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More more We open a store of children’s goods: a business plan

Although there is a crisis in the street, some businesses continue to grow. And in this list a special place is occupied by the production and sale of children’s goods and clothing for pregnant women.

“The fact is that even during the crisis, Ukrainian women become mothers. And accordingly, this category of clients needs special clothes. In addition, newborns are growing rapidly: they constantly need new bodys, jackets, blouses. So, the demand forms supply. But 5- 10 years ago, Ukrainian manufacturers offered a small selection of products, as there were a lot of representatives of foreign companies producing children’s goods in the country, and in the last round of the crisis, the situation changed dramatically: the rise in the dollar exchange rate caused many imported Things turned out to be inaccessible to Ukrainian families with an average income. This means that today domestic companies can make good competition to foreigners, therefore this segment of the market is currently experiencing rapid development, ”explains Andrei Krivonos, director of the Franchise Association. That is why “Segodnya” studied the possibilities of opening a small store of dettovarov in Kiev.

1. Characteristics, location, competitors
We are opening the Malyshok department store in the capital. Our audience will be pregnant women and young mothers with children aged 0-5 years. The store will offer all season clothes for pregnant women, as well as shoes, bodys and jackets for babies. We will also sell diapers, toys, food, baby monitors. We will trade online and offline. And although the competition is high, we will occupy a niche thanks to a universal range, low prices and good location. That is, we will open a store in a new neighborhood, where there are many moms with babies. According to calculations, if you sell dettovary daily for 2 thousand UAH, the costs will pay off in 1.5 years.

2. Starting capital
At the start, you will need to invest in redecorating the premises for a shop, buying furniture and office equipment, and creating inventory. We pledge on the “marafet” premises 60 thousand UAH. The same amount will be spent on the purchase of a pair of shelves and display cases, a cabinet, a cash register, a safe, a desktop, a chair, a netbook, a printer with a scanner, and the installation of an alarm button for security reasons. Approximately 60-80 thousand UAH will be needed for the formation of the initial warehouse, goods for children and mothers, and these are clothes, shoes, educational toys, appliances, care products, bicycles, rollers, etc.

3. Marketing, advertising
To popularize our project we will launch the site. On the creation of a simple online store we lay 10-15 thousand UAH. Plus, annual domain and hosting will cost 2-3 thousand UAH. We will also create pages in social networks, place ads on discount platforms, for example, Pouupon and online exchanges. Total: 18 thousand UAH.

SHARES. Let’s make a sign, we will order a pavement sign, we will print business cards and we will distribute a flyer. Make friends with customers who will offer promotions, bonuses, discounts like “On the day of the baby’s birthday – a discount on the number of months.” We will also develop a storage card for regular clients, to whom we will send news via messages to mobile. Total: 10 thousand UAH at the start and 5 thousand UAH per month.

4. Current expenses
The list of monthly expenses includes rental of a shop, a communal flat, payment of mobsvyaz, salary, purchase of washing and office supplies.
TEAM. The owner and the employee will work in shifts (every other day) to trade, update the site, take orders by phone and wash the premises. Rate – 200 UAH per day plus a percentage of vytorga. Also need an accountant – 3000 UAH.

MONTHLY. To update the product line will take 10 thousand UAH. And on stationery, washing and force majeure we will lay down 5-7 thousand UAH.

5. Project payback, risks
Here, the yield can be as high as 10% and 150% – depending on the level of purchasing power, customer flows and sales. But it can be profitable and with a minimum margin. According to calculations, if daily 10 customers buy items for an average check of 200 UAH, then we will earn 60 thousand UAH per month. By minusing the current (43 thousand UAH) and marketing (5 thousand UAH) expenses (only 48 thousand UAH), we will get 12 thousand UAH. Taking into account the starting (200 thousand UAH) and marketing (28 thousand UAH) costs (228 thousand UAH in total), the project will be released in 1.5 years. In general, the idea is viable, because even in a crisis, dettovars are in demand. Seasonality can hinder business: at the end of the summer and on New Year’s holidays there is almost no trade. But this is a temporary phenomenon.

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