On Russian soil, varieties of cigar and cigarette tobacco can be grown only in the southern regions. In other areas this is only possible if there are greenhouses. But if we talk about shag, then there is a lot to roam around here. It grows throughout Russia, except the Far North.
In the old days, growing tobacco on their own plots of land and then selling it was common for many Russian families. Fragrant sweet clover was added to tobacco as an aroma, and such a product could often be found in the country's markets.
And today there are many who remember how the popularity of shag, which was then sold by the glass, increased in the 90s. The popularity of this product was caused by the fact that tobacco products were not only in short supply, but also very expensive.
Over time, sellers of fragrant goods were gradually forced out of the market by cigarette manufacturers, who quickly won the fight for first place in this area. However, now we are again faced with a situation where the cost of tobacco products is constantly growing, while the quality is constantly deteriorating. And here again, many began to think about creating their own business related to the cultivation of tobacco and its further sale.
I would like to consider in more detail the issue of the profitability of such a business these days, and what, in fact, is necessary for its organization.
To begin with, we should understand the methods of growing smoking tobacco in our country. First, it is worth recalling that in Russia only a few types of shag and smoking tobacco varieties have been tested, so you should start a business with these varieties.
If we talk about smoking tobacco, then this is:
"Anniversary";
"Trapezond 15";
"Trapezond 219";
"Holly 215."
And if we talk about shag, these are the varieties:
"Pehlec 4";
“Pehlets local”;
"Datura 4".
In addition, recently such varieties of smoking tobacco as “Ternopil 14”, which was specially bred for cultivation in the conditions of Eastern European countries, have become increasingly popular. In addition, the Kentucky Burley variety is quite popular.
Kentucky Burley is low in sugar, which prevents the leaves from fermenting. This means that after drying, the leaves can be immediately steamed and then cut for consumption.
You should know that building a tobacco growing business is not so easy. It is important to strictly follow the technological process, otherwise the product will be damaged. The methods for growing shag and smoking tobacco are similar. The ripening period is distinctive. Shag ripens almost twice as fast, it takes 70-80 days, while smoking tobacco takes 100-120 days to ripen.
Tobacco seedlings are not grown in open ground. To do this, use boxes or pots located on south windows in apartments. It is best to use greenhouses for this. Transplantation into open ground occurs 40-45 days after planting the seeds.
Before planting the seeds, they are soaked in a weak solution of tartaric acid for a day. In this case, the air temperature should be 25-30 degrees. The solution is made at the rate of three milliliters per gram of seeds. Such seed treatment will allow seedlings to ripen a week earlier than expected, while seed germination increases by 20%.
A day later, after soaking, the seeds should be dried and, while they are still wet, placed in ceramic or enamel containers in a layer 3 cm thick.
So it is necessary to keep the seeds for several days, stirring them five to six times a day and constantly moisten them. In this case, the air temperature should be about 28 degrees.
The seeds should be sown in a greenhouse with a nutrient layer, which consists of ¾ humus and ¼ sand. The layer should be 10 cm thick. It should be taken into account that the sowing norm for tobacco is 4 grams of seeds per 10 sq.m., and shag - 20 g. Tobacco should be planted to a depth of 0.3 cm, and shag - 0.7 cm.
Planting of germinated seeds occurs in February-March; of course, the greenhouse must be heated. The greenhouse will not take up much space, just a few square meters is enough.
Before planting the seeds and after this process, the nutrient layer must be moistened. This is done based on the calculation - one liter of water per square meter. As the plant grows in size, its watering is increased to 4 liters per square meter. It is important to note that the temperature must be reduced from 27 to 20 degrees. While the seedlings are growing, they need to be fertilized three to four times.
Seedlings require feeding. It is carried out using a solution prepared from ammonium nitrate, superphosphate and potassium salt (for ten liters of water you will need: 30 g of nitrate, 20 g of potassium salt and 50 g of superphosphate). Feed should be two liters of solution per square meter.
Don't forget about organic feeding as well. Here you can use fermented chicken manure, which is diluted with water in a ratio of 1:7.
A week before transplanting seedlings into open ground, watering is significantly reduced, both in intensity and volume. In the last three days, the seedlings are not watered at all.
If you want to check the quality of your seedlings, then a sign of a good plant is an elastic stem that does not break when bent. A few hours before transplanting, the seedlings are watered abundantly. This makes it easy to remove it from the ground. A plant ready for transplanting should have a stem 15 cm high and half a centimeter thick.
Several well-developed leaves should be present.
Tobacco can be replanted in open ground only if the soil at a depth of 10 cm has already warmed up to 10 degrees. Of course, in different climatic conditions, the transplant time will vary from mid-April to mid-May.
It is necessary to plant seedlings at a distance of about 25-30 cm from each other, while the row spacing should not be less than 70 cm. Before planting seedlings, half a liter of water is poured into each hole, and the roots of the plant are dipped in a mixture of clay and cow manure .
Plant care consists of systematic loosening of row spacing, fertilizing and weeding. The plant will not need to be watered often.
During the entire growing season, it will be necessary to water only two or three times, and it is estimated that about 8 liters of water are needed per plant. After flowering begins, it is necessary to plant the plants.
What diseases can you encounter when growing tobacco? Among the most common are downy mildew and aphids. Peronosporosis is combated using a solution of 0.4% Zineba suspension or 0.3% Polycarbacin solution.
If we talk about aphids, then “Rogor” or “Atelik” are used against them, which are simply used to treat the plants.
Now let's move on directly to harvesting, that is, harvesting the leaves and drying them. Tobacco leaves begin to be removed from the lower tiers immediately after they turn yellow. It should be said that they should not be damaged or dry.
After this, the removed leaves are placed in the shade, laid in layers of 30 cm. Thus, they are kept for 12 hours so that the leaves wilt a little. Then the leaves are placed on cords and dried. To dry the leaves, you must choose an appropriate place; it must be sheltered from both rain and wind.
Sunny weather contributes to a faster drying procedure, which occurs in just two weeks.
After the leaves are dried, they are hung in small batches (5-6 cords) on a gavanka - a special hook. Havankas are placed indoors, where the leaves continue the drying process. Hooks are hung on the crossbars.
When autumn comes, the leaves are removed, then smoothed and stacked.
To obtain fragrant tobacco for cigarettes from tobacco leaves, it is necessary to ferment the dry leaves.
For this process, it is necessary to heat the prepared leaves (for three days) in a tightly closed container at a temperature of 50 degrees and a humidity of 65%. After this, it is necessary to keep the leaves at a humidity of 75% for another week, and for another two days, lowering the temperature and increasing the humidity to 80%. After this, the leaves should be cooled to room temperature within three days, and their humidity should be 11-16%. After this procedure, the leaves are sent to rest for a month.
The finished tobacco is cut into strips half a millimeter wide. A regular cigarette requires one gram of tobacco. It is believed that high-quality cigarette tobacco should consist of a mixture of different varieties, at least two of them.
If we talk about shag, then it is better to add fragrant sweet clover, or any other aromatic natural additive.
Well, actually, let's talk about the profitability of such a business. Let, for example, we have a plot of land of 10 acres, which we will use for growing tobacco.
It was said above that to plant a square meter, 0.4 g of seeds are needed, that is, to plant 1000 square meters. m will require 400 g. Mahorka retails for 1,500 rubles, and Virginia tobacco costs 1,900 rubles. That is, to sow ten acres we will need either 76 thousand to buy Virginia variety seeds, or 60 thousand rubles to buy shag seeds.
Considering that the yield of first-class tobacco per hectare of land will be 2-3 tons, which means that from 10 acres - 200-300 kg of tobacco, and shag - 300-400 kg.
You can sell shag wholesale for 400-500 rubles per kg, it turns out that the gross income will be 200 thousand rubles, while the net income will be 140 thousand. With tobacco, the situation is much more interesting, but here it should be taken into account that the requirements for this product are higher, and it costs more. So, if we estimate that tobacco can be sold wholesale at 2 thousand per kg, then the gross income here will be 600 thousand, while pure income will be 524 thousand rubles. Agree, a lot.
Of course, product sales is also important. With low production volumes, business profitability can be significantly increased. To do this, you should think about how to establish retail sales of products. We should not forget about the legality of this case, since the legislation is quite confusing with the trade in tobacco products.
It is best to contact an experienced lawyer who understands this area and consult with him.
Their calculations did not take into account the costs of equipment for greenhouses and dryers, and the purchase of fertilizers. At the initial stages of business, you can basically do without all this.
Despite the fact that excise taxes on tobacco are constantly being raised, and anti-tobacco campaigns and events are being held all over the world, the number of people smoking is constantly increasing. This opens up good prospects for business: earnings in the tobacco industry are constant and, with the right approach, are constantly growing. Let's look at how to launchwhat is needed for this and what profit can be obtained if you work competently and carefully.
Introduction
Since tobacco is an excisable product, you will need registration in order to sell it. Accordingly, since you will be doing business, you need to register with the tax office by providing them with the necessary set of documents.
Tobacco stall brings stable profit
Z and violation of the rules of the current legislation regarding the sale of excisable goods is subject to administrative and legal liability.
For example, if you sell cigarettes to persons under 18 years of age, you will be fined a serious amount, which may lead to the complete closure of the business as such. The law also states that the package must contain information about the manufacturer, that smoking causes irreparable harm, and information about the cost of the product. If the price on the pack does not match the price tag, then this is a violation. It is also strictly prohibited to sell cigarettes from a pack individually.
Before you start registering a company and looking for premises, it is recommended to draw up a business plan. This document will allow you to systematize the available information, understand what exactly needs to be done, set specific goals and build ways to achieve them. Also, the business plan must calculate the risks: such an analysis will help you quickly find a way out of difficult situations, acting according to an already drawn up program, and not rushing from side to side and looking for possible solutions. Let's consider how to open a tobacco shop and what is needed for this:
- Determining the financial situation, searching for start-up capital or attracting an investor.
- Registration of a new company with the relevant authorities, preparation of the necessary documents and papers.
- Study of market opportunities and saturation, analysis of competitors and purchasing power of the population.
- Selecting the location of a new retail outlet, searching for suitable premises, carrying out repair work if necessary.
- Selection and purchase of equipment, ordering outdoor advertising and placing signs.
- Search for suppliers, purchase of goods, creation of assortment.
- Hiring employees (if necessary).
- Launch a marketing program to increase sales and improve awareness of your brand.
Despite the apparent complexity of the algorithm, it is completed quite quickly. Of course, if you have a desire to work, self-confidence and start-up capital.
Advantages and disadvantages
Talking about how, its advantages and possible disadvantages should be discussed. Many people believe that doing this is not entirely ethical, since nicotine is a poison and a drug, and people kill themselves by smoking a cigarette. But in fact, this is a personal choice of each person, so there is no need to delve into moralizing; it is not acceptable in business. Let's look at the advantages of such an undertaking:
- Relatively small amount of starting capital.
- Small premises for placing a retail outlet.
- Minimum number of employees (you can work independently or with the assistance of a relative).
- No need to buy specialized equipment.
- Most products do not have an expiration date, and special storage conditions are also not required.
- Registering a business takes minimal time.
- The payback of the business is quite fast, even if there are competitors in the immediate vicinity.
To increase sales, expand your range
Also, a tobacco store has its disadvantages. Let's look at them:
- To purchase goods, a fairly significant amount is required.
- A large number of competitors.
- Low profit with stable income.
How to register
There are two main ways of legalization: organizing an LLC or individual entrepreneur. Personally, we recommend the second option - individual entrepreneurship. The fact is that it is much simpler both during registration and when conducting business activities. You do not have to regularly submit reports, go to the tax office or submit a large number of papers for reporting. In addition, individual entrepreneurship reduces taxes due to the simplified system.
An LLC should only be formed if you are planning further major expansion or starting a business with a partner.
LLC is good because it allows you to divide the total contribution into shares and in the event of the closure of the enterprise, each investor will receive a certain part of the company, commensurate with the contribution made, back. LLCs also have some advantages when working with large clients, but in general this form of ownership is inferior to individual entrepreneurs in small-scale trade.
How much money is needed
Let's consider needed in order to start working. Practice shows that 250 thousand rubles are enough for you to start. This amount will be spent as follows:
- Registration - about 10 thousand rubles.
- Rent of premises - 10-15 thousand per month depending on the area and location.
- Purchase of equipment (racks, display cases) - 70 thousand rubles.
- Purchase of goods for initial display and a small warehouse - 70 thousand rubles.
- Marketing and outdoor advertising - 30 thousand rubles.
- Laptop with accounting program - 30,000 rubles.
Cigarettes are sold regardless of the season and the state of the economy
In addition, we recommend that you have a reserve of 20–30 thousand rubles for unforeseen expenses, arrangement of a retail space, purchase of detergents, etc. In order for the store to operate, you need about 65 thousand rubles per month. This money will be distributed as follows:
- Rent - 10–15 thousand rubles.
- Taxes - 5 thousand rubles.
- Purchase of goods - 50 thousand rubles.
Where to open a store
For a retail outlet selling tobacco products, the main thing is a large number of sales, since the income from each transaction is small. Therefore, you should choose a place with high traffic. The best option is public transport stops and junctions, residential areas, stalls near business centers or offices. People buy cigarettes just passing by: they are not interested in traveling to the other end of town to buy tobacco at their favorite store. Therefore, the emphasis should be on high traffic: central streets, markets, places near factories, factories, large establishments. Some entrepreneurs open outlets in shopping malls or hypermarkets, but this is a controversial decision, since most visitors will buy cigarettes in a supermarket, stocking up on groceries, rather than going to a separate outlet to buy them. But this rule is not always true. For example, if a grocery supermarket is located in the depths of a shopping center, then visitors are unlikely to go through the entire building, so a point at the entrance will quickly pay for itself.
Attention: Please be aware of any legal restrictions. Thus, a retail outlet cannot be located closer than 100 meters to schools, kindergartens, cultural, sports and medical institutions.
Let's consider what equipment is needed in tobacco stall. You will definitely need: a cash register, a safe or cash drawer, furniture for the seller’s location, display cases and shelves for displaying products. In principle, a room of 10 m2 is sufficient for a tobacco store. If there is no heating, then think about how you will work in the winter - you may need an electric convector. Be sure to protect the windows with bars, install an alarm and a panic button if you plan to work around the clock. To save on lighting, use LED lamps or strips - they are relatively inexpensive, work 5–10 times longer than conventional ones and consume virtually no electricity.
Often tobacco and accessories are bought as gifts
We select products
Cigarettes and tobacco products can be divided into three parts: budget, “middle class” and elite. The largest number of sales are made in the middle price range, but this does not mean that you should limit yourself to them. We recommend providing 30% budget products, 60% from the middle price range, 10% from the elite. Of course, this is a very arbitrary division, and it depends on the place where you open. For example, near a factory, budget products will be in demand, and near a business center, goods with an above-average price and luxury products will be in demand. We recommend that you study the market and draw up a portrait of the average buyer, and then focus on him.In addition to cigarettes, the assortment can include:
- Mouthpieces and pipes.
- Flavored tobacco for hookah, tobacco for pipe.
- Matches, lighters, ashtrays.
- Electronic cigarettes and mixtures.
- Various accessories and gift sets.
Such variety will play two roles: it will increase sales and show customers that you are a serious establishment and not a fast food joint.
Where to look for suppliers
Studying Do not forget that you can only sell cigarettes at the price indicated on the pack. It is noteworthy that although the upper price is limited, the lower price is not, so when looking for suppliers, pay attention to those who work with minimal markups. Also inform the supplier that you are opening a retail outlet and plan to work only with him (this may not be entirely true). In this case, he will offer you the best conditions so that you do not go to competitors. Before signing the contract, be sure to do the following:
- Check that the company has the necessary documents (licenses, certificates, etc.).
- Read reviews about the company to understand what you will encounter in the process.
- Find out how long the company has been operating on the market and what specific list of products it offers.
Sometimes situations arise when one company sells one product profitably, and the second - another (for example, one sells cigarettes, and the second - accessories). Therefore, you will have to work with two suppliers.
Business plan
Finally, here is a short tobacco store business plan, so that you can assess the profitability of this event. Thus, one point in a pass-through location with good sales brings in approximately 6 thousand rubles of profit per day, respectively, 180 thousand per month, of which 50 are spent on the purchase of products. Net income per month is approximately 100 thousand rubles, i.e. the expenses made will pay off for you in three months. In practice, everything is not so rosy: at first the level of sales will be low, so you will have to invest heavily in advertising. In a couple of months, people will get used to your store, you will have regular customers and you will reach the desired level of income. We recommend that you expect a payback of 4–5 months, and if you hire an employee and do not work on your own, then add another month to this period.
Attention:The figures given are quite arbitrary and depend on where exactly you will open a point, how many clients you will serve per day, which supplier you will find and what you will sell.
But in general, the theory coincides with practice: in the 5th month, the outlet fully pays for itself and begins to generate a stable profit. After this, we recommend that you think about opening a second store, because the technology has already been established, suppliers are available, profits are coming in, so you can quickly expand your business. You shouldn’t stop there: even in a small town you can always open 5-7 points, successfully fighting your competitors with affordable prices, quality of service, expanding the range and other nuances.
Having launched a business and put it on track, do not try to withdraw yourself and do not start saving on everything. Make sure that the store is clean and tidy, that price tags are clearly visible, and that outdoor advertising is always in proper condition.
In contact with
Many entrepreneurs want to start a new business related to the sale of cigarettes. To do this, at a minimum, you need to open your own kiosk. But what is alarming and often stops is the fact that this business is constantly being limited for one reason or another.
Firstly, the very cost of the cigarette kiosk; secondly, various prohibitions. And also regular increases in excise duty. Plus, without fail, there are scary pictures on tobacco packs, which should motivate people to give up their addiction. All this makes a person think and doubt the correctness of his choice. The hope that it is possible to successfully sell cigarettes is gradually disappearing.
And, at the same time with all the buts, there is one very important argument in favor: tobacco products have always been and will be in great demand. Therefore, if you organize the business correctly, selling cigarettes through a kiosk can turn out to be quite a profitable business.
The case for the tobacco business:
- A business is doomed to success if it provides customers with what they need. Cigarettes are a popular and non-perishable product. It is not difficult to store it and transport it.
- No need to look for suppliers. There are more than enough of them on the tobacco market.
- This business has a high return on investment. Having invested money at the beginning of the business, after a short period of time you can count on a stable and tangible income.
How to open a cigarette kiosk
- It is very important where the point of sale will be located, in this case a kiosk. The optimal place is the metro, train stations, parking lots, markets and other places with a large influx of people. The kiosk does not have to be large; a few squares of retail space will be enough.
- The following equipment must be installed at a kiosk selling tobacco products: a cash register, a cabinet for storing goods, a safe. As for storage, this issue must be approached with all seriousness. This is especially true for expensive cigarettes and cigars. The cabinet must maintain constant climate control (humidity and temperature). Specialized cabinets for storing tobacco products are quite expensive, but you can be sure that the products are stored in proper conditions. Cheap (and more popular) cigarettes do not require special storage conditions. Their manufacturers took care of this. Cigarettes are produced in special packaging that does not allow air to pass through, thereby maintaining the product in proper condition.
Studies show that most smokers choose standard cigarettes, preferably at an average price. The share of such buyers will be 80%. It follows that there is no point in purchasing many expensive products, including luxury cigars. Despite the fact that people who buy expensive tobacco most likely do not buy it at a kiosk in the market or at the metro. And the most important thing in purchasing is that you need to insure yourself by requiring certificates and licenses from suppliers of tobacco products, and with each purchase of goods.
Business plan for a future business
A business plan must be developed with great care. If you do not have the necessary knowledge in this area, it is better to seek the help of professionals. There are plenty of companies that provide business plan writing services for a fee.
Cost items for opening a cigarette kiosk:
- Expenses for registering business activities and completing all necessary documentation.
- Buying or renting a stall.
- Purchasing the necessary equipment for storing and selling tobacco products.
In addition, we must not forget about fixed and variable costs. Constant costs include wages to employees, purchases of goods, and utility bills for retail space. Variables include fines and other costs.
To open a tobacco products stall and implement a successful business idea, you need to invest about $40,000. Monthly cost items will be around $2,000. And the profit in this situation can reach $5,000. Such a business usually pays off completely within ten months.
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Even in a small town, you can open a business selling cigarettes, which will pay off in the first months and will consistently bring good profits to its owner. In just a few steps you can open your own cigarette selling business.
Opening a business selling cigarettes
Starting capital: 100 - 200 thousand rubles;
Monthly profit: 10 - 25 thousand rubles;
Payback: 4 - 12 months.
Before starting, it is necessary to conduct a market analysis - evaluate the business idea, identify direct competitors, which are cigarette stalls. If there are none, you are at a big advantage, you have no competition and you need to open your own business selling cigarettes as quickly as possible. If competition is detected, you can open a business in another crowded area. Firstly, this way the fight against competition will be less fierce and everyone will get their own part of the city, and secondly, they won’t have to risk the entire business by reducing product prices. Such things both reduce your income and stab your competitors in the back, which can lead to undesirable consequences.
- read the article Rules of doing business
Having found a good place, you need to find the owner of this site (most often you need to contact the city administration for the right to purchase the site or the land department to find out the owner of the territory). Having agreed on the lease or purchase of territory, you need to set up your own small stall. You can buy it, order it, or make it yourself. It is not necessary to make a large stall; a tall stall of about 1.5x1.5 or 1.5x2 meters is quite enough. The chest must be insulated and a heater must be installed for the winter period, with electricity installed. Such a stall can be rented out or another business can be opened if the business selling cigarettes fails, although such a business must pay off and make a profit.
It is also necessary to create all fire safety conditions in the store by additionally purchasing a fire extinguisher.
The next step is to find suppliers and obtain a trade permit, as well as registering a business.
Large cities should have branches of tobacco products. You can agree with them both on the purchase of a large batch of goods, and on taking the goods for sale. If you can’t get the goods for sale, either buy goods of all brands but in small quantities, constantly replenishing the assortment, or take out a small loan for six months with a small percentage. In the case of a loan, it is better to use an alternative option. If you can avoid it, avoid it. Otherwise, try to agree with the owners of the point of wholesale sales of tobacco products about half of the goods for sale.
Business registration is carried out at the tax office. Each country has its own rules for registering a business, so you can receive a complete list of documents at the place of business registration. You will also find out about the permit at the place of registration of the individual entrepreneur.
After all the above stages, we conduct an advertising campaign and launch the business. Do not forget that tobacco products are not sold to persons under 18 years of age, otherwise you will be subject to criminal charges, the store will be closed, and its seller will be forced to pay huge fines.
Business advertising
Every smoker in your area should know about the opening of your store. Since your niche is highly specialized, product prices will be lower than in stores. This is how you will get your clients. The stall must have an external advertising sign on all sides indicating that: a) the stall is focused only on the sale of cigarettes b) the prices for cigarettes in the stall are the lowest in the area c) an inscription about the dangers of smoking (by law such an inscription must be on the advertisement) and banning the sale of cigarettes to persons under 18 years of age.
Also, to make people aware, it is necessary to hang small advertising banners in the area. Advertising at bus stops will also tell smokers where to get cigarettes.
Profit and profitability of a cigarette sales business
Much depends on the choice of area, competition and the location of the stall itself. The better the conditions, the more daily customers. On average, you should not let go of 300-400 clients per day. This requires just all of the above, including advertising, as well as the length of the working day. Each evening hour can provide an additional 20 to 50 clients.
A business selling cigarettes, organized in the right place and working until late, can bring the client up to two thousand rubles daily. Even with hiring a seller, this business will take a minimum of your time and bring additional profit of 5 - 15 thousand rubles.
In contact with
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