How to start a hardware shop 2021| Hardware Shop business plan

How to start a hardware shop 2021| Hardware Shop business plan

Hardware stores are also like other types of shops and through this type of shop, hardware items are sold to the customers. Before opening any type of shop, you must have proper knowledge about the goods sold through that shop.

Similarly, if you open a hardware shop, then you should be well aware of every item sold through this shop. Such as what items are sold through hardware shops and for what things are these goods used.

Hardware shop material or products

Many types of items come under hardware and these items are used for different tasks. Chains, ropes, staples, wires, screws, pipes, hammers of different types, nails, pliers, tape, and so on are hardware items, which are used more by carpenters, mechanics, home builders, etc.

When you open your hardware shop, buy and sell only those hardware items in the beginning, which are in high demand and at the same time on which you can get more profit. On the other hand, once your shop starts running well, you can also buy and sell other hardware items.

Who can open a Hardware store (Eligible)

If you have knowledge about hardware items and you are interested in selling those items, then only you open this store. Because if you do not have information about these goods, you will have a lot of trouble in buying and selling these goods.

What are some skills and experiences required

You don’t need any degree to open a hardware shop. You just need to know how the hardware items are kept and for what functions these items are used.

On the other hand, if you do not have any kind of experience related to these goods, then you can gain this experience by working in a hardware shop.

What is the growth potential

Once your shop is well established, you can also start franchising your shop. Giving franchise will not only increase the brand value of your store, but you will also be able to earn money by franchising your store.

Process to open a hardware store or a hardware shop

To open a hardware shop, you have to hire a shop and make a place to keep hardware items in that shop. After making a place, you will have to buy many types of hardware items from a wholesaler.

Select the location

  • Location plays an important role in opening any type of store, because if you open your hardware shop in a place where there is less population and hardware items are not bought by more people, then you will not get any profit there will only be loss.
  • You have to open the hardware store in a place which is in a crowded place. Apart from this, if your shop will be near a big road or a famous market, then it will be better. Because by doing this, more and more people will be able to buy goods from your shop.

How large should  be your store (Area)

Many types of items are kept in the hardware store, some of which occupy a little space, while some items require more space to keep.

Therefore, the shop you choose to open your hardware store should be big, so that you do not face any problem in keeping hardware items like pipes and ladders.

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Construction of store

After selecting the shop, you will also have to get many things manufactured in that shop. For example, inside the shop you will have to make cabs to keep the hardware items, you will also need a store to keep the hardware items, while you will need open space to keep the items like pipes.

Select store name

  • You will also have to put a name of your hardware shop and by that name your shop will be known.
  • If you are selling hardware items through your shop, then you will have to name your store in such a way that after reading it you can understand that hardware is sold by you from your store.
  • Once you have decided the name of your store, then you will also have to make a board with the name of your shop and put this board above your shop. Apart from the name of your shop on this board, things like your shop’s address and phone number will also have to be written.
Credit:canva

Where to Buy Hardware Products

While starting a hardware shop, you will have to buy many types of hardware items and you can buy these items directly from a trader who makes them or you can buy them from a wholesaler who sells them.

Try that before buying these goods from any one wholesaler, you should also meet four or five sellers and buy these goods from the wholesaler who sells these goods to you at low prices.

Also, you should not depend on only one wholesaler and keep buying goods from other wholesalers from time to time.

Prepare Business Plan for Hardware Shop

Before starting a hardware shop, you must also prepare a business plan related to opening this store and in that business plan you will need to open a hardware shop, from where to buy hardware items, who is your target market or customer.

Apart from this, you can also go to any hardware shop in your city to see how that shop has been made and whether the goods are being sold through that shop or not.

Obtain the required permits and licenses –

Before starting your shop in the state where you are opening your hardware shop, you have to get the license from the local municipality of that state and also get your shop registered under the Indian Shops and Establishment Act.

On the other hand, if you are not aware of the process of getting a license, then you can take help from a lawyer.

Get Registered for Income Tax (Register For Taxes ) –

Before starting your shop, you will also have to get all types of registrations related to filling income tax. If you do not have information about this, then you can take the help of a chartered accountant.

 Remember that it is mandatory for every shopkeeper to get GST registration done and you must get it done and take your GST number.

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Getting Business Insurance

Before starting your hardware shop, you must also get this shop insured, so that if there is any loss to your shop due to any reason, then you can reduce your loss with the help of the insurance amount.

There are many insurance companies in the market that do business insurance, so before you get your shop insured, compare the insurance claims being given by four or five companies that insure your business. And get your shop insured from the company which is giving more insurance claims.

Select the people (Selection Process)

The goods sold in hardware stores are very heavy and these items are also very difficult to handle. Therefore, you should hire only those people, who can handle the hardware items well.

And they should be aware of things like the size of the rope, the type of rope, what size it comes in, what kind of rope is used for what purpose, how the pipe is cut and so on.

Budget and other expenses

  • Opening a general hardware shop can cost you at least two lakh rupees. On the other hand, if you open a very big shop, then this expenditure can come up to four lakh rupees.
  • Also, when your hardware shop will start, you will also have to bear many other expenses from time to time, such as the rent of the shop, the cost of electricity of the shop, income of the employees and etc. Therefore, you should also add these expenses to your budget. So that when you start the shop, the budget  set by you does not fall short.

How much profit can a hardware store make?

Different profit margin is given by the companies on the sale of each product and this profit margin is more on some products and less is given on some products and this profit on these products will be your income.

How to earn more profit

Contact People – A variety of tools are sold at hardware stores, and these tools are most commonly used by carpenters, painters, and masons, so if you want to sell more of your stuff, you can choose your own area.

Keep in touch with the carpenters and people who do the house construction. So that if they ever need such items, they buy them from you, while you can earn money by selling these items to them.

Through Website – Nowadays most of the people shopping is done through the website and in such a situation, if you also connect your business with the website, then you will be able to reach your goods to more and more customers.

At the same time, you can also sell the hardware items sold through your shop by starting your own website or you can also sell your hardware items through any other shopping website.

Through advertisement– To make the information about your shop to the customers, you can advertise your shop in the local newspaper or you can also put the board of your shop on the side of the road.

Other important information related to opening a hardware shop –

  • Keeping an account of the financial expenses of your business is also very important, so you must keep a record of your monthly earnings, expenses and income tax. So that you can know how much profit you are getting in your business.
  • You should also keep a list of all the goods sold in the shop in the computer. By having a list of goods in the computer, you will be able to easily know how much stock of which item is left in your shop, which item is about to expire and which item has sold more.
  • Choose the goods you want to sell through your hardware store wisely and sell only those hardware items in which you get more profit and which also sells quickly.
  • There are many such items of hardware on which MRP is not written and hence you can sell these items at slightly higher prices.
  • In the area where you are going to open this store, you should find out how many hardware stores are already present in that area. Also, find out which goods are being sold by these stores for how much and if possible, you should sell your hardware items for less than the price of the goods sold at these stores. So that more and more customers can connect with you.

Conclusion

You can sell many types of goods through a hardware shop and the demand for hardware items is also high. Therefore, the possibility of loss in this business is also less and you can start this business without any fear.

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