Perspective business in Russia in 2018

Most people believe that it’s impossible to create a profitable business in today’s Russia due to many reasons, namely financial crisis and lack of law flexibility regarding the private sector. However, if you take a careful look at different kinds of business it’s easy to discover a broad selection of promising business niches that have been growing increasingly more popular.

These types of promising businesses can be split into 5 groups:

  1. High-tech businesses
  2. Businesses that help people save money
  3. Eco-friendly and healthy lifestyle oriented businesses
  4. Businesses that revolve around goods and services for children
  5. Businesses aimed at education and personal growth

 

High-tech businesses

Technology is constantly evolving, and business keeps up. Let’s see how exactly:

Cinema eatery business

This idea is almost unheard of in Russia. The point is that a client can watch a movie while having a meal. Because of that, the client pays not only for drinks and food, but also for his stay on an hourly basis. The target audience is young people under 30. Besides cinema screens, the place also should be equipped with karaoke, game consoles, hookas, board games, etc. However, it can be difficult to find a fitting place for the business (it requires no less than 150 m2 of free space). The launch of this business is quite expensive, too.

Drone delivery

Unmanned flying machines — or simply drones — are widely considered as a future of logistics. They’re already used by Amazon, and many corporations (such as Mercedes) implement them to deliver goods. One drone costs around 15 000–40 000 rubles. That said, the average cost per delivery is extremely low.

Still, it should be noted that most drones are not designed to carry heavy loads over long distances. Another problem is that as for today there are no strictly defined rules regarding drones in Russian law.

Electronic bikes rental and assembling

What’s the difference between an ordinary bike and an electronic one? Well, e-bikes are more ergonomic and fast-moving, so they can be used no only for riding, but also for delivering of small loads. Usually, the battery life of an e-bike is about 3 hours. However, you may ride it like a normal bike when the battery is dead.

The most profitable options for this business are resale, rental, and assembly of electronic bikes. Net income from each bike can reach up to 5000 RUB.

VR/AR business

In 2018, there are two options of business you can conduct within this field, namely VR attractions and development of VR headsets. The second option is well-known abroad and requires a sizeable start-up budget. When it comes to the first option, it has two advantages, including mobility of such attractions and the return of initial investment within 3 months.

3D printing

Over the last three years, the number of 3D printing companies has grown by several times. These companies provide the following services:

  • Assembly of 3D printers;
  • Designing and printing of models;
  • Printing and selling of goods (from souvenirs to components for home appliances).

 

The first option assumes independent purchase of all components so that customers could see the full price list beforehand. All required components can be bought from AliExpress or similar stores for 20 000–25 000 rubles, whereas the cost of each assembly is 20000 or more. Depending on your experience, installing a single printer takes around 1.5–2 weeks.

Designing and printing of various goods require some modeling skills. The most frequently printed goods are phone cases, all sorts of souvenirs, soap dishes, miscellaneous electronic appliances, etc. You also should always keep close tabs on current trends and print «hyped» stuff. This will increase your sells by several times.

Type of business

Min. start-up budget, RUB

Average expenses per month, RUB

Potential net profit per month, RUB

Cinema eatery

1 500 000 (mostly for furniture and technical equipment)

330 000

200 000

Drones

200 000 (registration, purchase of several drones, the launch of the website)

45 000

30 000

E-bikes

50 000 (registration, the launch of the site and purchase of 1 e-bike)

50 000

30 000

Virtual reality

130 000 (a cost of full VR package)

40 000

50 000

3D-printing

40 000 (registration, purchase of 1 printer and materials)

5 000

15 000 (with 1 printer available)

Businesses that help people save money

Who would say no to additional spare cash and financial resources? This is why businesses that help save money will always remain relevant and profitable.

Discount stores

This idea is not new and involves the sale of different groups of products at the same low price, which is almost equal to the self-cost. The profit comes from a volume of sales, which is increased due to low prices. Usually, these stores sell office supplies, grocery, apparel (socks, stockings, etc.), household essentials, seasonal house decorations and souvenirs. It’s highly recommended to open such stores in cities with population more than 100 000.

Capsule hostel

The first capsule hostel in Russia was founded more than 10 years ago. They’re still associated with poor housing conditions, though. In reality, such hostels are as good in terms of convenience and security as a majority of more luxurious accomodations.

The point is that you can fit six capsules in a 15m2 room. This means that even if the cost of renting the capsule is 5 times lower than the cost of renting a hotel room, the capsule hostel is still more profitable.

Mobile beauty salon

This type of beauty salon is quite new and first appeared only a couple of years ago. The main advantage is that a hairdresser or a manicurist can provide their services at the client’s place. This way of doing business saves the client’s time and saves the entrepreneur’s money, since he doesn’t have to pay for office rent.

Outsourcing

The most promising type of outsourcing is IT outsourcing. Companies need to process data and improve their work algorithms, and often they require additional operating force to do that. This business option is quite profitable and is relevant to many fields of work. However, in order to achieve success in outsourcing, you’ll need a sizeable start-up budget to buy all the necessary software.

Type of business

Min. start-up budget, RUB

Average expenses per month, RUB

Potential net profit per month, RUB

Discount store

No less than 1 000 000

510 000

100 000 (in a city with the population of 250 000 and retail margin of 50%)

Drones

200 000 (registration, purchase of several drones, the launch of the website)

45 000

30 000

Capsule hotel

100 000 (for 1 certified capsule)

100 000

45 000

Mobile beauty shop

60 000 (training, accessories, advertisement)

20 000

25 000

Outsourcing

Depends on services provided; 280 000 for accounting

190 000

50 000

Eco-friendly and healthy lifestyle oriented businesses

The constant worsening of global ecology incentivizes population to lead a healthy life and produce less waste. This is how businesses can take advantage of that:

EMS fitness studios

This kind of fitness is relatively fresh and involves usage of special wireless suits instead of fitness machines. 30 minutes of training in such a suit is equal to 4 hours of working out in an ordinary gym.

Note, that training in EMS fitness studio requires help from a qualified coach.

Biodegradable bags

Bio-bags are becoming increasingly more popular due to their reduced impact on the environment. They’re manufactured from recyclable materials and the manufacturing process is highly automatized.

A small facility can produce around 200 bags per hour. To increase profitability, consider placing advertisements on the bags.

Selling exotic fruits and vegetables

Delivery of exotic fruits and vegetables to Russia can be profitable due to two main reasons. First of all, more and more people want to eat healthy food. Second of all, sometimes exotic fruits and veggies come in mixed boxes with several types of different fruits, which makes such boxes a good and non-conventional gift.

The key problem of this business is following proper storage conditions, since some fruits and vegetables can’t be stored together.

Healthy fast food

Fast food doesn’t always mean junk food, which is proven by an idea of healthy fast food. No more fatty burgers, salty fries, and sugary desserts. A healthy life is in style now, and fast food has changed accordingly. Now it’s focused on healthy salads, chicken, grilled veggies, dietary sandwiches, fruits, and so on.

The point of healthy fast food is not only to use ingredients with a perfect balance of proteins, fats, and carbohydrates, but also to make sure that these ingredients are of the highest quality. They must be fresh, organic and, of course, be served in a bio-degradable wrap.

Type of business

Min. start-up budget, RUB

Average expenses per month, RUB

Potential net profit per month, RUB

EMS fitness studio

Starting at 2 000 000

300 000

400 000 (granted you have around 180–200 clients)

Biodegradable bags

Starting at 1 500 000

220 000 (200 bags/1 hour, 30 shifts per month)

160 000 (given that you place ads on your bags)

Exotic fruits and veggies

150 000

300 000 (purchase of goods, logistics)

200 000

Healthy fast food

350 000

130 000

35 000

Businesses that revolve around goods and services for children

Every parent wants only the best for their children. This is why kids-oriented business will always remain relevant.

Scientific and educational shows

Show kids that science is not boring through simple and interactive physical and chemical experiments in which children can participate. Advertise your show by distributing flyers in schools, shopping malls, kindergartens, etc. This will help you find the target audience that wants to see your show at their birthday parties, proms or extracurricular events.

Hair studio for kids

Children always copy the behavior of their parents, and hairdressing is no exception. This is why this idea may turn out profitable.

Note, that not every service for adults will suit kids. As an alternative, offer sports haircuts for young football players, or nail design for little birthday girls. Also, pay special attention to the design and zoning of the workspace. Kids are very energetic, and you want to keep them occupied while you do your work.

Playing houses for children

Every kid would love to have their own small house for games and quiet hours. These houses can be placed both inside and outside, and are individualized in accordance with your child’s taste and needs. This makes designing of playing houses a very popular line of business.

Special care should be taken to the safety of materials. Every little bit and part must be safe and bring a spark of creativity into the overall design of the house.

Stuffed toys designed by kids

Kids are very creative: they’re always drawing, stitching, or molding in clay. Moreover, they always imagine all sorts of characters and embody them in their little pieces of art. Your task is to make their dreams come true by creating unique stuffed toys, based on those made-up characters.

Type of business

Min. start-up budget, RUB

Average expenses per month, RUB

Potential net profit per month, RUB

Scientific and educational shows

150 000 (registration, office rent, purchase of chemical supplies and equipment, the launch of the website, ads)

Starting at 90 000

Starting at 30 000 (given that you have 20 shows per month)

Hair studio for kids

1 000 000 (registration, rent, equipment)

Starting at 70 000

Starting at 60 000

Playing houses

3 500 000 (registration, rent of working place)

Starting at 160 000

Starting at 140 000

Stuffed toys designed by kids

30 000 (registration, the launch of the website, purchase of necessary materials)

Starting at 50 000

Starting at 20 000

Educational and personal growth businesses

Nowadays, multiskilled professionals are valued above all, so many are constantly trying to learn something new. In addition to that, you also need certain skills to turn your hobby into a reliable source of income. Like it or not, but in 2018 you’re not getting far without some business training.

Training center

To make the training center stand out of the crowd, be creative and think differently. For example, organize your seminars or workshops abroad, so that participants could not only attend educational events, but also spend some time on a thematic leisure activity.

Writing a book

This is option suits only people who consider themselves experts in their field of work. In this case, your expertise may turn out very lucrative. Moreover, thanks to the Internet, now you don’t have to publish your book in paper. Just sell it online!

The most popular options are practical courses, workbooks with cases and analysis of practical situations, and books that help to raise professional skills in various fields of work.

Educating video courses

In the era of YouTube and vlogs, video courses and thematic groups are becoming an increasingly more relevant source of information since they allow not only to gain new skills, but also to communicate with like-minded people.

The competition in this field is very high, so a person should have exceptional expertise or great personal charm to succeed. However, you can always distribute your courses on a free basis. This will bring a large number of views, whereas ads watched by the viewers will bring you a sizeable income.

Type of business

Min. start-up budget, RUB

Average expenses per month, RUB

Potential net profit per month, RUB

Training center

Starting at 150 000 (registration, rent, renovating, launch of the site, advertisement)

Depends on the number of clients and field of activity

Depends on the number of clients and field of activity. More often than not profitability reaches 100%.

Publishing of a book

Starting at 5 000

Starting at 5 000 (granted that book is sold electronically, not in paper)

Starting at 3 000 (often distribution companies take around 45% of the profit)

Video courses

Starting at 15 000

10 000

5 000

This list comprises only a small portion of promising and relevant business trends in Russia. Choose wisely, acknowledge your personal skills, financial assets and risks, and never shy away from ideas that may seem too innovative at the first glance.