10 Steps To Open A hardware store in India
- Posted on Mar 31, 2021
- By Shrotriyo S
In this era, where every young individual wants to be an entrepreneur or businessman. One of the leading ideas for a small business is opening a hardware business in India. The Hardware business market in India is a very profitable but 80%of the business go for winding up within the initial two years of the business.
So what does it take to do a small business into hardware in India?
The Indian economy is a very dynamic economy. It is not easy for new businesses to guarantee a certain profit margin. Here are some of the major step you have to take set-up and run a hardware store with a decent profit margin. The following are the major steps one has to take.
- Market Research & knowing what to sell
Prior to setting up of the business, it is important to research the items a hardware store sells. Compare and research the products the domestic hardware stores around you sell. Normally these stores sell power tools, building materials, plumbing supplies, cleaning products, keys, locks, chains and even housewares, utensils, paint. Your primary task is to identify the hardware materials which have ample demand and you can sell profitably.
Read more: Starting a new business? Here are the steps involved.
- Identify a ready market with growth potential
For any business having a ready market to sell products is of utmost importance. This is what helps the business survive profitably. Identifying a suitable market for your hardware business could mean the difference between success and failure of the business. If your primary target is catering to household needs than to contractors who deal in huge quantities of paint and hardware. A location where there are a lot of household will be more suitable than having your business setup near a cement, brick and mortar factory.
- Complete all business obligations
Before starting your hardware business in India there are a lot of formalities and obligations a business has to complete. The following are the steps
- Register your business
- Open a business bank account to prevent mixing up of personal and business transactions
- Obtain necessary Permits and license to run a hardware business in India
Read more: How to do GST Registration Online & Download GST Certificate?
- Market & Advertise your hardware store locally
Hardware stores normally are limited to local clients. It is of utmost importance to properly advertise to your prospective clientele. This can be done in several ways including billboards, flyers, email marketing and yellow page ads.
Read more 15 tips for Small Business to use Local SEO for marketing
- Invest in fast moving products
This particular type of business is heavily reliant on capital. Investing in fast moving, easily sellable products is a good idea. Some of the items which are fast moving are cement, rods and steel bars, nails, white cement, door hinges, flooring tiles, welding rods, plumbing materials. These items sell easily and provide your hardware business a cushion in case of losses are incurred.
- Offer Discounts
Offering discounts is a simple, effective way to attracts customers to your hardware business. You can offer heavy discounts on common products such as cement, iron sheets, steel bars and recover the profit on minor products such as door locks, sandpapers, chains, hinges, trowels.
Another good way to offer discounts is to offer discounts during festivals. Festivals such as Diwali, Holi, New Year, Dusshera.
- Flexible modes of Payment and convenient shopping
It is essential for a hardware business to be flexible with the mode of payment. Some customers needing large amount of hardware may consider buying in credit, being able to offer credit in business transactions builds good relationship.
Some other ways of payment, apart from cash is also imperative. Recently, a lot of people choose to make payments via UPI linked applications, it is important to give your customers this benefit.
Allow your old customers to place orders on call, offer free delivery to construction sites.
Read more Cashfree Payment Gateway Integration
- Supplement Income
A lot of hardware businesses make money through commissions. Once your hardware store is set-up, make sure you supplement your income using other avenues. For example, if you are selling electrical appliances, you can partner with a local electrician and offer lower installation charges. You can also earn commissions by referring them to your customers.
- One stop shop
Your hardware store should have all the essential items in your stock. It is important, that your customers find everything they need in your shop, don’t let your customers go to your competition stores.
Arrange with your suppliers, that you have all the in-demand materials in stock. This is a very important step in terms of customer satisfaction.
- Manage Inventory
Managing your stock well is important. You can keep tabs on the stock for every 2 weeks. This will help you figure out which materials are” fast moving” and which ones need urgent re-stocking. Use a software or application to monitor and manage your inventory. Different applications or software can give you a clear picture of the inventory of your hardware business.
Read more: How to Improve your inventory management with Accounting Software?
Following the mentioned steps can help you set-up a hardware business in India, successfully. However, It is important that you communicate with your customers and correctly assess your business to cut unnecessary operation costs. Initially, it is difficult to have a stable profit margin, but once you have a steady number of customers, good inventory your business will slowly start to shape.
- Posted on Mar 31, 2021
- By Shrotriyo S
- 0 Comments
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