Business selling clothing. Own business for the production of workwear Trade margin, %
Own business provides excellent opportunities for material growth and allows you to look into the future and plan your life without fear. Opening your own store means giving a great start to your business career. But many have difficulty choosing the products that will be sold in their store, and this is a fundamental point. Currently, there are many stores with the same product specifics, so it is difficult to find a niche where the competition would be the least. In order not to face especially strong competition, you can open a store selling workwear.
In addition to the lack of fierce competition, the advantages of such a business include a relatively small start-up capital required to open.
It may seem to many that overalls are less in demand than, for example, everyday ones, however, as practice shows, this is not the case. Professional attire is a requirement for many activities. It is worn by all, without exception, doctors, workers in the chemical industry, firefighters, employees of gas stations and repair shops, and many others.
It is worth considering that an ordinary worker is required to have not one set of work clothes, but several, in case of an emergency. After the final decision is made, the question immediately arises of how to do it right, so that in the future the store not only pays for its maintenance costs, but also brings a stable income.
There are a number of things to consider before opening a workwear store: what retail space is best, how to get the paperwork right to open your business, where to find suppliers of goods and how to attract the attention of the buyer. In addition, it is necessary to calculate how much funds will be needed as initial capital to open a workwear store.
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Where is the best place to open a clothing store?
To organize your business selling workwear, you first need to take care of the retail space. For these purposes, you can use the rented retail space or, if possible, purchase it. Workwear, as a rule, is bought by people at the time of shopping, that is, in passing, so it is desirable that the location where the store will open be a walk-through. It is very important that overalls are conspicuous, because even if a person does not purchase them immediately, he will remember the place where he saw her, and in right moment will come shopping. For the sale of workwear, a stand-alone store, a department in a pavilion with clothes, and even a place in the clothing market are suitable.
For the most part, people who are just starting to value their business do not have the opportunity to buy out a retail space, so it’s best to immediately look for a place that can be rented, and it’s best to get by with a part of a store or a place in a pavilion at first, given the volume of goods for sale in order to the outlet did not seem "naked". It is equally important to take care of the store's inventory, because in any case, you will need several screens for trying on, mirrors and, of course, a place to store goods that are not displayed in the window, and other necessary things.
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Selecting goods for sale and searching for suppliers
It should be said right away that profitability will depend on the quality and price of the goods offered in the store. outlet, that is, it is desirable that the quality be the best, and the price - the most acceptable. In addition, you need to take care of the range of goods, because the category "workwear" includes different kinds bathrobes, overalls, shoes, masks, hats and even warm clothes. In order to maintain the assortment, it is necessary that the store has both cheap and expensive workwear options, since only in this case it will be possible to satisfy any customer.
The search for suppliers is a separate problem, the solution of which requires special attention. Workwear at an affordable price can only be purchased from the actual manufacturer or wholesalers who are directly connected with the manufacturers. It should be noted right away that you will have to buy at least a "size" of each type of workwear. In the "size" as a rule, at least six sizes. Buying in bulk means purchasing the entire range of sizes at once, because end customers will also need different sizes of clothes. Since there are many types of clothing, the bulk of the required start-up capital will go to create the necessary assortment.
Suppliers of quality goods can be found through advertising in the media, in representative offices and in wholesale markets. In this case, much depends on the region. During the purchase of goods, one should not be lazy and fully trust the word of the supplier, it is necessary to check the goods for defects, as well as the conformity of the quality to the description. In addition, for a number of types of workwear, the manufacturer must provide special documents and certificates that prove the conformity of the product to the requirements of a particular type of industry.
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Approximate amount of starting capital
It is clear that many will be interested in mastering this trading niche, but you need to at least roughly imagine how much it will cost to set up a store. In the list of expenses, the first thing to do is to include the rent for the retail space. In fairness, it must be said that the cost of rent for different regions is different, but at least 8-15 thousand rubles a month will be needed, and for renting an area in a place that is not very accessible. In large cities, the cost of rent in the most accessible place can increase to 25-40 thousand per month. In this case, to reduce the cost, you can rent cheaper space and invest some money in billboards so that the buyer knows where to go.
The amount required for the purchase of commercial equipment will depend on the area of the future store. You will need to pay a considerable amount for commercial equipment, since in any case you will need several racks, the cost of which fluctuates around 2.5-3 thousand rubles; to purchase a fitting room, you will need about 5 thousand rubles, and you need to have at least two of them. If it is not possible to allocate money for the purchase of cabins, you can save money by making screens for changing clothes in the store, and in addition, purchase free-standing mirrors, for such an option for a fitting room, along with the cost of a mirror, it will take no more than 4 thousand rubles. If the store will display shoes, you will need an ottoman bench so that you can sit down. The cost of this store interior item is about 1.5 thousand rubles.
To place goods, it is better to use floor and wall hangers, the cost of which ranges from 600-1000 rubles. The total cost of commercial equipment will be approximately 20-28 thousand rubles. Besides, separate part the cost of opening a store inevitably falls on the purchase of goods. For the assortment it is necessary to purchase several varieties of dressing gowns and other overalls for certain industries. According to conservative estimates, at least 60-90 thousand rubles will be spent on the purchase of goods. This money is enough to start working, and in the future it will be possible to replenish the range of goods from the profit.
Overalls for employees. - it's not only distinctive features specific to a certain profession, but also safety and hygiene. The use of uniforms is very common in different industries, so the workwear business is a profitable business.
Before opening a workwear business, study the provisions, they will help you set up production.
Varieties of workwear
The purpose of the work form determines its appearance, required properties, choice of raw materials, method of production. Familiarize yourself with the main types of workwear and determine the one that suits your business.
Medical- clothes for medical staff. Includes:
- bathrobes;
- suits;
- hats;
- bandages.
Protective– designed for welders, builders, industrial workers, as well as other professions working in hazardous conditions environment. Includes:
- suits:
- overalls;
- sleeves.
Complete with protective accessories:
- respirators;
- gloves
- glasses;
- signal vests;
- half masks;
- helmets.
Corporate– is purchased by organizations for all staff. The main requirement is an aesthetic appearance, corresponding to this specialty. Widespread in areas such as:
- hotel and restaurant business;
- transport service;
- trade;
- entertainment organizations;
- various enterprises.
Protective from high temperatures – overalls of fire services, rescuers, oil industry workers. It features increased fire resistance, includes special shoes and gloves.
For work at height– characterized by strong equipment, ease of use, which allows you to work with maximum safety. The equipment includes:
- belts;
- slings;
- carbines;
- claws;
- leashes;
- other special items.
Materials and equipment
Depending on the type of workwear, different materials are used. Medical clothing requires highly hygienic, antistatic fabric that can withstand washing with disinfectants and does not let blood through. These criteria are met:
- cotton- natural, light, but strongly wrinkled;
- mixture cotton and polyester- more modern fabric, light, less wrinkled.
The protective form is made from:
- twill- a special type of weaving contributes to strength, wear resistance, is produced from yarn of different composition;
- moleskin– cotton material, protects from dust, convective heat;
- tarpaulin- a dense fabric based on hemp, linen, semi-linen yarn, impregnated with special compounds that provide water-repellent and fire-resistant properties;
- coarse calico- ecological, highly hygienic, suitable for workers' underwear;
- ripstop- strong, durable, weaving using an army thread, used in the production of firefighters' clothing;
- cloth- a very dense, knocked down fabric made from wool or cotton;
- kondura– abrasion-resistant nylon material, impregnated with water-repellent agents, coated with polyurethane; disadvantages - high weight and high cost.
Corporate overalls are aimed at appearance, convenience, compliance with the idea of a corporation, therefore, a variety of fabrics are used in the production.
- a promising business with a quick payback, does not require large investments and complex skills. Profitability - 30%.
- an actual business, with the proper approach, the monthly income will be 200,000 - 300,000 rubles.
AT modern world it is difficult to imagine the activity of any manufacturing company or corporation without overalls - they are used everywhere. Workwear is not a whim of the employer, it is designed to help maintain safety and hygiene at work. Its special role in protection against exposure harmful substances, although sometimes overalls also perform a decorative function. Everyone knows that overalls are mandatory in such areas as medicine, food handling (restaurants, shops), construction, security structures and even the hotel business. It is the high demand for this type of clothing that justifies the high profitability and relevance of the tailoring business.
The tailoring business differs from other businesses in many ways, and this article will help you understand its features.
How much money should be invested in the creation of production
To start a business, you will need at least $15 000 .
A significant part of the amount will be spent on the purchase of sewing equipment, which will require space to install. Experts recommend renting a room, it can be both industrial and warehouse - this is not important. However, the size of the room is important - it should not be less than 70 square meters. The premises, to the great joy of a novice businessman, will not require huge costs - the fact is that renting production and storage space is much cheaper than renting offices.
Typically the rental price production premises is about 30% of the cost of renting an office.
How about competition
Let's not hide - there is insane competition in this business. Yes, if you were counting on easy prey, then you were mistaken - at first you will have to break through here. You can easily assess the amount of competition by simply driving into search engine request "overalls in Moscow". You will be offered more than a hundred companies, each of which offers its product in this area. But don't get scared right away. Firstly, competition pushes for development, and secondly, in this industry it can be overcome by choosing a specialization, as well as making clothes of very high quality and functional.
Ease of production
Overalls, in comparison with ordinary clothes, have a simple cut and almost all are standardized - this suggests that they can be made quickly enough and in large quantities. For the most part, materials for workwear are also used special, but you can find them in almost any fabric store (in bulk, of course). Tailoring of overalls is made according to patterns - you can freely buy them all in the same Tkani stores or make them yourself according to the purchased overalls. However, do not forget about competition - your clothes should stand out from the line of their own kind, so you will need to improve existing patterns, supplement them with something new and certainly functional. The quality of the final product has three components: quality material, quality equipment and quality work.
How to sell workwear
Your potential customers are companies, legal entities and individual entrepreneurs, you should pay attention to this when choosing a marketing strategy. In this case, the b2b – business to business strategy will suit you. The best way to sell products is direct marketing. So, at first, a novice workwear manufacturer can visit companies using it himself with a proposal to conclude a supply contract. In this case, the main thing is to interest the client, to make it clear that your workwear is better than the one that is currently used at the enterprise.
The sequential chain of sales of products will look like this:
- Production of several copies of overalls.
- Creation of a commercial offer.
- Search for firms that use overalls.
- Receiving an order.
- Order fulfillment.
- Delivery of products to the customer.
Making to order is another way to cut costs, as you don't have to raise large amounts of working capital.
The profitability of the tailoring business is approximately 30%, which is a very good indicator. If three seamstresses produce 300 sets of overalls per month, costing about $25 - $30 each, then, after deducting the necessary expenses, the profit will be $1700 per month.
The essence of the project outlined below is the discovery trading company selling overalls in the city of Rostov-on-Don. The company will specialize in the retail trade of work wear, service wear and protective clothing. Despite the abundance of players operating in the market, competition in this area is not as strong as in the market for ordinary casual wear, and provides a place for development for small businesses.
The volume of investments in the project is 2,005,100 rubles. The payback period of the business according to the calculations made will be 17 months. In Table. 1 shows integral performance indicators that allow us to talk about the positive prospects of the project.
Table 1. Integral performance indicators
Discount rate (r-year), % |
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Discount rate (r-month), % |
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Payback period (PP), months |
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Discounted payback period (DPP), months |
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Net present value (NPV), rub. |
|
Return on investment ratio (ARR), % |
|
Internal rate of return (IRR), % |
|
Yield Index (PI) |
Description of the industry and company
Special clothing is personal protective equipment (suits, overalls, gowns, underwear, aprons, etc.), the purpose of which is to protect against harmful and dangerous factors for the health of the employee at the workplace. Unlike everyday clothing, such clothing is distinguished by the characteristics necessary to perform work duties, for example, convenience, hygiene, antistatic, moisture resistance, ease of disinfection, the ability to protect against mechanical damage, and so on.
The clothing store will be located in the Northern microdistrict of the city of Rostov-on-Don, in a rented building on Koroleva Street. The point of sale will be located close to a major transport artery of the city, in a well-visible place.
Rostov-on-Don — The largest city on South Russian Federation, is the capital Rostov region and the Southern Federal District. The city is a large administrative, cultural, scientific, educational, industrial center and the most important transport hub of the South of Russia. By the beginning of 2016, the population of the city was 1,119,875 people - this is the tenth largest city in Russia. The share of the working-age population is 63.2%, the unemployment rate, according to Rosstat for the IV quarter of 2015, is the lowest in the Southern Federal District (0.8% of the economically active population). Rostov is one of the most economically developed cities in the South of the country, where a number of large enterprises are located, and about 50% of the region's trade turnover falls on the Don capital. All these facts, including the industrial potential and the volume of labor resources, speak of great opportunities in the chosen direction of activity.
According to Tebiz Group research, Russia occupies about 5% of the global market for personal protective equipment (data for 2013). In physical terms, the volume of the Russian workwear market is 65 million pieces. Moreover, about 90% of production falls on domestic producers. During the period from 2011 to 2014, the workwear market showed a dynamic increase in net revenue, which increased from 18.5 to 51.5 billion rubles. Accordingly, the profit from sales increased from 1.8 to 6.4 billion rubles. Proportionately, other financial indicators also grew - the size of current and non-current assets, receivables and accounts payable etc. (See Figure 1.) Such dynamics may indicate market consolidation - an increase in production volumes of large market players and weeding out weak ones. Indirectly, this may also indicate an increase in the solvency of the industry, increasing the volume of orders for workwear, as well as the quantitative expansion of the industry due to the expansion of existing industrial production and the creation of new ones.
Figure 1. Dynamics of the workwear market in Russia 2011-2014
According to available data, the profitability of the business is relatively low and in 2014 amounted to 12.5%. However, this fact is compensated by the stability of the market. In general, a certain decrease in asset turnover can be noted across the country (2.15 / 1.72 times); increase in the degree of provision with own working capital (47.6% / 56.5%); a decrease in the share of long-term liabilities (14.9% / 2.0% of total capital) and an increase in the share of short-term liabilities (19.8% / 38.6% of the liability currency). All these figures indicate that the workwear market has a strong growth trend. This is also confirmed by further government plans to subsidize interest on loans most important for Russian industry. investment projects. In 2014-2015, 1 billion rubles were allocated for this in the budget.
Summarizing the above data, we can say that the production of workwear is an industry that is attractive for private investment, including for small and medium-sized businesses. It seems expedient at the initial stage of development to open a retail shop for workwear from domestic manufacturers with the prospect of reaching large wholesale buyers and creating our own sewing workshop for 5 seamstresses.
To create a store, it is planned to carry out repair work in a rented room, equip a small warehouse at the store, and purchase commercial equipment for product presentation. Since the store will sell products to both individuals and legal entities, wholesale and retail sales departments will be established.
The project is not capital intensive. The total amount of investments is 2,005,100 rubles. Most of them will be for the preparation of the premises, the purchase of equipment and the starting assortment of the store. In Table. 2 shows the structure of the investment costs of the project.
Table 2. Investment costs of the project
Name |
Amount, rub. |
Warehouse and store renovation |
|
Equipment set |
|
Creation of an online store |
|
Registration and clearance |
|
working capital |
|
Commodity filling of the store |
|
Total: |
2 500 100 |
Own funds: |
2 500 100 |
Description of goods
The clothing store will sell several items of goods. These are clothing for working specialties, protective clothing, clothing for workers in the service sector and private sector. The assortment will include a division into seasons (summer and winter clothes), as well as divided into men's and women's overalls.
The store will have a multi-brand format without being tied to any specific trademark and supplier. The assortment will include products of several domestic manufacturers that have proven themselves in the market due to the high quality of products. In addition to the mentioned product groups, the assortment of the store will be expanded to include safety shoes, hats, mittens and gloves, personal protective equipment, and household equipment. The nomenclature of goods is given in Table. 3.
Table 3. Nomenclature of goods and variable costs
Product |
Expenses |
Trading |
Unit cost |
Overalls for working specialties. Summer |
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Suits are summer female. Series "Worker" |
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Suits are summer man's. Series "Worker" |
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Suits are summer female. Series "Specialist" |
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Suits are summer man's. Series |
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Semi-overalls |
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overalls |
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Summer trousers |
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Summer jackets |
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underwear |
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Turtlenecks |
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Dressing gowns for men |
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Dressing gowns for women |
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Overalls for working specialties. Winter |
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The suits are insulated. Series "Worker" |
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The suits warmed female. Series "Specialist" |
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The suits warmed man's. Series "Specialist" |
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Warm trousers |
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Semi-overalls insulated |
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Warm vests |
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Warm jackets |
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Warm jersey |
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Protective clothing |
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Clothing with a limited lifespan |
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Signal clothing |
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Waterproof clothing |
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Acid protection clothing |
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Protective clothing against harmful biofactors |
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Heat protection clothing |
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Protective clothing against oil and oil products |
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Protective sleeves |
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Protective aprons |
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Clothing for service workers |
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Uniform for workers of medical services. Series "Standard" |
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Uniform for workers of medical services. Series Fashion |
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Uniform for security workers |
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Uniform for trade and services |
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Clothes and equipment for private use (Hunting, fishing, tourism) |
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Summer clothes |
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Winter clothes |
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Hats |
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Backpacks and bags |
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Sleeping bags |
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Camping furniture |
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Hats |
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Winter hats |
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Balaclavas |
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baseball caps |
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Panamas with mosquito net |
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Surgical caps |
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Gloves and mittens |
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Knitted gloves |
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Split gloves |
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Split leggings |
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Specialized gloves |
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Mittens |
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safety shoes |
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low shoes |
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High top boots |
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Dielectric shoes |
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Individual protection means |
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Balaclavas |
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Respirators |
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Masks and half masks |
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Gas masks |
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knee pads |
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Safety belts |
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Cords and ropes |
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Earmuffs, passive |
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Active anti-noise headphones |
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fire extinguishers |
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Fire shields |
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Skin protection |
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Household inventory |
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Household inventory |
Sales and marketing
Potential buyers of the products of the workwear store will be managers and employees of organizations in which the work process requires workers to have special clothing and footwear. These can be, for example, construction companies, industrial organizations, medical institutions, private security companies, law enforcement agencies, HoReCa representatives, as well as lovers of hunting, fishing and outdoor activities. In the retail department of the store, customers will be served as in a regular store. When making purchase and sale transactions with wholesale buyers, a supply contract will be drawn up, after which payment and delivery will be made.
The main emphasis in the store will be on clothes hangers. Buyers will be provided with easy access to various groups of goods, the possibility of fitting is provided. Products will be sorted by destination and season. Headwear, helmets, masks, personal protective equipment, which need a separate presentation, will be placed on the sales counters and showcases.
One of the features of the sales process, which is typical for the entire clothing retail and workwear retail in particular, which will be taken into account in the work, is the seasonality factor. By winter, employees need to be warmed, so before the start of the season, the collection will be replenished with warm clothes (for example, jackets, overalls, warm shoes). Accordingly, before the beginning of summer, it is advisable to expand the range of light overalls. Thus, the greatest profit from sales can be expected in September-November, April and May. Calm in trade in overalls is traditionally recorded in January-March and June-August.
Another feature that is unique to the workwear market is the lack of impulsive buying. Potential buyers visit workwear stores purposefully, which means that the location of the outlet goes by the wayside. At the same time, the role of ways to convey information about the store to the end consumer is growing. An important point work will be the creation and promotion of a website with an electronic product catalog and the possibility of placing an order (online store). The catalog will require easy navigation through sections, and each product will require descriptions of product characteristics and high-quality images.
According to the "2 GIS" service, at the time of writing the business plan in Rostov-on-Don, there are about 90 organizations engaged in either tailoring or selling workwear. It is worth noting that about 40% of them, like this project, have a wide specialization, including clothing for working specialties, protective clothing, as well as additionally either a medical uniform, or a military uniform, or private clothing. It is worth noting that some of these companies offer workwear tailoring services. About 20% are shops specializing in uniforms for working specialties and protective clothing, the remaining 40% (within 11% of each type) are companies specialized either only in medical uniforms, or uniforms for military and law enforcement agencies, in personal protective equipment for certain specialties or on private clothes (hunting, fishing, tourism).
In general, the workwear market in the region under consideration is characterized by a large number of offers and a significant range of prices. Quality products, as a rule, are much more expensive, but at the same time, their price is justified during operation. There are also examples of a few cheap shops in the city that employ their own inexperienced seamstresses and serve the interests of a business that shows little concern for its employees and their safety. Given this, in order to cover a wide part of the market, the store will operate in the middle price segment, positioning itself in the market according to the concept of " High quality at an affordable price."
Production plan
The workwear store will be located in the Northern microdistrict of the city of Rostov-on-Don, in a rented room on Koroleva Street, on the 1st floor of a multi-storey building. The store will have a small warehouse for storing goods. Store dimensions - 100 sq. meters, warehouse - 25 sq. meters. It is planned that in the future the existing area can be used to create a small sewing workshop for 5 sewing machines.
To organize trade, you will need to purchase equipment, including racks, hangers, fitting rooms, mirrors, pouffes for trying on shoes, and more. Scroll necessary equipment is given in Table. 4. The staff does not have any skills in working with equipment, the preparation stage will be required to learn how to lay out goods, communicate with customers, get acquainted with the assortment. The training will be conducted within a few working days by a store manager with experience in the field.
Table 4. List of equipment*
Name |
price, rub. |
Price |
Hanger for clothes |
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Trade counter |
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Cash equipment |
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fitting room |
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Demonstration table |
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Pouffe for trying on shoes |
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Trading grid |
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Total: |
* — excluding the installation of a security system (included in repair costs)
The planned sales volume for the first four months is 850,000 rubles. By the end of the first year of work, it is planned to increase the turnover of stores to 1000-1200 thousand rubles. The planned mark for the end of the second year of operation is 1.5 million rubles. When the planned indicators are reached, the net profit will be up to 190 thousand rubles. in the first year of operation, up to 350 thousand rubles. in the second year of operation. The financial calculations of this business plan are made based on the achievement of these indicators.
organizational plan
A limited liability company (LLC) is chosen as the organizational and legal form of the enterprise. Management functions are carried out by the director of the enterprise, who has experience in this position in the field of wholesale and retail sales for at least 3 years. He has skills in the field of personnel management, financial flows, works with suppliers, analyzes the market, looks for new channels for product distribution, and determines the marketing policy.
Directly subordinate to the director is the sales department, accounting department, which is managed by the chief accountant, purchasing manager and support staff. The sales department is the largest department in the company and is led by a senior salesperson. Sales consultants work hours are subject to change. staffing and the wage fund of the company's employees is given in Table. 5.
Working hours of the clothing store are Monday-Sunday from 8:00 to 18:00.
Table 5. Staffing and payroll
Job title |
Salary, rub. |
Quantity, pers. |
FOT, rub. |
Director |
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Accountant |
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Purchasing manager |
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Oldest salesman |
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Shop assistant |
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Warehouse Manager |
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Driver-loader |
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Total: |
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Social Security contributions: |
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Total with deductions: |
Financial plan
The financial plan is designed for a three-year period of operation of the store. It includes investment costs, fixed and variable costs, tax and social contributions.
The total investment in the project will amount to 2,005,100 rubles. The main area of start-up costs is stocking the store (958 thousand rubles), renovation of the premises (300 thousand rubles), purchase of commercial equipment (252.1 thousand rubles). In the structure of investments in intangible assets, the key point is the creation of a website with a product catalog - 75 thousand rubles. Investment costs are given in Table. 2 of this business plan.
In Table. 6 articles of fixed costs of the enterprise are given. Depreciation of fixed assets is calculated by linear methods for a period of 10 years. A detailed financial plan is presented in Annex 1.
Table 6. Fixed costs of the enterprise
Name |
Amount per month, rub. |
Rent |
|
Communal payments |
|
Telephony and Internet |
|
Depreciation |
|
Selling expenses |
|
Management expenses |
|
Fuel costs |
|
Total: |
Efficiency mark
The effectiveness of the project can be assessed based on financial plan and calculated integral performance indicators presented in Table. one.
The payback period of the project, subject to the sales plan, will be 17 months, the discounted payback period is 17 months. The main indicators of the project indicate its investment attractiveness. Thus, the Internal Rate of Return (IRR) was 7.03%, which is higher than the discount rate. The yield index is 3.31, which is more than 1. Accordingly, the net present value is 6,635,077 rubles, which is more than 2,005,100 rubles. (starting investments in the project). If we take into account the fact that in the future the store will be expanded in 5-10 years (increasing the range, creating its own sewing workshop), the project can be considered attractive.
Risks and guarantees
Quite a serious level of competition in the market can be attributed to risk factors. Within the city there are many players with established customer bases and regular customers represented by large enterprises. The range of prices for products is also wide, as a result of which the company may face dumping from competitors offering cheaper goods, but inferior in quality.
Positive factors include the absence of a strong influence of the location of the store on sales volume, since the purchase of workwear is made by buyers purposefully, as well as the reduced influence of the seasonality factor: workwear is in demand at any time of the year.
Applications
Production plan and main financial indicators in a three-year perspective
In pre-perestroika times, there was a huge network of stores in our country under the general name "Working Clothes". They were filled with dull overalls, tarpaulin and rubber boots, felt boots, padded jackets, canvas mittens and other unsightly goods. But the shops were popular because the things they sold helped people in their work. They made their work more comfortable and safer. Today they have replaced modern enterprises with beautiful, practical and comfortable, but still the same “work clothes”.
Zoya Alexandrovna, you have a diversified business. Who are the main clients, for whom do you work in the first place?
Our main customers were initially and remain to this day enterprises where the production process requires workers to have special clothing and footwear. For example, staff medical institutions, catering workers, road workers, firefighters.
Among our regular customers are well-known enterprises in Pyatigorsk. These are OJSC Kholod, OJSC Pyatigorsk Khlebokombinat, LLC Hines and others.
We value our regular customers very much and we are happy to cooperate with them.
Which product segment is in the highest demand?
The largest purchase is directly from workwear. For example, shoes for road workers involved in asphalt laying, clothes for kitchen workers are in great demand.
Fire fighting equipment is being sold very actively. From time to time on TV we see and hear terrible information about fires that occurred due to the lack of proper equipment of buildings with fire extinguishing means. Many tragedies could have been avoided if an ordinary fire extinguisher had been at hand.
Personal protective equipment is very popular: respirators, goggles, gloves.
The seasonal factor also plays a role. By winter, workers need to be insulated and warm clothes (jackets, overalls, warm shoes) are sold well. In summer, light clothing becomes popular.
Can you please tell me how you do business? How did you become a sole trader or set up an LLC?
We work under the LLC scheme. This form of doing business is more convenient for us.
How did your business start? Why did you like this particular type of activity, and what was the reason for the choice?
The history of the business began in 2008. I was invited to work for one of the enterprises in Pyatigorsk, which sells overalls. I liked this work. I love people, communication. If a person came to us with a desire to buy a warm jacket, we selected the most convenient and comfortable one for him. I wanted the buyer to remember our store with a kind word when putting it on and be sure to recommend it to friends.
It often happened that purchases were not limited to one jacket. She wore shoes, gloves, and more. It happened that, having entered the store for a hat, the client left fully “staffed” for the winter. He left satisfied, because he acquired high-quality things at a very modest price. And completely free of charge he got friendly communication, practical advice and good mood.
When communicating with wholesale buyers, representatives of organizations, we also tried and try to satisfy their requirements as much as possible. Sometimes there is even a “sporting interest” to find something, “I don’t know what” - similar wording of requests also occurs.
When I had accumulated sufficient work experience, I wanted to try my hand at running a business on my own. After consulting with her family, she decided to start her own business. At present, all family members work with me, we have a good family business.
In choosing my activity, I was not mistaken, I can say this absolutely for sure!
Tell us about your first year of work. What was the most difficult and most memorable for you?
The first year is difficult for any aspiring entrepreneur. What does it cost to form a relationship with the tax office, pension fund, FSS. You have to delve into the wilds of accounting, select employees, form a team. At the same time, the assortment is being completed, the search for suppliers is underway.
A very important aspect was the process of attracting clients to the firm. The competition in our business sector is strong, and it is constantly growing due to the emergence of new companies and online stores. We had to look for an approach to each potential buyer, to convince that we are the best, the most versatile in terms of choice, flexible in prices, the most friendly in communication, the most convenient for business cooperation.
And we did it! We have excellent business partners and excellent clients. Work has become not only work, but also a holiday.
What do you remember from the first year? Fatigue, lack of sleep, lack of time to go home. But it can be overcome if there is a goal. And the goal was to take their place in the field of the chosen business, to earn authority and respect.
And one more word is suitable for characterizing the initial period: passion. It is still present, but I still vividly remember those first sensations, when “as if in a whirlpool” you plunge into endless business and negotiations, you take on an almost impossible task.
Note from Moneymaker Factory: Read about all the organizational procedures that you need to go through before starting a business in our material. And the optimal form of conducting tax accounting for small businesses, read the material online accounting.
You have already partially answered my next question about how to attract a client to your enterprise. Can you add something? And why would you advise young people to start a business?
Customers are now spoiled huge selection Total. This is not bad, because it makes us keep ourselves in good shape, look for new interesting suppliers, expand the number of products offered, and constantly be able to satisfy the customer's request in full.
But our efforts will be in vain if we cannot convey our advantages to the buyer. Advertising certainly moves commerce, but it is the personal touch that gives it momentum. The ability to feel the mood of a person, the desire to find with him mutual language I would advise to acquire beginners and future businessmen. Communication will not be taught anywhere, only personal qualities and the desire to communicate kindly with people will help to establish good business relations. Often a smile and a sympathetic word can decide the fate of a major purchase or good deal.
Personal qualities are more important than professional ones. There are many professionals, but there are much fewer professionals who can establish reliable friendly relations with partners. They are highly valued and do not part with them.
Approximate initial capital to open a workwear store? Are any licenses or permits required?
The amount is influenced by many factors: the cost of renting a room with an area of at least 100 m2. The sizes are large due to the mandatory presence of a warehouse of goods. If you have your own, great. But we will assume that the lease is still required.
How do you usually work with a client?
We have a retail department where customers are treated like in a regular store. If this is a wholesale buyer or organization, then the scheme is traditional: drawing up a supply contract, payment, delivery of goods. We often use individual approach to the client, we adapt to the scheme of work of partner enterprises. Payment for goods can be made upon shipment, can be paid in installments. Ultimately, a template emerges, according to which we work with each client.
Approximately what financial turnover per month have you had since the beginning of the activity, and what is it today?
In the first months of work, the sales turnover did not exceed 200 thousand per month. There were times of instability, especially in times of crisis. At present, our turnover significantly exceeds 1 million rubles. But I really hope that they will increase. With the expansion of production, the cost of its maintenance also increases.
The first word in the name of our business is the word “production”, and then “sales”. The prospect of development is directed precisely at production.
Currently, the business has grown by joining the garment business. Mainly with the help of my family members (husband, daughter, son-in-law) we were able to master the new direction. Now it is just beginning, but there are already quite a lot of buyers for our sewing products.
To date, we provide uniforms for workers of Roma-Pizza, Belorusskiye Kolbasy, JSC Kholod, popular enterprises in Pyatigorsk, and we sew chef's uniforms. There is a demand for products. So, there will be development of production.
We rented another office and are looking for new employees. Expanding!
There is an opinion that doing business in Russia (in our case, a small business) is very difficult. Do you agree with this definition? What is your view on this question?
Business in general is not easy. And in Russia too. To be a successful businessman, you need certain qualities of character, a willingness to work hard, put up with failures, and strive for a goal. It is important to be a decent person and be able to be responsible for your words and deeds. How many entrepreneurs are there? I am sure that among people who have their own business, there are much fewer of them than the total number of businessmen. Hence the problems.
And doing business in Russia is further complicated by the ever-changing legislative framework. There are new forms of reporting, innovations in, the FSS, taxes are increasing. It is difficult to do business in Russia. Difficult, but possible!
And to everyone who dared to take this serious step, I wish to find their niche. To make it interesting, reliable and promising!