It would seem that organizing a business in confectionery is not so difficult, but still there are certain difficulties.Firstly, the confectionery shop requires significant financial investments. Secondly, a lot of competition. In big cities, it is more profitable to open a confectionery business when you already have experience in the sale of bakery products. When the clientele knows you, it’s easier to establish a market. In cities with a small population, things are slightly better. The competition is not so great, and you can start from scratch. A huge plus of the confectionery business is that there is always demand among buyers. The only question is how to convey the products to them. Another important issue is how much you need to invest in order to make a profit and when.
Equipment for the production of
In addition to the working equipment itself, refrigeration equipment is necessary. Confectionery products are not subject to long storage. That is why it is necessary to have a car on which the products will be delivered to the point of sale. Ideally, you can open a pastry shop, and rent a store next to it. Business profitability increases by default, rights and upfront costs increase.
The price issue for the rental of premises for the placement of the workshop in different cities is different. In the capital, this will cost an order of magnitude more expensive. In medium-sized cities, you can get by with a little blood. The most important thing is to find a room that can accommodate several working rooms. Equipment for the confectionery needs the most diverse: starting from furnaces and refrigerators (both for raw materials and for finished products), cream grinders, electric stoves and ending with small equipment (containers, pastry shovels, brushes, tubes). You can save on equipment only if you purchase domestic production. That is why it is worth initially taking good and high-quality equipment, because the success of the entire business also depends on this.
Cost and profit
You can’t count on quick profits. In order for the business to pay for itself, it takes at least two years. To make it a plus, you have to be patient. Initially, just thinking about opening a confectionery shop, you should carefully study the market. Interested in not only the sale of products, but also the purchase of consumables, equipment, establishing a clientele.
The first item in the cost will be the rental of production facilities. The area must be at least 150 squares. It will cost an average of about 100-200 thousand rubles (rent for a year). The second expense item is the purchase of equipment. High-quality equipment will cost about 150-300 thousand dollars. The third item will be raw materials. It is necessary to buy it for future use (something that has a long shelf life), and for consumption in the near future. The approximate figure is 4-6 thousand dollars.
In addition, it is necessary to draw up all the documents allowing to engage in the production of confectionery products. The easiest way to formalize your business as an individual entrepreneur (it will take at least a month). Judging by financial costs, it will cost at least 2 thousand dollars. Transport can be allocated in a separate line of expenses, if one is not available. In small cities, you can do with one car to deliver products. In a large metropolis, two may not be enough.
You can count on quick sales only when there is a developed market. If the business is started from scratch, then a way out is renting a pastry shop (for selling products) at the workshop itself. But then the costs of starting a business can be safely doubled.
To know for sure how to open a pastry shop, you can turn to specialists for help.At least from a legal point of view, it will help to formalize correctly and legally.
Where to sell
The ideal option is to sell in a candy store at the workshop. If this option is not available, then you should look for the first buyers yourself. It can be both shops and city cafes, pastry shops, sometimes even companies. The most important thing in finding buyers is advertising. The fact that it drives trade is known to all. The confectionery shop is not necessary to advertise, but the products are very necessary. Advertising will also have to be spent. In large cities, this is again expensive, in medium - cheaper. Sometimes you can do it yourself (if you have the time and creativity).
In addition, where and how to market, the issue of product quality should also be a concern. It must be impeccable. Otherwise, losing a consumer is worth nothing. In addition, the price of products should not be too high. Explore market offers and prices. Creating a unique recipe can also help promote your product, that is, something that no one has yet proposed. The option will be a win-win if the quality is at its best.
As a result, with a successful start, you can get a plus in the confectionery business during the first two years. The profitability of such a case is very good - about 30-40%.