Undoubtedly, Hardware Store is one of the best small business ideas to start in India. But, the first step is to find out if starting a small business like this is a good match for you or not.
Although a good performing hardware store makes an average net profit of 10% on its daily sales, 80% of those who venture into this business close their shop in less than 2 years due to losses and cash-flow problems. Additionally, the hardware store has cut-throat competition for the reason that there are minimal barriers to entry. But at the same time, when looked at the given past, and recent past trends, the future for this business looks very rewarding and profitable if done right.
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Here are a few steps that guarantee success when you’re determined to open one such store.
✔ Make a hardware shop material list that is commonly sold in the surroundings. This type of store typically sells hardware items like hand and power tools, building materials, fasteners, keys, locks, hinges, chains, electrical supplies, plumbing supplies, cleaning products, housewares, utensils, paint and much more.
✔ Markdown those hardware materials you can manage to sell profitably if you set up such a hardware store.
✔ Hardware store may be one of the best business to start in India. But, do learn about competitors that are already on the market. Come up with a hardware business plan.
✔ The first step in dealing with competition is to avoid it in the first place.
✔ Secondly, decide on your budget. How much money are you willing to spend to enter the market?
✔Remember, never test the depth of the river with both the feet. Know your investment limit on the hardware store item list and never cross it.
In reality, any business requires a hands-on approach. Get to know
✔ How does your typical customer look like?
✔ What is your survival & growth potential in the market?
✔ What are the approximate upfront and initial operation costs to bare?
✔ Any legal considerations, and more!
✔ Firstly, locate the area with lesser competition for your store & reasonable demand for hardware items.
✔ Secondly, you need to aware of the latest trends and ruling prices of the industry.
Some customers deal with credits and some pay instantly by cash. It’s important to offer customers a variety of ways to pay you as some customers are comfortable with credit terms in order to do business with you. If you’re strick on your payment terms, you might piss them off.
Hardware stores mostly expect local clients. Therefore, advertising for this type of store can be done one of several ways, including billboards, Yellow Page ads, flyers, and email marketing to an existing customer list.
Because this business is quite capital heavy– you may have to invest mostly in fast-moving products to be on the safer side. These are Cement, Steel bars and rods, Nails, White cement, Door hinges, Roofing nails, Flooring tiles, Welding rods, Plumbing material.
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✔ Offer discounts on basic products such as cement, steel bars, and iron-sheets and recover the profit margin through minor products such as door locks, hinges, sandpaper, and trowels.
✔ Never make the mistake of overcharging customers on commonly used commodities like cement and steel bars. They will certainly not end up dealing with you and alert their connection too.
Allow your trusted clients to place orders via phone, free delivering to the construction site and allowing them to pay you later in the evening. When customers are satisfied, they return back, they may start recommending your business to their connections too. This is very likely to happen.
✔ Have all the items your customers need. Make sure that they don’t have to go shop for anything else in any of your competitors’ shops.
✔ Talk to your suppliers so that they avail of any items that may be on-demand but are missing from your shop as quickly as possible.
Ideally, you should have a look at your stock level after every two weeks – this will help you understand which items are “moving” fast off the shelves and which ones need urgent restocking. You may need to use Inventory App like “Vyapar” to track your inventory well. It automatically alerts you when a fast-moving stock goes low in number. Never let customers go back disappointed.
Never make the mistake of sitting in your shop the entire day waiting for people to walk in. With the kind of competition that’s there nowadays, you are better off getting the word out there yourself.
✔ You can hire a salesman to be going around areas with new upcoming construction sites.
✔ Stock tracking using Inventory Management App like Vyapar helps you control possible theft by your employees; which has often been cited as one of the biggest challenges in running such type of businesses.
Manage everything digitally so that you have time for other important things.
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