"Securing a Loan": discovering the financial burden to establish a bookstore in Ekaterinburg
In the heart of Yekaterinburg, a city known for its rich history and vibrant culture, a unique bookstore has been making waves. 'Literally', as it is aptly named, was the brainchild of Anna Sanina, a former sustainable development agency worker in Moscow who returned to her hometown with a dream.
Originally, Sanina considered naming her bookstore "My Room", but decided against it due to other projects with the same name. Instead, she chose 'Literally', a name that reflects the use of the word and the idea of letters in books. This dream of a personal library filled with hand-picked books became the concept for 'Literally' bookstore.
The bookstore has been operational for a year and a half, but it will take several more years to break even due to high-interest loans. The total investment for the store was approximately 2.5 million rubles. Despite these challenges, the average check at the store is approximately 1000 rubles, indicating a steady flow of customers.
The 'Literally' bookstore has a markup of around 80% on the purchase price of books. Approximately 40-45% of the price of books sold goes to the bookstore, while the rest goes to the publisher. This business model is common in the industry, but it means that 'Literally' must sell a significant number of books to turn a profit.
One factor that has contributed to the store's success is its focus on books about the Ural region. Demand for these books exceeds supply, making 'Literally' a go-to destination for readers interested in local literature. Currently, "Streets, Squares, Rivers, Ponds, Underground Passages and Suburbs of Old Yekaterinburg" by Lyudmila Zorina and Allsevolod Slukin is the most popular book at the store.
Sanina also recommends reading Anna Starobinets' "Lisye Brody", Olivia Manning's "Balkan Trilogy", and "Waffle Heart" by Maria Paar. These books, along with the local titles, provide a diverse and engaging selection for customers.
However, starting a bookstore was not without its challenges. Sanina faced difficulty finding a landlord willing to rent to a bookstore. Moreover, she did not initially plan for many events to be held at the bookstore, but it has since become a hub for literary events and discussions.
Sanina and her team at 'Literally' bookstore always monitor updates to legislation to remain flexible. This proactive approach ensures that the store can adapt to changes in the industry and continue to serve its customers.
For those interested in staying informed about news in Yekaterinburg and Nizhny Tagil, Sanina suggests subscribing to the telegram channels "Yekaterinburg Chitivo" and "Our Nizhny Tagil".
Despite the challenges and the long road to profitability, Sanina's passion for books and her commitment to her dream are evident in the success of 'Literally' bookstore. It serves as a testament to the power of perseverance and the enduring love for literature.
- Anna Sanina, the entrepreneur behind Yekaterinburg's unique bookstore Literally, had initially considered naming her venture "My Room," but changed her mind due to other projects with the same name, opting for a name that reflects the essence of letters in books.
- In the world of finance, the business model of Literally bookstore, with an 80% markup on book purchase price and around 40-45% of the book price going to the store, requires a significant number of book sales to turn a profit, a common challenge in the industry.
- Sanina's small-business journey was not without hurdles, such as finding a landlord willing to rent to a bookstore and unplanned transitions into hosting literary events and discussions, demonstrating her adaptability in the face of challenges and her dedication to personal-finance management and budgeting.
