Is it profitable to open a point on the market and how to do it

The 21st century is the era of digital technology, online shopping and online purchases. In hypermarkets and online stores you can now find everything: from food and hygiene products to building materials and clothing from world brands. But there are some habits that remain unchanged in our world. One of them is the habit of going to the market. No matter what foreign products are brought to the supermarket, the freshest and most delicious can still be found from a familiar saleswoman at the market. Let's talk about why this type of trading is still thriving and how you can trade profitably on the market.

Choosing a niche for trading

As we have already noted, the world produces many more products than it consumes, competition is fierce and winning the favor of customers becomes a truly difficult task. Therefore, asking the question: “I want to trade on the market, where to start?”, first of all, select the product that you want to sell.

1. Firstly, traditionally, buyers go to markets to buy the most popular things: food, household chemicals, clothing, shoes, office supplies and much more. Accordingly, it is precisely such goods that need to be sold in the markets;
2. Secondly, when choosing a niche, focus on the location of the market itself. For example, if it is located in the city center, where people often walk, food or drink outlets and souvenirs will be in great demand. If the market is located near an educational institution, it is more logical to open a pavilion with an office or a copy center. Even if there are a dozen similar points nearby, the influx of customers will still be consistently high;
3. Thirdly, rely on your knowledge. If you want to open a pavilion at the market and sell goods yourself, you must understand the products you are selling. Otherwise, you will not be able to advise customers, which will significantly reduce the level of sales.

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2015-07-20 13:41:34 + Comment

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Choosing the right place

It is not so important what is best to trade on the market, but where exactly you will sell your goods.
The second item on the list “What you need to trade on the market” is choosing the right place for a retail outlet. Remember yourself at the market: you often walk along the central rows, but you rarely go to some dead ends or remote places or don’t appear there at all. This is what almost all buyers do. In this regard, when opening a retail outlet on the market, you need to choose the most advantageous location for it: central or first rows, entrance/exit. Naturally, rent in such places is much higher than on the outskirts of the market. But in this case, the miser pays twice. It’s easier to overpay for renting a good place, but get more revenue, than to save money and not earn any money at all. So, under no circumstances agree to cheap options: buyers will not know about you, and the goods will be lost.

Also, the market itself can be divided into conventional sectors: in some rows they sell household chemicals, in others - fish, in others - meat, and the like. Accordingly, in such markets it is important to choose a location not only with a convenient location, but also in the right sector.

Also, be sure to register your sole proprietorship before renting a space. Many people wonder whether it is possible to trade on the market without an individual entrepreneur. The answer is no. After all, without official documents you will not even be given a place to rent on the market. Therefore, if you are told that you can trade on the market without an individual entrepreneur, think three times before renting a place from such people.

Important Points to Know When Starting a Small Business in 2021

If you decide to do business, then at the beginning of your journey you will inevitably encounter organizational, financial and legal issues. The information below will help you solve them safely.

Starting a business - where to start and where to get money to open

It is better to take money to start a business from your own pocket. For example, start saving 20-30% of your salary every month and learn to save on purchases. In 1 year, a person with a low or average income can actually collect $500-1500. This money is enough to open a service business in a small town, start trading on the Internet, start selling goods of your own production, or create a business in a garage with minimal investment.

Where can you get the money if a “tidy” sum is required to implement the project? The following options are available to aspiring entrepreneurs:

❶. Borrow

You can ask for money from relatives or friends at zero percent. Then, if you fail, you won’t have to urgently take three jobs to repay your debts.

❷. Get help from the government

Few citizens of the Russian Federation know about government support measures for start-up entrepreneurs. Thus, at the regional level there is a program of the Ministry of Economic Development for medium and small businesses. The subsidy is equal to 12 times the benefit for the unemployed. However, to receive help, you need to register for unemployment.

IMPORTANT. The number of subsidies is very limited. The easiest time to get them is at the beginning of the financial year.

In addition, entrepreneur support centers provide assistance in the form of grants. The maximum amount is usually 600 thousand rubles. But to receive money, an entrepreneur needs to go through a competitive selection process - provide a detailed business plan and competently present the idea.

State support is also provided within the framework of industry programs. As a rule, beginning farmers, artisans, and creators of children's centers can count on help.

IMPORTANT. If you are going to open a business in Moscow, then you have the right to count on the following subsidies: to reimburse the costs of exporting goods to the capital, for participation in exhibitions, for a franchise business. On the website mbm.mos.ru you will find detailed information about government support measures and free training events for entrepreneurs.

❸. Sell ​​expensive property

Good money can be earned by selling a country house, a personal car, computer parts, fur coats, and furniture. If your business goes uphill, you will soon buy yourself new things.

Where you definitely shouldn’t take money from to build a business from scratch is from a bank. The likelihood of difficulties at the start is high, and the money will have to be returned with interest. Don't put yourself in debt. It is better to take out loans to expand your business when the idea has already proven its effectiveness in practice.

Who to turn to for help in starting a business

Free consulting assistance in starting a business can be obtained at regional employment centers. Consultants of these institutions tell entrepreneurs where to start a small business, how to draw up a business plan, and what documents to provide to receive a subsidy.

This is interesting. In Belarus, information and financial assistance in starting a business is provided by entrepreneurship support centers and small business incubators. Similar organizations operate in Kazakhstan.

If you are thinking about how to open a business in the USA, UAE or Europe, contact a law firm. There they will help you correctly apply for a visa, registration documents and advise you on the pitfalls of local legislation.

It is very good if you have people with entrepreneurial experience in your environment. They are the best ones to tell you about the process of registering a business, paying taxes and maintaining reports.

How to register a business correctly

Beginning entrepreneurs often have a question about how to organize their business so as not to disrupt anything. Let's consider suitable options using Russian legislation as an example.

❶. Self-employment

Since 2021, a federal law regulating the payment of tax by self-employed persons has come into force in Russia. So far, the document applies to the following regions:

• Moscow and Moscow region;
• Kaluga region;
• Republic of Tatarstan.

Self-employed people include most freelancers and small home-based business owners. Including copywriters, web designers, beauty experts, tutors, “husbands for an hour.” If you operate in the specified regions and expect to earn no more than 2.4 million rubles. per year, then he has the right not to register an individual entrepreneur or company.

Open the AppStore or Google Play on your smartphone and download the “My Tax” application. You can also register in your personal account on the tax service website. Then you will only have to pay monthly 4% of the amount of income when working with individuals and 6% when collaborating with individual entrepreneurs and organizations. Self-employed persons do not need to submit any reports to the tax office.

This is interesting. Self-employed people pay insurance contributions (including to the pension fund) at their own request. And for individual entrepreneurs and organizations this is an obligation.

❷. Individual entrepreneur registration

If you do not fall into the category of self-employed persons, you want to work mainly with legal entities and receive payment to your bank account, it is better to register an individual entrepreneur. Here's what to do:

1. Determine the type of activity.
2. Fill out an application on form P21001.
3. Pay the state fee. You can find out your tax office details on the website service.nalog.ru.
4. Select the appropriate tax regime and receive a notification from the tax office about the transition to it.
5. Submit a package of documents to the registration authority: a copy of the passport, an application, a receipt for payment of the state duty in one copy, a notice of transition to the tax regime in three copies.

Business registration will take no more than 3 days. Then you will need to open a bank account.

The difference between individual entrepreneur and LLC

❸. Opening a company

If you decide to open a business from scratch without investments or with minimal investments, most likely you will not need to register a company. But this issue will come up at the scaling stage, when you have hired employees and an expanded customer base.

Then it is better to register an LLC. A complete list of required documents is available on the website regberry.ru. There you can register and check them for free.

This is interesting. In Kazakhstan and Belarus, similar forms of doing business are available to beginning entrepreneurs: self-employment, individual entrepreneur, LLC (LLP).

How to pay taxes and keep reports

Perhaps taxes are the most pressing issue for new entrepreneurs. But it needs to be decided before opening a business, so that the amount of mandatory expenses does not become a “surprise.”

Self-employed people owe the least amount of money to the state. And the amounts of taxes and the main types of reporting under other regimes are listed in the lower table (using the example of individual entrepreneurs in Russia).

Table 4 “How an entrepreneur can pay taxes correctly in the Russian Federation”

Organizations have a higher tax burden, and the list of documents is wider. Especially if there are hired employees on staff. In this case, it is better to entrust the reporting to an experienced accountant.

What are the benefits of trading on the market?

Markets traditionally sell consumer goods: food, clothing, shoes, underwear, stationery, cigarettes, cosmetics, kitchen utensils and much more. It is precisely this type of product that is profitable to sell in markets.

To choose your niche, you need to consider the following factors:

• Competition. If the market already has several large outlets with certain goods, it is unlikely that you will be able to lure a large number of buyers to your place;
• Location. There are different markets and it is not so important which market is better to trade. It is more important to choose the right product for a specific market. The choice of product sold often depends on the location of retail outlets. For example, if it is a local fish market near the city port, then selling hygiene products there would be a very bad idea. But in the city center, opening a stall with delicious hot dogs or coffee is a good idea, even if there are several similar stores nearby;
• Size of the outlet. If you have a voluminous product and a small trading area, then selling things will be extremely inconvenient. You cannot help but demonstrate the entire range, nor provide quality service to customers;
• Start-up capital. The choice of a niche for trading directly depends on the amount of money you have and can invest in starting a business. For buyers, the range of goods that you can provide plays an important role. Therefore, when choosing a niche in which you want to trade, calculate all the costs and decide whether they are affordable for you.

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What can you trade on the market?

There are a lot of ideas about what goods can be traded on the market. What is profitable to trade on the market:

• Women's clothing;
• Men's clothing;
• Underwear;
• Household chemicals and detergents;
• Personal hygiene products;
• Textile products;
• Food products: meat, fish, eggs, vegetables, fruits, cereals, drinks, spices and others;
• Accessories;
• Cosmetics and perfumes;
• Working clothes;
• Plants;
• Products for animals;
• Decorative elements;
• Sell ​​finished products;
• Sports equipment.

In fact, there are a lot of ideas about the best way to trade on the market and there are plenty to choose from. But it’s better to focus on a narrow niche rather than try to sell everything at once. In the market, people are more likely to look for good products from certain buyers. For example, they buy underwear from one person, fruit from another, and go to a third seller for homemade sour cream and milk. Therefore, it is better to try to sell one group of goods, but with high quality, rather than a variety of consumer goods.

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Sale of men's and women's clothing

We all remember the times when large shopping centers were only in big cities, and to buy clothes you had to go to the market, try on the next dress, standing on a piece of cardboard, and be happy when something finally fit. Times are changing and even the lack of shopping centers with fashion boutiques no longer bothers anyone, because there is the Internet and any clothes you like can be bought online. Therefore, the question arises whether it is profitable to trade in clothing on the market. Indeed, clothing trade in markets is no longer in such demand as before. But there are still representatives of the older generation who do not know how to use the Internet and do not understand modern fashion trends, so they continue to go to markets and buy clothes there.

How to trade things on the market? When opening a clothing trade pavilion, take into account the above information and order the appropriate models/styles. Also take into account seasonality and update collections in time in accordance with the needs of customers. Note that this option is suitable for those who do not know what to sell at the market in a small town, because in small towns there are not so many brand stores and the demand for clothes in the market remains high.

As for how to start selling clothes on the market, you just need to find a good supplier or several suppliers from whom you can order quality products in large quantities.

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Sale of underwear

With underwear, the situation is similar to the previous one, however, there are much fewer brands that make panties, bras or negligees than there are manufacturers of regular clothing. Therefore, retail outlets in the markets with underwear are in great demand and this is a good option than trading at the market in the city.

The assortment of such goods should be large, and the outlet itself should be equipped with a good full-length mirror and a comfortable fitting room. You also need to ensure that all sizes of underwear are in stock, and the product itself must be varied and of high quality. Is it possible to sell such things in the pavilion? Not recommended.

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Sale of household chemicals and detergents

When starting a trade in household chemicals, analyze which products and brands are more popular among customers.
It is based on this data that you should order products. For example, some company may make good household chemicals, but they are not so well known in our market, so they will buy them with caution or may even go to another seller. Also try to have products in different price categories, because everyone has different capabilities and it’s good when the buyer has plenty to choose from. The same goes for personal hygiene products.

Trade organization process

To organize trade, first of all, you need to select suitable products. After this, you should make a list of manufacturers. It is best to visit factories that manufacture products, talk to managers, and get acquainted with prices and sales conditions. The product can be found in your city or in other localities. In the second case, it is important to think through the delivery scheme so that the products are always in stock.

Important! Experts advise working with several suppliers at once. This will provide alternative options in case of force majeure.

After choosing a product range, you should move on to searching for buyers. To do this, you need to draw up lists of potential consumers, make appointments, and conclude supply agreements. In the absence of start-up capital, you can enter into an agreement with the manufacturer in order to take the products for sale.

After delivery of the product, it is important to ensure that it is fully paid for. Deadlines vary. In any case, they cannot be more than 3 months. If payment has not been received, you can sue the debtor in economic court.

Instead of a store, goods can be sold through a network of distributors. In this case, an agreement must be concluded with each of them. According to it, the supplier of the goods receives 10-40% of the profit received.

Sale of textile products

A separate outlet can be opened for the sale of textile products: towels, bed linen, tablecloths, curtains. If the retail space allows, you can even find a supplier who manufactures all of the above products and make a large assortment that will attract many customers.

Textile products are used by everyone every day, so you definitely won’t be left without buyers. Try to choose products made from good materials, not synthetics, because people use towels and bed linen every day, so such products should be pleasant to use.

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Selling food

For the most part, the word “market” or “bazaar” is still associated with buying food. At any local market you can find fresh meat, fish caught a few hours ago, homemade milk, and delicious vegetables from the garden. This is not surprising, because mass-produced store-bought products most often do not differ in quality and good taste. That is why many people prefer to go around the market far and wide in search of the necessary homemade products, rather than buying products of dubious quality in the supermarket in one fell swoop. Food products are something that can be profitably traded on the market.

When organizing food trade, first of all you need to take care of two things: the technical equipment of your pavilion and a good supplier. Any food, especially homemade food grown without fertilizers and improvers, requires certain storage conditions. And if vegetables and fruits can simply be laid out on the counter, then meat, fish and dairy products need to be stored in the refrigerator. Therefore, for a retail outlet, you need to purchase refrigerators and other necessary equipment in advance. This way, the goods will remain fresh longer, and buyers will not be afraid that the products could spoil in the open air.

You also need to be especially careful when choosing a supplier. Of course, you can sell your own products if you have a farm or a large garden. But still, not many people own their own farms, so they have to look for importers.

When choosing a supplier, it is better to focus on local, small manufacturers - it will be more convenient to deliver products, and the prices may be better than those from large companies. Be sure to compare the terms of cooperation with several importers and choose the most suitable option for you.

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Sale of accessories, cosmetics and perfumes

We all love to look beautiful, fashionable and well-groomed, but not everyone can afford to buy branded items. The markets contain all the best goods in terms of price-quality ratio. This is why inexpensive but high-quality jewelry, budget bags from unknown brands and other accessories are so popular. And they go to the markets to look for them.

With the advent of sites such as Ali Express and the like, searching for inexpensive things has become easier than ever, so opening a point of sale of accessories, cosmetics or perfumes will not be difficult - you can simply find the goods you need on Chinese sites, buy wholesale quantities and resell them on local markets. It couldn’t be simpler, but people will buy. An excellent option for how to trade profitably during the 2021 crisis. Also, if you know how to make jewelry with your own hands and don’t know what you can do at home and how you can make money, you can also sell your own products on the market.

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Sales of food and drinks

The market is a place where you often have to spend more than one hour, and during this time you can get quite hungry or thirsty. That is why hot dog, shawarma or coffee spots are very popular in markets. Especially if the market is located in the city center or near another crowded place. However, such a business in a residential area can also be successful if there are no competitors nearby.

However, when thinking about opening such a business, keep in mind that you will have to invest a lot of money in equipment. After all, both a good coffee machine and a special grill stove cost a lot of money. But profits will quickly cover these costs. In general, this is an option that can be traded profitably and quickly recoup all expenses.

Step-by-step instructions on how to start trading

To start a sales business you need to do the following:

1. Register a business, choose a form of taxation, receive a package of documents. This will help you conduct legal activities.
2. Buy and register a cash register.
3. Open and register the terminal.
4. Purchase licenses to sell alcoholic beverages and cigarettes.
5. Choose a location to open a retail outlet. To do this, you can buy land and install a pavilion there. However, it is much easier at the initial stage to rent a ready-made point, start trading, and only then move on to large investments.
6. Obtain permits from government organizations. First of all, permits from the SES and Rospotrebnadzor will be required.
7. At the final stage of preparation, you need to find employees and equip the outlet with everything necessary.

Before you start trading, you need to complete all the necessary documents

Typical mistakes of new entrepreneurs

When opening points at the bazaar, many make typical mistakes that can be easily avoided. How to trade in the market correctly:

• At first, do not purchase large quantities of goods. No one can guarantee that sales will go well, there are always risks and the money spent on the product will not pay off;
• Rent a good place, even if you have to pay more. Places in remote parts of the market go unnoticed. If you didn’t manage to get a good place, take care of advertising your place: make a bright sign, put up a sign, hand out leaflets;
• Do not take everything into your own hands if you do not have experience in trading. It is better to hire a good salesperson than to stammeringly communicate with buyers on your own;
• Give in. The market loves to bargain, there is a certain excitement in it, so let buyers feel like winners. But not to the detriment of yourself, of course;
• Communicate with clients. Communication is very important in the market, so try to talk to customers, remember them, say hello if they are a regular customer.

Independent business

To implement business ideas, trading can be carried out by an entrepreneur independently. At the same time, he needs to find premises, purchase equipment, hire workers, and launch advertising.

Note! In the field of trade, the right advertising campaign is very important. It helps you stand out from your competitors and attract more customers.

Recruitment of employees is of no small importance for the implementation of business ideas in trade. Good salespeople are able to significantly increase profit margins by attracting customers. Many of them will later become regular customers.

conclusions

Markets have always been, are and will be, despite the technological process and the development of online shopping. People go to markets not for exotic products, but for everyday goods. Therefore, you need to trade in bazaars exclusively with consumer goods. Conduct a survey or your own research on what is in demand among the population in 2021 and, based on the data received, decide what is best to trade in a small town in 2021. And remember that the market is not always about goods, but also about people. Chat with customers because fun conversation is something you can't get when shopping online or in high-end boutiques.

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2015-08-04 13:21:13 + Comment

Why trade?

Among all areas, trade is the most popular, but at the same time risky. Sell ​​and resell at a higher price - what could be a more obvious way to make money? If you do this correctly, then pretty quickly you won’t even have to touch the business: all the work will be done by hired employees.

Every year thousands of private entrepreneurs decide to start trading, but a small percentage of them receive the planned profit. Why won't it be possible to open and develop your own business? There are many reasons for this, but the main problems of unlucky traders are:

• insufficient start-up capital;
• not quite the right market segment;
• big competition;
• inability to trade;
• lack of a marketing campaign;
• lack of a clear plan for your work.

Don’t assume that the trading business is a 100% hit. No entrepreneur is immune from unplanned risks, changes in market preferences and problems with suppliers. But if you manage to hold on, you can achieve good profits in a short time. The main thing is to start with a clear understanding of what will happen in the coming years.