When you walk into a hardware store, what is the first thing that grabs your attention? Is the unlimited amount of tools that you see or the ambiance and overall feel of the entire store? A hardware store is a designer’s Disneyland because, to them, it’s literally the happiest place on earth. The feeling of going into a store and seeing everything you need neatly organized on the shelves is like opening a present on Christmas day.
Primarily, hardware stores sell power and hand tools, building materials, keys, locks, fasteners, chains, electrical equipment and supplies, hinges, plumbing equipment and supplies, cleaning products, utensils, housewares, and paint to name a few. So, it’s no wonder why handymen love going to these stores because they can find anything.
But wouldn’t it be even better if you owned your own hardware store? If you are planning to open one but don’t know where to start, then you have come to the right place. We will be giving you some useful tips on how to get you started.
Have a Concrete Business Plan
Having a concrete business plan is very important for your success. Aside from that, it will also help you map out all the technicality and specifics of your business, which will help you tackle the unknown. Here are a few crucial questions you need to consider:
- What is your start-up costs?
- Who are the people you want to target?
- How long will it take you to run operations before you break even?
- What will your business name be?
These questions will help you to determine what needs to be prioritized first and which should go last.
What are the Costs that you Need to Consider?
Starting small is always better and eventually making your way up. A small hardware store can be started with a budget of less than $100,000. These costs usually include the building rent, your setup display, beginning inventory, and the cash reserve for labor costs and staffing. Insurance is also covered in this amount, although if you haven’t thought about insurance, you should consider including it.
As a whole, your spendings should not be more than 20% to 30% of your total revenue on the rent you pay. Should you encounter any problems, that’s where the insurance comes in, and it should cover all of your liability as well as the loss of your inventory.