How to calculate business income. What business is relevant now and what is in demand. Profitability calculation: formulas

Evgeny Malyar

Bsadsensedinamick

# Business vocabulary

Formulas and size of business profitability

Examples of profitability of various business ideas, calculation formulas, terms and definitions. Find out which activities are the most profitable.

Navigating the article

• What is the company's profitability
• How to calculate the profitability of a business
• What is product profitability
• Business profitability by industry
• Salon
• coffee house
• Cafe and other catering
• Sawmill
• Transportation
• Flower business
• Car service
• Drilling of the wells
• Online store
• Hospitality business
• Sauna
• Draft beer business
• Profitability of candle production
• Cigarette business
• Pet Shop

When planning to open his own business, a future entrepreneur inevitably thinks about “what he will have from this”. This quite healthy interest is due to the need to invest funds, own or borrowed. When obtaining a loan, you need a business plan. If you invest your own money, you also always want to predict their return and the possibility of making a profit. The profitability of the business determines the indicator of profitability. If a business is already in progress, it can be fairly easily calculated from the balance sheet data. And if not?

What is a High Profit Business? If this figure is, for example, 8% - is it a lot or a little? To answer these and other questions, you need to dive into the topic and understand some of the nuances.

The article focuses on the analysis of small businesses. Large businesses already know the methods of calculating profitability.

What is the company's profitability

In a generalized form, profitability is the ratio of the result to the resources spent on its achievement, that is, a kind of economic analogue of the physical term efficiency. This concept can be illustrated by the simplest speculative scheme: someone, buying a product for 200 monetary units, expects to sell it for 250, and “weld” a quarter of the initial price (face value). If this does not incur other costs, then the profitability will be 25%.

The ideal business would be an income-generating activity that does not require any costs. In real life, this does not happen, and if it does, then examples of such "air trade" are considered by law enforcement agencies as fraud.

There are two main strategies for increasing income:

• On the revs. The method is typical for large firms and manufacturers in a highly competitive environment. Costs are huge in absolute terms, profit margins are relatively low, but overall gross sales provide a high amount of revenue.
• On profits. The emphasis is not on quantity, but on the quality of earnings. The total turnover is relatively small, but the profit share is high. Each unit of the product sold is characterized by high profitability.

The choice of this or that strategy is determined not only by the personal desire of the entrepreneur, but also by the industry in which he is active, product positioning and many other objective and subjective factors. In some cases, a combination of methods is possible.

An example is the watch market. A mass-produced manufacturer offers the market cheap products at prices ranging from a dollar to a hundred apiece. The company that owns the brand attracts wealthy buyers with very expensive prestigious chronometers.

The specified characteristics of the goods cannot unambiguously determine the level of profitability. This requires profit and cost data. A manufacturer of inexpensive watches uses an automatic line for assembly, and it is expensive, as well as its maintenance. A prestigious brand requires a dedicated infrastructure, including specialty salons, skilled salespeople, not to mention handcrafted specialists.

The total profitability is determined by the ratio of the balance sheet profit to all costs, including non-production costs.

For example, for a rented business, they will include a monthly rent, for franchising - the cost of the franchise, and when using a loan - payments for its repayment.

The amount of profitability of a business is influenced by the degree of uniqueness of the demanded product. The seller gets the opportunity to dictate his price and set the rate of return in the context of limited competition.

At the same time, there is a rating of sectors of the economy characterized by high profitability (production of cars, alcohol, cigarettes, mining, and others). They are subject to increased tax rates, excise taxes and other types of fiscal burden, or they are controlled by the state.

However, the general provisions outlined give only a brief theoretical basis... Of practical interest for representatives of small business may be information about the methods of calculation and items of costs of specific types. small businesses(workshops, establishments Catering, retail outlets), as well as their approximate average profitability levels.

How to calculate the profitability of a business

The generalized calculation formula has the form of a fraction, in the numerator of which the amount of profit is indicated, and in the denominator - the cost of its formation.

R = P x 100% / I

Where:
R - profitability;
P - profit;
I - the costs that form the income of the enterprise.

The smaller the entrepreneurial structure, the easier it is to take into account all the factors affecting its profitability in terms of costs. In other words, analyzing the activities of a company operating with a small number of costs is not a problem.

R = P x 100% / (VCm + CCm)

Where:
R - profitability;
VCm - average annual cost working capital;
CCm is the average annual value of non-current assets, including fixed assets.

Most often, the annual average values ​​of the values ​​of working capital (raw materials, components, consumables, energy, etc.) are calculated as the arithmetic mean of the states at the beginning and end of the analyzed period. The advantage of small businesses is that, given a small amount of equipment and a limited resource nomenclature, the same can be done with much greater accuracy.

For example, the car was in operation from January to April, after which it was sold. Its average annual cost will be equal to one twelfth of the book value multiplied by the number of months of operation:

CCm = CCb x T / 12

Where:
CCm is the average annual cost of a fixed asset;
CCb is the book value of the means of production;
T - the number of months during which the facility was operated.

According to the same principle, the average annual value is calculated in the event of a forced downtime of the equipment (for example, due to a breakdown).

What is product profitability

This indicator is of paramount importance in production marketable products... If we correlate the profit brought by a unit of manufactured goods and its cost, then the profitability of a particular product will turn out exactly. In turn, the profit is equal to the difference between price and cost:

R = P / Q = (PR - Q) / Q

Where:
R - product profitability;
P is the profit brought by the product after its sale;
Q is the cost of the product;
PR is the selling price of the product.

Business profitability by industry

The question of a novice entrepreneur about which direction of economic activity is the most profitable to invest money is quite natural. The most profitable industries are known, as well as the average level of profitability for them. However, you should not take this data for a certain guaranteed level. Some businessmen manage to exceed it, while others fail to achieve it.

Salon

The costs of opening a beauty salon are considerable: one lease will cost at least ten thousand rubles (by the most modest standards). Modern ideas about a hairdressing salon presuppose a decent interior, special equipment, and the location plays a significant role. In general, initial costs of 170 thousand rubles are required. and more. With the right organization of the business, they will pay off in a year and a half, and the approximate profitability is 45%.

Opening a mini-bakery is considered a lucrative business, but again, it all depends on how well the business is organized. Required initial investment - from half a million to 5 million rubles. The self-sufficiency period is on average up to two years. Profitability ranges from 20 to 50%, and at the same time it naturally grows as sales volumes increase.

For a bakery or small bakery, a reputation is important, achieved through years of hard work and high quality products. Experts believe that a rational way to increase profitability is the presence of a confectionery shop that provides greater added value. According to some estimates, in this case, the profitability can reach 80%.

coffee house

The networked nature of business is considered by marketers to be an important factor influencing profitability. The presence of coffee machines located in crowded places (shopping malls, cinemas, near supermarkets, etc.) significantly increases profitability. When opening a small cafeteria with "live" service, an investment of up to $ 60 thousand will be required, which will be recouped in three years, provided that the monthly plan of 7 thousand cups is fulfilled (consumption of 50 kg of grains).

The location is important, but even with a good location, without offering additional products (including “coffee to go”), such a result is not easy to achieve. Possible profitability - up to 80%.

The profitability of the pharmaceutical business is obvious: the product is characterized by low price elasticity and the demand for it is stable. However, this advantage has led to high competition and oversaturation of the pharmacy market. As a result of these processes, pharmacy profitability is relatively low and ranges from the top 10% to the bottom 1.5%.

In Russia, 37 outlets of this profile account for one hundred thousand people (data from 2016). Important ingredients for success are:

• correct layout;
• highly qualified sales personnel;
• time on the market and reputation;
• the possibility of providing social prices;
• an assortment that includes most types of drugs;
• point location.

Cons are considered a large amount of required permits and licensing.

Cafe and other catering

The basic profitability of catering establishments is in the region of 25%, however, for an inexpensive canteen, a shawarma kiosk, a pizzeria or other fast food with delivery, it can be higher. The profitability is affected by the presence of an organized branded network (franchising is possible). For a restaurant, it is very important to correctly position and locate near the places of concentration of possible target visitors (tourist sites, office centers, etc.).

Additional opportunities are opened by the service of providing complex meals at an affordable price, as well as their delivery. Experienced restaurateurs put the personnel problem in the first place among the difficulties.

Sawmill

A carpentry business at home or in a garage is characterized by an average payback in less than two years (sometimes even ten months is enough) and a high level of profitability (from 40 to 70%). However, serious initial investments are also required - up to 10 million rubles, as well as a competent assessment of the market, timber supply channels and possible options large-scale sales. Calculations are based on mid-2016 prices: finished products cost 5 thousand rubles. per cubic meter m, and raw wood - 1.5 thous.

Based on these data and estimated costs, as well as taking into account the percentage of waste (they can be disposed of), the required capacity is 700 cubic meters. m. per month (for primary round timber). The most profitable product line is the manufacture of pallets, construction timber fasteners and boards. There is always a demand for this product.

Transportation

Freight profitability is limited regulatory documents The "bar" of 35%. However, even such a profitability is not easy to achieve, given that the possibilities of earning SPD for servicing legal entities due to the presence of a bank account. A license is required to carry out passenger transportation.

As for taxis, if the number of cars is more than twenty, the simplified taxation scheme cannot be applied. The main costs are operating and labor costs. Based on these factors and taking into account the high level of competition, transportation as a business is characterized by a profitability of up to 10%.

This business gives a good profit, but due to the considerable amount of initial investment (from 6 to 10 million rubles), the payback period of a self-service car wash reaches 5 years. Average monthly profit up to 300 thousand rubles. The profitability hovers around 30%.

Flower business

With a relatively low entry price into the flower business, it is considered very difficult. High risks and costs, perishable product and uneven demand combine to generate an average profitability of about 50%.

Car service

It is very difficult to predict the profitability of a car service without taking into account the specifics of a particular business. A service station providing the most demanded services in a minimal set (tire fitting, electrical equipment repair, oil change, etc.) will cost at least two million rubles. At the same time, the costs for a full-fledged station equipped with diagnostic equipment, lifts and a stock of spare parts are several times higher.

The ratio of profit to expenses, that is, profitability, according to statistics, is on average in the range from 20 to 50%. The payback period is from one to three years.

Drilling of the wells

Competition in this business is relatively low due to the many difficulties in entering it. Drilling activities are licensed, geological surveys precede work, water quality requires hygienic expertise, and many other technical issues. The demand for the service is highly seasonal. However, disadvantages smoothly turn into advantages for those who have overcome obstacles and are proficient in legal grounds installation and right to drill wells.

The main advantage is the relatively low cost of entering the business - from 35 thousand rubles. for fixed assets plus 100-110 thousand rubles. variable (current) costs per month. Clients pay 20 thousand rubles for the well. (on average), and if at least eight of them are drilled per month, then the revenue will be 160 thousand. Simple calculations lead to the conclusion that the average profitability is 13%. Under favorable circumstances, it is possible to recoup the costs within one season.

Online store

In this case, only the average profitability can be calculated, and it is approximately 30%. The highest profitability is demonstrated by the service of developing online stores, which is also referred to the direction of online commerce.

Hospitality business

Hotel profitability ranges from 15–80%. Such a wide range of the indicator is objectively due to the difference in conditions in which enterprises operate, but there are also subjective factors.

The presence of additional services in the hotel (SPA-service, swimming pool, sauna, etc.) adds up to 6% profitability and smoothes out seasonal recessions. As with any business, good cost management is paramount in the process of increasing profitability.

Sauna

Despite the saturation of the market, the maintenance of steam rooms of various types (Russian, Finnish, Turkish, etc.) is considered a fairly profitable business with a profitability of up to 60%. Starting a business will cost from 1.2 million rubles. (when renting) or 2.2 million (when buying). The monthly projected income is from 400 to 900 thousand rubles, depending on the range of additional services. The investment pays off on average in two years or less.

A significant share (up to a third of the resulting "dirty" profit) of the costs falls on maintaining the premises in a state of operational readiness - the effect of hot steam destroys the structure of the wood sheathing.

Draft beer business

Opening a pub in the modern sense is a costly business. The rent of premises and the purchase of equipment will require over 700 thousand rubles, plus operating expenses and lump-sum payment(if the business is based on franchising) - only about one and a half million. However, with a daily service of two hundred visitors and an average check of 225 rubles, the projected profitability can reach 27-30%. As a rule, a business reaches "point zero" within five months after opening.

Profitability of candle production

There are many myths about the profitability of candle production, most often they have nothing to do with reality. Talk about unusually high profits in church production is generally unfounded, since the profitability non-profit organizations zero, and all the funds earned by them (no matter how many) must be spent by the end of the reporting period.

If we consider souvenir or lighting products, including for birthday cakes and pies, then enterprises and individual entrepreneurs really make them from various materials (paraffin, stearin and wax). The total number of candles produced is up to 20 thousand pieces per year in general throughout Russia. The profitability of this production can be up to 50 and even 100%. The main problem is the organization of sustainable sales. Candles are not essential items.

Cigarette business

The profitability of a tobacco shop or kiosk is limited by high excise taxes and intense competition that does not allow for arbitrary prices. An entrepreneur can somewhat improve his prospects due to related products (lighters, cigarette paper, pipe tobacco and smoking pipes themselves, cigarette cases, etc.) The main emphasis, as a rule, is made on a good location and assortment. '

Theoretically, a profitability of up to 50% is achievable with a return on costs per year (plus or minus a month), but in practice it is usually lower.

Pet Shop

With the right solution to the problem of location and assortment, the cost of a large store selling animal feed and related products can pay off in two years. The profitability, with an average mark-up of 30%, will be about 20%. Required initial investment - 2.1 million rubles.

The budget of a small retail outlet is more modest, and it will pass “point zero” earlier, in about 7 months, but it will give less profit.

conclusions

Entrepreneurs who invest in what seems to be the most profitable business tend to find themselves in fierce competition.

The profitability of the business started depends on the ability to find unique solutions.

(3 estimates, average: 5,00 out of 5)

Many individual entrepreneurs and small business leaders assess the effectiveness of their commercial activities a simple trade margin. Simply put, by purchasing a batch of goods for 100 rubles. per unit, and selling at 150, consider that they have received a net profit of 50%.

Perhaps, to assess such transactions of ordinary resale, this indicator, which, by the way, is called the profitability of sales of products, and can tell something about the return on invested capital, but can such a business be called serious. Indeed, one fine day, with a sharp drop in demand for a product being sold or when purchasing a low-quality batch of it, the business will definitely stop due to a lack of working capital.

How to find out what share of transportation costs in the formation of profit have and to what price should they be attributed - purchase or sale? What borrowed funds were attracted and how they were reflected in the final result? What impact will interest on loans have on future financial performance? What are the overhead and operating costs and are they factored into the profit generation? How to calculate the profitability of production?

And such questions arise already during simple purchase and sale operations. How then to analyze the financial and economic activities of a serious trading or manufacturing company with a large volume of current operations, attracting investments and loans, investing in working capital and expanding production?

Why is the calculation necessary?

An entrepreneur who wants to seriously run his business, successfully develop and expand it, must constantly and scrupulously conduct the most thorough analysis of economic performance, determine the factors affecting the increase or decrease in profits, and look for ways to overcome problems. Time-tested characteristics and techniques exist for this analysis.

The main economic indicator characterizing the commercial success of an enterprise is is, of course, profit, or the excess of his income over expenses. But the absolute value of profit says little about business performance. It is one thing: a million rubles earned by a tiny company of three people working in a small office that occupies one room, and quite another - a large factory or a factory with multimillion-dollar fixed assets. In the first case, we can talk about superprofits, in the second - about sliding to the threshold of loss.

That is why the main indicator of economic efficiency is not the absolute value of net profit, but its ratio to different types costs involved in its creation. They're called profitability coefficients and allow to identify both factors, increasing profitability and hindering it. These characteristics are the main tools for economic analysis of economic activity, which allow you to assess the investment attractiveness and creditworthiness of a company.

When issuing a loan, any bank will first of all study the indicators of the company's profitability, and an investor intending to finance new project- the profitability of a business idea, that is, both of them will be interested in the possibility of a quick payback of their investments and the risks associated with it. Many business counterparties will also invariably ask about these characteristics in order to determine the reliability of a business partnership.

In the most general sense, the profitability ratios make it possible to see in numerical terms the share of profit received by the enterprise for a certain period of time in each ruble spent to extract it. Simply put, if the company's profitability is, say, 20%, then this means that in every ruble earned by it, the share of net profit is 20 kopecks.

Calculation formulas and examples

For trade enterprises, both retail and wholesale, the most important parameter showing the share of profit in total sales is:

Return on sales = Net profit / Revenue.
Companies engaged in the production of any product must take into account the effectiveness of financial investments in manufacturing process using an indicator such as:

Production profitability = Sales Profit / Production Costs.
One of the most important coefficients showing the efficiency of the use of working capital and expressing the measure of the company's profitability for each ruble invested in the formation of its assets is:

Return on assets = Net Income / Assets.

In all of these and subsequent formulas:

1. - the difference between revenue and operating costs, i.e. profit before tax.
2. Production costs- the sum of the cost of fixed assets and circulating assets.
3. Net profit- the funds remaining with the company from the income received, after deducting all costs, production costs, taxes, interest on loans.
4. Revenue- the total amount of funds received as a result of economic activity from the sale of products, the sale of goods or services, investments, the sale of securities, lending, etc.
5. Assets- the total value of the company's property, cash, inventories, accounts receivable, fixed assets.
6. Net assets- the difference between the value of all assets and the amount of debt obligations, or liabilities. The total value of the third section of the balance sheet.

What influences this indicator?

As you can see from the calculation, despite the increase in the company's net profit, an increase in investments in production and working capital, its profitability is falling. The reason for this in this case is the growth of non-current assets. And it is good if it is due to long-term investments, which in the near future will begin to bring a stable income. Or the acquisition of intangible assets, for example, licenses for the production of new types of products, which will soon generate additional profits.

If this decrease is associated with an unreasonable increase in fixed assets that are not involved in production, then this indicator will further reduce the profitability of the assets of the enterprise. Or in the case when the analysis shows an increase in the cost of repairing the means of production - this is a signal that it is required to replace the equipment.

In general, the profitability of an enterprise is influenced by many factors, both internal and external:

1. External, subjective: market conditions, inflation rate, government tax policy, competitor pressure.
2. Internal, or subjective: the volume of assets, production assets, turnover; technical equipment, and many others.

All of them act either directly or indirectly, influencing both the volume of sales and the level of costs. A scrupulous analysis of the impact of each of them on the profitability of the enterprise will increase it by improving production, stimulating product sales, increasing efficiency and reducing unnecessary costs.

An enterprise that has fixed assets (construction, equipment, machinery) is forced to charge them with depreciation due to wear and tear. Read the articles of our experts about what is, what a company is needed for and how it is taken into account when.

Profitability analysis by link

In all cases, higher profit margins and lower costs contribute to improved profitability. The simplest, but also the most ineffective way to increase it, is to increase the selling price of products in order to generate more profit. Ineffective because an excessively high price may result not in an increase in sales, but in a decrease in sales.

In the context of maintaining the average market competitive price for products to increase profitability, there is only one means left - reducing unjustified costs at all parts of the chain of production and sale of the finished product. In this case, variable costs will be unjustified, which are not directly involved in the formation of the cost of production and the formation of its price, but periodically reduce the profit from its sale (read how to calculate the profit from sales and what are the methods of increasing the indicator).

It is for this analysis that there are separate coefficients of profitability, showing the impact of each resource in generating profit. For a deeper analysis, you can use, for example, production efficiency factors such as:

1. Profitability of fixed assets = Net profit / Cost of production assets.
2. Return on current assets = Net Income / Current Assets.

Another of the most important coefficients showing the efficiency and turnover of investments in the company's equity capital is calculated using the DuPont equation: profitability equity capital = Net Income / Net Assets.

It is the product of three coefficients - Net profit margin * Resource efficiency * Capitalization, where:

1. Net profit margin = Net profit / Revenue. The company's ability to reinvest in increasing working capital.
2. Resource efficiency = Revenue / Assets. Shows the effectiveness of asset management by the company or the turnover of each ruble invested in assets over a certain period of time.
3. Capitalization = Assets / Net Assets... Allows you to evaluate the effectiveness borrowed money or lending.

As an additional parameter when considering the efficiency ratio of borrowed capital in relation to equity capital, a simple formula is often used: leverage = Borrowed funds / Net assets.

In contrast to the Return on Assets, the Return on Equity shows the specific ratio of borrowed funds in increasing the company's profitability. It shows the effectiveness and attractiveness of lending to a given enterprise for investors or banks. In some cases, for the management of an enterprise, he can show that even if there is enough equity capital, it is better to attract additional financing from borrowed capital, if this increases the efficiency of equity capital.

Among the set of coefficients, a significant value is also played by showing the break-even point of the enterprise, below which the total costs will begin to exceed the total volume of income: Profitability threshold = Fixed costs/ (Revenue - Variable Cost)... It can be calculated both for the company as a whole and for individual types of products.

In addition to these basic indicators for the analysis of the economic activity of the enterprise, you can attract other profitability factors: personnel, contract services, investments, trade margins, total and net assets, and others.

It must be said that excessively overestimated values ​​of profitability show a greater efficiency of the company, but speak of high risks that accompany its commercial activities. So, an enterprise that has received a large loan will also have a high return on assets, but if it is used ineffectively, it will very soon reach the threshold of profitability and go into negative territory. Each type of business has its own, optimal indicators that speak of its stable development.

Generally these values ​​should not exceed 30 ~ 40%. In addition, they can wear seasonal changes, in the case of, for example, the travel business. In certain periods of the year, associated with the period of tax deductions to the budget, may decrease, and for agricultural production - increase. That is why the results of economic activity should be assessed both for short-term periods and averaged over long-term periods.

Business, whatever it may be, is costly. An entrepreneur, investing in a new project, expects a return in the form of high profits and its constant growth. To assess the indicator of the effectiveness of investments, the profitability of the business is calculated. What it gives and how it is determined, we will tell in the article.

Each entrepreneur determines the need to calculate profitability for himself. Large companies employ an economist, whose duties include regular calculation of performance and planning further work, taking into account the values ​​obtained. In addition to the total profitability, for this purpose the indicator of net profitability of assets, profitability of fixed assets, investments, sales, personnel, equity and other ratios are calculated.

How profitability is determined

It is not so difficult to calculate the profitability of a business if you have ready-made financial statements at hand. Individual entrepreneurs who do not keep accounting or are only planning to start their own business, will have to bring everything "by eye". Profitability is calculated mainly as a percentage. The calculation formula is as follows:

Profitability of production = (Profit balance / Cost of production and sale) x 100

Such a calculation will determine how much profit before taxes falls on 1 ruble of funds spent. For convenience, you can choose a convenient online calculator on the network or download a special program. On average, the normal ratio is 15-35%, but strongly depends on the specifics of the business. For retail, 10-15% is a decent result, but for the beauty or construction industry, this figure will be small. For these directions, you need to proceed from 50-100%, for legal services, trade in intangible assets - from 100%.

This calculation shows the nominal value of profitability. There is also real profitability - the one that is determined taking into account inflation. To assess the purchasing power of an enterprise. When the indicator turns out to be low or even negative, this indicates a lack of performance and impending bankruptcy. A business with high profitability is considered promising, fully receiving a return on investment.

Factors affecting the level of profitability

Since profitability is a relative indicator, its value largely depends on internal changes in the company and external market conditions. The main ones are:

• Labor productivity.
• Technical moments in production.
• Fluctuating prices for the resources, materials purchased by the enterprise, third party services, labor force.
• Changes in the assortment and prices of products sold due to changing demand, crisis.
• Seasonality, temporary equipment downtime or product defects.

The level of profitability can be increased by accelerating turnover, reducing costs, and rationally increasing prices. In any case, to stabilize the situation, it is necessary to calculate and take into account a number of other economic indicators and points: labor productivity, product quality, the situation with competitors.

An example of calculating profitability

Let's show for a better understanding a simple example of calculating the level of profitability using the above formula.

Initial data:

• Total expenses (purchase of raw materials, salaries, rent, materials for work, fuels and lubricants, etc.) - 18 million rubles.
• Total income (revenue) - 22 million rubles.

First, let's calculate the profit: income - expenses = 4 million rubles.

Profitability = (4 million rubles / 18 million rubles) x 100 = 22.2%

The calculation can be made per month, year, quarter. For convenience, profitability is often considered separately for each type of product or department of production.

It is important to compare indicators in dynamics, to take measures to increase them. Also, the return on capital, personnel, assets and other things is calculated separately. Economic analysis must be taken seriously. This is an opportunity to find out the weaknesses of the company and improve its overall profitability.

Profitability is the main indicator by which the state of the business can be characterized. Usually it is calculated as a percentage. The higher the number, the more profitable the enterprise. In addition, it means that all your initial investment will pay off in the shortest possible time. Let's take a look at some examples of profitable business for 2018.

Fast food

Looking for profitable business ideas? Let's take a closer look at the fast food industry. In chain restaurants, one cup of coffee costs about 160 rubles. The ingredients used to make this drink cost 10 rubles. In a small cafe, about 100 cups are bought per day, respectively, the owners of such a business earn up to 10 million rubles a year on the sale of coffee. If you are wondering which business is profitable in 2018, pay special attention to street food and drink trading.

Pawnshops

This is the most profitable business in 2018. The issuance of loans secured by property brings huge profits. In some pawnshops, the monthly interest rate reaches 20%, which means that 240% over the year. Such profitability cannot be achieved by any bank or any other financial institution.

This type of business pays off in the shortest possible time. During the crisis, the demand for such services begins to grow, so pawnshops bring excellent income in any economic conditions. attracts many aspiring entrepreneurs, so if you decide to open a pawnshop, hurry up, otherwise newbies will take your place in the market.

Tennis courts

To quickly return the initial investment, you need to build an indoor court that will be profitable, regardless of weather conditions. It is not worth investing a lot of money in the construction of a capital building. At first, you can build a temporary structure. To increase the profitability of the business, open a small cafe near the court, rent sports equipment or organize training courses for beginners.

Examination of antiques

Lately, many fakes of antiques have appeared on the market. Copies are made of such high quality that even experienced museum experts cannot distinguish them from the original. ? This issue worries many of our compatriots. Buying antiques is a good long-term investment, but many people are afraid to invest in antiques because they doubt their authenticity. Therefore, many private companies began to offer clients professional services for the valuation of antiques. The income of these organizations is about 100% per annum. To start such a business, you need to be well versed in antiques or hire experienced appraisers.

Private kindergarten

If you want to start a profitable small business in Russia, open a private kindergarten. In our country, there are already many more such institutions than state ones. The monthly fee for a child attending kindergarten is 10–20 thousand rubles. Accordingly, a group of 30 children will bring in 300-600 thousand rubles. If you subtract the cost of food, staff salaries and rental of premises, there will be about 150-300 thousand rubles of net profit. In addition, parents pay an initial payment of 25-30 thousand rubles. Some private preschools charge this fee annually.

This business has a fast payback. However, it does not require large financial investments... At the start, you will need a certain amount to buy furniture, toys and decoration permits... According to experts, the profitability of this business reaches 100% per year. must be in demand and profitable. A private kindergarten fully meets all these requirements.

Breeding chinchillas

This is one of the most promising species profitable small business. Anyone with no experience in the field of fur farming can organize such a business. Beginners can organize a small fur farm at home, since chinchillas do not require special conditions of detention and do not emit any unpleasant odors. Since they are herbivores, they don't need a lot of start-up capital to breed them. The profitability of an average chinchilla fur farm can be up to 300%.

Finished products are handed over in bulk to intermediaries who buy fur and resell it at auctions large enterprises, specializing in sewing fur products. One skin can get you 40-60 dollars. To obtain additional income, you can sell breeding chinchillas to other breeders. , you decide. And yet, pay special attention to this lucrative and highly interesting line of business.

Growing greens

The profitability of such a business can be increased by reducing costs. For example, you can use stove heating instead of gas. can be easily implemented at home. The most important thing is your hard work and patience.

Shoe shine

With the right approach, they can bring good profits. One of them is shoe shine. Many people think that this is not a very pleasant activity, since in the past only poor people who could not support their families were engaged in such a business.

But in our time, everything has changed and now no one performs shoe cleaning manually. In order to open such a profitable business during a crisis, you need a small room and special equipment. The cost of one cleaning is $ 3. If you serve 25 people per day, the monthly revenue will be $ 2–2.5 thousand. Such a business pays off in 5-6 months. Its profitability reaches 50%. If you cannot understand what kind of business the crisis is profitable, you can safely adopt this business idea.

Freelance

The ones that can be implemented on the Internet without leaving your home are simply endless.

You can do whatever you want here:

• Translation of text from foreign languages;
• Web design;
• Seo promotion;
• Blogging;
• Copywriting and more.

This issue worries many citizens of our country. In fact, everything is very simple. If you have any specific skills, register on one of the freelance exchanges and offer your services. To get good orders, you need to make a portfolio. These are, of course, little things, but you need to pay special attention to them. Initially, you can do inexpensive tasks to raise your rating and get positive feedback. Over time, you will have regular customers who will provide you with work. Nowadays, the most profitable types of business can be found on the Internet, since working in the network does not require large investments and at the same time brings a good stable income.

Self-leveling floors

At the start, you do not need to cover all areas of this area of ​​activity. Start by designing designer flooring for your office space. This is the most profitable business in a small town. If things go well, other areas can be introduced into the work, for example, floors for country houses, apartments or public spaces. based on innovative technologies, bring huge profits, so if you have the opportunity to do floor design, do not miss this opportunity.

Mediation

Answering the question, which business is the most profitable in Russia now, experts first of all single out intermediation. This business idea is suitable for people who want to earn additional income without leaving their main job.

The essence of this business is that you bring the customer with the contractor and get a certain fee for this. Let's consider this business idea using the example of a construction company. For performing repair or construction works the master receives a certain amount. Part of the profit is taken by the company that offered the master this job. The scheme of work is very simple - you find qualified employees, advertise on the Internet and in the press, and wait for the client to call. One master earns 10-12 thousand rubles per week. If you recruit 8-10 employees and provide them with orders, you can make a good profit. It is the most profitable business of all other areas of activity, since it does not require any cash investment.

Disposable tableware production

Interested in what business is the most profitable in Russia? Disposable tableware worth $ 60 million is produced annually in our country. Half of the total volume of these products is sold in the capital. Disposable manufacturers make huge profits from sales. This is one of the most profitable small businesses.

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In order to open such an enterprise, you need production room and special equipment. The initial investment will pay off in just a year of work. The profitability of the production of disposable plastic tableware reaches 70%. on the manufacture of disposable tableware or not, it's up to you. Experts believe that the crisis is a time of great opportunities for aspiring businessmen, so if you start your business right now, literally in a year it will turn into a thriving, highly profitable enterprise.

Restoration of old furniture

In this article, you will learn:

• How to achieve high profitability business in sales
• What are the rules to increase business profitability

Today you can find a huge amount of literature and trainings containing answers to a question that worries every entrepreneur, namely - how to achieve high business profitability... However, by no means all advice from experienced businessmen is universal: you are unlikely to find a magic scheme that instantly solves existing problems with profitability. Nevertheless, a couple of tips on the level of business profitability will not hurt anyone, especially when it comes to aspiring businessmen.

Why you need to achieve high business profitability

The return on sales in business is based on a percentage of the profit share of each currency earned. Consequently, the profitability of sales is the ratio of the business's net profit to the amount of proceeds from the sale of products multiplied by 100%.

A clear formula for calculating the profitability of sales:

• Return on sales = net income / sales x 100%.
• Return on sales = operating income / revenue x 100%.

To better understand what constitutes business profitability, you need to have an understanding of the following:

1. Return on sales provides an opportunity to see the real picture of the sale of the main products of the business. In addition, the share of the cost price in the general scheme of selling goods is assessed.
2. Profitability of sales is a great help in control pricing policy and the costs of the firm. Each firm has its own strategies and techniques, so their profit margins tend to be uneven, even when they have the same revenue, operating income, and tax-free profit.
3. The return on sales does not show the planned effect of long-term investments. When a firm wants to change technological system or purchase innovative equipment, the profitability ratio of the business may decrease slightly. However, with the right modernization strategy, it will quickly return to its original values ​​or even grow.

What mistakes will not allow you to achieve high profitability of your business

Often (namely, in 85% of cases) it happens that a businessman is ready to close his company if it is unprofitable or the profit received only covers the costs. Typically, such indicators are typical for small and medium-sized businesses in the first year of their existence. However, according to statistics, the lion's share of the reasons why a company is running at zero or making losses are the shortcomings or mistakes of these same entrepreneurs in doing business.

Business planning mistake... When the businessman himself starts planning, he prescribes potential expenses with a wide range. But it must be remembered that both overestimation and understatement of them are critical, since in case of overestimation, the businessman has to withhold the amounts that could be useful to him for another item of expenditure. An illustrative example: an entrepreneur plans to start an advertising campaign soon, but, having pledged much more money for this than is actually needed, he will have to take money from another expense item, for example, from money for wages to workers.

In the question of how to achieve high profitability of the business, you need to constantly go back a little and review the decisions that were made earlier.

The second common mistake of novice businessmen lies in the unjustified understatement of prices for their services or goods. Often a businessman really wants to show that his approach to pricing is very democratic, while forgetting about turnover, and in fact it is only indirectly interconnected with the issues of pricing policy. Yes, and lowering prices without the cost of marketing promotion of the business most often nullifies all the efforts of the company. When advertising campaign was carried out, and this led to an increase in consumer flow, its further decrease may be caused by the actions of competitors who have taken similar actions.

The third stage in deciding how to achieve high profitability of the business is the need consideration of labor productivity. Criteria such as the qualifications of employees, their skills and the level of motivation in terms of increasing the turnover of the company have a rather strong influence on the business. The easiest way to motivate staff is financial. The ability to pick up a tip for yourself will increase the friendliness and helpfulness of the waiters, paying a percentage of the proceeds to the seller will make him recommend more products to the buyer.

Another productive option: the possibility of constant financial growth and a clear system for identifying the best employees. All kinds of "Boards of honor", payment of bonuses for the month, gifts for the holidays are effective.

The main stereotype that hinders business development is definitely lack of advertising. No one will argue that a successful product and business does not really need active promotion, but even a very profitable enterprise at some point may find itself in a situation where the marketing activity of competing firms forces the buyer to go over to their side. Here it is already necessary to focus on the correct and effective marketing promotion of the business.

How to achieve high business profitability

It is very effective if your company can offer a choice of conventional and VIP products... Booksellers usually turn to this scheme, offering to purchase not only an ordinary book for 250 rubles, but also a more expensive one in gift design, for example, for 1500 rubles.

An excellent option was offered by a lighting store: to increase sales margins, the store began offering standard lighting fixtures along with economical LEDs and a control panel. Such a configuration is more interesting and more attractive for the buyer, despite the fact that its cost has increased by 15–20%, the profitability has become equal to 30%.

During checkout, you need to offer related products... This is a fairly effective scheme used by successful online stores. The user flips through the catalog, and in parallel to him is shown, for example, an additional product, which is called the "perfect match": for example, when ordering a bag, the service itself will make a selection of accessories that are in harmony with it.

It is necessary to regularly update the assortment, replenishing it with new products, which, as a rule, are more expensive than the products of past collections.

Keep statistics. Once the managers of the shopping center chain analyzed the profitability of the brands in their catalog. They compared pre-sale and in-time sales. The analysis revealed the brands with the highest level of profitability. After that, three groups of brands were identified - with good, average and best profitability. Thus, the store was able to identify brands with high profitability, and their share in purchases increased. This resulted in a 12% return on sales.

Offer exclusive... If you offer exclusive offers, it will help you significantly increase your revenue when compared to standard offers. These are, for example, exclusive production of goods and author's products. For example, a lighting manufacturer was able to increase its profitability by 30%, reaching a level of 60%.

How to achieve high business profitability: 6 ways

1. Selling a product with a higher value.

Initially, the buyer should be interested in a good and inexpensive product from China: he will be happy with such a purchase. But such profitability cannot be called high, and it is also problematic to make a good mark-up. Therefore, you need to deal with the sale of goods of a higher price category, and in order for the profitability of their sales to be high, you need to focus on building personal relationships with the client. Therefore, you need to find out what the buyer thinks about such a product.

A vivid example can be cited: some time ago, a successful franchise found itself in a difficult situation - customers began to purchase inexpensive subscriptions for a short time. Because of this, the hall was always overcrowded, but it was not possible to receive the proceeds that were supposed to be according to the plan. Then the hall stopped selling one-time subscriptions and doubled the cost of the subscription by three months. That is, the focus has shifted to long-term subscriptions. So the hall kept the prices for subscriptions and even increased the number of visits provided for them.

Two more services were added: payment by installments for those who purchase a subscription for a long time, and provision of guest bonuses to customers. What it means: each client can invite friends to a training session for free. Usually, after such a guest visit, the client purchases a subscription for several classes.

1. Motivation of managers.

To make a low-price sale, the manager needs to contact the commercial director or the head of the sales department for an additional discount. Then, high profitability of the business can be achieved with the help of plans for further work with prospective clients or the promise of large orders, but not by the manager's desire to achieve the plan by all means.

The manager's monetary incentives should be made dependent on his fulfillment of the business profitability plan. For example, the percentage of sales that is provided by the company should be multiplied by a certain coefficient, such a scheme will help to motivate managers to fulfill the plan. This figure can range from 1 to 1.2. And, let's say, if the intended result is achieved, the coefficient will be equal to 1, and if it is overfulfilled, it will be 1.2.

Managers need to explain that it is more productive to sell the most profitable goods (their price is 2-3 times higher than the price of other goods). And to solve this problem, you can set bonuses that will be accrued when they are sold.

1. Service level.

To achieve high profitability of a business, it is necessary to increase the value of goods by increasing their value.

To increase the value of goods, you need:

• Provide free shipping.
• Debug clear delivery.
• Train partners in sales.
• Simplify the ordering scheme through the company's website, arrange a personal account for wholesale buyers.
• Hire friendly and competent consultants (or conduct training for those already working).

1. Increase in the number of items in the check.

Achieve high profitability of the business by expanding the check - this is a significant parameter for the seller. This can be most clearly shown by the example of b2c market sales.

It is possible to increase the number of goods in the check if you stand in the client's place: it is important to assume what problems the purchase of goods may be associated with, or what, on the contrary, will interest him (that is, what related goods can be extended to the check). It is important to show initiative: the buyer's trust is precisely manifested in the fact that he makes a purchase from you. The more sales you make, the easier you will be making each subsequent one.

1. Reduced costs.

When agreeing on a budget for expenses, exclude things that will not in any way affect the increase in sales: for example, participation in exhibitions. Instead, we will focus on relationships with consumers, including potential ones. Conduct targeted mailing, one-to-one presentations, and more.

1. Increase in the price of products.

A method that needs the utmost care in its implementation. It should be understood that significant changes in the pricing policy in business can cause stress for customers, therefore they can opt for buying a more stable product. But even with the increased price of brand all the same, there will be customers who are ready to give literally any money for its products.