Sex shop - a profitable business or a waste of money? How to conduct business in order to receive stable income?
We analyze the situation
Not so long ago, intimate goods shops occupied their niche in the market. How profitable is this business? How to open a sex shop so as not to incur losses? How to advertise products and where to look for suppliers? Is it possible to consider sex shop as a business, generating the main income? Let's try to figure it out.
Opening any business begins with determining its profitability and appropriateness. Thinking about how to open a sex shop, first make sure that the population needs it, or at least its specific group. Do a little research and determine whether intimate goods will be in demand in your locality.
Obviously, in villages and small towns such a store will bring only losses. In large cities, where such establishments already exist, it is necessary to determine the competitiveness of the enterprise. A sex shop, the profitability of which is guaranteed, should be in a crowded place, be distinguished by a wide range of original, but in demand goods.
SP, LLC or something else?
If the preliminary studies have shown that the store can be successful, you can proceed to the preparation of a business plan. It will be similar and not similar to the plans of other stores. The first paragraph in this document will be the opening and registration of the company.
Decide which form suits you the most? It is easier to open an IP, all its profit remains to the entrepreneur (except taxes), the tax system is more understandable. LLC better protects the interests of owners. Now it's time to collect a package of documents for opening. By the way, the costs of these needs are also recommended to be included in the sex shop business plan. You will have to pay a fee for documents.
What documents are needed to open?
A set of documents usually includes a set of standard papers:
- A copy of a document certifying the formation of a legal entity.
- Certificate from the tax authority that the company is registered.
- Materials (codes) received at the State Statistics Committee.
- Contracts: rent, garbage collection, alarm or video surveillance, etc.
- Conclusions from Rospotreb- and Gospozhnadzor.
- If an LLC is open, then you will need to register a bank account and pay the minimum authorized capital.
Entering the path of collecting documents, many are thinking about how to open a sex shop. Complete all instances on your own or hire intermediaries? Experience shows that the services of lawyers, although they cost money, are fully justified. They not only save time and money (and, as a result, nerves), but also allow you to significantly speed up the process, anticipate and prevent the occurrence of complex situations. While registration lasts, you can track down suppliers and enter into contracts with them.
We continue to draw up a business plan
The right suppliers of sex shop is one of the most important conditions for its profitability. The wider the assortment, the more buyers, the higher the profit. In order for this truth to work, the owner will have to work hard.
So, for example, you can buy inexpensive (and not very high-quality) sex toys in China, better ones in Sweden. It is more profitable to purchase gels, lubricants and similar products through Russian suppliers. Finding good products and reliable manufacturers will take some time.
The next item in the business plan will be the accounting of expenses required for opening.
What are we spending on first?
A list of upfront costs might look something like this:
- The costs of collecting documents, registering a store, etc. Statistics show that in large cities they can range from $ 700 to $ 1,000.
- Spending on furniture, inventory. It will require showcases and counters, tables and chairs for staff, appliances and cleaning equipment. For starters, you can spend a minimal amount on this: something around $ 500. Then this amount can be varied.
- Advertising support. How to advertise sex shop? It is absolutely impossible to save here. It is necessary to develop a whole campaign, provide for exactly where the advertising materials will be placed, how they will look. The cost will depend on this. Sex shop ads can't be cheap. It is more difficult to attract buyers here than, say, to the point where you sell underwear. Officially advertising such stores is prohibited. You won’t display the goods in the windows. So, you have to look for workarounds, and this also costs money. Professional advertisers know how to advertise a sex shop, and they should be addressed.
Procurement of goods
How much money do you need to spend on the initial purchase of goods? Everyone determines this amount for himself. However, it should be remembered that the sex shop does not always pay off quickly. If this is the only institution in the area where nightlife is in full swing, where there are many young people, then it is likely 4-5 months is enough to recoup the cost of the goods.
With a lot of competition or an unsuccessful location, the period increases to a year. Typically, entrepreneurs spend about 6-7 thousand dollars on the first batch of goods. However, you need to have a "spare" amount so that you can adjust demand in time.
The list of current expenses should include utility bills, employee salaries, contingencies.
A few words about the assortment
In order for the store to make a profit, the goods in it must be as diverse as possible. Typically, experts distinguish:
- Items for the curious. Many of them rarely purchase goods. You can attract the attention of this group by selling souvenirs (for example, aprons, watches with certain symbols, souvenirs, “jokes”).
- Clothing. Net stockings, special panties, "carnival" erotic costumes are popular with young people.
- Disabled goods.
- Accessories for BDSM.
- Simulators, vibrators, etc.
- Gels, lubricants, stimulants. This group of products must have certificates. Trade in uncertified drops, roots, lubricants is considered illegal.
- Polygraphy: posters and art albums, postcards, special literature.
- Perfume. These can be “ordinary” fashionable perfumes, and means that arouse sexual interest.
Of course, each group should be represented not by one but several products.
Alternative
You can reduce costs by opening a virtual store. How to open a sex shop on the Internet? Almost the same as normal. Only in the business plan will some items be replaced by others.
A virtual store does not need counters and shelves, it does not need a large and beautiful retail space. But such a trade needs software (it costs about $ 3000).
The business plan of such a store should take into account the real possibility of delivery of goods, the number of own couriers and the necessary transport. To utility bills will be added fees for the Internet and the creation of your own online store.
In a sense, intimate products are easier to advertise on the Web. You can place your advertising not only on your own, but also on partner sites. It is believed that the payback of a conventional and an online store is approximately the same.
For those who are afraid to start an independent business, there is another way. You can buy the Forbidden Fruit franchise for an adult store. A franchise package costs about two thousand dollars, and investments are in the range of $ 15,000.Franchising conditions provide for the opening of a retail outlet, store or turnkey business. The margin on goods in this case is over 100%, the store pays for itself in 3-4 months. Training for sellers and entrepreneurs is undertaken by franchise sellers.
