out from the traders at the market additional payments without which there is no way - we add both numbers to the first.
3. We look at the assortment of competitors. Let's find out who the supplier is. Let's call him. We will find out the cost of the first purchase and the possibility of stitching. We add this one to the existing figure.
4. We choose the form of ownership, find out the cost of registration, mandatory monthly payments, both fixed and depending on the volume. We add it up and get the starting cost.
The next step is to assess the required sales volumes to achieve the desired volume...
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Many of us dream of working for ourselves. But often dreams remain dreams because the unknown scares us or we simply don’t know what kind of business we want to organize.
Today we will talk about how to open your own point in one of the capital's clothing markets. By the way, it’s easier than opening your own store. Firstly, the market administration provides you with security. Secondly, the very location of your point suggests that there will be buyers. After all, people go to a clothing market with the goal of purchasing something.
Tax system
First you need to register as a sole proprietor - an individual entrepreneur (34 UAH). Then choose for yourself the taxation system that will be most acceptable. For an individual entrepreneur there are three to choose from: general, payment of a single tax and fixed tax. The businessmen we interviewed, who have their own outlets in the markets, work on a flat tax. Because, for example, those who work on the general taxation system are...
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If you have the makings of a sales manager, and you want to try yourself as the owner of a trading business, then opening a retail outlet on the market can be not only interesting, but also profitable for you. But to open and run your own business, the desire and ability to sell is not enough. You need to clearly understand the entire sequence of actions for opening a retail outlet on the market and you need to have a good understanding of how to organize your business so that it is most effective.
Development of a business plan for a market outlet with financial calculations
A business plan for a market outlet, developed by our company’s specialists, will help you deal with these issues. You can draw up a business plan for a retail outlet yourself, without contacting a professional consulting company, but if you have not had such experience before, the result is unlikely to satisfy you. Thanks to many years of experience, we guarantee the high quality of our services...
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The market is the most popular meeting place for sellers and buyers in any city in our country. Despite the annual increase in the number of shopping centers, more than 50% of residents still buy clothes and shoes in regular markets (more details here). Promoted markets are always attractive for opening outlets selling clothing, shoes and other retail goods.
When deciding to open a point on the market, carefully study the state of competition in this market. The fewer retail outlets that sell products similar to yours, the better. The more outlets that sell related products that complement your products, the better.
It is recommended to conduct simple marketing research and identify those products that consumers lack. This is done through a direct survey of the population. Also study the approximate market traffic (throughput) on weekends and weekdays. Evaluate the commercial infrastructure near the market - residential areas, shops and shopping...
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How profitable is it to open your own retail outlet in the market?
It's no secret that the most common business today is trade. The idea is simple: buying wholesale is cheaper, but selling retail is more expensive. It is on this scheme that the trade sphere is built.
It is worth noting that the income from such a business can be impressive.
That is why quite a large number of young entrepreneurs want to open a stall in the market. The problem is that they do not know where to start and how to organize such a business.
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What do you need to open your own retail outlet in the market?
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Invaluable experience that can be gained from working as a salesperson
In order to implement the idea correctly, you must first learn all the details, subtleties and secrets of this type of activity. An entrepreneur is recommended to work as a seller in the market for some time in order to get to know the business...
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I am planning to open a retail outlet in the market. Initially, I planned to buy from the previous tenant the opportunity to trade in his place, the so-called entrance fee. Depending on where I could find a good place, I planned to select the goods. (there are several interesting non-food topics, mainly from the category of generally necessary goods: shoes, phones...).
But after talking with people, they are not dissuaded from buying the place right away. It’s better to start by finding a sublease (pay 2-3 times more, since you need to pay both the market and the person who owns this place in the market, who has an agreement with the market). If the business goes further, it will look for and buy a place. I planned to gradually gain experience at my own retail outlet, without the pressure of a large rental. But after the advice, I am no longer sure of the correctness of such plans. I doubted how quickly it would be possible to find the goods, how it would be possible to organize the process, and then at the time of repurchase you need to pay up to $10,000 for...
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How to open a point on the market
Advice from an Expert - Business Consultant
Photos on the topic
Although the market is a form of organization of the same retail trade that is carried out in stores and shopping centers, it represents a completely special element. The laws and rules of the game here are different, unusual for owners of other types of retail outlets. The specifics of trading in the market are learned as experience comes, and this experience can begin to be gained by preparing to open your own “market” point of sale.
Just follow these simple step-by-step tips and you'll be on the right track.
Quick step by step guide
What you need to have:
1. Trade container
2. Fire extinguisher and documentation related to fire safety
3. Implementer with the necessary documents in hand
4. Arrangement with several suppliers
So, let's get down to action, focusing on the result.
Step 1
Think about what product to sell...
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How to open a retail outlet?
How to open a retail outlet?
The small business segment today is very significantly represented by various types of trade. Now we are far from Soviet times, when the state limited access to certain types of goods, concentrating their sales in our own hands. Today literally everything is bought and sold. It is not surprising that many aspiring businessmen choose trading as their first business.
By and large, for the successful development of this type of small business, the first place is not the size of the start-up capital (although its importance is beyond doubt), but the ability to choose the right niche, the right place, time... With a reasonable and thoughtful approach, the retail outlet pays for itself quite quickly and could develop into something more serious. But still, how to open a trading point? What needs to be taken care of so that it can not only pay for itself, but also constantly generate profit? On those...
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But first, ideas on how not to become bankrupt, simply because they are poorly informed, the best way to find out all the details, subtleties, secrets in any field of activity is to work there. Only someone who gets a job can learn everything from the inside, in our case it would be good to work as a salesperson at market, preferably in the one where you plan to open a retail outlet. What will this give you besides wasting time? - invaluable experience, (albeit small), acquaintances, and access to the right partners and suppliers. Understand, you can’t just save up $2,000 to go to market, rent a place there, trade and hope that everything will work out. The market is a different life, in which it is worth living for yourself, even if not for long, at least to understand whether you have a trading streak or not. Already working in the market as a seller, you will be able to, look for a profitable place to rent, find out in general what prices include rent, look for a good seller, as well as a warehouse for storage. Finding out all these points from the outside is much...
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02/01/2008 REQUEST: The enterprise, which is registered as a payer in the city of Kiev, plans to open a trade facility on the territory of the market in another populated area. How do we get permission to place such an object?
Summary: Extracted from Art. 15 Law of Ukraine dated June 25, 1991 No. 1251-XII “About the feeding system” (with amendments and additions, further - Law No. 1251-XII) and Art. 17 Decree to the Cabinet of Ministers of Ukraine dated May 20, 1993. No. 56-93 “About local taxes and fees” (hereinafter referred to as the Decree), the fee for issuing permission to place trade objects was added to local taxes and fees.
Article 17 of the Decree establishes that the fee for issuing permission to locate trade objects is the fee for issuing and issuing permission to trade in specially designated places.
Fees for obtaining permission to place trade facilities are dealt with by legal entities and communities who sell agricultural products, industrial products and other goods in accordance with the trading area. Mіstsya,...
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Is it worth opening your own retail outlet in the market?
Anything can happen in life. If a person suddenly loses his job, then there is no need to despair. Now there are many different ideas for starting your own business. For example, if you open a retail outlet in the market (even a small one), approaching this issue wisely, this will give a person a permanent job and a stable income for a long time. In other words, even if someone has no experience in this area, it is still worth trying this actually interesting type of activity. It's better to start small to reduce risks. After all, it’s never too late to expand your business.
Of course, for a business to start generating income, you must first think it through carefully and then invest a lot of work. The owners of successful businesses were also initially inexperienced and started with small trade, but patience, hard work and skill brought them fruit in the form of stability and prosperity. A huge advantage of running your own business is...
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How to open a retail outlet in the market?
SMALL BUSINESS.
There are a large number of queries on the Internet about how to open a retail outlet in the market, but it is difficult to find specific answers, so in this article we will try to give a comprehensive answer to this question. So, before opening your point on the market, you need to decide what you will trade.
This may be a food group of goods or a non-food group. If your goal is to make money on turnover, we recommend starting to trade agricultural products (cucumbers, tomatoes, onions, garlic, etc.). And if you plan to make money on price, then start selling clothes.
To open a point on the market, state registration is required, there is nothing complicated here, you need to register as an individual entrepreneur and choose a simplified form of taxation.
It's also worth...
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Here we will look at detailed instructions on how to open a retail outlet for trading on the market, what is needed for this.
Often this type of entrepreneurship becomes the first step towards opening your own large business. Moreover, despite the apparent simplicity of such an action, the presence of such a retail outlet from the very first days requires close attention to the range of available goods, the ability to attract consumers and simply solving a lot of organizational issues.
We present you with brief instructions on this topic.
How to open a retail outlet in the market
So, let's look at the information on how to open a retail outlet in the market:
If you decide to open your own retail outlet, the first thing you need to do is register as a legal entity or entrepreneur engaged in individual activities. Also, at the first stage, you should decide on the tax reporting option, for example...
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Freetab.ru - Free classified ads board, place your ad for 90 days FREE!
The most common type of business is trade, buy cheaper (wholesale) and sell more expensive (retail). The entire trade sphere is built on this simple scheme. I have already written about opening a store, a trading tent and renting retail space in a shopping center. An important question faces budding entrepreneurs - how to open a retail outlet in the market, where to start and how to even start working?
Let's look at how to open a retail outlet in the market.
But first, ideas on how not to become bankrupt, simply because they are poorly informed, the best way to find out all the details, subtleties, secrets in any field of activity is to work there. Only someone who gets a job can learn everything from the inside, in our case it would be good to work as a salesperson at market, preferably in the one where you plan to open a retail outlet. What will this give you besides wasting time? - invaluable experience, (albeit small), acquaintances, and a way out...
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A retail outlet on the market is becoming an attractive idea for those who want to try themselves in a new type of business and understand how they make money in the markets. Perhaps this will be the first step towards a new life, on the path to big business. Despite its simplicity, having a retail outlet requires from the first days attention and consideration of the product, the ability to communicate with customers, and decide on organizational issues. questions, and feel in the flow, which is important. Sometimes the situation develops in such a way that a person suddenly loses his job. Our time is a time of opportunity for enterprising people. If you try to open a point, you can be sure that you will start running your own business, make a profit, and gain new experience. There will be certain risks, but there will be no bosses over you, and you will create your own work schedule.
How to open a point on the market?
How to open?
Trading Features
Trading Rules
Point design
Profitability
How...
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Tips for dummies or how to open your own business on unemployment benefits
Many Ukrainians unexpectedly lost their jobs this fall. Some were laid off, others were forced to return home from work. Don't despair if you can't find a new job. You can earn a piece of bread and butter if you open your own business. And don’t rush to abandon this idea due to lack of money. It turns out that every registered unemployed person can receive one-time unemployment assistance from the State Employment Center to open a private business. The amount of the benefit depends on the amount of the former salary. Minimum payment - 3000 UAH. With this money you can easily open your own retail outlet. We calculated the payback of different types of trade and found out from experienced people the secrets and features of doing business.
So, before opening your point on the market, you need to decide what you will trade.
This may be a food group of goods or a non-food group. If your goal is to make money on turnover, we recommend starting to trade agricultural products (cucumbers, tomatoes, onions, garlic, etc.).
And if you plan to make money on price, then start selling clothes.
To open a point on the market...
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Instructions
Finding a place in the market is, of course, a key point in organizing a business, determining the further success of the business started. The most useful option is to explore the market yourself and choose a suitable place, but do not forget that the best places are almost always occupied. Therefore, first contact the market administration and find out about the availability and cost of free places, look at the options offered.
After you have decided on the location, enter into a lease agreement with the market administration, which should stipulate the responsibilities of the parties, the procedure for settlements between the parties, the validity period, the responsibilities of the parties, and the details of the landlord and tenant. Typically, such an agreement has a standard form, but before signing, carefully study it for any pitfalls.
After concluding a lease agreement, you need to launch a retail outlet - for this you need to select a seller. The further success of the business largely depends on him, so you should not choose the first person you come across. Do not forget that the seller must have such qualities as politeness, decency and honesty, in addition, he must not scare away potential buyers, but, on the contrary, attract them. When hiring a person, ask for references from previous employers.
Approximately determine the expected profit to understand how quickly the costs associated with renting a place on the market will pay off. To do this, subtract the purchase price from the cost of selling 1 kg or 1 unit of product, and multiply the resulting total by the estimated average sales per day. After that, subtract the cost of renting the space and the salesperson's salary per day. The total amount will be the approximate daily income from one trading place. Please note that there may always be uncertain administrative costs that need to be taken into account as well.
Now all that remains is to gain the trust of customers so that a person who has purchased products from your outlet once will want to buy products from you again and again. Try to gradually expand your range, thereby attracting new customers.
Periodically compare prices for similar products sold by competitors, and try not to inflate them.
Often, the rental agreement for a retail space specifies that in case of late payment, the tenant must pay a fairly significant penalty, so payment deadlines must be observed.
Video on the topic
Sources:
- renting a market place
Get place on market means for an entrepreneur engaged in trade to have the opportunity to sell his goods. To enter into an agreement with the market administration, you must first register yourself as a private individual entrepreneur or open an enterprise and register it as a legal entity.
Instructions
Decide on market what category do you want to receive shopping place. On universal market You can trade both food and non-food products. Usually their area is quite large, as is the number of tenants. On a specialized market You can only trade goods of one type. “Weekend Fairs” have become popular. They mainly sell agricultural and farm products and related goods - seedlings, seeds and seedlings.
To conclude an agreement, prepare a package of documents. You will need a certificate of registration of an entrepreneur or company, a certificate of tax registration and assignment of a TIN, payment details certified by the seal of the bank in which the company’s account is opened. It will also be necessary to attach an order for the appointment of a manager and an information letter from the statistical authorities with codes of economic activity, which indicates its type as trade.
In addition, you will need to purchase a cash register and attach to the package of documents its registration card or KKM passport, if it is issued to the seller, as well as a maintenance agreement for this device. The quality of the goods sold must be confirmed by relevant documents: a conclusion from the Sanitary and Epidemiological Supervision Authority for the goods and a certificate of state registration of the product.
The package of documents required to take place on market, must include employment contracts concluded with sellers and orders for their employment, as well as medical records of sales personnel. If you have migrants working as sellers, you will need to attach a permit to hire foreign labor.
The conclusion of the Sanitary and Epidemiological Inspectorate will need to be issued if you are going to sell food and drinks. If your product includes bedding and other linen, textbooks for children, perfumes and cosmetics, etc., you will need a conclusion on their compliance with sanitary standards issued by Rospotrebnadzor. Obtain a certificate of registration for products that may be dangerous to humans in accordance with Decree of the Government of the Russian Federation No. 262 and Order of the Ministry of Health and Social Development No. 657.
Video on the topic
Sources:
- Order of the Ministry of Health and Social Development No. 657 in 2019
To organize your own, it is not at all necessary to purchase a special room - a pavilion, a stand, a department in a store. You can simply rent it. However, not all novice entrepreneurs know what needs to be done to open a retail space.
Instructions
First of all, you need to choose the place where you want to locate your store. The ideal option is a residential area. Of course, it is best if the retail space you want to rent is located near a public transport stop. This option guarantees you a large number of visitors, which means
The state decided to help the unemployed registered on the Labor Exchange. He gives them 58,800 rubles, or even more, “initial capital” free of charge if they provide some kind of formal business plan for their business idea.
Most often, the thought comes to the minds of such novice businessmen: I’ll start trading in the market (in the sense, in the bazaar). Of course, before this, a person dealt with markets only as a buyer. An aspiring entrepreneur walks around the markets, takes a closer look, asks traders, negotiates with the administration about renting a place. The idea of trading on the market becomes more and more firmly established in the head and finally comes true.
At the same time, most newcomers to market labor make 10 typical “strategic” mistakes and go broke. Most, but not all. About 1-2 out of ten trade successfully. It's a shame, they could have done everything.
The first mistake: you look at what the traders already working there trade in the market, how they trade, what sells more successfully, and you want to be like them, trade the same and in the same way.
An increase in the number of sellers, for example of sausage, will not increase the number of sausage buyers and the money in their pockets. Before you, there was a balance between the number of retail outlets for specific products and the consumer flow of the market. You will only ride on the same consumer flow, “biting off” a share of the revenue of the old merchants.
Your share will not be large, since you have not yet acquired enough regular customers. As a result, the proceeds will not even be enough to pay for the rent of the retail space. Moreover, the old merchants will do petty mischief.
It is necessary: to trade not what is already being traded, but what is missing in this market for buyers who regularly come here. To do this, ask customers, observe and think, think.
Three attractive stereotypes in relation to retail markets (bazaars):
- you can find everything here
- Here you can safely bargain (discount immediately)
- here for each product there is a “own” seller you can trust
And in this “find everything” there may be voids. Look for them. But remember: just because something is not on the market, this does not mean that you should immediately trade it. Perhaps the old sellers tried it and it didn’t work. Having found a promising void in the assortment, carefully find out whether they have already tried to sell this here?
And one more thing: do you want to be “like everyone else,” becoming part of the “general pattern,” or to stand out, to be different from everyone else? Guess 2 times: who will buyers pay more attention to?
Second mistake: you want to trade what you like: “I want to trade elite teas, sweets, cookies - it’s so beautiful! My display (assortment) will be better than those of these traders.”
Trading what you personally like is like death. You need to trade what market visitors like. In this case, see “First mistake”.
Third mistake: you want to trade something that, in your opinion, is not on the market, or is very little represented.
The decision should be based on the customers' opinions, not yours. To do this, you need to study the buyer, get to know him, and observe him (see “First mistake”). You may not personally like the wishes of buyers. What do you want: income or satisfaction of your opinion?
Fourth mistake: you do not adequately assess the location of the retail space that you were offered for rent on the market.
There are “passage” places: usually closer to the entrances, on the central passages; and “non-passable”: in side aisles, along the periphery of the market, in dead-end aisles. There may be no-go places along the central aisles, but at the end of the shopping row. Buyers are no longer coming. Passage places are always occupied. You, a beginner, will be offered only impassable ones.
Goods for everyday use (gastronomy, bread, cigarettes, for example) or “impulse demand” (household items, stationery, etc.) cannot be sold in closed areas. But you can trade, and successfully, with goods of “special” demand and a narrow range. For example, “only hunting knives”, or “everything for dog owners”, etc.
But remember that in order to form the primary flow of “specialized” clients to your “specialized” place, additional advertising will be required already on the streams: a wall poster, a “folding bed”, etc., but it’s better not to be lazy and distribute simple leaflets with advertising at the entrances for a week your product and location. There is a plus: off-the-beaten-track locations have low rents.
Fifth mistake: you start trading without making deep and detailed calculations on fixed costs.
Fixed costs are not just rent for a retail space. There is a lot more: fees for various market services - use of a cart, or permission to enter your car for unloading; payment to the veterinary laboratory, for the rental of commercial equipment.
Don’t forget about the imputed tax once a quarter. This is how you accumulate a decent amount of little things. Plus fines if payment is late for something.
Fixed costs do not depend on your revenue level. Even if you didn’t make a sale, pay. Will your revenue be enough in the first month?
Sixth mistake: you focus on optimistic (and even rosy) forecasts for revenue and turnover.
Having surveyed or somehow found out the level of revenue and turnover of traders already working in the market, you plan for yourself the same or even higher. Because you think that you will trade better (see “Second mistake”).
When planning any business, always consider “pessimistic” forecasts when calculating revenue, turnover and the level of fixed costs. In most cases, in the first three months (promotion of the place, acclimatization) the net profit is zero. But you have to pay fixed costs.
Have a reserve of primary capital for this case. Persistent traders sometimes also get another job (in the evenings, weekends) in order to pay fixed costs from their salaries while their place in the market is promoted. And they do it right.
Seventh mistake: you do not adequately assess the cyclical nature of trading to start your activity.
For any product during the year there is a cycle in trade turnover (according to demand). In some months there is very high revenue, in others, on the contrary, there is even a loss. You need to focus not on monthly income, but on the results of the year. For some types of trade, 2-3 months “feed the whole year.”
For example, fresh flowers. Experienced merchants set aside a portion of the proceeds from the “good months” to pay fixed costs during the “bad months.” When planning your trading, carefully learn about the cyclicality of this product.
As a rule, opening trade at the end of spring at the beginning of summer is not profitable. But at this time it is easier to get a good (passing) place in the market and endure it with low trade until it picks up in the fall. It is useless for a newcomer to give up the hope of getting a “good” place in the fall.
Eighth mistake: you are a beginner, you are opening your trading place on the market for the first time, but you are not trading yourself, but hiring a seller.
This is also like death. Firstly, you will never learn to understand the intricacies of market trading. Secondly, the hired salesperson is poorly motivated to “catch buyers” when promoting a new place, and generally keep a smile on his face.
The percentage that you promised him means nothing if the seller simply does not have the ability to promote a retail location. And sellers with abilities have long been employed. Thirdly, there is a whole business: hiring such new people in order to steal decently and disappear.
Ninth mistake: you do not calculate the amount of required working capital taking into account Paret’s law.
Don't know this law? Paret's Law states: of all your products, only 20% of the assortment will bring the main (80%) revenue. The remaining 80% of the assortment provides only 20% of revenue and can take a very long time to sell. But it’s a paradox: without this supposedly unnecessary “ballast” in the form of 80% of the assortment, the profitable 20% of the assortment will not be sold. Abstruse?
Read carefully several times. Experienced traders explain this simply: in order to successfully trade, for example, only potatoes, you also need to put on the counter a wide range of other things, including nuts and bottled juice. But only potatoes are not traded.
So, enough working capital is needed to purchase both the main product and “for the assortment.”
Tenth mistake: You are starting a trading business alone.
Without the support and participation of your entire family, or at least one person who loves you, you will not cope. This is precisely the main reason for the successful work in the markets of traders of “other nationalities” - the participation of the whole family, from small children to distant relatives.
This is a real business plan.
If you find solutions that allow you to avoid making the listed mistakes specifically in your case, then these solutions will be the true business plan for you. It would be good to write down these decisions (how to avoid making mistakes) and constantly look at the notes, correct, supplement. And then everything will work out for you.