Hardware stores are basically just like retail shops. However, hardware stores are one of the most important retail shops ever to exist. It’s usually where contractors and homeowners turn to whenever they need to either purchase materials, hardware tools, and finishes for their home or analyze a [home] problem that requires an immediate solution. These retail shops usually sell stuff like tools, construction equipment, paint, plumbing materials, electric supplies, and even hardware finishes and interior for your home, just like Magnificent Hardware!
If you’re ever planning on putting up a startup hardware store, then, by all means, do it! Hardware stores hardly ever run out of business because, over the years, hardware tools and finishes have become more than just options and decors but rather a necessity in each and every home. With that, putting up a hardware store isn’t really considered a risk. However, if you really are down for this, then you should at least think things through, plan, and identify all your company objectives.
Don’t really know how? Don’t worry! Here’s a list of things to think about when starting a hardware store, to at least help you plan everything out and commence operations seamlessly:
Just like every real estate property or business entity, location is of utmost importance. Before completely diving into putting up a hardware store, consider examining the environment first. Where exactly do you want to plant it?
Examine carefully how the surrounding environment or neighborhood looks like. Income class is a significant factor because you’ll [soon] be selling hardware materials to these surrounding environment. Will they potentially bring you profit? Also, consider the amount of competition around the area. You wouldn’t want to put up a hardware store in a place where there are already established [hardware] businesses.
Lastly, consider accessibility. Areas closer to construction sites of buildings or residential properties could likely help your business flourish in no time. However, since all these are temporary, you should also think about the amount of traffic you could gain from that [short] period of time.
Your hardware store is probably going to surround a local community. With that, you must know your surrounding neighborhood since this is your primary source of customers. Analyzing and understanding your target market includes also distinguishing their needs and preferences, and what they usually look for in hardware stores. From there, you will know which tools and equipment to bring in and offer to your customers.
More than that, customers would also love to be treated with some extra care. Offer after-sales customer services such as free shipping or installation of tools, finishes, or furniture.
Hardware stores have a lot of elements in the business that require detail-oriented planning and analyzing. With that, you must know how to write a business plan. Business plans help you organize the entirety of your business or towards where your company is heading. In the business plan, as much as possible, try to detail every aspect of your hardware store and how you plan to market to your surrounding environment.
More than anything, it’s vital that you draft and allocate a budget for all your expenses, and that includes inventory, stocks, labor work, and a few other miscellaneous fees.
Source of Materials
The items that your hardware store will be selling will usually come from three sources, which include a direct manufacturer, wholesaler, and secondary distributor. For most startup hardware stores (like what you plan to do), a wholesaler is most likely the best option since they can give advantages of marketing and promoting your business.
Upon starting a hardware store business, do take note of these three primary sources of stocks and other materials as this can get crucial with regards to your stocks and inventory, as well as your ability to meet customer demands.
Find A Good Business Advice
This is all part of becoming and establishing a startup business. Make sure to learn as much as you can from established companies in the industry. However, if you think that your local competitors will give you advice, then you’re quite wrong. Perhaps, you can try other businesses located in far off places, cities, or towns to share some business wisdom with you as you start your own hardware store. Once they realize they’re not directly competing with you (since you come from another locality or town), they’d be more than happy and willing to give you startup tips and advice. If you’re persistent and determined enough, you might even find an entrepreneurial mentor along the way to help you out in doing business.
Putting up a startup hardware store, especially here in the Philippines, isn’t much of a hassle since, as mentioned, it can never run out of business. However, before any further actions, you might want to think things through and browse through this list so as to also help you achieve your company objectives and greater success in the long run.