Starting up your own hardware shop like the great Kennards Hire store might seem little daunting in this era, as there are multiple choices to decide from, whether it’s starting up something or the options to buy something. But nevertheless, it all depends on your passion and expertise when it comes to opening the hardware store.
Check out the following guidance which would give you a clear idea to start your hardware shop;
- Firstly decide whether if you want it to be your own or a franchise
There happens to be several independent stores across the country which caters to the local community. So if you like to take control of things single headedly and wish to operate everything individually then you might want to open your own hardware shop. It will also require less amount of money as you will start small.
However, another thoughtful option could be starting it by borrowing a renowned franchise, which will give you access to a popular name, supply chain which would be efficient, along with proven operations. You still can be the individual owner of the store. Getting access to the franchise can provide you supply chain which would be less time consuming and easier but would require more money, so decide what suits you best.
- Write down your business strategy
Either make it your own or take a franchise, having a clear plan is a must to run the store successfully and to give it a position in the market. Hence;
- Know the customers and provide them accordingly.
- Check out your budget and how much cash flow do you expect monthly, which depends on several factors.
- If your marketing plan involves national brand, it will give access to several events and programs which would boost your store profile.
- Loyalty programs for old customers and marketing campaigns must also be considered.
- Your business plan must also involve a suitable location where you will have footfalls which should not be cannibalized anyway.
- Invest in customer service and supplies
Be careful about situations and issues that sunk certain hardware ventures. One has to put in effort and thought in identifying the best location and more. As they say sentiments matter and go a long way. Your information, interaction, proximity and personalization should bring them back to you. Always keep yourself stocked up and responsive.
- Obtain the required insurance, bank account and certain permits
Yes you have to go through this as much as you don’t want to. You will have to register your hardware shop with state secretary, apply for EIN (Employer Identification Number) from IRS. Try establishing credit lines from your financiers and hardware distributors, whether if they are online lenders or traditional banks. Depending on your location, you have to then accordingly take city, state or local permits. The final step includes taking business insurance which will help recover your store reserves against injury claims or loss. Following these steps will formalize the business and make you prepared for the game.
- Adapt your staffing, inventory and marketing
You will have to adapt to the changing situations, market, new challenges and seasonal shift. Your staff must be engaged and informed at all times while you try growing your niche instead of overextending yourself.