How to start a hardware store?
Hardware Shop Business Plan🔩
If you have always wanted to start your very own hardware store but didn’t know how to go about it, then you’ve come to the right place! India offers a booming market for hardware outlets. The hundreds of thousands of construction sites ensure that there will never be a shortage of demand for hardware tools and supplies.
While getting your hardware store up and running can be tricky, it can also be heavily rewarding if you get it right. Did you know that 80% of hardware stores in India run out of business within just 2 years of starting? But the ones who get it right enjoy a 10% annual net profit!
Here’s how you can make your hardware business a successful one
1. Have the right supplies🛠
Running a hardware store is all about the tools and the tiles. You need to make sure you have a one-stop outlet for everything hardware-related. This will not only make you popular in your area, but it will also give you the edge over all the other competitors on the market. Make sure your customers never have to approach another hardware store for even the tiniest of tools!
Having the right supply of fast-selling products such as steel bars, screws, cement, and tile will keep your business thriving and evergreen. Offer a wide range of products catering to every hardware need.
2. Choose the right spot🎯
This is the most important part of opening a hardware outlet. Choose a nice cosy spot for your hardware store in a locality that has a lot of construction going on. If you do this, you'll never run out of customers. It's also very beneficial to pick an urban or a suburban residential corner for your store as homes never run out of repairs. You will always find your neighbors walking in, looking to fix that broken door handle. Choosing the right location for your hardware store can make all the difference.
3. Be flexible about payment options✅
As a hardware shop, you need to be customer-friendly and flexible. A lot of customers will probably want to pay on a credit basis. Being open to this will not only leave your customers satisfied but also come back for more in no time! You’ll find your customers recommending your outlet to others too.
Digital payment options have also become a standard for every citizen in the country. A lot of times, people will want to pay for smaller purchases with online platforms like Google Pay or Paytm. Opting for a more diverse range of payment options will make your shop easily approachable and convenient for your customers.
4. Restock and restock!!⛓
This is the golden rule when it comes to running a hardware tool shop. You need to always have enough supplies to be able to cater to the various growing needs of your customers. Make sure to restock now and then, and keep a spare supply of tools and tiles handy. This can be the difference between a successful hardware store and one struggling to earn scraps. Your customers should associate you with all of their hardware demands and you must never fail to deliver.
5. Understand the market🔎
Understanding market trends is crucial to running a hardware store. You'll find some products, such as bathroom wares and tiles, going high in demand at a moment's notice. You need to be able to keep up with the trends. Always stay in touch with your supplier so you can order a stock of any products at a moment's notice. Doing so will not only improve your sales but it will also boost your brand image.
6. Learn from your competition⚔️
You can always use your competitors to your advantage by learning from them. Understand their brand approach and their timings and adapt accordingly. You need to edge over all the other hardware stores in the locality and you can do this by understanding what makes a hardware store successful. Keep an eye on the busy hours of your competitors to get a better sense of when to operate and when to not. Also, watch out for their shortcomings and you’ll know exactly what to avoid as a hardware shop owner.
7. Market the right way✔️
As a hardware store owner, you need to understand how to advertise to your customers. Your target audience isn't the entire city but rather, the residents of your locality. Market accordingly and you'll find your business booming in no time. Flyers, post-up ads, and stickers are the ideal modes of marketing for a hardware store. Make sure people around you know exactly where you are and what you serve.
8. Go that extra mile🛣
You need to go above and beyond for your customers to make the best out of the situation. You can do this by offering services that no other competitors on the market offer. Deliver your products to customers on-site and offer discounts on commonly sold tools. This will set a good impression for your hardware store and it’ll also make you easily approachable.
You can also offer some services in-store, such as key making and small repairs. This will only add to your profits.
