Any business seeks to reduce costs and increase revenue. But in some areas this is easier than others. The Secret learned from investors, entrepreneurs and analysts which business is now the most profitable in the country.
During the crisis, most consumers are looking for new approaches and solutions: what is cheaper, what better meets the needs, which gives additional opportunities. In prosperous times, it is more difficult to make consumers change their habits, and now they are ready to change their behavior and consumption patterns.
In times of economic downturn, inexpensive products, educational services and everything related to repairs are always in demand and grow in sales. Among the portfolio companies, I can note the growth in sales of the most budget lines of consumer electronics. People come to the store to buy a smartphone and ask them to show “the cheapest” and “without any frills.” Having lost their jobs, people go to study to improve their qualifications, and someone just wants to usefully spend the time that was created due to the lack of visible prospects. The business associated with the repair and distribution of spare parts is a hit in the current realities. This is logical, since in a crisis the main alternative to buying a budget new one is to repair the old one.
To rent real estate is still very profitable. The profitability of such a business is from 70%, the business model is very simple. All types of services, when you have your own real estate, also become a highly profitable business with a profitability of up to 50%. But there are few of them.
In catering, fast food and coffee houses in different variations are still in demand, in general, the profitability of catering varies from 25 to 35%. Retail is still a lucrative business, but only where there are no major network players. It is mainly a city with a population of up to 300,000 people.
In general, good results are demonstrated by the business related to goods and services for children: clothes, toys, stationery, development centers, private kindergartens, leisure, quests and entertainment. In the manufacturing sector, they expect results from government support measures. Sustainable domestic producers will appear on the horizon of 3-5 years in Russia. However, a significant increase in profitability in this area has not yet been expected due to expensive loans and high competition from foreign manufacturers.