Many people sooner or later come to the realization that working for themselves is much more profitable than fulfilling the instructions of their employer. Indeed, it is very difficult to argue with this, but a young entrepreneur inevitably raises the question of where to start and in which direction to move. Those who have at least a small initial capital can be advised to turn their attention to the retail sector. Of course, sales volumes and, consequently, revenues here will be disproportionately lower compared to large businesses, but you always need to start somewhere. To do this, for example, you can open a tobacco shop. After all, cigarettes are in great demand among buyers.
Why is it profitable to have a tobacco business?
This question with full confidence can be classified as rhetorical. Only in our country, about 44 million people smoke, which is about 39% of the population. At the same time, each of them buys at least one pack of cigarettes per day every day. If we take its average cost equal to 30 rubles, it turns out that the tobacco business daily brings its owners over 1 billion rubles. Not every business can boast of such indicators.
Of course, the anti-tobacco movement, which has recently been ubiquitous around the world, has promoted the adoption of a number of laws restricting the sale of cigarettes. In fact, it turns out that it’s quite simple not to sell tobacco products to minors and place a kiosk at the required distance from children's educational institutions.
Main advantages
To assess the profitability of the tobacco business, its owner must first understand all the advantages and disadvantages that exist in this field of activity. At the same time, there are a lot of positive points that you can not help but pay attention to:
- A large number of buyers and, as a result, huge demand.
- Tobacco products can be stored for a long time, and this does not require special conditions.
- Large selection of suppliers.
- Quick return on investment.
- Ease of business registration and bookkeeping.
- The number of required staff is minimal.
Doing Business in the metropolis and small towns
How to open a tobacco kiosk in a city? And how to do the same in an urban-type settlement with a population of less than 10 thousand people? These are essentially two very different questions. For example, in Moscow there is a very developed network of tobacco boutiques in which lovers of smoke can find anything that they like.
In such conditions, small shops are very difficult to survive. They take place only in remote areas of the city. In addition, stalls are installed at public transport stops, but the assortment in them is very diverse, among which cigarettes are not the main product.
In small towns, the situation is radically different. It is not profitable to build a large specialized shopping center here, as the investments will not be justified for a very long time. Small pavilions located within walking distance, on the contrary, are in high demand.
Company registration
In order to avoid any problems with the law, you must register your business. To do this, you can choose any legal form.Both the status of an individual entrepreneur (IP) and registration of a limited liability company (LLC) are suitable.
To make the right choice, you need to evaluate all the pros and cons of each of the above forms. In cases where the choice is made in favor of the individual entrepreneur, the businessman receives the lowest tax rate and a facilitated reporting process. Also, a noticeable advantage may also be the fact that all profit received by law is the property of the entrepreneur, and he can dispose of it at his discretion.
The same legal form as LLC, in fact, has only one noticeable advantage over individual entrepreneurs, which is expressed in the fact that liability for financial obligations in this case is limited to the amount of the contribution, while the entrepreneur is liable with all his property.
Obligatory and possible costs
How to open a tobacco kiosk and how much money is needed for this? This is the first question a person asks, ready to seriously engage in such a business.
One can immediately say that some initial capital is needed, but its size is not as large as in the case, for example, of the opening of a confectionery or a boutique specializing in the sale of fashionable clothes.
So, to open a tobacco kiosk will cost about 3 million rubles. The amount at first glance is quite impressive, but it includes all possible costs that may arise.
This includes the purchase of both the premises and the necessary equipment (cash register, alarm, etc.), and the product itself. In addition, the cost of advertising, which is known to be the engine of trade, has also been taken into account.
Calculation of consumables for the purchase of goods
When compiling a business plan for a tobacco kiosk, of course, you first need to think about how to reduce costs and increase revenues. As for all other retail sectors, this can only be done through direct deliveries of products from the manufacturer. Unfortunately, in the case of tobacco, things are a little different.
Here, of course, the principle “buy cheaper - sell more expensive” also applies, but the fact is that global brands give dealer rights to only one representative in each country. To get such an offer is extremely difficult, especially if it is a beginner in this business. Thus, there is no access to direct deliveries, and you have to work with resellers, whose price tag will be slightly higher.
Now, with regard to the specific amount of cash required to purchase the initial consignment. Everything will depend only on the financial capabilities and the desired size of the kiosk. After all, it can be both a small shop and a huge tobacco boutique. If you focus on the above figure of 3 million rubles, then about 2 million of it will have to be invested in cigarettes themselves.
Staff
No one has probably figured out how to open a tobacco kiosk alone. The success of any business depends on the professionalism and interest of the people who participate in it. As noted above, cigarette sales do not require a large number of employees. At the initial stage of development, even one seller will be enough.
In the case when a decision is made on saving on staff, you need to be prepared for the fact that most of the functions will have to be performed by yourself. Also a feature of a small business focused on retail sales is that it is not profitable for an employee to pay a fixed wage.
Therefore, many see a way out in that their remuneration for labor is a certain percentage of sales. This option is beneficial to everyone, as the interest of staff will inevitably lead to higher incomes.
Business expansion
Sooner or later, for any business, the time comes when it becomes simply vital for expansion.As a rule, this process should begin after the initial investment has paid off, and the business began to bring real income.
As for retail, with the right approach to business, this can happen in 6-18 months.
Since you can open a tobacco kiosk in more than one place, the next step may be to expand the distribution network. If such a narrow specialization seems unpromising, then the profit from the sale of tobacco products can be directed to something completely different, for example, to build a cafe or a beauty salon and try your hand at the service sector. And even in the case when something does not work out, you need to remember: “He who seeks will always find!”
