The most profitable types of small business. Analysis of the main criteria

Starting your own business means not only starting to work for yourself, but also taking the opportunity to discover personal entrepreneurial opportunities, take financial control, and control over the use of your own time. In this case, the most difficult is the period of business planning, since the success of the chosen path will depend on it. Not many entrepreneurs at the start of opening a business have a strong confidence in the choice. Most of the novice businessmen are at a loss trying to decide, studying different areas of activity.

It should be noted right away that the profitability of a business depends on the field of activity. And they, in turn, are divided into several main types:

• sphere of production;
• sphere of trade;
• services sector.

Areas of business activity and risk levels for each area

If we consider business areas from the point of view of risk, then the production area is the most dangerous, as it requires large investments in the idea, the creation of a large enterprise, the establishment of the production of quality products, and its sale at prices acceptable to the buyer. In addition, there are cases when the produced goods, at first, do not receive due demand, which means that normal profit appears after a certain period of time. And the expectation of success for an entrepreneur is often very painful.

High risks of loss of profit arise in the production of perishable goods (food, cosmetics, flowers), when finished products, without having time to sell, become unusable.

In the manufacturing sector, a businessman must always be aware of all the trends in the market, follow the latest trends, customer preferences, study new types of raw materials and processing technologies, know and use profitable advertising techniques.

Giving preference to the production sector, a businessman must understand that the return on investment will become tangible only after a few years, and the profitability of the enterprise will be guaranteed after hard work and a long fight against competition.

Without a doubt, it is much more profitable to give preference to the sphere of trade, and to take an intermediate link between the manufacturer and the buyer. There is no need to invest in technology and planning, and the product range can be made up of market-demanded elements. In the trade sector, the main expense item falls on the rent of retail premises and the wages of qualified personnel. Therefore, the main profit from the products is received by sellers, and not by its producers.

Today in Russia, the spheres of entrepreneurial activity in the field of services are in the most dynamic development. According to Western experts, the level of development of the country's economy depends on the share of GDP that came from the service sector. This area combines different areas of the market - it can be the Internet, cellular communications, a hairdresser on the corner of the house, or shoe repair near a bus stop.

Only the service sector can generate a solid income with minimal investment. Whatever the service is, it is not a material product that needs to be stored, which can deteriorate or become obsolete. The advantage of a service is that it bides its time when someone needs it. And to satisfy the need, you need a place, tools and materials.

In order for the service sector to become a profitable business, an entrepreneur needs to make sure that his offer is in demand at the right time and at the right time.

Profitable areas of business and analysis of their profitability

Today it is impossible to single out any specific business and say that it is the most profitable.

The profit of any enterprise depends on many factors:

• business locations:
• categories of the local population (village, city) and its financial capabilities;
• national characteristics of the inhabitants;
• density of competition in a given region;
• accessibility to the raw material base;
• the impact of policy and climate on the operation of the service.

Of course, the leading place in business areas is occupied by activities related to the Internet and its maintenance. The demand for these business projects is growing, and, accordingly, prices. And if you look into the future, then the prospects for Internet business are quite tempting, as there is a constant expansion of this area and an increase in its demand. An example of this is ordinary online stores, online dating, online casinos, web design companies and others.

Modern reality captures that profitable business areas rely on people's attachment to entertainment and are guided by a person's desire to get quick money. These include catering organizations, gaming clubs (casinos).

After the entertainment industry, the highest profitability rates are provided by the service sector for customers who are having fun on vacation. Since it is they who are able to spend large sums on obtaining various services and purchasing expensive goods. Seasonal rental can be included in the service sector for vacationers sports equipment(bicycles, boats, catamarans), sale of food products and souvenirs, rental of housing and transportation of tourists.

At the next level of profitability is the sphere of trade. Here, in order to obtain high profits, it is important to choose a profitable place for trading, that is, to work on collecting a large number people, and organize a catchy advertising sign. The option of a small basement in the yards, away from the bus stop, will cut the number of customers in half.

On the last place on profitability there are spheres of production. However, even here it is possible to create an enterprise with a high and stable level of income.

To do this, you will need to fulfill at least one of several important conditions:

• Offer your client something unique that he cannot refuse;

• Find a production that will have minimal or no competition.

An example of a unique production: the production of hand-carved piece wooden furniture.

An example of filling an empty niche: to create an enterprise for the production of PVC windows and doors, the only one in this locality.

Whatever the direction of the enterprise, its creation should begin with the development of a business plan. How to correctly compose important document- this material will be able to tell:.

Thus, based on the stated conclusions and conditions, it is impossible to single out one business and say that it is the most cost-effective and profitable. This indicator is influenced by many internal and external factors, as well as the personal characteristics of the leader.

Sphere of financial business

The most expensive and profitable type of entrepreneurship is the financial business. Its essence is reduced to the operations of buying and selling financial resources moving at the state and international level.

Such operations are carried out by such financial institutions as:

• government agencies;
• Central bank;
• investment structures;
• commercial banks;
• exchanges (stock and currency);
• electronic computer network;
• credit institutions;
• financial institutions;
• investment-oriented funds;
• pension and insurance funds;
• trading companies;
• individuals and legal entities, the population.

The activity of the financial market is carried out on the basis of its two components:

• Publishing of securities and production of banknotes;
• Provision of financial services.

Today, the modern financial industry is in deep fusion with the centers of commerce and currency, thanks to Internet programming. The introduction of new banking programs and methods have made a breakthrough in this area. Money transfers, contracts and various banking activities began to be carried out in a matter of seconds.

Today, the gold reserve in the Central Bank of the Russian Federation constitutes the country's insurance fund and is a means of capital accumulation for the population. However, an increasing role in financial transactions began to fall on convertible currency and various means of borrowing. The role of gold as world money has significantly decreased today, and there is a significant minus in this - a growing problem with international debts has arisen, the second wave of the international crisis is gaining momentum.

Financial experts, emphasizing the growing interest in the financial business, emphasize that more than 1,000 banking structures have already been created in Russia, and more than 2,000 persons own securities.

Commercial banks

Commercial banks are in the forefront of the most popular financial institutions. To start such a structure, 180 million rubles will be required with confirmation of the source of their receipt.

To obtain a license to open a bank, a complex stage of its approval, collection of a package of documents, as well as information about the participants involved (bank director, firms, companies, shareholders) will be required.

What operations can a commercial bank carry out:

• conclude trade agreements with foreign currency;
• act as an intermediary in investment projects;
• carry out non-cash transactions;
• issue loans;
• carry out an examination;
• provide leasing and factoring services;
• provide deposit services.

All banking activities are reduced to passive, active and commission transactions, regulated by special legislative acts of the Russian Federation. The financial sphere of activity is carried out according to clear regulations and is accountable to the Central Bank of the Russian Federation.

Stock exchange activities

To open a stock exchange, you will need to obtain a license, fulfill a number of conditions and collect a package of documents.
The essence of the stock exchange is the intermediary activity between persons selling and buying securities. Securities confirm the relationship that arose on a loan and developed between the person who bought the security and the person who issued it (the issuer).
The financial business ensures the legal circulation of securities. Securities, before being listed on the stock exchange, undergo a rigorous analysis in the listing system and only then get into the list of stock values.
The work of the stock exchange will be successful only if there is a clear accounting of supply and demand for the products offered. Exchange employees strictly monitor trading and control all actions of intermediary companies on the exchange. By adjusting the value of securities on the part of sellers and buyers, the administration of the exchange conducts transactions for the purchase and sale of securities.

Sphere of trade

The sphere of trade has led the profitable business areas for centuries. It is based on acts of sale aimed at the implementation of the exchange process.
Today, 20% of Russia's GDP is trade, so it is singled out as an independent direction of the economy.

Where to get money to start own business? This is the problem faced by 95% of new entrepreneurs! In the article, we have revealed the most relevant ways of obtaining start-up capital for an entrepreneur. We also recommend that you carefully study the results of our experiment in exchange earnings:

The main tasks solved by trading activities:

• there is a sale of the produced goods at consumer value, which contributes to the production of a social product according to the needs of the buyer;
• the supply of consumable goods to the consumer is carried out;
• a balance is maintained between the product offered and the demand for it, that is, trade regulates the volume of reproduction and affects the assortment of goods;
• helps to reduce the costs of consumers through the introduction of new technologies in the sales process, the use of information methods, etc.;
• market analysis is carried out, the price of the goods is established, questions of the organization of after-sales services are raised, and the product is being developed.

The sphere of trade can be divided into two types:

• Wholesale trade (involves the purchase of goods in large quantities for further processing, tailoring or resale).

• Retail trade (provides for the delivery of goods to the final buyer and is the final act in the exchange process).

Considering the level of supply and demand in developed countries, it can be noted that in the United States there are 125 people per shopping store, in Japan the level of supply is higher by 70 people. In Russia for one store retail accounts for 420 people.

A similar situation is observed with the presence of retail space in relation to the number of buyers. Therefore, the current circumstances give entrepreneurs ample opportunities for the development of trading activities, increasing the capacity of wholesale and retail trade.

Sphere of production: its features and negative points

The economic level of any state depends on the scale of its industrial activity. It is production that creates wealth, with the presence of which human life becomes more comfortable and safer.

In the past, productive activity was the basis of all countries, but the processes of globalization have imposed a division of labor. Now one can observe how states that do not produce anything, but only print money, can live richly and prosperously. Example - USA, UK.
Russia is among the countries that urgently need to open their production facilities. And dependence on a foreign manufacturer only confirms that our country is a "raw material colony".
Therefore, it is worth noting that today Russia needs ambitious and courageous entrepreneurs who are ready to raise domestic production.
The sphere of production of a Russian businessman today often frightens with negative aspects. It is this fact that is a deterrent that hinders the development of large-scale diverse industrial activities in the country.

The negative aspects of the manufacturing sector include:

1. Difficult to get a loan. Since the opening of production is a high-risk investment, and banks do not like to take risks, obtaining a loan will involve long visits to banks or real estate pledges.
2. Any production, starting its first steps, first of all faces competition. Competition stimulates any enterprise to produce products cheaper and improve the existing level of quality. Therefore, considering the competition, one can see the advantages for the consumer, which turn into a problem for the owner of the manufacturing enterprise.
3. Not all enterprises can afford financial costs in competition. Indeed, as a rule, when entering the market, a newcomer offers products whose analogues have already won their “place in the sun”, so young manufacturers need time and a lot of money to strengthen their positions.
4. When opening their production, business owners often face a shortage of working class specialists. Today, there are rarely workers who will agree to bear great responsibility even for high wages.
5. Production costs. Today, producers face a difficult problem when prices for electricity, water and other resources rise every year. In order to survive in such conditions, production owners increase the cost of their product, which, in turn, can negatively affect the profitability of the enterprise.
6. Corruption and various state inspections are also a serious problem for production organizations.
7. Products of low quality. High product quality has always been ensured additional costs and highly qualified employees, which for Russian manufacturer will result in an increase in the price of the product. Consequently, it will reduce the competitiveness of the goods against the backdrop of a large selection of high-quality and inexpensive imported goods.
8. Production often has low profitability. After the collapse of the USSR, the Russian economy lined up in such a way that the process of extracting natural resources began to bring big dividends, in comparison with their processing. In addition, all subsequent stages of processing raw materials reduce the profitability of production due to the costs and problems described above.

Service industries

Considering the service sector, it can be noted that it belongs to profitable areas and is divided into several types:

1. Business in the service sector of a material nature. It requires a substantial investment of initial capital (example: opening a pub).
2. A business based on intangible services that does not require capital investment (example: opening a psychological counseling office).

The list of services that commercial companies can use is quite diverse - it can be photo services or construction work, services to help create a kindergarten. Therefore, for any entrepreneur there is a niche here, taking into account his interests and financial capabilities.

Today, there are hundreds of lines of business whose projects can be implemented quickly, while developing them in such a way that expenditure items are minimal.

1. Communication services can be presented in the following form:

• trade in mobile communications;
• delivery of correspondence through courier services;
• services for the organization of high-quality cable and satellite television broadcasting.

1. Transport services to the population can be expressed as follows:

• In the provision of services for motorists (service stations, gas stations, car washes, tire installation, car repair, examination and evaluation of cars, organization of garage cooperatives; organization of parking lots; trade in auto parts and fuels and lubricants).
• In providing urban services to a wide range of the population passenger transport(service of taxi cars and fixed-route taxis);
• In the provision of truck services to the population;
• In the sale of tickets for any type of transport in the order service (sale, booking, as well as timely delivery);
• In providing cars for rent (both accompanied by a professional driver and without him).

1. The sphere of culture and leisure can be expressed in this way:

• In the field of entertainment - this is bowling, golf, equestrian club; it is also a flying club, parachute jumps; archery and firearms; playing tennis, skating rink; Internet cafe; halls for ceremonial events; casino; saunas; business on event services and show organization;
• Travel services (travel agencies, city tours, holiday camps for children, motels and campsites, hotel reservations).

1. The sphere of upbringing of children and their education can be represented as:

• Babysitting, tutoring and governess services; private educational institutions and kindergartens;
• Organization of study abroad, distance learning using the Internet;
• Trainings and courses: driving school, foreign languages, business, advertising, marketing, legal training, memory training courses, typing training courses, dance training, fashion models courses, hairdressing, yoga, culinary arts.

1. Services related to the provision of information:

• news agencies providing reports on specific topics;
• agencies with a literary direction: graduation theses, translations of texts, writing texts on certain topics;
• software services, study of programs and work with them;
• magazine, newspaper publishing house;
• services for different kind consultations: in the field of family, business, consumer rights;
• services of registration of unique copyrights and consultation on these issues;
• market analysis services;
• notarial and legal services;
• reference and information services by telephone numbers;
• agencies for the production and provision of advertising.

1. Services in the field of beauty, health and sports:

• In the medical industry: anonymous medical examinations and tests, treatment with non-traditional methods, vision and dental treatment, prosthetics, home treatment, massage, etc.
• Pet care: grooming, dog walking, training, temporary accommodation for animals (so-called hotel); animal treatment.
• Beauty services: beauty salons, various solariums, professional tattoo, massage, hairdresser's rooms; making hairpieces; fitness clubs, contemporary art and fashion houses; Sport halls different directions.

1. The catering sector is:

• bars of various types, restaurants, cafes;
• catering establishments with fast service;
• catering establishments with food delivery on call;
• mini-enterprises for street food: bakeries, pizzerias, barbecues.

1. Services in demand at home and in everyday life:

• Real estate services, construction services, repairs, design: development of construction projects, creation of interior designs; repairs of various kinds; construction of facilities; execution of building elements under the order; work with furniture (restoration); installation of various electronic systems (alarm, surveillance); land improvement works; implementation of fences and stairs; real estate appraisal services.
• The sphere of household services provides repair work on elimination of problems of household appliances, repair of various devices; delivery of equipment, various professional and non-professional equipment, wedding clothes, bicycles for rent, cleaning and spring-cleaning diverse premises, organization of outdoor toilet rooms, organization of mini laundries and dry cleaners.
• Provision of services in the field of human security: detective agencies, ensuring the protection of people, objects and cargo.

1. Scope of services related to financing:

• loans, currency exchange services for the population, services of mini-pawnshops;
• advisory activities aimed at solving financial issues of various levels of complexity;
• drawing up business projects of varying degrees of complexity, investor search services.

Scope of business in the social field

More recently appeared the new kind activities - social business. If earlier any business had only one key goal - to make a profit, then the social business pursues two goals - to make a profit by solving social issues in society. He takes over challenging tasks and solves them by combining a business approach with the desire to improve the standard of living of people, focusing not on themselves, but on society.

There are two main business models in the world:

• commercial model;
• non-commercial model.

In the commercial option, commercial structures sell their products and services to generate income.
In the non-commercial version - activities are carried out government agencies and non-profit enterprises, solving social issues that are not of interest to commercial business areas.
At first glance, everything seems to be in its place. But, unfortunately, this system does not work well today, and we still have poor, sick and hungry people in our country.
Non-profit organizations cannot exercise the acumen that is characteristic of commercial business. As soon as this problem got a clear outline, the Nobel laureate Muhammad Yunus published serious material for reflection, which will be of interest to entrepreneurs planning to work in the field of business in the social field. In his progressive work, he outlined a unique and radically new business model that solves the social problematic moments of society through business methods.

Professor and talented scientist Yunus identified seven positions of business in the sphere of society:
1. The goal of business is not to increase capital, but to solve social problems that threaten people's lives (improving the low standard of living, protecting the environment, healthcare).
2. Investors in such a business return the invested funds without profit.
3. Profits from the business are invested in the development of the company and the improvement of the characteristics of its products.
4. The task of the activity is to strengthen economic and financial stability.
5. A businessman is responsible for preserving the environment.
6. Workers should be provided with decent wages and create optimal working conditions for them.
7. Social business must bring satisfaction to its leaders.

If we consider the most profitable areas of business activity, then it is worth noting the hotel enterprises. The nature of the hotel business is heterogeneous, there is a combination of interdependent and interconnected functions, pronounced individual and collective work, and the presence of different types of property. And at the same time, it solves the key socio-economic tasks of the country in the field of services.

The main difference between the hotel business and other areas of human practice lies in the close interweaving of the process of creating services and the simultaneous implementation of a range of services, that is, there are no intermediaries in the sale of goods, and it reaches the consumer privately.
The process of the hotel industry consists of two parts that are dependent on each other: serving a person occurs with the simultaneous organization and provision of material services.
So, given that the service of a person is faced with his individual requests, we obtain the condition when material production must have a direct connection with the customer. Such conditions push the business manager to study customer demand, advertise services, collect orders and study the wishes of customers using various forms of service.
In order for the hotel business to bring a large income, it must provide maximum comfort, a high level of etiquette and culture, taking into account many organizational issues.

For the hotel business to be successful, you should:

• take into account the psychology of customers;
• take into account the climate of the region;
• focus on the material level of customers;
• take into account the national character and traditions of people;
• know the needs of customers;
• take into account the impact of competition;
• know traffic conditions.

It is the service in the management of the hotel enterprise that is the main indicator of the work of this service.
The head of the hotel company must constantly monitor the improvement of service processes, that is, in solving customer requests, it is rational to organize the system of orders, using progressive methods in the provision of their services.

Thus, there are a number of features in the organization of the hotel business, the knowledge of which will allow the manager to get the maximum profit from the business:

• the organization must be highly competitive;
• enterprises in this area should work seven days a week, 24 hours a day;
• prices and offers should be fixed, but they may fluctuate slightly during periods of the season;
• in the enterprise, production and service should be combined;
• you need to be prepared for the fact that customers set different requirements for the enterprise;
• in a short time it is necessary to show a high degree of coordination;
• managers must quickly navigate the management of the business;
• unqualified personnel should not work at the enterprise, even if we take into account that their work is profitable, since it is poorly paid;
• staff must be ready to work after hours;
• There is a lot of turnover in this industry.

Restaurant activity refers to a specific service sector, in which the success of the enterprise will be achieved against the background of the adoption of timely management actions, using extraordinary creative solutions.

Increase the profitability and competitiveness of restaurant activities:

• availability of changing exotic dishes;
• the possibility of taking out purchased dishes;
• strict quality and safety control of products;
• analysis and taking into account the comments of demanding customers.

Placement of restaurants is permissible in educational institutions, customer service in this situation can be carried out according to a simplified scheme. With high competition, there is a division of restaurants according to price characteristics.

When opening a restaurant business, an entrepreneur must remember that:

• the restaurant market tends to grow restaurant chains;
• in shops it is favorable to open restaurants with fast service;
• Considering that one of the key problems of the restaurant business is the search for qualified employees, this issue should be given special attention.

When opening a restaurant business, its owner must remember that the operation of any restaurant is based on the desire to improve product quality. That is, a strategy is chosen to meet the needs of the client. On this occasion, restaurant marketing has special methodologies and methods for researching the work of restaurants.

Distinctive features of chain and independent restaurants:

1. Chain restaurants have a wide range of customers.
2. Chain restaurants use a unified technology, have their own brand, management.
3. In chain restaurants, many methods are used to simplify and reduce the cost of the enterprise's activities: quality control is simplified, ways are being developed to save on the purchase of products, wages and service.

Therefore, chain restaurants have a built-in specialized marketing policy, while independent restaurants are characterized by full-fledged service and uniqueness, which are formed against the backdrop of competition.

Construction industry

Today in Russia, the construction business is one of the most profitable, as its profitability exceeds 50 percent. For this reason, many Russian entrepreneurs are ready to invest large amounts of initial capital in construction in order to return investments in the next two years and start making a profit.
However, before plunging into the construction business, it is necessary to study the poles and minuses in the organization of this industry.

Obvious advantages of the construction business

The main positive aspects in the organization of the construction industry:

The construction industry also has its downsides. Namely:

1. In last years there is a decline in production building materials against the backdrop of a decline in construction production.
2. Construction products is of low quality due to the use of inefficient, outdated technologies.
3. The unreasonable territorial location of the construction industry increases the cost of delivery of building materials, and, accordingly, increases their cost.
4. Difficult to get a loan. Banks often refuse credit, citing doubts about the stability of the company and the prospects for its life.
5. A common problem for construction companies is the difficulty of strengthening their positions in the construction market due to high competition, which is created by already operating companies and the work of guest workers, whose labor is valued cheaply.
6. The realities of Russian life state the facts of inflation processes in the country's economy, which has a significant impact on the volume of construction.
7. Negative factors for the development of the construction sector are tax increases and fluctuations in exchange rates.

Positive and negative trends in the development of the construction industry indicate that today it belongs to profitable industries, but against the backdrop of the financial crisis, it is experiencing a decline in development. Align the growth trajectory of the industry can construction organizations, directing its strategy and tactics to smooth out price fluctuations.

Summing up

Analyzing different areas of business, we can say with confidence that in Russia there are ample opportunities to start profitable business activities in different directions. But this requires courageous, persistent, intelligent and hardworking leaders. Having studied the factors described in the article that affect the profitability of a business, an entrepreneur will be able to build his entrepreneurial activity correctly, reducing risk factors.

In most developed countries of the world, small and medium business forms the basis of the economy. And it is not surprising, because with minimal costs, a private entrepreneur can receive by no means small profits. But, of course, success largely depends on the area in which you want (and can) work - services, production, transport, trade, etc.

So who earns the most? Forbes magazine tried to answer this question, having compiled a list of the most profitable and promising segments of small business. The rating is based on data on 300 thousand firms and individual entrepreneurs, each area was represented by at least 100 companies. The data was collected by a specialized consulting agency from 2003 to 2011.

As the authors of the rating note, most of the most profitable types of entrepreneurship require excellent vocational training. At the same time, these specialties allow you to work for yourself, not to maintain a staff, and sometimes not even use the office. But there is another side of the coin: the clients of such specialists, as a rule, resort to the services of the same professional. long years, that is, it is very difficult for a beginner to quickly take a worthy position in the market.

So, who got into the business top?

1. Private auditors. Net profit - 16.5%. Audit services are in demand at all times, so the financial crisis has not affected the income of these professionals. In addition, clients usually work with the same auditor (or firm) on a regular basis, so there is little to no promotional costs. And, of course, if you work for yourself, the need to rent an office and pay staff is completely eliminated.

2. Chiropractors, 15.3%. Official medicine does not always recognize the craft of these specialists, but this does not prevent them from receiving a decent income. And those who do not maintain their own office and work on departure at the client's home, moreover, have almost no costs.

3. Specialized clinics, 15%. The most popular are minor surgeries, cosmetic procedures and various examinations. Despite the high cost of maintaining such an institution, the prices for services more than cover all costs.

4. Accounting services, 14.9%. Just like auditors, accountants are needed by everyone and always. Any services of these specialists are quite expensive, however, competition in this area is consistently high.

5. Private dentists, 14.7%. These doctors almost never suffer from a shortage of clients. Many patients become regulars and go to the same dentist for decades; plus, they advise their favorite specialist to friends, relatives, colleagues, and so on. Even without a single advertising line and having rather expensive equipment, the dental office is a profitable enterprise.

6. Tax calculations, 14.7%. Nobody likes to fill out declarations and stand in line at the tax office. On human laziness and earn private tax.

7. Dentist-orthodontist, 14.4%. In Russia, these specialists usually do not work outside the walls of any clinics, but in America, a private orthodontist is a fairly common phenomenon. And the services of such doctors are traditionally expensive: if the client wants a Hollywood smile, he must be willing to pay the appropriate price for it.

8. Law offices, 13.4%. At the same level are approximate income all law firms and firms.

9. Small lending, 13.3%. Companies that issue small loans secured by the company's products have become popular during the crisis. Large banks unanimously refused loans to entrepreneurs and demanded that previously issued loans be repaid ahead of schedule, and these firms were ready to issue funds without special requirements and for the right time. For small businesses, this has become a real lifesaver, as profits in manufacturing and trade also began to plummet.

10. Private managers, 12.2%. The financial management service is not very popular in our country, but in the West people trust traders much more than banks and not their own “mattress”. Even pensioners turn their savings into securities, so managers have a lot of clients, but there are almost no costs: such a specialist can even work from his own sofa.

11. Drilling of oil and gas wells, 12%.

12. Optometrists, spectacle fitters, 11.5%.

13. Leasing of non-residential premises, 11.3%.

14. Real estate appraisal, 11.3%.

15. Leasing of mini-warehouses and storage rooms, 11%.

16. Insurance agencies, 11%.

17. Credit intermediaries, 10.7%.

18. Investment advisors, 10.7%.

19. Speech therapists and audiologists, 10.6%.

20. Private therapists, 10.4%.

Profitability is main indicator which can be used to characterize the state of the business. It is usually calculated as a percentage. The higher the number, the more profitable the enterprise. In addition, this means that all your initial investments will pay off in the shortest possible time. Let's look at a few examples of profitable businesses for 2018.

Fast food

Looking for profitable business ideas? Let's take a closer look at the area fast food. In network establishments, one cup of coffee costs about 160 rubles. The ingredients that are 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 selling coffee. If you are wondering which business is profitable in 2018, pay special attention to street food and drink.

Pawnshops

This is the most profitable business in 2018. Issuing loans secured by property brings huge profits. In some pawnshops, the monthly interest rate reaches 20%, which means that 240% accumulates in a 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. The demand for such services during the crisis begins to grow, so pawnshops bring excellent income in any economic conditions. attract many aspiring entrepreneurs, so if you decide to open a pawnshop, hurry up, otherwise newcomers will take your place in the market.

Tennis courts

Tennis fans pay 700-4000 rubles per hour to play on the court. The price of the service largely depends on the location of the tennis court, the quality of its coverage and the range of services. Demand in this market segment is constantly growing, so recently it has significantly exceeded supply. If you want to open the most profitable small business, try your hand at this area.

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

Examination of antiques

Recently, many fakes of antiquities have appeared on the market. The copies are made of such high quality that even experienced museum experts cannot distinguish them from the original. ? This question 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 customers professional services according to antiques. The income of these organizations is about 100% per annum. To organize such a business, you need to be well versed in antique items or hire experienced appraisers.

Private kindergarten

If you want to organize 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 a kindergarten is 10,000–20,000 rubles. Accordingly, a group of 30 children will bring 300-600 thousand rubles. If we subtract the cost of food, salaries to staff and rent of premises, there will be approximately 150-300 thousand rubles of net profit. In addition, parents pay an initial contribution of 25-30 thousand rubles. In some private preschool institutions, such a fee is charged 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 issue 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.

Chinchilla breeding

This is one of the most promising types of profitable small business. Any person who does not have 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 and do not emit any unpleasant odors. Since they are herbivores, they do not require much start-up capital. The profitability of an average fur farm for breeding chinchillas can reach 300%.

Finished products are sold in bulk to intermediaries who buy fur and resell it at auctions. large enterprises specializing in tailoring fur products. For one skin, you can get 40-60 dollars. To earn additional income, you can sell breeding chinchillas to other breeders. , you decide. And yet, pay special attention to this profitable and very interesting line of business.

Growing greenery

Such a profitable business with minimal investment can be organized by anyone, regardless of their age and education. Grow onions, parsley, dill and other herbs and sell them on the market. In winter, from a greenhouse with an area of ​​​​5 acres, you can receive 25-30 thousand rubles a month.

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 polish. Many people believe that this is not a very pleasant occupation, since in the past only poor people who could not feed their families were engaged in such a business.

But in our time, everything has changed and now no one cleans shoes manually. In order to open such a profitable business in 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 dollars. Such a business pays off in 5-6 months. Its profitability reaches 50%. If you cannot understand which business is profitable during a crisis, you can safely adopt this business idea.

Freelance

Which can be implemented on the Internet without leaving home, are simply endless.

Here you can do whatever you want:

• Translation of text from foreign languages;
• web design;
• Seo promotion;
• blogging;
• Copywriting and more.

This question 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, trifles, but they need to be paid special attention. At first, you can complete inexpensive tasks to increase your rating and get positive reviews. 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 on the network does not require large investments and at the same time brings a good stable income.

Self-leveling floors

Among the most profitable types of small business, I would like to single out the production of self-leveling designer floors. Such a direction of entrepreneurial activity appeared in our country relatively recently, therefore, in this area there are no high level competition. If you are an enterprising person with creative abilities, this is a great opportunity to declare your talent to the whole country.

At the start, you do not need to cover all areas of this area of ​​\u200b\u200bactivity. Start designing flooring for office space. This is the most profitable business in 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 get into floor design, do not miss this opportunity.

Mediation

When answering the question of which business is the most profitable now in Russia, experts primarily single out mediation. Such a business idea is suitable for people who want to earn extra income without leaving their main place of work.

The essence of this business is that you bring the customer to the contractor and receive a certain fee for this. Consider this business idea using the example of a construction company. For the performance of repair or construction work, 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 a week. If you hire 8-10 employees and provide them with orders, you can make a good profit. This is the most profitable business out of all other fields of activity, since it does not require any cash investments.

Production of disposable tableware

Interested in what business is the most profitable in Russia? Every year in our country produce disposable tableware for 60 million dollars. Half of the total volume of this production is sold in the capital. Manufacturers of disposable products make huge profits from sales. This is one of the most profitable types of small business.

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In order to open such an enterprise, you need a production facility 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%. for the manufacture of disposable tableware or not, it's up to you. Experts believe that the crisis is a time of great opportunities for business start-ups, so if you start your business right now, in just a year it will turn into a prosperous, highly profitable enterprise.

Restoration of old furniture

may be very different. Recently, such a direction of activity as restoration and hauling has become very popular. old furniture. High-quality sofas and armchairs are not cheap, so many citizens cannot afford to buy new furniture. To freshen up the interior a bit, they rent upholstered furniture to the workshop for restoration. You can do this work at home, for example, in your own garage or do work at the client's home. All you need for work is a stapler, screwdriver, jigsaw and sewing machine. In addition, it is desirable to have your own truck for transporting furniture. If you can’t figure out which business is the most profitable in our time, you should pay special attention to this area of ​​\u200b\u200bactivity.

Hello! Today we will talk about profitability, what it is and how to calculate it. aimed at making a profit. To assess the correctness of the work and the effectiveness of the applied management methods, you can use some parameters. One of the most optimal and informative is the profitability of the enterprise. For any entrepreneur, understanding this economic indicator is an opportunity to assess the correctness of the expenditure of resources at the enterprise and adjust further actions in all directions.

Why Calculate Profitability

In many cases, the financial profitability of an enterprise becomes a key indicator of the analysis of a business project, which helps to understand how well the funds invested in it pay off. Correctly calculated indicators for several factors and articles are used by the entrepreneur for, when pricing services or goods, for general analysis at the working stage. They are calculated as a percentage or used in the form of a numerical coefficient: than more number the higher the profitability of the enterprise.

In addition, it is necessary to calculate the profitability ratios of an enterprise in the following production situations:

• To forecast the possible profit that the company will be able to receive in the next period;
• For comparative analysis with competitors in the market;
• To justify large investments, helping a potential participant in the transaction to determine the projected return on a future project;
• When determining the real market value of the company during pre-sale preparation.

The calculation of indicators is often used when lending, obtaining loans or participating in joint projects, developing new types of products.

Profitability of the enterprise

Discarding scientific terminology, we can designate the concept:

Profitability of the enterprise as one of the main economic indicators, which well characterizes the profitability of the entrepreneur's work. Its calculation will help to understand how profitable the chosen project or direction is.

In the process of production or sales, many resources are used:

• Labor (employees, personnel);
• Economic;
• Financial;
• Natural.

Their rational and proper operation should bring profit and a steady income. For many enterprises, the analysis of profitability indicators can become an assessment of the effectiveness of work for a certain (control) period of time.

In simple words, the profitability of a business is the ratio between the costs of the production process and the resulting profit. If after a period (quarter or year) a business project has made a profit, then it is called profitable and beneficial for the owner.

In order to conduct correct calculations and predict indicators in future activities, it is necessary to know and understand the factors in varying degrees affecting profitability. Experts divide them into exogenous and endogenous.

Among the exogenous are:

• Tax policy in the state;
• General sales market conditions;
• Geographic location of the enterprise;
• The level of competition in the market;
• Features of the political situation in the country.

In many situations, the profitability and profitability of an enterprise is affected by its geographical position, proximity to sources of raw materials or customer-consumers. The situation in the stock market and fluctuations in exchange rates have a huge impact.

Endogenous or internal production factors that strongly affect profitability:

• Good working conditions for personnel of any level (which necessarily affects the quality of products positively);
• Efficiency of logistics and marketing policy of the company;
• General financial and managerial policy of management.

Taking into account such subtleties helps an experienced economist to make the level of profitability as true and realistic as possible.

Factor analysis of enterprise profitability

To determine the degree of influence of any factors on the level of profitability of the entire project, economists conduct a special factor analysis. It helps to determine the exact amount of income received under the influence of internal factors, and is expressed in simple formulas:

Profitability \u003d (Profit from sales of products / Cost of production) * 100%

Profitability = ((Product price - Production cost) / Production cost)) * 100%

Usually, when doing this financial analysis use his three-factor or five-factor model. Quantity refers to the number of factors used in the counting process:

• For a three-factor one, the profitability of manufactured products, the indicator of capital intensity and the turnover of fixed assets are taken;
• For the five-factor, it is necessary to take into account the labor intensity and material consumption, depreciation, turnover of all types of capital.

The factor calculation is based on the division of all formulas and indicators into quantitative and qualitative ones, which help to study the development of the company from different angles. It shows a certain relationship: the higher the profit and return on assets from the production assets of the enterprise, the higher its profitability. It shows the manager the relationship between the standards and the results of economic activity.

Types of profitability

In various production areas or types of business, specific indicators of the profitability of the enterprise are used. Economists distinguish three significant groups that are used almost everywhere:

1. Profitability of products or services: the ratio of the net profit received from the project (or direction in production) and the costs spent on it is taken as a basis. It can be calculated both for the whole enterprise and for one specific product;
2. Profitability of the entire enterprise: this group includes many indicators that help characterize the entire enterprise as a whole. It is used to analyze a working project by potential investors or owners;
3. Return on assets: a fairly large group of various indicators that show the entrepreneur the appropriateness and completeness of the use of a particular resource. They allow you to determine the rationality of using loans, your own financial investments or other important assets.

An analysis of the profitability of an enterprise should be carried out not only for internal needs: this is an important stage before large investment projects. It may be required when granting a loan, or it may become the starting point for the consolidation or reduction of production.

A real complete picture of the state of affairs at the enterprise can be obtained by calculating and analyzing several indicators. This will allow you to see the situation from different angles, to understand the reason for the decrease (or increase) in expenses for any items. This may require several coefficients, each of which will reflect a specific resource:

1. ROA - return on assets;
2. ROM - the level of profitability of products;
3. ROS - return on sales;
4. ROFA - profitability of fixed assets;
5. ROL - personnel profitability;
6. ROIC - return on investment in the enterprise;
7. ROE - return on equity.

These are just a few of the most common odds. To calculate them, there are enough numbers from open sources - the balance sheet and its appendices, current sales reports. If an estimated profitability assessment of the business is required for launching, the data is taken from the marketing analysis of the market similar products or services available in the general overview of competitor reports.

Calculation of the profitability of the enterprise

The largest and most generalized indicator is the level of profitability of the enterprise. For its calculation, only accounting and statistical documentation for a certain period is used. In a more simplified version, the formula for the profitability of an enterprise looks like this:

P=BP/SA*100%

• P is the main profitability of the enterprise;
• BP is an indicator of balance sheet profit. It is equal to the difference between the revenue received and the cost (including organizational and management costs), but before taxes;
• SA - the total cost of all current and non-current assets, production capacities and resources. It is taken from the balance sheet and appendices to it.

The calculation will require the average annual cost of all tangible assets, the depreciation of which is used in the formation of the selling price for services or goods.

If the assessment of the profitability of the enterprise is low, then certain management measures should be taken to improve the situation. It may be necessary to adjust production costs, review management methods or resource efficiency.

How to Calculate Return on Assets

A complete analysis of the profitability of an enterprise is impossible without calculating the efficiency of using various assets. This is the next important stage, which helps to assess how fully all assets are used, to understand their impact on profit. When evaluating this indicator, pay attention to its level. A low level indicates that the capital and other assets are not working enough, and a high level confirms the correct management tactics.

Practically, the return on assets (ROA) means for an economist the amount of money that falls on one unit of assets. In simple words, it shows the financial return of a business project. Calculation for all types of assets must be carried out with regularity. This will help to timely identify an object that does not bring returns or benefits in order to sell it, lease it or modernize it.

In economic sources, the formula for calculating the return on assets looks like this:

• P - profit for the entire analyzed period;
• A - the average value by type of assets for the same time.

This coefficient is one of the three most indicative and informative for the manager. Getting a value less than zero indicates the operation of the enterprise at a loss.

Profitability of fixed assets

When calculating assets, the profitability ratio of fixed assets is separately distinguished. These include various means of labor that are directly or indirectly involved in the production process without changing the original form. The term of their use must exceed a year, and the amount of depreciation is included in the cost of services or products. These main assets include:

• Any buildings and structures in which workshops, offices, laboratories or warehouses are located;
• Equipment;
• Heavy vehicles and loaders;
• Office and work furniture;
• Cars and passenger transport;
• Expensive tool.

The calculation of the profitability of fixed assets will show managers how effective the economic activity of a business project is and is determined by the formula:

R = (NP / OS) * 100%

• PE - net profit for a certain period;
• OS - the cost of fixed assets.

This economic indicator is very important for commercial manufacturing enterprises. It gives an idea of ​​the share of profit that falls on one ruble of invested fixed assets.

The coefficient directly depends on profitability and should not be less than zero: this means that the company is operating at a loss and is using its fixed assets irrationally.

Profitability of sold products

This indicator is no less important for determining the level of profitability and success of the company. In international economic practice, it is referred to as ROM and is calculated by the formula:

ROM=Net Profit/Cost

The resulting coefficient helps to determine the effectiveness of the sale of manufactured products. In fact, this is the ratio of sales revenue and the cost of its manufacture, packaging and sale. For an economist, the indicator clearly demonstrates how much, in percentage terms, each ruble spent will bring.

More understandable for beginners may be the algorithm for calculating the profitability indicator products sold:

1. The period in which it is necessary to analyze the indicator is determined (from a month to a whole year);
2. The total amount of profit from sales is calculated by adding up all income from the sale of services, products or goods;
3. Net profit is determined (according to the balance sheet);
4. The indicator is calculated according to the above formula.

A good analysis will include a comparison of the profitability of products sold over several periods. This will help determine the decline or increase in the company's income in dynamics. In any case, you can conduct a deeper review of each supplier, product group or range, work out the client base.

Profitability of sales

Margin or return on sales is another essential characteristic when pricing a product or service. It shows how many percent of the total revenue is accounted for by the profit of the enterprise.

There is a formula that helps to calculate this type of indicator:

ROS= (Profit / Revenue) x 100%

As a basis for calculation, can be used different types arrived. The values ​​are specific and vary depending on the product range, the company's line of business and other factors.

Sometimes experts refer to the profitability of sales as the rate of return. This is due to the ability to show the share of the share of profit in the total sales proceeds. It is also calculated in dynamics in order to track changes over several periods.

In the short term, more interesting picture can give the operating profitability of sales, which is easy to calculate by the formula:

Operating return on sales = (Profit before tax / Revenue) x 100%

All indicators for calculations in this formula are taken from the Profit and Loss Statement, which is attached to the balance sheet. The new indicator helps the entrepreneur to understand what is the real share of revenue contained in each monetary unit of his revenue after paying all taxes and fees.

Such indicators can be calculated for a small enterprise, one department or an entire industry, depending on the task. The higher the value of this economic coefficient, the better the enterprise works and the more profit its owner receives.

This is one of the most informative indicators that helps determine how profitable a business project is. Without its calculation, it is impossible to draw up a business plan, track costs in dynamics, or evaluate the profitability of the whole enterprise. It can be calculated using the formula:

R=VP/V, where:

• VP - gross profit (calculated as the difference between the proceeds received from the sale of goods or services and the cost);
• B is the proceeds from the sale.

The formula often uses net profit, which better reflects the state of affairs in the enterprise. The amount can be taken from the application to the balance.

Net profit no longer includes income tax, various commercial and overhead expenses. It includes current operating costs, various penalties and paid loans. To determine it, the calculation of the total revenue that was received from the sale of services or goods (including discounts) is carried out. All expenses of the enterprise are deducted from it.

It is necessary to carefully choose the time interval depending on the task of financial analysis. To determine the results of internal control, the calculation of the profitability of profit is carried out in dynamics on a regular basis (monthly or quarterly). If the purpose is to obtain an investment or a loan, a longer period is taken for comparison.

Obtaining the profitability ratio gives a lot of information for the management personnel of the enterprise:

• Shows the compliance of real and planned results, helps to evaluate the effectiveness of the business;
• Allows you to conduct a comparative analysis with the results of other competing companies in the market.

If the indicator is low, the entrepreneur needs to think about improving it. This can be achieved by increasing the amount of revenue received. As an option - increase sales, slightly increase prices or optimize costs. You should start with small innovations, observing the dynamics of changes in the coefficient.

Staff profitability

One of the interesting relative indicators is the profitability of personnel. Almost all enterprises, regardless of the form of ownership, have long taken into account the importance of effective labor resources management. They affect all areas of production. To do this, it is necessary to monitor the number of personnel, their level of training and skill, and improve the qualifications of individual employees.

You can determine the profitability of personnel by the formula:

• PE - net profit of the enterprise for a certain period of time;
• NS - the number of staff of different levels.

In addition to this formula, experienced economists use more informative ones:

1. Calculate the ratio of all staff costs to net profit;
2. The personal profitability of one employee, which is determined by dividing the costs associated with him by the share of profit brought to the enterprise budget.

Such a complete and detailed calculation will help determine labor productivity. On its basis, it is possible to carry out a kind of diagnostics of jobs that can be reduced or need to be expanded.

Do not forget that low-quality or old equipment, its downtime or other factors can affect the profitability of personnel. This can reduce performance and give additional costs.

One of the unpleasant, but sometimes necessary methods is often the reduction of the number of employees. Economists must calculate the cost-benefit for each type of workforce to highlight the weakest and most vulnerable areas.

For small businesses, regular calculation of this ratio is necessary to adjust and optimize their costs. With a small team, it is easier to carry out calculations, so the result can be more complete and accurate.

Profitability threshold

For many commercial and industrial enterprises, the calculation of the profitability threshold is of great importance. It means the minimum volume of sales (or sales of finished products), at which the proceeds received will cover all the costs of production and bringing to the consumer, but without taking into account profits. In fact, the profitability threshold helps the entrepreneur to deduce the number of sales at which the company will operate without loss (but not make a profit).

In many economic sources, this important indicator can be found under the name "breakeven point" or "critical point". It means that the company will receive income only if this threshold is overcome and the coefficient increases. It is necessary to sell goods in a quantity that exceeds the volume obtained by the formula:

• PR - threshold (norm) of profitability;
• PZ - fixed costs for sales and production;
• Kvm - gross margin ratio.

The last indicator is calculated preliminary according to the formula:

Kvm \u003d (V - Zpr) * 100%

• B is the company's revenue;
• Zpr - the sum of all variable costs.

The main factors affecting the profitability threshold ratio:

• The price of the goods for one unit;
• Variable and fixed costs at all stages of production and sale of this product (service).

With the slightest fluctuation in the values ​​of these economic factors, the value of the indicator changes up or down. Of particular importance is the analysis of all costs, which economists divide into fixed and variable. The first ones include:

• Depreciation for major facilities and equipment;
• rent;
• All utilities and payments;
• Salaries of employees of the company's management;
• Administrative costs for their maintenance.

They are easier to analyze and control, can be tracked in dynamics. Variable costs become more “unpredictable”:

• Salary of the entire workforce of the enterprise;
• Commissions for servicing accounts, loans or transfers;
• Expenses for the purchase of raw materials and components (especially when exchange rates fluctuate);
• Payment for energy resources spent on production;
• Fare.

If a company wants to remain consistently profitable, its management must control the rate of return, analyze costs in all respects.

Any enterprise seeks to develop and increase capacity, open up new areas of activity. Investment projects also need a detailed analysis, which helps to determine their effectiveness and adjust investments. In domestic practice, several basic calculation methods are more often used, giving an idea of ​​what the profitability of a project is:

1. Methodology for calculating the net present value: it helps to determine the net profit from a new project;
2. Methodology for calculating the profitability index: necessary to obtain income per unit of costs;
3. The method of calculating the marginal efficiency of capital (internal rate of return). It is used to determine the maximum possible level of capital expenditure in a new project. The internal rate of return is most often calculated using the formula:

GNR = (net worth current / amount of initial investment current) * 100%

Most often, such calculations are used by economists for certain purposes:

• If necessary, determine the level of costs in the case of project development at the expense of borrowed funds, loans or credits;
• To confirm the profitability and document the benefits of the project.

If there are bank loans, the calculation of the internal rate of return will give the maximum allowable interest rate. Its excess in real work will mean that a new enterprise or direction will be unprofitable.

1. Methodology for calculating the return on investment;
2. A more accurate modified method for calculating the internal rate of return, for the calculation of which the weighted average cost of the advanced capital or investments is taken;
3. Accounting rate of return methodology, which is used for short-term projects. In this case, the profitability will be calculated by the formula:

RP=(PV + depreciation/amount of investment in the project) * 100%

NP - net profit from a new business project.

Full settlement different ways is done not only before the development of a business plan, but also during the operation of the facility. This is a necessary set of formulas that owners and potential investors use when trying to assess the possible benefits.

Ways to increase the profitability of the enterprise

Sometimes the analysis gives results that require serious management decisions. To determine how to increase profitability, it is necessary to understand the reasons for its fluctuation. To do this, we study the indicator for the reporting and previous period. Usually taken as the base last year or a quarter in which there was a high and stable revenue. The following is a comparison of the two coefficients in dynamics.

The profitability indicator may be affected by a change in the selling price or cost, an increase in costs or the cost of raw materials from suppliers. Therefore, it is necessary to pay attention to factors such as seasonal fluctuations in the demand of buyers of goods, activity, breakdowns or downtime. Solving the problem of how to increase profitability and, it is necessary to use various methods to increase profits:

1. To improve the quality of a product or service, its packaging. This can be achieved by modernizing and re-equipping its production facilities. Perhaps, for the first time, this will require serious investments, but in the future it will more than pay off by saving resources, reducing the amount of raw materials, or at a more affordable price for the consumer. You can consider the option;
2. Improve the properties of their products, which will help attract new consumers and become a more competitive company in the market;
3. Develop a new active marketing policy for your business project, attract good management staff. Large enterprises often have an entire marketing department that deals with market analysis, new promotions and finding a profitable niche;
4. In various ways to reduce the cost in order to compete with a similar range. This should not be at the expense of the quality of the product!

The manager needs to find a certain balance among all methods in order to achieve a stable positive result and keep the profitability indicators of the enterprise at the proper level.

The most important goal of any commercial activity is the most productive use of funds and resources invested in the business initially or attracted in the course of work. It is obvious that for businessmen and investors, first of all, enterprises that receive more profit in proportion to the capital employed are of interest: in order to present this quality in understandable numerical terms, it is necessary to calculate the profitability.

In simple terms, profitability is a conditional criterion that helps determine the effectiveness of managing the resources invested in an enterprise, the return on costs associated with the manufacture and marketing of products. The calculation of profitability seems to be one of the main operations that precede investment in a particular company, modernization of production, staff development and other activities that increase the costs of business owners.

What is profitability?

Analysts consider profitability indicators as parameters that allow, with a certain degree of reliability, to assess the effectiveness of entrepreneurial activity. In simple terms, profitability is a formula that visually represents the productivity of using such enterprise resources in business as:

• Material and technical base;
• Opportunities of the labor collective;
• Organization of supplies of raw materials and materials;
• Organization of sales channels;
• Enterprise financial management;
• Other tangible and intangible resources.

Comparing profits, sales volumes and other physical indicators for companies with different sizes or specializations is somewhat incorrect: a small enterprise in some situations can be much more efficient than a giant concern with billions in turnover. With the use of profitability indicators, this comparison becomes more fair, since such ratios are calculated in relative terms.

In simple terms, profitability is an example that symbolizes the return on entrepreneurial activity and demonstrates the amount of income per each ruble invested in business. From an economic point of view, here you can see well-known analogies with efficiency: in the general case, the indicator is calculated as the ratio of the amount of profit to the sum of all production and non-production costs for a specified period of time. Accordingly, profitability is the proportion between the income and expenses of the company.

The formula used to calculate the coefficient is rather primitive, but the obtained values ​​cannot be evaluated in absolute terms. Here it is necessary to analyze the dynamics by comparing the performance indicators for different periods, different external and internal conditions. Sometimes an initially promising business turns into a loss-making one precisely due to the incorrect use of calculated values ​​to determine critical production and sales volumes.

Why measure profitability?

Profitability should be considered one of the key indicators used to analyze the activities of the enterprise and determine the productivity of the use of capital invested in the business. For clarity, it is calculated as a percentage: the larger the value of the coefficient, the higher the profitability.

In what situations can this indicator be useful:

1. Drawing up a business plan. Thanks to the calculation of profitability, it is possible to draw conclusions about the quality of the study of all the details of the business plan and the feasibility of implementing this project;
2. Pricing. Using profitability indicators, businessmen determine the acceptable price reduction for products aimed at conquering the market or gaining competitive advantages;
3. Management. By analyzing the profitability indicators of the enterprise's activities at different time intervals, it is possible to identify problems in the organization of business processes;
4. Income forecasting. Knowing the average profitability allows the manager to accurately predict the profit of future periods;
5. Justification of the need for investment. Given the amount of investments and the average profitability of a small business, investors determine the effectiveness and expediency of investing;
6. Determining the value of the enterprise. The level of profitability, combined with liquidity, determines the value of the company when selling the business.

In addition, it is necessary to calculate business profitability indicators to conduct a comparative analysis with the performance of competitors, when attracting debt financing, before implementing any projects or mastering the production of a new type of product.

Types of profitability

A businessman who wants to get an adequate idea of ​​the current state of the enterprise must use several different indicators of profitability. Thanks to their analysis, you can comprehensively consider the situation, identify problem areas or business processes, and evaluate the efficiency of using all available resources.

Most often, the following coefficients are calculated:

1. Profitability of sales;
2. Profitability of production;
3. Profitability of certain types of products;
4. Return on assets of the enterprise;
5. Return on investment;
6. Return on equity;
7. Profitability of fixed assets;
8. Staff profitability.

To obtain these indicators, it is not necessary to carry out special events or studies - all the initial data can be found in ordinary accounting documents. When calculating the profitability of a newly created business, they use statistics for this market segment and reports published by competitors in the public domain.

Return on sales (ROS)

Return on sales refers to the ratio of income received from the sale of all goods or services to the total revenue of the company. In this way, you can determine the share of profit that falls on each ruble earned by the entrepreneur.

This coefficient is used in the process of pricing and in assessing the total costs of the enterprise. However, to get an idea of ​​the company's performance, you need to compare ROS with the performance of organizations operating in the same industry and producing similar products. You can calculate the profitability of a business in sales as follows:

ROS = (profit before tax / sales revenue) x 100%.

Sometimes, for a more accurate analysis, the calculations use the amount of net profit, which is the final income of the enterprise minus all costs, as well as tax and loan payments.

Profitability of production

The profitability of production is the ratio of the amount of profit (gross or net) to the total amount of costs associated with the manufacture of products. By calculating this coefficient, one can estimate the share of income that an enterprise receives for each ruble spent and determine the efficiency of capital use.

The profitability of production is calculated both for the company as a whole and for its individual divisions. This is how the expediency of conducting activities in one direction or another is determined, especially if the enterprise operates simultaneously in several areas. The calculation of the profitability of a business in production looks like this:

RP \u003d (profit / (value of fixed assets + amount working capital)) x 100%.

Product Profitability (ROM)

This coefficient defines as the ratio of income received from the sale of products to the total costs of its production and sale. So you can estimate the share of profit that falls on each ruble invested in the cost of the product. ROM is a fairly flexible indicator that allows you to justify the feasibility of producing both the entire range of goods and individual groups, as well as specific types of products. How to determine the profitability of a particular type of product:

ROM = (profit from the sale of the product / cost of the product) x 100%.

Return on assets (ROA)

This indicator clearly demonstrates the productivity of using the company's assets for profit, the effectiveness of the strategy for managing the values ​​owned by the enterprise, and the payback of the business using its own resources. When calculating ROA, it is necessary to take into account all current and non-current assets available to the organization or attracted by it in the course of its activities. The formula for calculating the profitability of a business in terms of the efficiency of using enterprise resources looks like this: ROA \u003d (net profit / average asset value for the period) x 100%.

By regularly calculating this ratio, you can identify an unprofitable asset and make a decision to sell, upgrade or lease it.

Return on investment (ROI)

The return on investment is the ratio of the income received in the process of investing to the amount of initially invested capital. In this way, it is possible to accurately determine the profit that each ruble invested in the enterprise brings. How to calculate the profitability of a business in terms of the efficiency of using attracted investments:

ROI = (net profit + (asset sale price - asset purchase price) / asset purchase price) x 100%.

If, due to the incompleteness of the project, the final price of the asset is unknown, then when calculating, you need to take an indicator equal to its value at the beginning of the investment. An ROI greater than zero indicates the feasibility of allocating capital, while negative values ​​indicate impending losses.

Return on equity (ROE)

The ROE ratio is defined as the ratio of a company's net profit to its own capital. This indicator helps investors evaluate the productivity of using owned by the company funds, the correctness of the strategy for managing its resources. How to calculate the profitability of a business in terms of the efficiency of raising equity capital:

ROE = (net profit for the year / equity) x 100%.

When deciding on debt financing of an organization, this ratio must be compared with the rate on a bank loan. If the ROE is higher, then lending can be considered expedient and economically justified. Otherwise, in order to avoid losses, it is better to refuse to raise funds.

Return on fixed assets (ROFA)

The calculation of the profitability ratio of fixed assets is aimed at assessing the productivity of their use in the economic activity of the enterprise. Fixed assets are all objects directly or indirectly involved in the manufacturing process of products that do not change their original shape. In other words, these include:

• Production and storage buildings and structures;
• Machine tools, equipment and units;
• Trucks and loading equipment;
• Passenger cars and transport for transportation of passengers;
• Office furniture and office equipment;
• Expensive accessories and tools.

ROFA = (net profit / cost of fixed assets) x 100%.

Return on Personnel (ROL)

The profitability of personnel is the ratio of net profit received for a certain period to the total number of employees working at the enterprise at that time. In this way, the optimal staff of the organization is determined, which allows you to get the maximum income at the minimum cost.

You can calculate this indicator of business profitability as follows:

ROL = (net profit / number of employees in the enterprise).

Along with this indicator, economists often calculate other, more informative profitability ratios:

• The ratio of the cost of maintaining employees to the profit of the company;
• The ratio of expenses for the maintenance of any division or branch to the profit received by them;
• The personal profitability of an employee is the ratio of related expenses to the income brought by a specialist to the enterprise budget.

Thus, ROL allows you to achieve the highest productivity by identifying departments and branches that need to be reduced or expanded.

Break even point calculation

Explaining in simple terms what the profitability of an enterprise is, it is impossible not to mention such an important parameter for business as the break-even point. It indicates the minimum volume of sales that is necessary to cover all costs associated with the production and marketing of products. In other words, the ratio helps a businessman to calculate the level of sales at which the company will work "to zero", without profit, but without loss.

The break-even point in some sources is called the profitability threshold, or break-even point (BEP). To determine the lower limit of sales, after overcoming which the business will begin to generate income, use the following formula:

BEP = (fixed costs) x (revenue) / (revenue) - (variable costs).

Thus, the profitability threshold is directly affected by the cost of a unit of goods, as well as fixed and variable costs at all stages of manufacturing and marketing products. When these parameters change, the value of the coefficient immediately changes: in particular, an increase in BEP indicates problems in the process of making a profit or indicates an increase in production costs.

In addition, the calculation of the break-even point allows you to:

1. Assess the margin of safety of the business;
2. Identify problems with the organization of business processes;
3. Determine the feasibility of investing in a project that is expected to pay off only in the next period;
4. Calculate prices for an increase or decrease in sales;
5. Determine the acceptable threshold for reducing revenue without the risk of incurring losses.

Factors affecting profitability

It is obvious that any entrepreneur is interested in creating a business with high profitability. However, a simple calculation of the main coefficients for solving this problem is not enough, since the value of each of the indicators is influenced by many external and internal factors.

The first ones include:

1. Geographic location. Regional features have a significant impact on the pricing policy of the enterprise, and its remoteness from suppliers and consumers determines the amount of transport and storage costs;
2. The level of competition. The margin on products and profits of the enterprise depend on the activity of competitors and the need to combat dumping;
3. Market conditions. To a certain extent, the value of a product is determined by the general state of affairs in the industry, the purchasing power of customers and the general level of demand for this type of product;
4. Tax policy. Obviously, the amount of tax deductions directly affects the company's net profit;
5. Political situation. Due to the influence of political factors, prices for imported raw materials change, foreign markets open or close;
6. Competitor rates. The amount of overhead costs depends on the cost of services provided to the enterprise by counterparties;
7. Prices of suppliers of raw materials. Also, the cost of goods is determined by the prices of suppliers of raw materials and materials necessary for its production.

Among the internal factors that determine the profitability of a business in Russia, there are production and non-production.

The category of non-manufacturing primarily includes:

1. Logistics efficiency. The costs of the entrepreneur depend on the correctness and efficiency of the organization of the processes of delivery of raw materials and finished products;
2. Marketing effectiveness. The cost of attracting one client depends on the method of advertising and the quality of advertising materials;
3. Measures for the protection of the environment. The company's expenses may increase if it is necessary to take measures to neutralize or prevent the impact of production on the environment;
4. Working conditions. When providing employees with the necessary infrastructure, labor productivity increases, which leads to a reduction in cost;
5. The financial policy of the enterprise. The profit of the company partly depends on the size of the margin on goods, raw materials or services, as well as on the availability of discounts and promotions;
6. Business reputation of the company. The loyalty of suppliers and customers definitely affects the bottom line of the enterprise.

Finally, we should consider the production factors on which the profitability of small businesses in Russia largely depends:

• The volume of trade. By increasing the volume of sales at a constant margin, the company can make more profit;
• The structure of trade. The introduction of new positions in the assortment leads to an increase in the number of customers due to the expansion target audience, and improving the quality of the goods allows you to set a higher margin;
• Organization of the sales process. To increase sales, it is also recommended to use the most progressive and modern ways sales;
• Quantitative and qualitative staffing. The growth of production capacity depends on the availability of a sufficient number of skilled workers;
• Labor productivity. With an increase in labor productivity, the share of overhead costs per unit of output decreases;
• The state of the material and technical base. The company with modern equipment can increase its turnover. At the same time, depreciation of fixed assets hinders this process.

How to increase profitability?

High profitability is a significant competitive advantage in the conditions modern market. Of course, the entrepreneur must pay attention to all factors that directly or indirectly affect the value of this indicator, including seasonal fluctuations in demand, the amount of production costs, the activities of competitors, changes in the share of defects in the total output, returns and forced downtime of the technological line caused by various reasons. Listing the most common technologies used to solve the problem of increasing profitability, we should mention:

• Artificial increase in profitability. If you are going to increase selling prices, you need to take into account both the general situation on the market and the competitiveness of the product;
• Increasing production capacity. Modernization of equipment or the purchase of new automatic machines will increase production capacity and save on labor resources;
• Improving the quality of the goods. Also, the modernization of production lines can lead to an increase in the quality of the product and an increase in demand for it;
• Improving the marketing strategy. A significant expansion of the target audience is achieved by choosing the most effective promotion methods;
• Cost reduction. The enterprise must constantly look for suppliers who are ready to offer raw materials, materials and services of similar quality at a lower price. Obviously, this will lead to cost reduction;
• Reducing the cost of payroll. Large companies they do not reduce the staff, but transfer it to other regions and countries where you can find inexpensive labor.

The most profitable types of business

When compiling a business profitability rating in Russia 2018, you need to understand that different indicators are considered normal in different industries. High ratios are not necessarily characteristic of the most profitable activities: sometimes only due to increased profitability the company can compensate for its risks. So, in the field of industrial production, the average indicators are as follows:

• Operation of transport systems for oil and gas - 90%;
• Cement production - 85%;
• Production of agricultural fertilizers - 85%;
• Non-ferrous metallurgy - 65%;
• Rolled metal production - 40%.

in finance and banking services the list of business types with high profitability in 2018 includes:

• Clearing services - 70%;
• Services of brokers in financial markets - 60%;
• Maintenance of registers of securities - 45%.

Finally, in the sphere of production of goods for the population, the following look attractive:

• Manufacture of tobacco products - 45%;
• Beer production - 30%;
• Production of household appliances - 25%.

How to find out in which business high profitability is an integral characteristic of the activity? Typically, such indicators are characteristic of niches in which the allowable margin for goods is hundreds and thousands of percent. This is possible, given the simultaneous presence of increased demand and a slight level of competition.

Theoretically, a high margin is achievable in any business: for this, one should produce or sell piece or designer goods that claim to be exclusive. However, some types of products are considered high-margin due to objective reasons: at a low cost, they are extremely popular among customers.

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Which types of businesses fit this description:

• Sale of underwear. Sellers add 250-300% to the cost of goods in the middle price segment. When selling designer and exclusive underwear, the mark-up increases to 1000-1200%;
• Sale of points. Regular glasses are marked up by 300%, while frames and sunglasses are sold at a margin of up to 500%;
• Sale of cotton candy. Among other types of fast food cotton candy characterized by the highest margin, sometimes reaching 4000%;
• Sale of popcorn. The average markup for regular popcorn is 600%. When adding flavoring fillers, it increases to 1000%;
• Sale of jewelry. Mass models are sold with a markup of 300%. Designer jewelry and goods handmade bring a businessman up to 1000% profit;
• Coffee house. Usually coffee is sold with a markup of 400%. When desserts are added, the profitability of sales can increase up to 600%;
• Sale of wedding goods. They do not save on wedding goods, which is what merchants who sell them at a markup of 350-500% use;
• Sale of khinkali. To prepare the dish, affordable inexpensive ingredients are used, so the markup reaches 300%;
• Flower shop. Usually flowers are sold with a markup of 200-250%, and in holidays increase it to 600–800%;
• Sale of ice cream. The average margin for selling ice cream is 250%. Points in shopping centers sometimes increase it to 600-800%;
• Pancake. The ingredients for cooking the dish are also inexpensive, which allows you to set a margin of 300%;
• Smoothie bar. Fruit and vegetable drinks are positioned as elements of a healthy diet, so the markup on them reaches 1000%.

Conclusion

When calculating profitability indicators, it is necessary to understand that they do not always represent full-fledged characteristics of the enterprise. So, with long-term investment, the values ​​of the coefficients turn out to be low, so they need to be calculated for different periods and different conditions. In addition, assets usually change their value over time: accordingly, the calculation performed on the basis of once measured parameters may turn out to be incorrect.

Finally, a single profitability ratio does not allow a full assessment of the risks that accompany the activities of a particular enterprise. To get an adequate picture of the company's work, in addition to this tool, you need to use other methods of analysis - for example, calculating financial stability, studying the cost structure, analyzing management effectiveness, and much more.

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