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How to Start a Hardware Business in the Philippines

Are you wanting to venture into a profitable business? Look no further! This article will guide you on how to start a hardware business in the Philippines. This type of business is ideal for those who want to start their own business for its profitability: as long as you know what you are doing.

Hardware stores are basically retail shops (usually brick-and-mortar) that sell tools and construction materials needed to build, renovate, or maintain any structure such as a house, building, and even automobiles.

The merchandise includes: building materials, power tools, electrical supplies, automotive equipment, lawn care, house ware, paint, plumbing equipment and more.

If you are wondering if it’s worth the risk, you can be rest assured that the demand has been increasing ever since the trend of do-it-yourself.

Interested? Continue reading what you need to know before starting your own!

Location, location, location!

Consider the growth factor of the neighborhood, their income class, and the amount of competition in the area. Don’t stay in a place where there is already an established business.

Accessibility is also another factor that you should consider. Places where there are construction sites for houses are suitable areas of development and likely to flourish with your business. However, since these are temporary, consider the amount of traffic that you could gain.

Know your target market

Your business surrounds a local community. It is important to know your neighborhood since they are your main source of customers. Knowing your customers include their needs and preferences; what they usually look for in hardware stores.

Additionally, provide after-sales service by giving satisfactory customer care / customer service such as free delivery or free installation of furniture.

Be updated with the price of materials

Profitability from the hardware is considerably higher than that of construction materials. The reason being is that construction materials are canvassed by customers all the time to find the most affordable one possible. This sets up a potential for competition between businesses that offer cheaper products.

While they may be sold cheaply, you may find that your location to be at your advantage. For example, you may be able to mark-up the materials you have at stock if you are the only hardware store nearby.

Have the capital needed

The money you need to start a hardware business in the philippines.

At this day and age, you need a large amount of capital to run a business, especially for hardware stores. You’ll find you need at least P300,000 to get yourself suit-up with the most basic of stores.

Surely, at first, you won’t be able to generate enough revenue to rely on it to maintain your business. Consider the rent, cabinets, salary, bills, warehouse, and the delivery trucks you will have to take care of.

Source your materials

The stock you will be selling can usually come from three sources: direct manufacturer, wholesaler, and secondary distributors. The usual route taken by new hardware stores choose is the wholesaler. They give an advantage of marketing and advertising your business.

Usually, suppliers give stocks in terms. This means that hardware items have a term of 120 days. On the other hand, construction items have a shorter term of 15 to 30 days only. This all depends on what you will negotiate with the supplier, so it is especially important for you to develop a long-term relationship with them!

Register your business

For sole proprietorship, head to the Department of Trade and Industry (DTI) to register your business. Partnerships and corporations are required to register with the Security and Exchange Commissions (SEC).

Fear not the giant!

One last tip when starting a hardware business in the philippines.

Hardware business in the Philippines is mostly played out by big companies. However, that is hardly a negative for anyone wanting to start their own and make a profit. Retail stores may dominate the country all the cities over, there is no denying that they do not have the control as people might think.

As one could observe, there are long running hardware stores in the Philippines that survive despite the numerous outlets of corporate chains seen at every mall in the country. In fact, independently owned hardware businesses are able to gain an edge over their large counterparts.

This means that you can own a slice of the market share in the hardware industry. What customers prefer traditional non-corporate owned stores is the ability to personalize their own purchases compared to the normalized marketing that big giants use as an approach over its consumers.

Satisfying customer service means that you are able to provide staff that can give personal service and support their choice for home renovation and improvement.

261 responses to “How to Start a Hardware Business in the Philippines”

I want to start up a hardware business in cavite. Pls give some tips and referrals for suppliers. Thanks

Supplier of hardware and construction materials. Pls contact: 09178858823

Hi Sir Jan, I’m planning to start a hardware business, can you provide me some information and prices.

Need suppliers for start up hardware business

Hi sir..I’m planning to start in bukidnon area..is there possible near supplier..please help me to find gud supplier or wholsaler that I can contact and communicate with…hope for ur response ..thank u

Hello, kindly contact me if you have questions: 09178858823

Could you give me an insight on the hardware detailed business set-up as I am planning to have one. Let’s communicate via email. Thanks.

Boss magandang araw, plano ko mag hardware business sa Dinagat Island may alam po ba kayong pwede good supplier at ano po ang terms kung sakali

Thank u for your reply. Appreciated. I hope I can realize my plan. Thanks again.

in what particular area sir na pwede kayong mag supply? thanks

hi sir we are planning to put up construction supply in Binmaley Pangasinan and we already started with making hollow blocks and planning to add hardware materials. May i know where’s your location and can you send us of your product details.

Hi Mr.Jan I’m planning to start a hardware business in our place in tarlac. Can you please send me some price list of materials..thanks

Pls us idea how to start the business

I want to start a business of construction supplies, please provide me the details on how to be connected with people who are granting the franchise.

Hi jan. Are you supplier for hardware And construction materials?

Hi Sir! Iam about to start small hardware and constn. supply here in Aglipay, Quirino and looking for a supplier. Please help me . Thanks!

hi sir we’re planning to start a hardware business with my business partners at ko po ang naatasang maghanap ng supplier.

hi im planning to put a hardware in my province maybe you could give me proposal for your supplies

I intend to start a hardware business in couple of weeks. Plss give me tips/advices and referrals to supplier who can assist me as start up. Tnx

Hi sir Jan.Do you supply in northern samar area?

Hi po. I’m planning to start hardware in Bicol area. Is there possible suppliers po around albay for wholesale po. Thank you.

Hi Sir Jan Chua, Am about to start my hardware supply in cagayan valley. Just finishing my store cabinets and warehouse. Do you supply hardwares also or can you refer wholesale suppliers? TIA

may bagong bukas kaming hardware dito sa pampanga…bahaha so ako ng suppier…open for terms sana

Sir ako din her in la union.. may supplier po b d2

Hello I am vishal From:Gujarat INDIA We are manufacture by ss cabinet handle

Letz talk for partnership

Hello, this is Engr Art Balajonda, we have direct access to Plant for building materials such as deform bars, angle bars, flat bars, steel sheet, channel bara, tubular, pipes and scaffolding materials, roofing materials and trusses, cement, paints). You can assure that you are dealing with lowest price as we dont have the middle man. Please contact JTP Trading and construction at 09668801300

Hello sir; I want to start a hardware business please help me to get it. Thank you.

I’m very much interested. Hope to talk with ur contact person. Tnx

I am OFW working in Saudi Arabia looking construction supply source. I have plans to start a construction supply business. Anything that you can do for me, I appreciated.

You may contact also in my personal email

Hi,I would like to start a Hardware business but dont know what to do first?

I want to start a hardware in bulacan appreciate all the tips and advices

I want to start a hardware in tuguegarao city ..please give some tips and referrals for suppliers.. How much capital do I need to start the business. Thank you

Requesting for sone suppliers as whokesalers and or manufacturers of construction materials and other items as i am planning to put up one in Sibul spring, san miguel, bulacan as soon as i retired this year. Thanks for any ibformation

Mr chua im trying to contact you but you didnt answer.thank u

Isa po ako sa nag tatarabaho sa hardware

Planning to do this kind of business in Nueva Vizcaya. Pls send me the best suppliers and wholesalers. Thank you.

hello Sherry, Let’s work things out, contact me @ 09178858823

Can you gave me email address of supplier for hardware.

pwedi po bang makahingi supplier kun meron

gusto ko po kasing magstart sa maliit lang muna Gods will…

This year me and my husband planning to start a hardware business in Odiongan Romblon. Can you please help us regarding the best supplier and wholesaler. I hope for immediate response. Thank you!

Is it possible to have this kind of business in zamboanga city? Pls let me know whose the best suppliers and wholesaler that i can count on. Thank you so much

i want to start hardware store in Guipos.please share tips on getting suppliers and managing inventory.thanks

Im planning to put up this kind of business.. san po ba pwedi mag order ng mga product for wholesaler

Are you planning to start your own HARDWARE BUSINESS today? Talk to us.

http://www.facebook.com/M.MineTrade

Hello sir; I want to start hardware business in Bacolod City. Please give me some tips a Whose the best supplier. Thank you

I want to start a hardware business in Sto. Tomas Batangas. I would appreciate if you could give me a list of reliable suppliers. Thank you

Pls give us a call, rest assured of the lowest price.. 09668801300

Anyone could provide me reliable suppliers and wholesalers.

Davao city ecoland.. Yes can we ask a supplier for this area

Nakakuha naka supplier mAam? Taga agusan ko ma’am here’s my email [email protected] need pod nako supplier

Pls give us a call. Rest assured that you will get the lowest price for building materials. 09668801300

Hello sir, nationwide ba yung delivery nyo? Iloilo in particular. Thanks

Hello sir, nagsusupply po ba kayo in QC area?

The article is so great. I’m planning with my philipina girlfriend to establish a sustainable hardware business in Philippine. Please advise. Thanks. Michael.

Can give us some of the supplier company for easy transaction Thanyou.

I’m planning to start hardwear Business in Escalante or Bacolod by 2021 I need some help by that time…Thank You!

Let’s work things out @ +919624649324

I’m planning to start hardware business in Pangasinan. I have already a store located in our lot and along MacArthur highway. I need some help. Thank you

How to look for realiable suppliers for hardware business and were I can find wholesaler in terms of hardware supplies?

I want to have a hardware business in my place

we are planning to open a hardware business in pembo makati can you pls give me a contact for the supplier and any seminar to be attended.

Hi there. I am planning to put up business for Hardware and construction supply in Pura Tarlac. Please help me to find suppliers to deal with and who could help me to guide and start the business.. thanks in advance.

im planning to have a hardware in bicol albay can you anybody refer some good supplier and how do i need to have for a capital to start

im planning to have a hardware in bicol albay can anybody refer some good supplier and how much do i need to have for a capital to start

Im planning to put up small hardware and construction materials business in mogpog marinduque,can you provide me supplier and how much capital needed.

Can you give me tips on how start a small hardware and construction materials,location is at mogpog marinduque.thank you.

I live in Butuan City. Please, send me some sources where to buy wholesale prices.

i want to franchise a hardware in davao can you give referrals and supplier

hello Janett, we cater Davao, and already have customers in your area and surrounding Cities, Tagum, Marbel and Gensan. looking forward to talk to you. 09178858823

Hello good afternoon, I want to start up hard ware and building materials business Southern part of negros Occidental, I have my own building already located in the prime location., just want to know if u have in negros area ..,

Hello sir, is it possible to put up in rural area, particularly panabo dvo norte

Im planning and dreaming of small hardware for a start in davao city. Do you have office here where we can meet up. Im interested in small hardware who knows it will be productive and bigger soon😀.

Thanks Gemarie

Hi Mr. Jan Chua,

planning to put up Hardware and construction materials here in Rodriguez Rizal. can you help me for some “tips” and suppliers for the said business?

i have plan to put up Hardware and construction materials here in Rodriguez Rizal. can you help me for some “tips” and suppliers for the said business?

Hi sir, I am planning to have a Hardware and construction business in Isabela would you pls direct me to a good supplier or will you able to work with me to supply my hardware and construction business?

Hello, i am from naga city,ill plan to start s hardware and construction supply, any suppliers recommended?

I need a supplier for may newly open hardware store

Good article, want to know more about this hardware business i think it was a good business to our province. In nueva ecija

Hello , i am Jun from bacolod city i have a plan to start a small hardware and constuction supply can you give me I need some help and advise on how to start and how much the capital

Hi i’m Jun from bacolod city i have a plan to start a small hardware and constuction supply business can you give me I need some help and advise on how to start and how much the capital

I’m looking for a hardware and construction supplier as i am starting a business of this kind..Pls can you help me find a supplier..TIA

hello Ms. Nora, wholesaler of hardware and construction, lets talk. 09178858823

Meron po ba kayong presto sa Albay or Cam Sur?

Please give me details and pricelist. This is my number 09178287569/09199584533. Thanks

Thank you for the reply! I will contact you soon..i’m in Canada and my niece is looking after the business but i would prefer talking to you Sir.

I’m planning to start a hardware business at Pag-asa, Binangonan, Rizal. Please help me to be referred to the good suppliers.

Im from diffun quirino.i woukd love to start this business to thanks

30 years in wholesale of hardware and construction, contact me: 09178858823

Do you cater customers in Iloilo. I just recently open an small contruction supplies outside the City. We are looking for supplier to provide us for all kinds steel bars, hollow sections, plywood, and etc.

Regards, Jessie

Hi po. I’m planning to start hardware in Bicol area. Is there possible suppliers po around albay for wholesale supplier. Thanks po.

I’m planning to start in Bicol Area, Is there possible suppliers around Albay? Thanks! For wholesales

hi! I’m a wholesaler of hardware and construction items. 09178858823

Good day sir. I just open my hardware store and I need a supplier. Thank you.

I need whole seller hardware and Instructions materials misamis oriental area

Hi Jan. Interested to put up a small hardware store. Can u help me more info, or any step by step guide how to proceed and any recommended suppliers I can approach.

pa assist naman po. Interesado po ako sa negosyo

good pm sir pwede ba humingi price list?thank you this is james from bulacan planning to start hardware business next year.

09665494553

May ilo2x area po ba kayo sir?

hi! any known wholesale supplier near calaca batangas?

Hi! I’m looking for direct suppliers of Construction materials asap. I’m putting up a hardware in Quezon City.

hello i want to start my hardware business in guimba,nueva ecija…. my capital is 1000000P,, i need wholesaler and how to start? my location on the highway

many thanks

Im planning to start hardware business in davao del Norte, particularly in Panabo, Carmen and Tagum City area. To start up i need supplier, distributor and wholesaler and i will assure for a long term business relationship.. I reach thru my mobile nos. Smartline: 0948-320-6148, globeline: 0977-249-1837.

saan ang area of coverage ninyo sir? thanks

Hello everyone! Im from Antique and i wanted to put up a hardware store in our area.hope to find a reliable and competitive supplier so that i can stand against other giants. Thanks for whoever will respond. Hoping for a positive feedback and reply.

I’m planning to start a hardware business in laguna…is there anyone here can give me some information about this business.?

I’m planning to start my hardware business in pampanga , the place is not to busy it’s just in the barrio but contain lots of houses and people living in. Would you think this will click?

Hello, I’m planning to start hardware and construction supply business in Balamban, Cebu. Can somebody share their start up knowledge and strategy? Also wholesale suppliers please.thank you.

I want to start a hardware business in Sindangan , Zamboanga del Norte. I have already the building and the big space for the extension of the building and parking area.

I’m planning to put-up small hardware and construction store here in Longos, Malabon..Can you please help me to find reliable supplier…thanks to your reply..

It is possible to have this kind of business in Zamboanga Sibugay province, let me know the best supplier and contact number, or any email address to contact,

I want to have this business in Pasig

I like to have this kind of business here in tacloban city..need more ideas about suppliers. Thank you

Can you please recommend a best supplier of construction materials? I am planning to start a business here in Nueva Vizcaya?

Hello.. we are planning to put up a hardware store in zamboanga del sur.. Any advise on what to purchase first?

Hello! I’m planning to put up this kind of business. Anyone here who can reffered to me a supplier? Our location will be in Pangasinan. Thank you.

I am planning to start hardware business at Mangatarem Pangasinan. Could you please guide, and help me to be referred to the best supplier. Thanks God Bless

Hi there. Im planning to put a hardware business in Binan Laguna. Tips ang advice will be highly appreciated. Thanks

Good day! Planning to start up hardware business here in Baguio—though having second thoughts coz numerous hardware are already operating. Still thinking of something unique to offer–hope you can help me out….

Can you assist a wholesaler Or Direct suppliers OF hardware And construction materials in Iligan City And Cagayan de Oro. Thank you

I want to start a hardware store in Bulakan, Bulacan. Pls. give me some advise an a good supplier.

Hello guys,

The popular Marawi City will start its reconstruction. Citizens will move forward to bring another city that is complete with facilities. Marawi now is peaceful and open. I am constructing a hardware business situated at the Capitol area and the Philippine Army Headquarters. Any interested suppliers to go business with me and my wife, please contact us.

GM Ashary Maongco

Interested to start retailing at bacolod,

Hello sir i am intetested in hardware and construction supplies business. I am from butuan city, i need your help

Hello will you please give me a tip how to start the business hardware

Planning to do this kind of business in MaganG, Daet, Camarines Norte. Pls send me the best suppliers and wholesalers. Thank you.

Hello I’m planing to start a hardware business in pakil Laguna can you please help me for the supplies thank you so much

My partner is interested in hardware and construction supplies business.

Hope you could give us tips or idea to make it possible.

We still have second thoughts because lots of competitors are already operating.

We are from Lapu-lapu City, Cebu.

Your feedback will be greatly appreciated.

I need supplier for a hardware business in quezon province,can u provide me one with the cheapest price.thank u

planning to put up that kind of business..pls give us some info. on the manufacturer n supplier at low price…thanks

i am planning a hardware here in samal islanmd davao del norte any advise where to find nearby wholsale

Hi I want to start a hardware business in Bulacan. can you help me about that.

My desire to put up and start Hardware Business in our hometown Gonzaga Cagayan.

Im looking a direct manufacturing suppliers to start with.

I hope you can help me start a harware business.

Hello good day..I am planning to put hardaware business,,please help me..location Bayawan,Negros Oriental..Is there possible supplier near? THank you..God bless..

hello i am planing to set up a hardware store in kalibo aklan can you advice me if there is a supplier for materials near by

I want to put up a hardware and construction supply in Victoria, Tarlac. Please give referrals of suppliers in the area. Thanks.

good day,after the ECQ lockdown i will open my Hardware and construction suooly business here in Camarines Sur,i have my own warehouse and location already.Pls.suggest name of supplliers and contact numbers.thank you

Hello. I am a young professional in Cainta with a stable income that’s far from being able to fund a small hardware but I have a burning passion when it comes to doing business in the hardware industry and am looking for possible arrangements to start operations, partnering with a willing supplier to support supply of all products and ofcourse with bigger returns of your investment. In short – I do not have the products, but I can sell. If anyone here is willing to partner, you may reply to this comment and I will respond to you as soon as I can. I am also open for anyone wanting to share knowledge or best practices when starting this business. I appreciate you all!

Hi! I’m planning to start a hardware and construction supplies business in the nearby town of Cagayan de Oro City. Any help is appreciated! Thanks

Hello Sir, Can you help me with a Direct Suppliers of Hardware and Construction materials. I’m from Sorsogon city. Thank you

Have a blessed day .Kindly assist us on how to put up a Hardware buseness in Camarin Caloocan. Where do we get a whole products for hardware items. Thanks po for the sharing.

Have a blessed day !!!.Kindly assist us on how to put up a Hardware buseness in Camarin Caloocan. Where do we get a wholesale products for hardware items. Thanks po for the sharing. God bless.

Hi sir, I’m planning to open small hardware in cabatuan city. Pls give me tips and strategies how to start, manage and make it grow. Thanks a lot

Hello. Really interested in starting a hardware. May mga pricelists po ba kayo for reference ❤️ super thank you po.

Any suggestion please for good hardware supplier (wholesaler) for Maramag, Bukidnon?

how to be distributor of roofing and steel or aluminum materials .and im planning also to build hardware for the stocks.

Hi Sir, I’m planning to start a hardware business here in Cebu. Would like to seek for advice. Thank you

Hi sir, I’m planning to start a hardware business here in Cebu. Would like to seek for advice. Thank you

I would like to start a small hardware business can anyone help me to find a trust worthy supplier? thank you.

I would like to interested to open in bulacan.

Hi, Am planning to set up hardware in tuguegarao. Can you help find suppliers or manufacturers for the materials needed? Thank you and appreciate your assistance.

Need hardware/paint suppliers for Cadiz City Negros occ.

Hi i want to start hardware business in esperanza sultan kudarat can you give me direct supplier or distributor

Teach me how to buy direct supplier gor hardware

IM planning to start hardware and construction business in Aklan. Please Let me understand what basic things I should sell first? Need advise. Thanks

I am planning to set up a construction supply in Nueva Ecija. Could you pls share some advises and tips in running the business, also where to get supplies. Your response will be much appreciated.

Hi! I’m Licel Supplier of lumber Pls. Contact 0997-977-5825 0925-514-1071 Thanks!

Hello i’m planning to start an Hardware Business in San Jose Northern Samar, can you guide me if where i can find suppliers and much better consignment.Thank you

hi i want to start hardware and construction supply in Sta. Barbara, iloilo. would like to seek for advise and can help me to find supplier or manufacturer. thank you

hi i want to start hardware and construction supply in Sta. Barbara, iloilo.

I want to start a hardware in Tulay na Lupa Labo Camarines Norte

Hi, Im planning to start my hardware business ni Iloilo. Do you have a recommended supplier/manufacturer? Thanks

Hello, I am a public school teacher here at palawan. I want to start a business in my home town, narra. I’d like to try putting up a small hardware store in my barangay. I’f like to ask if I can make it with a 350k capital?

Hi! If you are still interested contact me 09062305049

hi, we are planning to start hardware business in mindoro. can you give me supplier details for the basic materials, plesae

I’m considering to put up a hardware store but i do not have any idea on start up to operate but this is one business i consider.

I want to start a business hardware in zamboanga city.. please help me ..

I want to start a hardware store in Taytay, Palawan. Can you give me some supplier contacts from Puerto Princesa, Palawan please.. Thank you

I am planning to start business in the Philippines located in Quezon Nueva Ecija ,Would you give me some details or which can i get the best product to sell it in all my kababayan!

Hi Sir Jan, Im planning to put up a hardware business in Castillejos, Zambales, I would like to your adivse on how to start the business and suppliers. Thank you

Interested in Hardware business. can somebody help. Location : General Santos City

Hello planning to have one store although marami kalaban dito s area namen me and my son wanted to try atleast. thank you 09171892912 contact us please..

I need supplier for a hardware and construction supplies with the cheapest price here in quezon,can u provide me one?

Hello! We are interested at starting a small to medium scale hardware business in Camarines Norte. Can you kindly share with is list the cheapest suppliers for Civil, Mechanical and Plumbing works? Also, can you kindly share with us a start-up operational plan? Thanks in advance for your help.

Hello! We are interested at starting a small to medium scale hardware business in Camarines Norte. Can you kindly share with us a list of the cheapest suppliers for Civil, Mechanical and Plumbing works? Also, can you kindly share with us a start-up operational plan? Thanks in advance for your help.

i need Wholesaler Fulgencio Norte Balete Aklan

Roxie Hardware 09461365038

im about to start a small Plumbing and electrical supply and services in Sucat Paranaque and i need PVC Fittings a nd electrical supply can anyone close to my area could supply these type of items?

we will soon open (as early as 1st quarter of 2021) our Construction materials and supplies here in Bobon, Northern Samar. Pls, help us on the details of managing & operations. And also help us find direct supplier/distributor with or offering consignment (15-30 days)

I already have one but its hard to find a supplier will able to help me pls.. im from Bangui Ilocos Nprte.. thanks

Need your tips/and for a wholesale and retail supplier for hardware materials details and contacts, please. Possible location San Pedro Laguna.

Thank you & God Bless

How to start a hardware business in San Isidro Nueva Ecija. Can you give me suppliers contacts regarding this business.

Hi good day! I have plan to open hardware and construction business.i’m looking a supplier in good price. Here in north cotabato please free to contact my # 09952593069 thank you.

I would love to start a hardware store and construction business please help me how to start and where to get the supplies , location is in Bailan Rizal Pontevedra Capiz thank you very much

All hardware products dealership

I want to start a Hardware business in Canlaon City Negros Oriental. I would appreciate if you could give me a list of reliable suppliers.

Good day! Anyone can provide me a reliable suppliers and wholesalers for my hardware and construction supply.

I’m planning to start a hardware and construction supply business here in Sto. Nino, South Cotabato. Is there any supplier or distributor that is near to our place, with cheaper price?

Planning to open a small hardware store in Surigao City. Could you give us a list of wholesalers who could give us the cheapest price. preferably supplier in cebu. Thank you.

Good morning sir …i also planning to start up small business in mamburao ocv.mindoro im also interested in hardware business can u plz guide us for more information regarding thos matter …thank you stay safe and godbless po

Good day. I am planning to open a hardware store in Laguna or Batangas. Can you help me about the suppliers of interm . Thanks.

Hello, I am planning to put up a hardware here in Iloilo. May supplier po ba dito? Thanks

Looking for supplier of hardware, electrical supplies. please email me your pricelist and proposal at [email protected]

Is there a short course on How to start a Hardware Business?

Preferable in Cebu or in Mindanao

I’m planning to put up a Hardware Business in Bunga, Toledo City. Cebu and in Tagoloan, Misamis Oriental. Each has at least 500k initial capitalization . Can you help me find suppliers?

uhelp me find C

I want to start a Hardware and Construction Supply Business in Marinduque, Can you please suggest or help me find good suppliers nearby. Thanks

I’m planning to put up a hardware store in Occidental Mindoro with at least 500k capital. Can someone share the list of suppliers nearest?

We are planning to start a hardware Business here in Bohol, can you help me find good suppliers nearby?

hi im planning to put up a small hardware in cavite. pa help naman sa list ng supplier. thanks!

I want to start in Camsur Presentacion

Please any supplier for steel sheets, pipes, scaffolding material, cement, and roofing materials that dealing with lowest and competitive price please be in touch and send your proposal [email protected] hardware owner in Bicol area.

Please any supplier for steel sheets, pipes, scaffolding material, cement, and roofing materials that dealing with lowest and competitive price please be in touch and send your proposal [email protected] hardware owner in Albay Bicol area.

I want to start a mini hardware in my place at Inaghuban Pilar Bohol please enlighten me about this business need the supply’s

Hi any supplier , insights about this business supplier planning to open business here in Bani Pangasinan thank you

Hi, I plan to start an Aluminum and Glass business at Bacolod. Looking for suppliers for such.

Hi, I plan to start an Aluminum and Glass business at Bacolod. Looking for suppliers for such, not necessarily located at Bacolod.

Hi, I am planning to start a Hardware business as I have started already my Hollow blocks, gravel and sand business. Can you guide me by providing suppliers/list of fast moving materials/and estimated capital.

I have small stall 4×13 meters, located along the highway and seems good location for the business.

Thank you for your time

Regards, Marlo

Hi!I’m planning to start a hardware business here in Cavite and now I’m looking for direct supplier I hope you can help me to find a good and reliable supplier. Thank you in advance!

Hi Sir/Mam, I’m planning to start construction supply business in Bacnotan, La Union, How and who will be ir where we can get a goid and reliable supplier, thank you very much Sir/Mam ang God Bless po…

is there anything that i may called a micro hardware? i have a limited capital.. and i want to start small.

Hi. Were planning to start a hardware business, ayaw from the city in masbate and ayaw from the construction supply from the location that already have it.

Gusta sanang magtayo Ng Ng maliit na hardware kailangan ko po sanang Ng mapagkukunang Ng wholesale na supplier thank you po

hello. we are planning to start a business which is a hardware store. I am looking for a direct supplier. can you pease help me. thank you in advance.

Hi Sir/Mam, I’m planning to start construction supply business in Marikina, How and from who will I be getting goods and reliable suppliers, thank you very much Sir/Mam. God Bless po…

Sir please send me the direct information whom I should contact regarding supplier. I’m in Albay bicol region Thank you

Im planning to start up small hardware business in Cauayan Isabela specifically in Minante 2.

Please give me and advise

Am starting a hardware store. Anyone here a distributor within Central Visayas area?

Is there any wholesalers & suppliers can supply to E. Samar? Need help & suggestions for I am planning to open a hardware & construction supply. Thanks

Hi,I am planning to put up business for Hardware and construction supply in Montalban, Rizal. Please help me to find suppliers to deal with and who could help me to guide and start the business.Thanks.- JENNY.

Hi.I am planning to put up business for Hardware and construction supply in Montalban,Rizal. Please help me find suppliers to deal with and who could help me to guide and start the business.Thank you.- JEN

Hi,We are planning to put up a business for hardware and contruction supply in Montalban, Rizal.Pls can you help me find a good and reliable wholesaler, distributors & supplier to deal with. Thank you.-JEN.

planning a hardware/construction business in san enrique negros occidental

Planning to start a hardware and electrical supply in Bukidnon. I’m looking for suppliers that could help me.

I have started my small hardware business here in lipa, batangas. I am looking for wholesale price hardware for some assorted materials, that could be added to my retail store.

I have started my small hardware business here in lipa, batangas. I am looking for wholesale price supplier for some assorted materials, that could be added to my retail store.

Hi meron ako small hardware business , naghahanay po ako nang supplier, please contact me [email protected] ,

Hello ma’am/sir, need a permanent supplier for construction material with the lowest orice, here in san jose, dinagat islands Contact me: 09105569470

I am planning to have a small hardware business in Kalaisan Kidapawan Cotabato

Im planing also to open hardware store can you also help me and where to find supplies? thank you

Dear Sir, I’m thinking of setting up a small hardware Construction supply business on our area in Zamboanga City. Appreciate your feedback regarding minimum investment and suppliers.

Regards Mannan Alam

Hello good day Sir/Madam, I want to start a small hardware store in my place. Can you pease give me some direct supplier or wholesaler store that I can avail my store’s needed…. I am from ISABELA region 2 Philippines…Thank you for your kind support..

any hardware direct supplier, wholesaler or secondary distributor please contact me asap..planning to put up hardware soon thanks…. +639770312354

I am planning to have a small hardware business in palompon leyte

any supplier near Bustos Bulacan?

I am planning to have a small hardware business in LLanera Nueva Ecija i need supplier please

I am planning to have hardware business in LLanera Nueva Ecija i need supplier please

Hi, I am planning to start my Hardware business in Nueva Ecija. Could you please give some ideas and a good and trusted supplier.? We can communicate via email.

Hi Planning to put up hardware/construction business in my hometown Borongan Eastern Samar. Anyone here who can give me idea how much is the minimum starting capital & also any friendly budget suppliers here?

Supplier of hardware and construction materials. Pls contact: +919714890018

fastener factory from China,please contact:+86 15227461601

I can give wholesale price for hardware materials for inquiry pls email [email protected] 09674728551

For those looking for hardware supplier kindly leave your email so we can send you the price list

For inquiry you may send me an email [email protected] Thankd

Hallo sir Jan, I would like to start my own hardware business,nearby lanang area davao city,will you help me to figure it out,do you know the updated prices of hardware materials.

Want to start hardware is general trias cavite

FOR CONSTRUCTION MATERIAL SUPPLIER CONTACT ME 09190089607

I want to be started a small hardware business. please tell something on how to be starting. than you

Hi planning to start a small hardware here in Bohol? Any tips for a supplier/manufacturer of hardware supplies esp in Cebu?

This is Layden, residing in Qatar, and planning to open a start-up hardware and construction materials supply in Picong, Lanao del Sur. Any help. Please email me at [email protected]

Hi this is Lani. We supply cement and paint in Cavite and Laguna. You may contact me at 09476325819 for more details.

Viber # 09753785193 Email [email protected] Cp # 09476325819

We supply cement and paints in Cavite and Laguna.

Sir Jan, I’m planning to start a hardware business, can you provide me some information and prices.

I want to star hardware business in my barangat at lebak sultan kudarat.can you gave me direct supplier? Also for gasoline station supplier.09397370348

hello Sir Jan please sebt me the information data how to start up harware business please sent me any information how to atart And you email me [email protected]

Planning to start a hardware business in Castelijos, Zambales. Can you please assist me regarding the best supplier and wholesaler. I hope for immediate response. You can reach me MOB.nos.09284282738 Thank you!

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• How To Start a Hardware Business in the Philippines: A Guide for First-Time Hardware Store Owners

By   Yesh Quijano

July 26, 2023

Key Takeaways:

• The hardware business in the Philippines is a viable venture due to the consistent demand for hardware items.
• Market research, careful decision-making between franchising and starting from scratch, and creating a thorough business plan are essential initial steps.
• Crucial operational aspects such as location selection, logistics, the POS system, hiring professionals, and developing a unique selling proposition play vital roles in the success of the hardware business.
• Implementing an effective marketing strategy, focusing on customer retention, and having consistent communication help build a solid brand and ensure customer loyalty.

Do you find yourself captivated by the entrepreneurial spirit? Are you exploring the possibilities of how to start a hardware business in the Philippines?

Embarking on a hardware business journey may be your gateway to success. While steering through this industry may present challenges, it can yield bountiful rewards with the proper guidance.

This article delivers a comprehensive, step-by-step guide to help you establish your very own hardware business.

Are you ready to lay the groundwork for your future?

Let’s dive in and unravel the steps to transform your entrepreneurial dream into reality. Please stick with us; this journey could be the most rewarding decision you’ve ever made!

Why Choose the Hardware Business?

The decision to enter the hardware industry may have been made for several reasons, with profitability being a significant factor. It isn’t easy to give a clear answer because several factors affect how profitable a hardware company is in the Philippines.

Nevertheless, the industry has a generally promising future. The Business Research Company estimates that from 2022 to 2023, the global hardware market grew at a compound annual growth rate of 8.9%. Additionally, the market is anticipated to grow at a CAGR of 7.9% to reach US$164.21 billion in 2027.

Whether in a remote province or the center of Manila, there is always a need for hardware products like tools, building materials, and home improvement items.

Even in a time when digital technology predominates, hardware materials are essential and irreplaceable for everything from minor household repairs to large-scale construction projects.

Given the industry’s resilience, investing in a hardware company could lead to a reliable income stream. And isn’t it rewarding to sell goods that help communities grow? It’s a company that has a noticeable impact.

Additionally, hardware materials are durable and have a longer shelf life, eliminating concerns about expiration dates or product damage. This ensures that inventory remains viable and waste is minimized.

How much does it cost to start a hardware business?

Starting a new business is exciting, but you may wonder, “ how to start a hardware business and how much does it cost? ” While this depends significantly on your company’s size, location, and particulars, here is a general estimate.

Starting a hardware store requires significant capital, even for the most basic setup. You’ll need at least P300,000 to start, and it may take some time to generate enough revenue to cover your expenses. This budget accounts for inventory, rent, permits, and the initial store opening costs.

Remember that this is only an estimate and that prices may differ. A thorough financial analysis before starting a hardware business is always a good idea. Making wise investments can mean the difference between success and hardship.

How to Start a Hardware Business: A Step-by-Step Checklist

Although there isn’t a secret recipe for launching a small business, following some general guidelines can increase your chances of success. The following is a step-by-step guide for opening a hardware store in the Philippines:

Research the hardware business market

If you plan to start a hardware business, you need to understand the market and the construction industry. This phase is all about gathering information.

Market research is an essential first step in providing valuable insights, helping you make informed decisions about your hardware store. Remember, knowledge is power, especially when it comes to business!

Here are some questions to consider when conducting your market research effectively:

• Who are your potential customers within the hardware industry in the Philippines? What is their demographic profile, and what are their needs and preferences?
• Who are your direct competitors in the local market? What are their strengths and weaknesses? How can you differentiate your hardware store from them?
• What are the latest trends in the hardware industry, both globally and locally? How can you capitalize on these trends in your own business?
• What is the current economic climate, and how is it affecting the hardware industry? Are people investing in home improvements or construction?
• Are there any potential partnerships or alliances in the local market that can enhance your business?
• How does the location influence the market? Does the local community have specific needs based on their lifestyle or the area’s infrastructure?
• How could potential socio-economic, political, technological, or environmental changes affect the hardware industry in the future?

Detailed market research is more than just an initial step; it’s an ongoing process that keeps your business aligned with customer needs and industry trends. Your market research should evolve as your business grows, helping your hardware store thrive in a changing environment.

Decide on Franchising or Starting a hardware store from scratch

Once you fully grasp the hardware and construction market, you must choose whether to open your hardware store from scratch or join a franchise. Each route has advantages and disadvantages.

Starting from scratch gives you complete control over every aspect of your company, from the name of the brand to the minor operational components. You can impose your vision on every facet of the store.

The advantages of franchising, on the other hand, include a ready-made business model and immediate brand recognition, which can help lure customers. The franchise’s regulations must be followed, and you might have to make recurring payments.

Your decision is yours. Consider your personal goals, financial resources, and risk tolerance as you carefully weigh your options.

Create a Hardware Store Business Plan

Knowing how to start a hardware business in the Philippines means knowing how to draft a solid business plan.

Creating a business plan for your hardware store is not just a bureaucratic hoop to jump through. It’s your roadmap, guiding you from the initial stages of setting up your business to growth and beyond. Here’s what your business plan should include:

• An Executive Summary: This overviews your business idea, mission, and your hardware store’s unique selling points. Although it comes first, write it last after completing the other sections.
• A Description of Your Business: Here, provide detailed information about your business, including the legal structure (sole proprietorship, partnership, corporation), the nature of the company, and your long-term business goals.
• Your Target Market: Who are your customers? Define your target demographic, their needs, and how your store will meet them. Remember, no business can cater to everyone. Focus on the market that your products and services are best suited for.
• Your Products and Services: List the products and services your hardware store will offer. This could range from hardware supplies to services like home delivery or installation.
• Your Marketing Plan: How will you attract and retain customers? Detail your promotional strategies, pricing policy, sales strategy, and distribution methods.
• Your Financial Projections: This section should include a sales forecast, expenses budget, cash flow statement, and break-even analysis. If you’re seeking financial aid, lenders or investors will want to see this section.
• Detailed Plans for Possible Future Expansion: If you plan on scaling your business in the future, outlining potential growth strategies can demonstrate foresight and ambition.

We also encourage you to review the Department of Trade and Industry business plan format for further guidance.

Remember, your business plan isn’t a static document. As your business grows and market conditions change, your plan should adapt to reflect these changes. It’s a living guide that keeps your business on track and aligns your team toward common goals.

Raise Sufficient Capital

Raising sufficient capital is needed to start a hardware store. It’s not just about the initial investment but also the operational expenses until your business becomes profitable. Here’s where you need to get creative and resourceful.

• Self-funding. This is an option if you have sufficient savings. However, don’t drain all your savings. It’s essential to have a financial buffer for personal expenses.
• Seek external investors. You can pitch your business plan to potential investors who may be interested in your venture and can provide the necessary capital. However, be mindful of scams. If it’s too good to be true, it probably is.
• Consider bank loans as well. Many banks offer business loans with varying interest rates and payment terms. Be sure to shop around for the best times. Some banks even have special loan programs for small businesses.
• Don’t overlook government loan programs. The Department of Trade and Industry (DTI) offers a micro, small, and medium enterprises (MSME) loan program in the Philippines. Similarly, the Small Business Corporation (SBC) , a government financial institution, provides microfinance for small businesses.
• Crowdfunding platforms can also be a source of capital. Here, multiple people contribute small amounts towards your capital.

Raising capital is a critical step in starting your hardware store. Remember, it’s not just about securing funds but also managing them effectively to ensure the sustainability and growth of your business.

Open a business bank account & credit card

Learning how to start a hardware business in the Philippines can be challenging but rewarding. However, one of its main challenges is separating your personal and business finances.

It’s wise to open a business bank account and credit card as they simplify tracking revenue and expenses and present your hardware store in a professional light to suppliers and customers.

Most banks in the Philippines provide various business accounts that can be customized to your requirements. Some offer extra advantages like business credit cards or access to loans for small businesses.

You can protect your assets from business liabilities and make tax time much easier by keeping your personal and business finances separate. Although it’s a small step, it’s essential for the financial stability of your company.

Find a Suitable Location

In the hardware business, location can make or break your success. Your store should be easily accessible to your target customers and ideally located with significant foot or vehicle traffic. If your customers are mainly construction businesses, consider being near commercial areas. Being in or near residential areas might be more beneficial if homeowners are your target.

Moreover, check the proximity of your competitors. While being close may allow you to tap into their customer flow, being too close may result in fierce competition.

Finding a suitable location might take time, but it’s worth the effort. The right location can significantly boost your hardware store’s visibility and customer accessibility, leading to better business prospects.

Apply for Hardware Store Business Licenses and Permits

Making your business official is the next step. You must register your hardware company in the Philippines with the Securities and Exchange Commission (SEC) for partnerships and corporations or the Department of Trade and Industry (DTI) for sole proprietorships.

Next, apply for a Barangay Clearance from your local barangay office. Then, go to the city or municipal building to obtain a mayor’s or business permit.

Remember to obtain your company’s Tax Identification Number from the Bureau of Internal Revenue (BIR), as you’ll need it for transactions involving taxes.

Additionally, ensure your hardware store has the necessary licenses, such as the Bureau of Fire Protection’s Fire Safety and Inspection Certificate.

This step can take a while with all the paperwork, but it’s essential. By registering your company and obtaining the required licenses, you can ensure that everything is in order and that business operations are legal.

Build Your Product List and Find Suppliers

Now, let’s fill up your store! Building your product list should be guided by the needs of your target market. Your product range should be wide enough to serve their needs yet be specific enough not to overwhelm your inventory.

Are you in an area with a lot of building construction? Maybe you should prioritize stocks on lumber, hollow blocks, and sand.

Are you in a residential area? Maybe you should stock up on general tools for DIY-ers like power tools and home improvement materials.

When choosing suppliers, prioritize quality, reliability, and pricing. Ensure they provide high-quality products that your customers can rely on. Establish relationships with multiple suppliers to prevent possible supply chain disruptions. Remember, timely delivery of quality products is crucial for customer satisfaction.

Whether nails, paint, plumbing materials, or power tools, each item in your hardware store builds customer trust. Choose wisely and ensure a steady supply.

Establish Inbound and Outbound Logistics

With your product list ready and suppliers lined up, it’s time to iron out your logistics. Inbound logistics include transporting, storing, and delivering goods from your suppliers to your store. You must coordinate delivery schedules, quantities, and handling procedures with your suppliers.

On the other hand, outbound logistics refers to delivering goods from your store to the customer. Will you offer home delivery? If so, you need to plan for transportation, handling, and possibly, installation services.

Logistics might not be the most glamorous part of your business, but it’s the backbone. Efficient logistics mean your products get where they need to be when they need to be, ensuring satisfied customers and smooth operations.

Invest in a Reliable POS System

Now that your store has products let’s talk about sales. While most of local hardware stores manually tally their sales, a hardware store may benefit from a reliable Point of Sale (POS) system. A POS system does more than process transactions; it tracks inventory, monitors sales, and manages customer data.

With a POS system, you can stay on top of which items are selling fast and which are not. It can even help with re-ordering items when stocks run low. A reliable POS system makes your hardware store more efficient, helping you provide better customer service.

A modern POS system can give your hardware business a competitive edge in this digital age. And while it’s a little more expensive than manual tallying, consider it an investment that pays for itself with the value it provides.

Hire Professionals and Seek Expert Advice

You’ve done much on your own up to this point, but remember, no one succeeds alone. As your hardware business takes shape, consider bringing in professionals and experts who can guide and help your business thrive. This might include accountants, legal advisors, and business consultants.

You may also need to hire staff for your store. Look for people who are not only competent but also share your commitment to excellent customer service. After all, your team is a reflection of your store.

Getting expert advice can help you avoid common pitfalls and set your hardware store up for success. Similarly, having a dedicated and competent team ensures your operations run smoothly and customers are happy, which is the ultimate goal.

Start Marketing Your Business & Build Awareness

You’ve established your hardware store, now it’s time to inform the world about your business. Start implementing your marketing strategy to build awareness and attract customers.

Whether through traditional and online advertising, social media campaigns , or local community events, ensure your marketing efforts consistently communicate your unique selling points. This consistent communication builds your brand’s image in the minds of customers.

Remember, building awareness is an ongoing process. Even when your hardware store becomes well-known, continuous marketing efforts help maintain your store’s reputation and attract new customers. As your business grows, consider reinvesting some of your profits into marketing to reach an even wider audience. The sky’s the limit!

Develop Your Competitive Edge, Increase Profitability, and Keep Customers Coming Back

As your hardware store attracts customers, your next challenge is setting your business apart from competitors and ensuring your customers return. This competitive edge differentiates your store and boosts profitability and customer retention.

Here are some strategies to develop your competitive edge and keep customers coming back:

• Identify Your Unique Selling Proposition: Maybe it’s your extensive product range, unmatched customer service, or expert staff who can advise on home improvement projects. Ensure your customers are aware of what sets your store apart.
• Prioritize Customer Satisfaction: Customers are more likely to return if they enjoy a positive shopping experience. This could be due to friendly, knowledgeable staff, consistently high-quality products, or a well-stocked inventory.
• Implement a Loyalty Program: Rewards such as discounts, points, or exclusive offers can encourage customers to return. A loyalty program is a powerful tool for customer retention.
• Communicate Regularly: Keep your customers informed about your store’s new products, sales, or events. This could be through email newsletters, social media updates, or SMS notifications. Regular communication can make customers feel valued and strengthen your store’s connection.

Remember, retaining an existing customer is often more cost-effective than attracting a new one. Focusing on customer satisfaction is a worthwhile investment for your business’s long-term success.

Navigating Challenges in the Hardware Business

Every business venture faces unique challenges, and the hardware industry is no exception. Here are some potential hurdles you may encounter and strategies to navigate them:

• Stiff Competition: Differentiating your hardware business in a sea of competitors can be challenging. To stand out, consider developing a unique selling proposition, providing excellent customer service, and implementing effective marketing strategies.
• Changing Market Trends: The hardware industry constantly evolves, with new products and technologies entering the market and customer preferences changing. Stay updated and adaptable to maintain relevance.
• Supply Chain Disruptions: Delays in stock delivery can lead to customer dissatisfaction. Ensuring reliable suppliers and efficient inventory management can mitigate this challenge.
• Economic Fluctuations: Economic changes can affect customers’ purchasing power and sales. Regularly reviewing your pricing strategy can help balance profitability and customer satisfaction.

Remember, challenges are an integral part of running a business. They provide opportunities for learning and growth. You can successfully navigate these hurdles and keep your hardware business thriving proactively and strategically.

Sustaining and Growing Your Hardware Business

Successfully sustaining and growing a hardware business requires commitment, perseverance, and passion. Show up consistently and be dedicated to the day-to-day operations.

Remember that resilience, determination, and customer focus are crucial for long-term success.

If you possess these qualities and believe in your ability to thrive in the hardware industry, there is no harm in pursuing your entrepreneurial ambitions.

Is The Hardware Business Right for You?

Now that you know how to start a hardware business, here are some final thoughts to consider:

• Interest and Knowledge: Are you interested in home improvement, construction materials, and tools? Basic knowledge about these products is advantageous, though not necessarily necessary, as you can always learn.
• Customer Service: Are you willing to go the extra mile to ensure customer satisfaction? The hardware business is not just about selling products but about helping customers find the right solutions for their needs.
• Risk Tolerance: Like any business, the hardware industry has risks. Are you prepared to handle the financial and operational challenges that may come your way?
• Commitment: Running a hardware business requires time, effort, and dedication. Are you ready for the long hours, the weekend work, and the responsibility of owning a business?
• Financial Capability: Lastly, do you have the necessary capital to start and maintain the business until it becomes profitable? Financial preparation is crucial to get your business off the ground and keep it running.

If you positively respond to these aspects, then the hardware business might be the right fit for you. Serving your community, solving customer problems, and building a stable income source can be rewarding.

About the author 

Yesh Quijano

Yesh Quijano is an entrepreneur and digital marketer who's been in the game for over 11 years. He started several businesses and helped countless others reach new heights. His goal is to make digital marketing for SMEs simple, accessible, and effective. When he's not working, you can find him cuddling with his two cats.

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How To Start A Hardware Business Philippines

How to start a hardware business in the Philippines is a popular and great question to ask as there are many moving components to this business. Today we have broken down the process of starting a hardware business into 7 important stages.

Even though each stage is important, due to your circumstances, you may find that starting a stage earlier or postponing the stage to a later date is more appropriate for your situation.

Nonetheless, there are several stages with any business ; however, most businesses that succeed in the Philippines have a strong foundation so let’s take a look into how you can start a hardware business in the Philippines today.

Table of Contents

1. Build Your Hardware Plan

As you most likely know, hardware can take many different forms, some hardware businesses in the Philippines target specific items, whereas others are general hardware businesses. We will be speaking more on research in the following step but at this stage, building your foundations of what you want to sell and how much is essential.

Hardware businesses can also develop and expand as your business grows, so a plan is not set in stone but instead a rough guideline of what you would like to achieve and how you will achieve it. You can download your free business plan template for more information on starting a small hardware business in the Philippines.

Nonetheless , here are some areas to focus on at the very beginning stages of launching your new business

• Are There Similar Businesses Nearby?
• Are There Other Ways A Hardware Business Can Make More Money?
• How Long Will It Take My Business To Be Profitable?
• How Much Will A Hardware Business In The Philippines Cost Me?
• What Is The Profit Margin?
• What Items Will I Be Selling?
• What Would Give My Business The Competitive Edge?
• Who Will Manage The Hardware Store If I’m Not Available?
• Why Will Customers Buy From My Store And Not Anyone Else?

These questions may seem basic to some entrepreneurs who have had experience building multiple businesses, but if you are looking at how to start a hardware business in the Philippines, asking yourself these difficult questions can be very valuable.

In addition, you may wish to ask yourself some internal questions about starting a hardware business in the Philippines. Asking difficult questions often shows potential risks and problems which are best tackled at the beginning stages of a business instead of postponing risks until a later date.

2. Focus On Researching Hardware Businesses In Your Area

The next stage is a stage that you may wish to complete at the same time as your overall business plan as researching and creating a plan are closely tied together. In other words, you will often need one to complete the other.

One of the most important tasks, if you are targeting a local audience, is potential competition. This includes competition by traditional businesses and also online competitor providers such as Shopee , Lazada , etc.

Spending time on market research will also allow you, as an entrepreneur, to look into different opportunities to innovate your business. For example, how can your business be different from every other hardware business in the Philippines? What kind of offer could you give customers that would be profitable for you and irresistible for them?

If your time is limited, but you have available funds, you may wish to outsource this work to a full-time researcher. Fiverr is a great platform to find freelancers to help you at the beginning stages of a business. Researching is one task that can be outsourced, but there are many possible options for entrepreneurs who have limited time.

3. Find A Suitable Location

As a hardware business in the Philippines is a traditional business type, you will need a physical location to sell your items to the public. Therefore, at this stage, you will need to find a suitable location for your customers as well as a location that is beneficial for your business idea.

This means that you will need to find a location that is highly accessible but also offers everything that you need to start your business successfully.

Many businesses across the Philippines have spent a large amount of time streamlining their businesses. This includes both online and offline businesses, but why do they do this? Because the more difficult it is for a customer, the less likely it is for a customer to buy a product or service. This will then result in less profit and potentially stunted growth.

As an entrepreneur and a business owner of a hardware store, you will need to decide between accessibility and price, and this balance is not always easy.

You may also need to consider the local competition. If your hardware store is selling hardware that’s completely different from another hardware store, then there are no problems finding a location nearby but if you plan to sell similar items, then finding the location that is better than your competition could give you the competitive edge.

4. Source Funds (If Applicable)

The next stage when looking at how to start a hardware business in the Philippines is to find the capital. In fact, one of the most popular questions is how much does it cost to start a hardware store in the Philippines?

The total capital you will need to start a hardware business in the Philippines is 250,000 Pesos. However, this figure can slightly increase all decrease depending on your stock levels and location.

You may be able to negotiate with suppliers who can include a discount for multiple purchases or an “order now pay later agreement.” But whatever agreement is made, there is often a large amount of capital that is needed when starting a hardware business in the Philippines as some hardware stock can be relatively expensive.

Therefore how can you find the capital to start a hardware business in the Philippines? There are several options available to raise capital. The first way is through Angel investing, where others invest in your business in return for ownership of your business/profit, the second is through bank loans or private loans, and another option is through crowdfunding.

There are different pros and cons to each type of funding. It’s recommended to speak to an independent financial advisor and a business analyst at this stage. You will need to make sure that your business has enough money to become profitable and pay back any business loans.

5. Register Your Hardware Business In The Philippines

Registering a business in the Philippines is a process that will need to be initiated at some point in the journey. Registering the business name, obtaining mayor permits, and SSS are a few areas you will need to consider when registering a business.

We have spoken about the complete registration of a hardware business in the Philippines previously, so we will not go into too much detail today but MPM has a great article on the entire process of registering a business legally in the Philippines, which I have attached above for your reference.

6. Start Marketing Your Business & Build Awareness

Marketing is a big part of any business, especially a hardware business . As an entrepreneur, you will have to convince members of the public to shop in your store. Not only will you need to convince them to shop, but you will also need to build the groundwork so that you can generate repeat business for the years to come.

Marketing is a great way to build awareness of your business and your products. Marketing awareness is a larger umbrella of marketing that is often used when a business launches a product or starts a brand new company.

Similar to many areas of starting a hardware business, you will need to balance your financial investment in marketing and the return of that investment. 

One benefit of starting a small hardware business in the Philippines is that competition is often lower due to the smaller market. Therefore, local search engine optimization can be part of your strategy to reach a larger market at a much lower price.

7. Reinvest Your Profits And Grow Your Hardware Business

You will have a registered business, product stock, marketing, and hopefully a small customer base at this point of your entrepreneurial journey, so what’s next? The final stage on how to start a hardware business in the Philippines is to reinvest your profits to grow your business.

One of the disadvantages of starting a traditional business is that profits can take a little longer than online businesses. This is because, with traditional businesses, you often need to pay for a location, physical stock, etc., but what you do with any business profits in the early days will significantly impact your hardware business in the future.

There is no golden ratio for profits and reinvestment. Some business owners prefer to withdraw profits from their business into their own bank account if this is the only source of income they have. But if you do not need the additional income, then it may be wise to reinvest your profits back into the business to help it grow much faster.

Reinvestment can take many forms. For example, you may wish to reinvest Into your products, staff, business operations, delivery services, marketing, work more with professional traders, or anything else that you feel would be a wise investment.

As someone who has spent many years building businesses and helping others develop their business, I have noticed that one of the key elements to growing a successful business is reinvesting profits in the right area.

Tips To Start A Hardware Business Philippines

Now that we have covered some essential stages on how to start a hardware business in the Philippines, the next important area is independent tips and tricks to help you in your new business venture.

1. Start Small. If you cannot start a large hardware business, then focus on building a small business in a great location. If you can sell a good level of stock and your location price is low, you should start to see profit very shortly.

2. Focus On The Essential Stock. During the research stage, you may come into several products that are selling exceptionally well. It may be a good idea to invest first into these popular items that you think will sell quicker. This will give you some much-needed income in the early days of business. If you can find an item in high demand but low supply, this is even better!

3. Seek Additional Assistance. Starting any business in the Philippines is not the easiest, but each business has its risks and also opportunities. Therefore you may benefit significantly by seeking advice from those who have had experience in the industry or have previously owned a hardware business.

4. Always Negotiate. As a business owner, your entrepreneurial mindset is critical. Negotiating with suppliers, balancing risk and reward will also be key. In today’s modern world, the most sophisticated and strategic businesses are the ones that often perform exceptionally well.

Is Starting A Hardware Business Right For You?

The last area to consider is whether starting a hardware business in the Philippines is the right decision for you or not? Unfortunately, even though this is one of the most important areas, it’s ironically one of the areas nobody can answer for you. Nonetheless, there are a few questions to answer to find the answer quickly.

You most likely have had experience building, fixing, and creating DIY projects, which is a great start but do you have the right entrepreneurial vision to create a successful hardware business in the Philippines? Also, do you have the right connections to build networks with traders in your area?

If the answer is yes, the next area to focus on is the daily activities of a hardware business owner. Do you have time to run a hardware business as well as all your other priorities in your life right now?

These kinds of questions are not to demotivate you from starting a hardware business in the Philippines. Instead, aim to encourage you to seek the answers to all business areas before taking a physical and/or financial action.

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Starting a Hardware Store: Your Comprehensive Guide to Success 

Disclosure: Small Business Philippines strives to provide relevant and accurate information in all its articles. However, some information in our articles may differ or might be outdated from what you can see or read directly from the establishments’ or businesses’ websites. Please get in touch with us directly for any discrepancies.

Starting a hardware store can be a rewarding and lucrative business venture. In the Philippines, where the construction industry is thriving, there is a significant demand for quality hardware products. This comprehensive guide will provide you with the knowledge and tools you need to start your own hardware store and achieve success in the competitive market.

Why Start a Hardware Store?

When and where to start a hardware store, step 1: market research and business plan, step 2: legal requirements and registrations, step 3: securing funding, step 4: store setup and layout, step 5: procurement and inventory management, step 6: marketing and promotion, step 7: staffing and training, 1. focus on customer service, 2. product diversification, 3. embrace technology, key takeaways.

Owning a hardware store offers several compelling reasons. Firstly, it provides an opportunity to cater to the growing demand for construction materials and tools. Secondly, a well-established hardware store can generate a stable income stream and long-term profits. Lastly, it allows you to become an essential part of your community by providing valuable products and services.

Timing and location are crucial factors to consider when starting a hardware store. Assess the local market conditions and economic climate to determine the right time to enter the industry. Additionally, select a strategic location that offers accessibility, visibility, and proximity to your target customers, such as construction sites or residential areas.

How to Start a Hardware Store in 7 Easy Steps

Conduct thorough market research to understand customer needs, competitors, and pricing strategies. Develop a comprehensive business plan that outlines your goals, target market, marketing strategies, and financial projections.

Understand the legal requirements and necessary registrations for starting a hardware store in the Philippines . Obtain the required permits, licenses, and clearances to ensure compliance with local regulations.

Determine the startup costs and create a realistic budget for your hardware store. Explore various funding options, such as personal savings, bank loans, or partnerships, to secure the necessary capital.

Design an attractive and functional store layout that optimizes space utilization and enhances customer experience. Create distinct sections for different product categories and ensure efficient storage and organization.

Establish relationships with reliable suppliers and wholesalers to source high-quality hardware products at competitive prices. Implement effective inventory management systems to track stock levels, optimize ordering, and minimize wastage.

Develop a comprehensive marketing strategy to reach your target audience. Utilize both online and offline channels, such as social media, local advertising, and partnerships with contractors or builders, to promote your hardware store.

Hire knowledgeable and customer-oriented staff members who can provide excellent service and advice to customers. Provide ongoing training to your team to keep them updated on the latest hardware products and industry trends.

Examples and Tips for Success

Offer exceptional customer service by providing personalized assistance, expert advice, and prompt responses to inquiries. Build lasting relationships with customers, as positive word-of-mouth can significantly contribute to your store’s success.

Expand your product range to cater to a wide variety of customer needs. Consider offering niche products, exclusive brands, or specialized services to differentiate your hardware store from competitors.

Leverage technology tools and platforms to streamline operations, enhance inventory management, and improve customer engagement. Establish an online presence through a website and social media channels to reach a broader audience.

Starting a hardware store in the Philippines can be a profitable venture, given the country’s booming construction industry. By conducting thorough market research, developing a solid business plan, and focusing on exceptional customer service, you can establish a successful hardware store. Embrace technology and stay updated on industry trends to stay competitive in the market.

In conclusion, starting a hardware store requires careful planning, attention to detail, and a customer-centric approach. By following the step-by-step guide and implementing the provided examples and tips, you can lay a strong foundation for your hardware store’s success. Take action today and embark on your journey to become a thriving hardware store owner in the Philippines!

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Things to Think About When Starting a Hardware Store

Hardware stores are basically just like retail shops. However, hardware stores are one of the most important retail shops ever to exist. It’s usually where contractors and homeowners turn to whenever they need to either purchase materials, hardware tools, and finishes for their home or analyze a [home] problem that requires an immediate solution. These retail shops usually sell stuff like tools, construction equipment, paint, plumbing materials, electric supplies, and even hardware finishes and interior for your home, just like Magnificent Hardware !

If you’re ever planning on putting up a startup hardware store, then, by all means, do it! Hardware stores hardly ever run out of business because, over the years, hardware tools and finishes have become more than just options and decors but rather a necessity in each and every home. With that, putting up a hardware store isn’t really considered a risk. However, if you really are down for this, then you should at least think things through, plan, and identify all your company objectives.

Don’t really know how? Don’t worry! Here’s a list of things to think about when starting a hardware store, to at least help you plan everything out and commence operations seamlessly:

Just like every real estate property or business entity, location is of utmost importance. Before completely diving into putting up a hardware store, consider examining the environment first. Where exactly do you want to plant it?

Examine carefully how the surrounding environment or neighborhood looks like. Income class is a significant factor because you’ll [soon] be selling hardware materials to these surrounding environment. Will they potentially bring you profit? Also, consider the amount of competition around the area. You wouldn’t want to put up a hardware store in a place where there are already established [hardware] businesses.

Lastly, consider accessibility. Areas closer to construction sites of buildings or residential properties could likely help your business flourish in no time. However, since all these are temporary, you should also think about the amount of traffic you could gain from that [short] period of time.

Target Market

Your hardware store is probably going to surround a local community. With that, you must know your surrounding neighborhood since this is your primary source of customers. Analyzing and understanding your target market includes also distinguishing their needs and preferences, and what they usually look for in hardware stores. From there, you will know which tools and equipment to bring in and offer to your customers.

More than that, customers would also love to be treated with some extra care. Offer after-sales customer services such as free shipping or installation of tools, finishes, or furniture.

Business Plans

Hardware stores have a lot of elements in the business that require detail-oriented planning and analyzing. With that, you must know how to write a business plan. Business plans help you organize the entirety of your business or towards where your company is heading. In the business plan, as much as possible, try to detail every aspect of your hardware store and how you plan to market to your surrounding environment.

More than anything, it’s vital that you draft and allocate a budget for all your expenses, and that includes inventory, stocks, labor work, and a few other miscellaneous fees.

Source of Materials

The items that your hardware store will be selling will usually come from three sources, which include a direct manufacturer, wholesaler, and secondary distributor. For most startup hardware stores (like what you plan to do), a wholesaler is most likely the best option since they can give advantages of marketing and promoting your business.

Upon starting a hardware store business, do take note of these three primary sources of stocks and other materials as this can get crucial with regards to your stocks and inventory, as well as your ability to meet customer demands.

Find A Good Business Advice

This is all part of becoming and establishing a startup business. Make sure to learn as much as you can from established companies in the industry. However, if you think that your local competitors will give you advice, then you’re quite wrong. Perhaps, you can try other businesses located in far off places, cities, or towns to share some business wisdom with you as you start your own hardware store. Once they realize they’re not directly competing with you (since you come from another locality or town), they’d be more than happy and willing to give you startup tips and advice. If you’re persistent and determined enough, you might even find an entrepreneurial mentor along the way to help you out in doing business.

Wrapping Up

Putting up a startup hardware store, especially here in the Philippines, isn’t much of a hassle since, as mentioned, it can never run out of business. However, before any further actions, you might want to think things through and browse through this list so as to also help you achieve your company objectives and greater success in the long run.

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Top Hardware Business in the Philippines A Guide for Success

When it comes to the hardware industry in the Philippines, there are a few key players who have established themselves as the top businesses in the country. These companies have managed to navigate the challenges of the industry and have positioned themselves as leaders in the market.

One of the top hardware businesses in the Philippines is XYZ Hardware. With a strong presence across the country, XYZ Hardware has built a solid reputation for providing high-quality products and excellent customer service. They offer a wide range of hardware and construction materials, making them a go-to choice for both professionals and DIY enthusiasts.

Another prominent player in the industry is ABC Hardware. This company has been in operation for over two decades and has grown steadily over the years. Known for their competitive prices and extensive product selection, ABC Hardware has managed to capture a significant market share in the Philippines.

The success of these top hardware businesses can be attributed to several key factors. Firstly, they have invested heavily in their supply chain management, ensuring that they have a consistent and reliable source of products. This allows them to meet customer demands promptly and efficiently.

Additionally, these businesses have focused on building strong relationships with their customers. This includes providing personalized service, offering expert advice, and going the extra mile to ensure customer satisfaction. By treating their customers as partners, rather than just transactions, these businesses have managed to build a loyal customer base.

Furthermore, these top hardware businesses have embraced technology and innovation. They have implemented modern inventory management systems, streamlined their operations, and utilized online platforms to reach a wider audience. By staying ahead of the curve, they have been able to stay competitive in an ever-evolving market.

In conclusion, the hardware industry in the Philippines is dominated by a few top businesses that have managed to stay ahead of the competition. Their success can be attributed to their commitment to quality, customer-centric approach, and embracing technology. For aspiring entrepreneurs in the hardware industry, studying the strategies of these top businesses can provide valuable insights and a guide for success.

Table of Contents

Importance of the Hardware Industry

The hardware industry plays a crucial role in the overall development and growth of the Philippines. It provides essential materials and supplies for construction, renovation, and maintenance projects. The presence of a reliable hardware industry ensures that individuals and companies have access to the necessary tools, equipment, and materials needed for various purposes.

One of the primary reasons why the hardware industry is important is its contribution to the country’s economy. It generates employment opportunities and creates income for individuals, which in turn stimulates economic growth. Additionally, the hardware industry serves as a vital link in the supply chain, connecting suppliers, manufacturers, and consumers.

The hardware industry also plays a significant role in supporting the construction sector. As one of the largest consumers of hardware products, the construction industry heavily relies on hardware stores for its material needs. Whether it’s for building new structures or renovating existing ones, construction projects require a wide range of hardware supplies.

Furthermore, the hardware industry contributes to the growth of other sectors such as agriculture, manufacturing, and retail. Agricultural businesses depend on hardware stores for farming tools and equipment, while manufacturers rely on them for machinery and industrial supplies. Retail businesses benefit from the wide variety of products offered by hardware stores, attracting customers and driving sales.

Another important aspect of the hardware industry is its role in promoting safety and security. Hardware stores provide a range of safety equipment, such as fire extinguishers, safety gear, and security systems. By making these products accessible to the general public, the hardware industry helps ensure that individuals and businesses can protect themselves and their properties from potential risks and dangers.

In conclusion, the hardware industry holds great importance in the Philippines. It contributes to the economy, supports various sectors, and promotes safety and security. As the demand for construction, renovation, and maintenance projects continues to grow, the hardware industry will play a pivotal role in meeting the country’s infrastructure needs and driving overall development.

Overview of the Hardware Business in the Philippines

The hardware business in the Philippines is a thriving industry that plays a vital role in the country’s economy. Hardware stores can be found in every city and town, catering to the needs of homeowners, contractors, and businesses alike.

Hardware stores in the Philippines offer a wide range of products, including construction materials, power tools, plumbing supplies, electrical equipment, and gardening tools. These stores serve as a one-stop shop for customers, providing them with everything they need for their home improvement and construction projects.

The demand for hardware products in the Philippines is driven by the country’s booming construction industry. With the government’s infrastructure projects and the growing number of residential and commercial developments, there is a constant need for construction materials and tools.

Hardware businesses in the Philippines face stiff competition, as there are numerous players in the market. However, by offering quality products at competitive prices, providing excellent customer service, and maintaining a wide inventory, hardware stores can attract and retain customers.

One key factor that contributes to the success of hardware businesses in the Philippines is the strong relationship they build with their suppliers. Hardware stores work closely with suppliers to ensure a steady supply of products and to negotiate favorable pricing and terms.

In recent years, hardware stores in the Philippines have also started embracing e-commerce. Many businesses now have online platforms where customers can browse and purchase products. This digital transformation has allowed hardware stores to reach a wider audience and expand their customer base.

In conclusion, the hardware business in the Philippines is a thriving industry that continues to grow due to the country’s construction boom. By providing a wide range of products, excellent customer service, and embracing e-commerce, hardware businesses can stay competitive and achieve success in the market.

Essential Steps to Start a Hardware Business

Starting a hardware business in the Philippines can be a lucrative venture, especially with the country’s growing construction industry. However, like any other business, proper planning and execution are essential for success. Here are the essential steps to start your own hardware business:

1. Conduct Market Research: Before starting a hardware business, it is important to assess the market demand and competition. Identify the target customers, their needs, and preferences. This will help you determine the type of hardware products to offer and the pricing strategy.

2. Create a Business Plan: A well-thought-out business plan is crucial for securing financing and guiding your business activities. Outline your business goals, marketing strategy, financial projections, and operational procedures. It will serve as a roadmap for your hardware business.

3. Register Your Business: Register your hardware business with the appropriate government agencies to ensure its legality. Obtain the necessary permits and licenses, such as a Barangay Clearance, Mayor’s Permit, and Bureau of Internal Revenue (BIR) registration. Compliance with government regulations is vital for the smooth operation of your business.

4. Secure Funding: Determine the capital requirements of your hardware business and explore financing options. You can seek funding from banks, angel investors, or consider personal savings. Prepare a comprehensive financial plan to convince potential investors or lenders about the profitability and sustainability of your business.

5. Find a Suitable Location: Choose a strategic location for your hardware store. Look for an area with high foot traffic, accessibility, and proximity to construction sites or other businesses in the construction industry. Consider the size and layout of the store to accommodate various hardware products.

6. Source Reliable Suppliers: Build relationships with reliable suppliers and wholesalers to ensure a steady and quality supply of hardware products. Look for suppliers that offer competitive prices and have a good reputation for delivering products on time. Negotiate favorable terms and conditions to maintain a profitable partnership.

7. Set Up Store and Inventory Management: Set up your hardware store with an organized layout that allows customers to easily browse and find the products they need. Implement an efficient inventory management system to track stock levels, manage reordering, and prevent overstocking or shortages. Utilize technology to streamline operations and provide a seamless shopping experience.

8. Develop Effective Marketing Strategies: Market your hardware business through various channels such as social media, local advertisements, and word-of-mouth. Create an online presence to reach a wider audience and showcase your products and services. Offer promotions, discounts, and loyalty programs to attract and retain customers.

9. Provide Excellent Customer Service: Deliver exceptional customer service to build customer loyalty and generate positive word-of-mouth. Train your staff to be knowledgeable about the products, assist customers in their purchases, and resolve any issues promptly. Establish a strong customer support system to address inquiries and concerns.

10. Monitor and Adapt: Continuously monitor the performance of your hardware business and adapt your strategies accordingly. Stay updated with industry trends, customer demands, and competitor activities. Regularly analyze financial statements, customer feedback, and market conditions to make informed decisions for the growth of your business.

By following these essential steps, you can establish a successful hardware business in the Philippines and capitalize on the booming construction industry. With proper planning, dedication, and a strong focus on customer satisfaction, your hardware business can thrive in the competitive market.

Researching the Market and Identifying Target Customers

Before starting a hardware business in the Philippines, it is important to research the market and identify target customers. This will help in developing a successful business strategy and understanding the needs and preferences of potential customers.

Market research involves gathering information about the hardware industry in the Philippines, such as the size of the market, current trends, and competition. It also involves studying the purchasing behavior and preferences of customers in this market.

One way to research the market is by analyzing data and reports from government agencies, industry associations, and market research firms. These sources provide valuable insights into the current state of the hardware industry, including market size, growth rates, and key players.

Another way to gather information is by conducting surveys or interviews with potential customers. This can help in understanding their needs, preferences, and buying behavior, which can be used to develop targeted marketing strategies.

Identifying target customers is an important part of market research. This involves defining the specific group or groups of customers that the hardware business wants to serve. For example, the target customers may include contractors, homeowners, or businesses in specific industries.

Once the target customers are identified, it is important to understand their needs, preferences, and buying behavior. This can be done through further research and analysis of the target market. By understanding the target customers, the hardware business can tailor its products, pricing, and marketing strategies to better meet their needs and expectations.

Overall, researching the market and identifying target customers is crucial for the success of a hardware business in the Philippines. It provides insights into the current state of the industry and helps in developing targeted marketing strategies to attract and serve the right customers.

Choosing the Right Location for Your Hardware Store

When starting a hardware business in the Philippines, one of the key factors to consider is the location of your store. The right location can significantly contribute to your success, while a poor location can lead to low foot traffic and slow sales.

Here are some important factors to consider when choosing the right location for your hardware store:

• Accessibility: Look for a location that is easily accessible to your target market. Consider proximity to main roads, highways, and public transportation options. A convenient location will encourage customers to visit your store.
• Demographics: Study the demographics of the area where you plan to open your store. Consider the population density, income levels, and the needs of the local community. A location with a high demand for hardware products is ideal.
• Competition: Research the competition in the area. Look for a location that has a limited number of hardware stores nearby. This will give you a better chance of attracting customers and establishing yourself as a go-to hardware store.
• Visibility: Choose a location with good visibility. A store that is easily visible from the road or has a prominent storefront will attract more customers. Consider locations with high foot traffic or near popular establishments.
• Parking: Adequate parking space is essential for a hardware store, especially if customers will be purchasing heavy or bulky items. Make sure there is ample parking available for your customers.

Remember to also consider your budget when choosing a location. Some areas may have higher rental costs or property prices. It’s important to find a balance between affordability and a strategic location that will benefit your business.

By carefully considering these factors, you can choose the right location for your hardware store and set yourself up for success in the Philippines’ hardware business industry.

Securing Necessary Permits and Licenses

When starting a hardware business in the Philippines, it is important to secure the necessary permits and licenses to operate legally. Here are some of the permits and licenses you may need to obtain:

• Business permits: You will need to register your business with the appropriate government agencies, such as the Department of Trade and Industry (DTI) or the Securities and Exchange Commission (SEC). This will ensure that your business is recognized and allowed to operate.
• Mayor’s permit: This permit, also known as the barangay clearance or municipal permit, is issued by the local government unit (LGU) in the area where your business is located. It is necessary to show compliance with local zoning, safety, and health regulations.
• Fire safety permit: Hardware businesses deal with flammable and hazardous materials, so it is essential to obtain a fire safety permit. This permit certifies that your business has met the necessary fire safety requirements and has adequate fire prevention and fighting equipment.
• Environmental clearance certificate: If your hardware business involves activities that have potential environmental impact, such as handling and disposing of hazardous materials, you may need to secure an environmental clearance certificate from the Department of Environment and Natural Resources (DENR).
• Sanitary permit: This permit is obtained from the local health office and certifies that your hardware store complies with sanitary and hygiene standards. It is important to maintain cleanliness and proper waste disposal to prevent the spread of diseases.
• Occupancy permit: Before opening your hardware business, you may need to apply for an occupancy permit from the LGU. This permit ensures that your building or space meets the structural and safety requirements set by the government.
• Tax identification number (TIN): You will need to register for a TIN with the Bureau of Internal Revenue (BIR). This is necessary for tax purposes and for complying with tax obligations, such as filing tax returns and paying taxes.

It is important to note that the specific permits and licenses required may vary depending on the location and nature of your hardware business. It is advised to consult with local government agencies and seek professional assistance to ensure compliance with all legal requirements.

Selecting and Sourcing Hardware Products

Choosing the right hardware products for your business is crucial for its success. Here are some key points to consider when selecting and sourcing hardware:

• Identify your specific hardware needs: Determine the types of hardware products that are essential for your business operations. This could include tools, equipment, machinery, or supplies.
• Research suppliers and manufacturers: Look for reputable suppliers and manufacturers that offer high-quality hardware products. Consider factors such as price, reliability, warranty, and customer reviews.
• Compare prices and negotiate contracts: Request quotes from different suppliers and compare prices to ensure you’re getting the best deal. Negotiate contracts to secure favorable terms and conditions.
• Consider shipping and logistics: If you’re sourcing hardware products from overseas, take into account shipping costs, delivery timeframes, and import duties. Choose a reliable shipping method and ensure smooth logistics.
• Quality assurance and certifications: Verify that the hardware products meet industry standards and have the necessary certifications. Quality assurance is vital to guarantee the durability and reliability of the products.
• Establish a reliable supply chain: Build strong relationships with your suppliers to ensure a steady and consistent supply of hardware products. Regularly review the performance of your suppliers and address any issues promptly.
• Consider environmental sustainability: Prioritize suppliers and manufacturers that have sustainable practices and offer environmentally friendly hardware products. This can help reduce your business’s impact on the environment.
• Stay updated with industry trends: Keep yourself informed about the latest hardware products and technologies in the market. This will help you stay competitive and adapt to changing customer demands.

By carefully selecting and sourcing hardware products, you can ensure that your business operates efficiently and meets the needs of your customers. Take the time to research and evaluate your options to make informed decisions that will contribute to the success of your hardware business.

Understanding the Different Types of Hardware Products

When it comes to running a successful hardware business in the Philippines, it’s important to have a good understanding of the different types of hardware products available in the market. By knowing the different types of hardware products, you can better cater to the needs of your customers and ensure that you have the right products in stock.

Hardware products can be categorized into several different types, including:

1. Building Materials: Building materials are an essential part of any construction project. This category includes items such as cement, steel bars, bricks, lumber, and roofing materials. It’s important to stock a wide range of building materials to cater to different customer needs.

2. Hand Tools: Hand tools are used for a variety of tasks, from construction and repair work to gardening and woodworking. Some common hand tools include hammers, screwdrivers, pliers, wrenches, and saws. These tools are essential for both professionals and DIY enthusiasts.

3. Power Tools: Power tools are electric or pneumatic tools that are powered by an external power source. They are generally more powerful and efficient than hand tools. Power tools include drills, grinders, sanders, and saws. Having a good selection of power tools is important for customers who are looking for faster and more efficient work.

4. Plumbing Supplies: Plumbing supplies are necessary for any plumbing project, whether it’s a small repair or a new installation. This category includes items such as pipes, fittings, valves, faucets, and toilets. It’s important to have a wide range of plumbing supplies to cater to different customer needs.

5. Electrical Supplies: Electrical supplies are essential for any electrical installation or repair work. This category includes items such as wires, switches, circuit breakers, outlets, and light fixtures. Having a good selection of electrical supplies is important for customers who are looking for reliable and safe products.

6. Paint and Adhesives: Paint and adhesives are used for a variety of purposes, from painting walls to bonding materials together. This category includes items such as paints, varnishes, adhesives, sealants, and caulking. It’s important to have a wide range of paint and adhesive products to cater to different customer needs.

By understanding the different types of hardware products available in the market, you can ensure that you have the right products in stock and provide better service to your customers. It’s also important to stay updated with the latest trends and innovations in the hardware industry to keep your business competitive.

Evaluating Suppliers and Establishing Partnerships

Choosing the right suppliers is crucial for the success of any hardware business. When evaluating potential suppliers, there are several key factors to consider. Firstly, assess their product quality and reliability. It’s important to work with suppliers who can consistently provide high-quality products that meet your customers’ expectations.

Another important factor to consider is their pricing and payment terms. Take the time to compare prices from different suppliers and find the best deal that suits your budget. Additionally, discuss payment terms and make sure they align with your cash flow and financial goals.

Communication and responsiveness are also important qualities to look for in a supplier. You want to work with someone who is easy to reach and is responsive to your inquiries or concerns. Good communication will help establish a strong partnership and ensure a smooth flow of business.

Establishing strong partnerships with reliable suppliers is essential to the long-term success of your business. Look for suppliers who share your values and are committed to delivering excellent customer service. Building a mutually beneficial relationship will not only result in better products and services for your customers, but also open doors to potential collaborative opportunities in the future.

When evaluating potential suppliers, don’t forget to consider their track record and reputation. Check references and reviews from other businesses they have worked with to ensure they have a history of delivering on their promises.

In conclusion, evaluating suppliers and establishing partnerships is a critical process for any hardware business. Take your time to carefully assess potential suppliers based on their product quality, pricing, communication, and reputation. Building strong partnerships will not only help you secure reliable suppliers, but also contribute to the overall success of your business.

Managing Inventory and Ensuring Product Quality

Managing inventory is crucial for the success of any hardware business. It involves keeping track of the products and supplies you have in stock, ensuring that you have enough to meet customer demand while minimizing excess inventory. Here are some tips for effective inventory management:

• Implement a reliable inventory management system: Investing in a good inventory management software can streamline your operations by automating inventory tracking, reordering, and stock level monitoring. This will help you avoid stockouts or overstocking.
• Regularly conduct inventory audits: Conducting regular audits helps you reconcile your physical inventory with your records. This allows you to identify any discrepancies and take necessary actions to resolve them. It’s important to have accurate inventory data to make informed decisions about purchasing and replenishing stock.
• Forecast demand and plan ahead: By analyzing past sales data and market trends, you can forecast future demand for your products. This will help you plan your inventory levels and ensure that you have enough stock to meet customer needs.
• Establish good supplier relationships: Maintaining good relationships with your suppliers is essential for ensuring a steady supply of high-quality products. Regular communication and timely payments can help build strong partnerships, resulting in faster delivery times and better product quality.

In addition to managing inventory, ensuring product quality is another important aspect of running a successful hardware business. Here are some strategies to ensure product quality:

• Source products from reliable suppliers: Partnering with reputable suppliers who prioritize quality is crucial. This will ensure that you are selling products that meet industry standards and customer expectations.
• Perform quality checks: Regularly inspect your products for any defects or damage. This can be done through visual inspections, testing, or third-party quality assurance services. Only offer products that pass your quality standards to your customers.
• Provide product warranties and guarantees: Offering warranties and guarantees can instill confidence in your customers and demonstrate your commitment to product quality. This can also help differentiate your business from competitors.
• Solicit customer feedback: Encourage your customers to provide feedback on the quality of your products. This can help you identify any potential issues and make necessary improvements to ensure customer satisfaction.

By effectively managing inventory and ensuring product quality, your hardware business can gain a competitive edge, attract more customers, and drive growth and success.

Effective Marketing Strategies for Hardware Business

In order for a hardware business to succeed in the competitive market, it is crucial to have effective marketing strategies in place. These strategies will not only help in attracting customers but also in building a strong brand image. Here are some marketing strategies that can be implemented:

1. Utilize social media platforms:

Social media platforms such as Facebook, Instagram, and Twitter are powerful tools for reaching out to potential customers. Create engaging content, post updates about new products or promotions, and interact with customers by responding to their queries or comments.

2. Offer competitive prices and promotions:

Customers are always on the lookout for good deals and discounts. Offering competitive prices and promotions can attract more customers to your hardware business. This can include discounts on certain products, bundle promotions, or loyalty programs.

3. Provide excellent customer service:

Providing excellent customer service is a key factor in retaining customers and gaining their loyalty. Train your staff to be knowledgeable and helpful, and ensure that they are always available to assist customers. Offer after-sales support and ensure that any customer concerns or complaints are addressed promptly.

4. Collaborate with contractors and builders:

Building strong partnerships with contractors and builders can be mutually beneficial. They can recommend your hardware business to their clients, and you can offer special deals or discounts to them in return. This can help in expanding your customer base and establishing your business as a go-to source for hardware products.

5. Participate in local community events:

Participating in local community events can help in creating brand awareness and building a positive image for your hardware business. Consider sponsoring or organizing workshops or demonstrations related to hardware and home improvement.

6. Use traditional marketing methods:

Although digital marketing is crucial in today’s world, traditional marketing methods should not be overlooked. This can include flyers, newspaper ads, or radio commercials. Target specific areas or neighborhoods where your potential customers are likely to reside.

7. Build a professional website:

Create a professional website that showcases your products, provides information about your business, and allows customers to easily contact you or place orders online. Ensure that the website is user-friendly, visually appealing, and optimized for mobile devices.

By implementing these effective marketing strategies, your hardware business will be able to attract and retain customers, build a strong brand image, and ultimately achieve success in the industry.

Creating an Engaging Online Presence

Having a strong online presence is crucial for any business in the digital age. It allows you to connect with your target audience, increase brand awareness, and drive sales. Here are some tips to help you create an engaging online presence for your hardware business in the Philippines:

• Create a user-friendly website: Design a website that is easy to navigate and visually appealing. Include high-quality images of your hardware products, detailed product descriptions, and a simple checkout process for customers to make purchases online.
• Optimize for search engines: Use relevant keywords throughout your website content and meta tags to improve your visibility in search engine results. This will help potential customers find your hardware business when searching for related products or services.
• Engage with customers on social media: Set up profiles on popular social media platforms such as Facebook, Instagram, and Twitter. Regularly post updates, promotions, and informative content to engage with your followers. Respond to comments and messages promptly to show that you value customer feedback.
• Offer online promotions and discounts: Use your online platforms to offer exclusive deals, discounts, or promotional codes to encourage customers to make purchases. You can also run contests or giveaways to incentivize engagement with your brand.
• Create compelling content: Publish regular blog posts or articles related to your hardware business. This content should provide value to your audience, such as DIY guides, product reviews, or industry news. By sharing valuable information, you position yourself as an authority in the hardware industry.
• Invest in online advertising: Consider running targeted online ads to reach a wider audience. Platforms such as Google Ads and Facebook Ads allow you to target specific demographics and locations, ensuring your ads are seen by potential customers who are more likely to be interested in your products.
• Monitor online reviews and ratings: Regularly check review websites and social media platforms for customer feedback and reviews of your hardware business. Responding to both positive and negative reviews shows that you value your customers and are actively working to improve their experience.

By following these tips and continuously monitoring and evaluating your online presence, you can create an engaging and successful online presence for your hardware business in the Philippines.

Utilizing Traditional Advertising Channels

Even as digital marketing continues to rise in popularity and effectiveness, traditional advertising channels still play a crucial role in promoting hardware businesses. These traditional channels provide an opportunity to reach a wide range of potential customers and establish brand recognition in the local market.

One of the most effective traditional advertising channels for hardware businesses in the Philippines is print media. Placing ads in local newspapers and magazines allows businesses to directly target their desired audience. This can be particularly effective for reaching older demographics who may not be as active online.

Another traditional advertising channel to consider is radio advertising. Radio remains a popular form of media consumption in the Philippines, and running ads on popular stations can help businesses reach a large number of listeners in their target market. Craft an engaging and memorable radio ad to increase brand awareness and drive potential customers to your hardware store.

Television advertising is another traditional channel that can be highly effective in promoting a hardware business. Local television programs and commercials provide an opportunity to showcase products and services to a wide audience. Consider partnering with popular local TV shows or channels to maximize the reach and impact of your advertising campaigns.

Last but not least, outdoor advertising is still effective in the Philippines. This includes billboards, banners, and posters strategically placed in high-traffic areas. Utilize eye-catching designs and compelling messages to capture the attention of passersby and generate curiosity about your hardware business.

While digital marketing channels may offer advanced targeting and tracking capabilities, it’s important not to underestimate the power of traditional advertising channels. By utilizing a combination of print media, radio, television, and outdoor advertising, hardware businesses in the Philippines can effectively reach their target market and increase their brand visibility for long-term success.

Implementing Customer Loyalty Programs

One effective strategy for businesses to increase customer retention and encourage repeat purchases is through the implementation of customer loyalty programs. These programs aim to reward and incentivize customers for their continued support and patronage.

A successful customer loyalty program should be well-planned and tailored to the specific needs and preferences of your target market. Here are some key steps to consider when implementing a customer loyalty program:

1. Define your objectives:

Clearly identify what you want to achieve with your loyalty program. Is it to increase customer retention, reward frequent purchases, or encourage referrals? Setting clear goals will help you design a program that aligns with your business objectives.

2. Understand your customers:

Conduct market research to gain insights into your customers’ preferences, behaviors, and purchasing habits. This information will help you structure your loyalty program in a way that appeals to your target audience.

3. Choose the right rewards:

Select rewards that are attractive and meaningful to your customers. These rewards could include discounts, freebies, exclusive access to events or promotions, or even personalized services. Make sure the rewards are valuable enough to entice your customers to participate in the program.

4. Determine the program structure:

Decide on the mechanics of your loyalty program, such as how customers earn points or rewards, how they can redeem them, and any tiered system or membership levels. Keep the program simple and easy to understand to encourage participation.

5. Promote the program:

Create awareness about your loyalty program through various marketing channels, including social media, email marketing, and in-store promotions. Clearly communicate the benefits of joining the program and highlight any ongoing promotions or exclusive offers.

6. Monitor and analyze:

Regularly monitor the effectiveness of your loyalty program by tracking customer participation and measuring the impact on customer retention and sales. Analyze the data to identify any areas for improvement and make adjustments accordingly.

Implementing a customer loyalty program can be a valuable strategy for hardware businesses in the Philippines. By rewarding and incentivizing customer loyalty, businesses can foster stronger relationships with their customers, encourage repeat purchases, and ultimately drive success in the competitive market.

Financial Management Tips for Hardware Business

Running a successful hardware business requires not only proper inventory management and sales strategies but also effective financial management. To ensure that your hardware business remains profitable and sustainable, consider these financial management tips:

• Create a comprehensive budget: Develop a detailed budget that outlines your expected expenses and revenues. This will help you track your cash flow and make informed decisions about resource allocation.
• Maintain accurate financial records: Keep track of all your financial transactions, including sales, purchases, and expenses. Use a reliable accounting software or hire a professional bookkeeper to ensure accuracy.
• Monitor your inventory: Regularly conduct physical inventory checks to avoid overstocking or stock shortages. Implement an inventory management system to track sales, stock levels, and reorder points.
• Control costs: Analyze your expenses and identify areas where you can reduce costs. Negotiate with suppliers for better deals, streamline your operations, and consider alternative suppliers or materials.
• Implement effective pricing strategies: Set your prices based on market demand, competition, and your cost structure. Consider offering promotions or discounts on slow-moving items to improve cash flow and increase turnover.
• Manage your cash flow: Forecast your cash flow to anticipate any potential cash shortages or surpluses. Maintain good relationships with your customers and suppliers to ensure timely payments and manage your payments to suppliers.
• Invest in technology: Leverage technology to streamline your operations, automate processes, and improve efficiency. Consider investing in point-of-sale systems, inventory management software, and online sales platforms.
• Seek professional advice: Consult with a financial advisor or accountant who has expertise in the hardware industry. They can provide valuable insights and guidance to help you make informed financial decisions.

By implementing effective financial management strategies, you can ensure the long-term success and profitability of your hardware business in the Philippines. Regularly review and adjust your financial practices to adapt to market changes and maintain a competitive edge.

Budgeting and Forecasting Sales

One of the key aspects of running a successful hardware business is the ability to effectively budget and forecast sales. This process involves estimating the revenue and expenses of the business over a certain period of time, usually a year. By accurately budgeting and forecasting sales, hardware businesses can make informed decisions about their operations and ensure financial stability.

When budgeting sales, it is important to consider a variety of factors that can impact revenue. This includes analyzing historical sales data, market trends, and the competitive landscape. By studying these factors, businesses can estimate their sales potential and set realistic targets.

Forecasting sales involves projecting future sales based on the budgeted figures. This process often includes making assumptions about factors such as economic conditions, industry trends, and customer behavior. By considering these variables, businesses can anticipate potential challenges and plan accordingly.

There are several techniques and tools that can help businesses with budgeting and forecasting sales. One common method is the use of sales forecasting software, which can analyze historical data and generate accurate projections. Additionally, businesses can also leverage market research and industry reports to gain insights into customer preferences and market demands.

Regular monitoring and analysis of sales performance is crucial in the budgeting and forecasting process. By comparing actual sales figures with the budgeted and forecasted numbers, businesses can identify any discrepancies and make adjustments as necessary. This allows them to stay on track and make informed business decisions.

In conclusion, budgeting and forecasting sales is a vital aspect of running a successful hardware business. By accurately estimating revenue and expenses, businesses can plan their operations effectively and ensure financial stability. This process involves analyzing historical data, market trends, and customer behavior, and using various techniques and tools to generate accurate projections. Regular monitoring and analysis of sales performance is crucial in order to make informed decisions and adjust the budget and forecast when necessary.

Cost Control and Expense Management

Managing costs and expenses is crucial for the success of any hardware business. In order to maximize profits and maintain a competitive edge, it is important to implement effective cost control and expense management strategies. This involves closely monitoring and analyzing all expenses, and finding ways to reduce costs without compromising the quality of products or services.

Here are some effective cost control and expense management practices for hardware businesses:

By implementing these cost control and expense management practices, hardware businesses in the Philippines can effectively minimize costs and maximize profits in a competitive market.

Question-answer:

What are the top hardware businesses in the philippines.

The top hardware businesses in the Philippines include Wilcon Depot, AllHome, and Ace Hardware.

How can I start a hardware business in the Philippines?

To start a hardware business in the Philippines, you need to plan your business, secure the necessary permits and licenses, find suppliers, and set up your store. It is also important to offer a wide variety of products and provide excellent customer service.

What are the challenges faced by hardware businesses in the Philippines?

Some of the challenges faced by hardware businesses in the Philippines include intense competition, rising operational costs, and the need to constantly update product offerings to meet changing customer demands.

Are there any government support programs for hardware businesses in the Philippines?

Yes, the Philippine government offers support programs for small and medium-sized enterprises, including hardware businesses. These programs provide financial assistance, training, and access to market information.

What are the key factors for success in the hardware business in the Philippines?

Key factors for success in the hardware business in the Philippines include having a wide range of high-quality products, providing excellent customer service, and staying updated with industry trends. It is also important to build strong relationships with suppliers and constantly innovate to meet customer needs.

Some of the top hardware businesses in the Philippines include Ace Hardware, Wilcon Depot, and True Value. These companies offer a wide range of products for construction, home improvement, and DIY projects.

What factors contribute to the success of hardware businesses in the Philippines?

Several factors contribute to the success of hardware businesses in the Philippines. These include catering to the growing construction and home improvement industries, offering a wide range of high-quality products, providing excellent customer service, and having a strong distribution network.

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Hardware Shop Business Plan

Free Business Plan Template

Download our free business plan template now and pave the way to success. Let’s turn your vision into an actionable strategy!

• Fill in the blanks – Outline
• Financial Tables

How to Write A Hardware Shop Business Plan?

Writing a hardware shop business plan is a crucial step toward the success of your business. Here are the key steps to consider when writing a business plan:

1. Executive Summary

An executive summary is the first section planned to offer an overview of the entire business plan. However, it is written after the entire business plan is ready and summarizes each section of your plan.

Here are a few key components to include in your executive summary:

Introduce your Business:

Start your executive summary by briefly introducing your business to your readers.

Market Opportunity:

Products & services:.

Highlight the products you offer your clients. The USPs and differentiators you offer are always a plus.

Marketing & Sales Strategies:

Financial highlights:, call to action:.

Ensure your executive summary is clear, concise, easy to understand, and jargon-free.

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2. Business Overview

The business overview section of your business plan offers detailed information about your company. The details you add will depend on how important they are to your business. Yet, business name, location, business history, and future goals are some of the foundational elements you must consider adding to this section:

Business Description:

• General hardware store
• Specialty hardware store (automotive supplies, construction hardware, etc)
• Online hardware store
• Industrial hardware store
• Plumbing hardware store
• Electrical hardware store
• Describe the legal structure of your hardware store, whether it is a sole proprietorship, LLC, partnership, or others.
• Explain where your business is located and why you selected the place.

Mission Statement:

Business history:.

If you’re an established hardware store, briefly describe your business history, like—when it was founded, how it evolved over time, etc.

Future Goals

This section should provide a thorough understanding of your business, its history, and its future plans. Keep this section engaging, precise, and to the point.

3. Market Analysis

The market analysis section of your business plan should offer a thorough understanding of the industry with the target market, competitors, and growth opportunities. You should include the following components in this section.

Target market:

Start this section by describing your target market. Define your ideal customer and explain what types of services they prefer. Creating a buyer persona will help you easily define your target market to your readers.

Market size and growth potential:

Describe your market size and growth potential and whether you will target a niche or a much broader market.

Competitive Analysis:

Market trends:.

Analyze emerging trends in the industry, such as technology disruptions, changes in customer behavior or preferences, etc. Explain how your business will cope with all the trends.

Regulatory Environment:

Here are a few tips for writing the market analysis section of your hardware shop business plan:

• Conduct market research, industry reports, and surveys to gather data.
• Provide specific and detailed information whenever possible.
• Illustrate your points with charts and graphs.
• Write your business plan keeping your target audience in mind.

4. Products And Services

The product and services section should describe the specific services and products that will be offered to customers. To write this section should include the following:

Hardware products:

Mention the products your business will offer. This list may include product categories like,

• Building materials
• Plumbing materials
• Electrical material
• Safety and protective equipment
• Hardware and fasteners

Mention if your hardware store offers any niche-specific services to the customers.

Quality measures

: This section should explain how you maintain quality standards and consistently provide the highest quality service.

Additional Services

In short, this section of your hardware plan must be informative, precise, and client-focused. By providing a clear and compelling description of your offerings, you can help potential investors and readers understand the value of your business.

5. Sales And Marketing Strategies

Writing the sales and marketing strategies section means a list of strategies you will use to attract and retain your clients. Here are some key elements to include in your sales & marketing plan:

Unique Selling Proposition (USP):

Define your business’s USPs depending on the market you serve, the equipment you use, and the unique services you provide. Identifying USPs will help you plan your marketing strategies.

Pricing Strategy:

Marketing strategies:, sales strategies:, customer retention:.

Overall, this section of your hardware store business plan should focus on customer acquisition and retention.

Have a specific, realistic, and data-driven approach while planning sales and marketing strategies for your hardware shop, and be prepared to adapt or make strategic changes in your strategies based on feedback and results.

6. Operations Plan

The operations plan section of your business plan should outline the processes and procedures involved in your business operations, such as staffing requirements and operational processes. Here are a few components to add to your operations plan:

Staffing & Training:

Operational process:, equipment & machinery:.

Include the list of equipment and machinery required for hardware, such as pipe cutters, pipe threaders, showroom displays, and fixtures, pressure testing equipment, cutting and measuring tools, office equipment, etc.

Adding these components to your operations plan will help you lay out your business operations, which will eventually help you manage your business effectively.

7. Management Team

The management team section provides an overview of your hardware shop’s management team. This section should provide a detailed description of each manager’s experience and qualifications, as well as their responsibilities and roles.

Founders/CEO:

Key managers:.

Introduce your management and key members of your team, and explain their roles and responsibilities.

Organizational structure:

Compensation plan:, advisors/consultants:.

Mentioning advisors or consultants in your business plans adds credibility to your business idea.

This section should describe the key personnel for your hardware store, highlighting how you have the perfect team to succeed.

8. Financial Plan

Your financial plan section should provide a summary of your business’s financial projections for the first few years. Here are some key elements to include in your financial plan:

Profit & loss statement:

Cash flow statement:, balance sheet:, break-even point:.

Determine and mention your business’s break-even point—the point at which your business costs and revenue will be equal.

Financing Needs:

Be realistic with your financial projections, and make sure you offer relevant information and evidence to support your estimates.

9. Appendix

The appendix section of your plan should include any additional information supporting your business plan’s main content, such as market research, legal documentation, financial statements, and other relevant information.

• Add a table of contents for the appendix section to help readers easily find specific information or sections.
• In addition to your financial statements, provide additional financial documents like tax returns, a list of assets within the business, credit history, and more. These statements must be the latest and offer financial projections for at least the first three or five years of business operations.
• Provide data derived from market research, including stats about the hardware industry, user demographics, and industry trends.
• Include any legal documents such as permits, licenses, and contracts.
• Include any additional documentation related to your business plan, such as product brochures, marketing materials, operational procedures, etc.

Use clear headings and labels for each section of the appendix so that readers can easily find the necessary information.

Remember, the appendix section of your retail hardware store business plan should only include relevant and important information supporting your plan’s main content.

The Quickest Way to turn a Business Idea into a Business Plan

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This sample hardware shop business plan will provide an idea for writing a successful hardware plan, including all the essential components of your business.

After this, if you still need clarification about writing an investment-ready business plan to impress your audience, download our hardware shop business plan pdf .

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Choose the Right Business Location

Frequently asked questions, why do you need a hardware shop business plan.

A business plan is an essential tool for anyone looking to start or run a successful hardware shop. It helps to get clarity in your business, secures funding, and identifies potential challenges while starting and growing your business.

Overall, a well-written plan can help you make informed decisions, which can contribute to the long-term success of your hardware store.

How to get funding for your hardware shop?

There are several ways to get funding for your hardware shop, but self-funding is one of the most efficient and speedy funding options. Other options for funding are:

• Bank loan – You may apply for a loan in government or private banks.
• Small Business Administration (SBA) loan – SBA loans and schemes are available at affordable interest rates, so check the eligibility criteria before applying for it.
• Crowdfunding – The process of supporting a project or business by getting a lot of people to invest in your business, usually online.
• Angel investors – Getting funds from angel investors is one of the most sought startup options.

Apart from all these options, there are small business grants available, check for the same in your location and you can apply for it.

How do I write a good market analysis in a hardware shop business plan?

Market analysis is one of the key components of your business plan that requires deep research and a thorough understanding of your industry. We can categorize the process of writing a good market analysis section into the following steps:

• Stating the objective of your market analysis—e.g., investor funding.
• Industry study—market size, growth potential, market trends, etc.
• Identifying target market—based on user behavior and demographics
• Analyzing direct and indirect competitors.
• Calculating market share—understanding TAM, SAM, and SOM.
• Knowing regulations and restrictions
• Organizing data and writing the first draft.

Writing a marketing analysis section can be overwhelming, but using ChatGPT for market research can make things easier.

How detailed should the financial projections be in my hardware shop business plan?

The level of detail of the financial projections of your hardware shop may vary considering various business aspects like direct and indirect competition, pricing, and operational efficiency. However, your financial projections must be comprehensive enough to demonstrate a complete view of your financial performance.

Generally, the statements included in a business plan offer financial projections for at least the first three or five years of business operations.

What key components should a hardware shop business plan include?

The following are the key components your hardware shop business plan must include:

• Executive summary
• Business Overview
• Market Analysis
• Products and services
• Sales and marketing strategies
• Operations plan
• Management team
• Financial plan

What's the importance of a marketing strategy in a hardware shop business plan?

Marketing strategy is a key component of your hardware shop business plan. Whether it is about achieving certain business goals or helping your investors understand your plan to maximize their return on investment—an impactful marketing strategy is the way to do it!

Here are a few pointers to help you understand the importance of having an impactful marketing strategy:

• It provides your business an edge over your competitors.
• It helps investors better understand your business and growth potential.
• It helps you develop products with the best profit potential.
• It helps you set accurate pricing for your products or services.

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Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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9 key strategies to growing your hardware business.

Building your hardware supply business can be an intimidating thing to do especially if you are unfamiliar with the trade. But perhaps an opportunity to establish one is very obvious that you don’t want to pass up this chance.

A hardware supply store caters to various needs of customers, whether they’re building a house, decorating it, in the midst of a renovation work or simply addressing the inevitable wear and tear of homes, workplaces or business establishments. Blown fuse, busted light bulb or broken pipe? You got nowhere else to go but the friendly hardware store in the neighborhood.

Table of Contents

Keep an eye on your neighborhood

Most of your customers will come from your neighborhood so it’s best to be mindful of the surrounding and anticipate how can your shop can serve your neighbors’ needs. Is it near a subdivision? Maybe common household items like electrical supplies, plumbing supplies, locks as well as kitchen and bathroom accessories.

If it’s near a school, maybe electrical wires, fuse boxes and fluorescent lamps. Is it near an affluent neighborhood with large lawns? Maybe gardening tools (hose and sprinkler system). If it’s in a neighborhood with tightly-knit households, maybe sealants and locks are some of the what customers are gonna look for.

Doing so will make your shop the go-to place for basic needs your nearby customers will likely look for. Think about the fast moving items to get the business going (though they have low profit margins):

• Steel bars and rods
• Door hinges
• Roofing nails
• Flooring tiles
• Welding rods
• Plumbing material

Be watchful of your competitors

First, define who are your competitors. Are they other hardware shops even if they don’t sell similar products? (They are more on construction supplies and you’re more on electrical accessories and paint.) Are your competitors established and well-known in town? Although these competitors have the potential to drive you out of business, cooperation could be a win-win scenario; your shop complement what they don’t supply and vice versa.

There is little to no point at engaging in war of attrition on price; the public will benefit the low prices but it could be costly to the bottom line of both of your businesses.

Create your own niche

You need to develop your core set of products and make them stand out (competitive pricing, prominent display and wider variety of choices). This will make your shop the household name for such products. Selection of these products depend on various variables such as your target audience (what are their main problems you’d like to solve?), your competition (which products they are not selling that you might provide?).

Research on worthy suppliers to partner with

Should you choose to be a dealer of hardware items or construction supplies? It’s not just about the end users and your eventual customers. Earlier part of the supply chain includes your engagement with your source.

Construction supplies are often arranged in shorter terms (around 30 days) than hardware supplies (around 90 days) so you have a choice between the two types of products. Hardware supplies might allow you to generate more profits than construction supplies which buyers often spend more time comparing prices between you and the competition.

Expand towards other buying channels

Having a standalone shop may be old-fashioned but in the Philippines, it’s still a popular way of selling products (and establishing relationship with your customers). Also, there are thousands of hardware products that physical presence is necessary to check the right product model. Customers often bring a sample of a broken product to try to get the exact replacement.

But this should not stop you from expanding your hardware dealership business online. Setup a website and display your product line / brochure for easy access on mobile phones without having to visit the store. Allow visitors to inquire for stock availability and make orders they can pickup at the store or delivered at their homes.

Having this presence also aids in inventory and customer relationship purposes. You know which products they purchased so you know what items to secure next time they ask for the same model. It also allows you to upsell similar, more profitable products.

Develop your online presence

In addition to more alternatives and convenience for customers, ramp up your presence online. That’s because you cannot rely on your neighbors to be your customers; this segment must be expanded to others outside of your vicinity.

Not only you’ll provide listing of products, provide tips on things that relate to your products. For example, you can write a blog post on decoration tips, how to save money on utility costs, and why you’ll recommend a product you currently sell. Make every effort to solve your current and future customers’ problems and make use of your online presence to do so.

Don’t forget social media presence where you can showcase individual items on Pinterest and attract audience from this platform. Make your Facebook and Twitter profiles active in engaging customers who may ask questions, offer suggestions or even rant about the quality of products you sell. Doing so makes your business so accessible that customers will begin to trust it more.

Add complementary value to the products you sell

The relationship with your customers should not end at the moment they made the purchase. Establish good rapport with them and offer help as needed. Do they need help in replacement of defective electrical wire? Are they looking for plumbers or reliable lipat bahay referrals? Have them handy. Such partnerships help other partners generate business and return the favor to you in the future or share a referral fee if this is in your agreement.

Even when customers don’t buy from your shop, your thought leadership in your domain (and relevant areas such as say, energy savings, product evaluation and others) will be valued highly. The important thing is that in whatever capacity you have, there is that willingness to offer assistance to your customers. At this juncture, customers may be better known as partners.

Stay in season as possible

Like in a sari sari store where seasonality adjustment helps generate extra income, the same applies to the hardware supply business. During sunny summer season, people might spend time sealing leaks in their roofs and replace their attic so a steady supply of Vulcaseal and plywood helps.

During rainy season, hand shovels and cleaning agents afterwards could be in demand.

Serve the community

Companies spend resources on feeding programs, medical missions or collecting trash from the beach. Your company should, in your own capacity, look back and assist the community that helped sustain the business. Donating light bulbs for the park, or repainting its benches are good examples of serving the community. It gives you the chance to reach out to neighbors, learn about their concerns and be of help in whatever you can contribute.

Doing so also builds a bond between your hardware business and your community. Folks will remember what you did, and they’ll remember your store. Going the extra mile in your hardware business might be the edge you’ll have against the competition.

Building your hardware business requires more than exploration of the market such as learning what your customers want, and keeping a look at your competition. Extending beyond what you do is equally important. Building a good relationship with your community and reaching out to a wider spectrum of customer segment sustains the business and earns you a steady stream of loyal customers, er, partners.

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May 11, 2023 • Uncategorized • afinboco

How to Start a Hardware Business in the Philippines

Starting a hardware business in the Philippines can be an exciting and rewarding venture. The growing economy and demand for construction make it a market for entrepreneurs. If you`re passionate about providing quality products and excellent service to your customers, then this business opportunity might be perfect for you.

Understanding the Hardware Industry in the Philippines

Before diving into the hardware business, it`s important to have a good understanding of the industry in the Philippines. The industry in the country has been by projects, estate developments, and consumer spending. According to the Philippine Statistics Authority, the construction sector`s value added grew by 9.5% in the quarter of 2021 to the same in 2020. This a demand for materials, presenting opportunity for hardware to thrive.

Steps to Starting a Hardware Business

Here are the essential steps to help you get started with your hardware business in the Philippines:

Each is in a successful hardware business. By thorough research, a business plan, and the necessary and funding, be on your way to a hardware enterprise.

Challenges and Opportunities

Like any business, starting a hardware store in the Philippines comes with its own set of challenges and opportunities. The market, and requirements is for success. However, with right and customer-focused approach, can these and take of the demand for products in the country.

Starting a hardware business in the Philippines can be a fulfilling and profitable endeavor. With mindset, and execution, can a successful that to the of the industry and to the economic growth.

Legal Contract for Starting a Hardware Business in the Philippines

This is into on [Date], by and [Party Name 1] and [Party Name 2], known as “Parties”. Contract the and for a hardware business in the Philippines.

This the agreement the with to the herein and all discussions, and agreements.

Legal FAQ: How to Start a Hardware Business in the Philippines

Last modified: May 11, 2023

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Starting Hardware Store Business Plan (PDF)

Starting a hardware store business is an incredibly lucrative venture, boasting robust profit margins and a constant demand for its products and services. As the backbone of any community’s building and repair needs, hardware stores serve as essential hubs where customers can find a wide range of tools, construction materials, and home improvement supplies. These stores are more than just places to purchase tools, supplies, and building materials—they are hubs of knowledge, expertise, and essential resources for homeowners, contractors, and DIY enthusiasts alike. In an era of rapid urban development and increasing home renovation projects, the hardware store industry remains resilient and holds significant growth potential.

It is projected that the 21 st century will continue to be characterized by concerted construction activities. That stems, in part, from the projected increase in the global population. Plus, regions that have had mostly archaic infrastructure are being upgraded. Governments and the private sector are stepping up property and infrastructure development projects. Overall, residential, commercial, and industrial domains are experiencing a construction boom. For instance, the most sought-after materials right now are concrete, steel, and wood. All these dynamics are creating a huge market for hardware supplies. Thus starting a hardware retail store is bound to be lucrative owing to the ever-expanding market.  This article will outline how to start the hardware store business, and the hardware store business plan – PDF, Word and Excel.

Market Research

Carrying out market research is essential before starting the hardware store business. Market research involves identifying a market for hardware products and services, including important measurable characteristics. Seek to find out the market size for hardware products and services. Whilst doing that find out the popular products or services being offered. Check out up to date hardware industry statistics to help you in those regards. There are usually major players already operating and you should study them. Find out what kind of hardware products and services they offer. Find out about the market shares they own and control. Take time to also evaluate their customer dynamics. All this will help you zone in on a strategic target market. That is why the other area to look into is consumer attributes. What are the general hardware buying habits of consumers in your intended target market? What do they buy, how often, and how much do they spend on average? What are their source of incomes and their average incomes? Whilst you can get ready-made reports on these details, it would be wise to also conduct surveys yourself. You can unearth more details this way. By putting all these together you get a comprehensive understanding of the market. You should ensure that you have a hardware business plan before you venture into this business.

Location And Premises for a Hardware Store

A significant percentage of the demand for hardware products and services stems from the construction industry. So you can identify a location at or near a steadily growing residential area where people are at various stages of constructing their houses. It isn’t enough to only look at the steady growth of such areas alone. These must be people who generally have substantial income levels such that they can afford to buy your products. So that shouldn’t be overlooked because you might regret it later if you don’t find out about it prior.

Your location must be spacious enough to have parking space that adequately accommodates any type of vehicle i.e. for customers and suppliers. The interior of the hardware complex will also have to be spacious with products well arranged in a way that optimizes customers’ buying experience. The road network surrounding or leading to the complex must be well networked and in good shape to promote ease of access for both vehicles and those walking in on foot. Your hardware store business plan should take into account the cost of purchasing or renting premises.

Permits/Licenses, Insurance & Business Bank Account

It depends on where you will be operating from but a hardware store business has to be licensed. In most cases it starts from the basic business or company registration that is mandatory. Then you will usually need a hardware store license. You will also have to be registered with the applicable revenue authority for tax purposes. Other types of permits or licenses might be needed depending on the nature of the hardware products or services you deal with. There are countless risk factors associated with running a hardware store. Your hardware store would need insurance cover for at least general liability, property, crime, and workers. You can get more comprehensive details from reputable insurance providers. In addition to all this you must open a business bank account for your hardware store. Desist from using your personal bank account for your hardware store operations. Having a dedicated business bank account streamlines taxation and bookkeeping. It also presents an authentic brand image. It shields you from business debt liability thus protecting your personal assets. In cases where you need to apply for funding it increases your chances of being considered. Costs of insurance and licenses should be included in your hardware store business plan.

Products for a Hardware Store Business

There’s a very broad range of hardware products that you can sell in your hardware store. Some of the broad categories are agricultural implements, tool sets, protective clothing, building materials, electrical items, plumbing supplies, ironwork materials. So the range of products you can sell is quite diverse e.g. cement, bricks, paint, steel rods (or bars), pipes, adhesives, timber products, door frames, window frames ceramics, various kinds of associated accessories, water reservoirs, glassware, safety shoes, nuts, bolts, nails, screws, work suits, various assortments of hand tools and so on.

Your product range can start relatively small and grow as you add more products informed by recurring customer needs. Earlier we discussed about doing market research because it greatly helps you in knowing what to put in stock. Obviously your hardware store business plan should include money for purchasing the hardware products. Usually as a business person you might be having financial challenges to startup the business so it would be important to know what’s in demand and start off with that.

Inventory Management

Inventory management (or inventory control) refers to the recording and tracking of hardware stock in your store.  Proper inventory management is key to having a profitable hardware store business. The goal is to maintain an optimum number or amount of all inventory items. You should be able to have in stock what a customer seeks. You should be able to detect in good time hardware items that need to be replenished. If this is not properly done it leads to disruptions in sales thus negatively affecting the profitability of your hardware store business. In this day and age you are better off using inventory management software than using manual approaches. The ideal setup is to have an electronic point of sale system or software (EPOS) for your hardware store business. An EPOS with an integrated inventory management function is the best.

Business Model

The business model is the fundamental framework that outlines how a hardware store operates, generates revenue, and creates value for its customers. In the hardware store industry, the most common business model involves the sale of a wide range of tools, building materials, hardware, and related products to both individual consumers and contractors. This model often relies on maintaining an extensive inventory of products to meet the diverse needs of customers. Revenue is primarily generated through the sale of these products, with profit margins varying based on the type of items sold.

To enhance profitability, hardware stores often adopt a mix of strategies. They may offer additional services such as tool rental, key cutting, paint mixing, or even repair services for certain tools and equipment. These supplementary services not only generate additional income but also create a more comprehensive customer experience, making the store a one-stop destination for various hardware-related needs.

In recent years, hardware stores have also embraced digital transformation by establishing an online presence. This allows customers to browse products, check inventory, and place orders online, which can significantly expand the store’s reach and customer base. Some hardware stores may also explore e-commerce as a complementary revenue stream, allowing them to tap into a broader market beyond their physical location. Overall, the hardware store business model continues to evolve to meet the changing needs and preferences of customers while remaining grounded in providing essential products and services for home improvement and construction projects.

Competitive Analysis

Competitive analysis is the assessment of the differences between your hardware store’s performance and that of its competitors. The goal is to detect and examine the factors that cause those differences. In essence you are studying your competition in order to outsmart them. What you unearth from competitive analysis informs your business strategy. Identify who your competitors are and segment them e.g. primary (major focus), secondary, and tertiary. Assess their place or stake in the market. Then do a comparison of what they offer and what you intend to offer. When doing competitive analysis for your hardware store business, you are not just assimilating information. The thrust is to identify market gaps which will be the openings you need. Lacking in skillsets and experience on the current players can be a market gap. You will also get to notice some outstanding pain points consumers still struggle with. Maybe there could be a hardware niche or niches that are underserved – those are market gaps. Regulatory and legislative aspects can also provide insights into market gaps. The marks of a well done competitive analysis will be you identifying market gaps.

Staff And Management

The effective running of a hardware business requires a significant workforce. As a rule of thumb staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, supply chain management, financial management and inventory management. You’ll need cashiers/till operators, general hands, supervisors, shop attendants and customer attendants as some of the vital components of your operations management team.

The operations team will be central to overseeing the supply chain and inventory management aspects. You must understand that smooth flow of a hardware store business entails consistent monitoring and evaluation of stocks. There’s also a need for a seamless framework for timeous sourcing and receipt of stock from suppliers. Financial accounting is critically important for a hardware business so as to empirically keep track of all transactions.

A hardware shop business also draws more customers when it offers delivery services. Having marketing agents is also strategic because marketing needs serious attention in light of the existence of competitors. As you can see, synching and optimizing all these components together requires a strong and dedicated team. The top management will, depending on scale of operations, constitute of either qualified hired personnel or family members. The hardware business plan should include provisions of salaries for all your workforce.

The major causes of failure of hardware stores include poor financial management resulting in losses. No wonder financial accounting must be thoroughly done when running this business. It’s also encouraged that you conduct stock takes regularly, an exercise that’ll feed into your financial management efforts.

Marketing Plan

Digital marketing must be your biggest focus. Get a website developed for the business to have brand visibility online. Buttress this by setting up active social media accounts on Facebook, LinkedIn, WhatsApp, Instagram and Twitter. Leverage on those platforms’ features such as stories, reels, and status updates to daily send out brand awareness content. Take advantage of print (e.g. fliers, posters, banners) and digital (e.g. e-fliers) media for brand awareness. Aim at exhibiting or being at strategic events such as trade fairs, expos, and the like. Explore options to get featured in strategic publications such as blogs, newspapers, podcasts, radio shows, and so on. Come up with promotionals e.g. discounts. Institute a customer loyalty programme which will be instrumental in boosting word of mouth marketing. Engage social media influencers to tap into large pools of potential customers. Overall, strive to devote at least 5 percent of your revenue towards marketing initiatives. The hardware store business plan should include a proper marketing plan for your business.

Market for Hardware Products

There are several customer sources for a hardware shop. These include building and construction (both new constructing projects and renovations), Do It Yourself (DIY) projects, agriculture industry, electrical and plumbing projects, and maintenance work. Property owners carry out renovations, upgrades, repairs on their properties, and to do that they need hardware products.  Other potential customers for a hardware store business include construction companies, organisations, housing cooperatives, schools, private companies, individuals, farmers and the government.

Keys To Profitability

Starting a hardware store business can be a lucrative venture, but like any other business, success depends on various factors. To ensure profitability in your hardware store, it’s crucial to focus on a few key strategies. First and foremost, effective inventory management is essential. Maintaining the right balance of products, avoiding overstocking or understocking, and regularly reviewing your inventory can help reduce carrying costs and increase your bottom line. Additionally, understanding your target market and offering products that cater to their specific needs and preferences can set you apart from the competition and boost sales. Diversifying your product range is essential. Offering a diverse selection of products, including traditional hardware items, seasonal products, tools, gardening supplies, and home improvement materials, can attract a broader customer base and increase sales opportunities throughout the year. Cost control is another crucial aspect of profitability. Carefully monitor expenses and overhead costs, and regularly review your financial statements to identify areas where you can cut unnecessary spending. Negotiating favorable terms with suppliers, considering bulk purchasing for commonly sold items, can help you secure better pricing on products, increasing your profit margins.

An efficient store layout and visual merchandising are critical. Creating an organized and visually appealing store layout that makes it easy for customers to find what they need can encourage impulse purchases and boost overall sales. Proper signage and strategic product placement can further enhance the shopping experience. Provide exceptional customer service. Customers often return to stores where they receive personalized assistance, expert advice, and a pleasant shopping experience. Well-trained and knowledgeable staff can make a significant difference in customer satisfaction and loyalty. Embracing technology and modernizing your hardware store operations can contribute to profitability. Implementing point-of-sale systems, inventory management software, and an online presence can streamline processes, improve efficiency, and attract a wider customer base. Marketing and promotion are indispensable for drawing customers to your hardware store. Utilize a combination of traditional advertising methods, such as local newspapers and flyers, along with digital marketing techniques like social media, email campaigns, and a user-friendly website. Offering promotions, discounts, and loyalty programs can incentivize repeat business and increase revenue.

Advantages Of A Hardware Store Business

Starting a hardware store business offers several compelling advantages that make it a promising venture in the retail industry. First and foremost, hardware stores benefit from a steady and consistent demand for their products. Whether it’s for routine home maintenance, DIY projects, renovations, or construction work, people rely on hardware stores year-round, providing a reliable customer base that can help stabilize your store’s revenue over time. Providing excellent customer service and a well-stocked inventory can lead to repeat business. Many customers return to hardware stores for ongoing projects, maintenance, or additional supplies. Building a loyal customer base can contribute significantly to long-term success.

Another significant advantage is the diverse product range that hardware stores typically offer. From basic tools and fasteners to power equipment and building materials, these establishments cater to a broad spectrum of customers, including homeowners, contractors, do-it-yourself enthusiasts, and hobbyists. This diversity not only broadens your customer base but also increases sales opportunities, as customers often find a wide array of products under one roof, making their shopping experience more convenient. The business is also very profitable. While individual items may have lower profit margins, hardware stores often make up for it through the volume of sales. High inventory turnover and a consistent flow of customers results in healthy overall profit margins.

Additionally, hardware stores tend to be recession-resistant businesses. During economic downturns, people often prioritize home maintenance and smaller-scale improvement projects, rather than undertaking major renovations or new construction. This inclination toward more modest projects can lead to increased sales for hardware stores, making them relatively resilient in challenging economic times. This stability is a compelling advantage for entrepreneurs looking to invest in a business with long-term sustainability.

Why You Need A Hardware Store Business Plan

A business plan is instrumental in helping you comprehend the profitability of your hardware store business by providing a detailed financial analysis. It outlines the expected revenue streams, including sales projections, pricing strategies, and market demand analysis. Moreover, it delves into the various factors that impact profitability, such as operational costs, volumes sold and markup margins. By quantifying these variables and examining their interplay within the plan, you can gain a comprehensive understanding of the financial landscape, enabling you to make informed decisions, identify potential areas for cost optimization, and ultimately enhance the profitability of your hardware store.

A business plan is also an essential tool for securing funding for your hardware store business. It serves as a detailed blueprint that demonstrates your business’s viability, growth potential, and financial projections to potential investors, lenders, or partners. A well-structured business plan showcases your understanding of the market, competition, and target audience, instilling confidence in financiers about the soundness of your venture. It provides a clear roadmap for how you intend to utilize the funding and achieve your business objectives, giving investors assurance that their investment will be wisely used. In essence, a business plan is your persuasive document that not only attracts financial support but also establishes a sense of trust and credibility, making it a vital tool in securing the funding needed to launch or expand your hardware store.

A comprehensive hardware store business plan is an indispensable asset for those embarking on or expanding their hardware store ventures. It provides clarity of vision, enabling you to define your store’s mission, vision, and objectives clearly. Articulating your business’s purpose and outlining your goals ensures that you and your team are on the same page, working towards a common vision. It also serves as a strategic roadmap, delineating the strategies and tactics essential for your hardware store’s growth and development. This roadmap helps in making informed decisions and acts as a reference point for measuring progress and making necessary adjustments in a dynamic market landscape.

Pre-Written Hardware Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the hardware store business, we encourage you to purchase our well-researched and comprehensive hardware business plan. We introduced the business plans after discovering that many were venturing into the hardware business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global hardware shop business plan will make it easier for you to launch and run your hardware store business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the hardware business.

Uses of the Hardware Business Plan (PDF, Word And Excel)

The hardware shop business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your hardware retail business
• As a hardware store business proposal
• Assessing profitability of the hardware business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Hardware Store Business Plan (PDF, Word And Excel)

The hardware business plan include, but not limited to:

• Industry Analysis
• Marketing Strategy
• Market Analysis
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the hardware business fail, so that you can avoid their mistakes
• Ways to raise capital to start your hardware store business

The hardware business plan package consists of 4 files

• Hardware Store Business Plan – PDF file (Comprehensive Version – 70 Pages)
• Hardware Shop Business Plan – Editable Word File (Comprehensive Version – 70 Pages)
• Hardware Store Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 44 pages)
• Hardware Store Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Hardware Store Business Plan (PDF)

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

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Get the Hardware Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your hardware store business! Check out our collection of business plans  , and more business ideas .

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Hardware Store Business Plan [Sample Template]

By: Author Tony Martins Ajaero

Home » Business Plans » Wholesale & Retail

Are you about starting a hardware store? If YES, here is a complete sample hardware store business plan template & feasibility report you can use for FREE .

So we have considered all the requirements for starting a hardware store. We also took it further by analyzing and drafting a sample hardware store business marketing plan template backed up by actionable guerrilla marketing ideas for hardware stores. So let’s proceed to the business planning section .

If you are looking for a business to start as an entrepreneur and you know you have an interest in running a store, then you should consider starting your own hardware store business. Although you don’t need a college degree to establish your own hardware store, but you would need some form of informal training.

It would help you to learn how to manage your own store. It is important to point out that hardware store business is one the businesses that can’t go out of fashion because of the role it plays in our society.  The startup capital for this type of business can be considered to be moderate.

As a matter of fact, you can start your own hardware store and then grow it big within a short period of time by reinvesting your profits back to the business. Below is a sample hardware store business plan template that will help you successfully write yours without much stress

A Sample Hardware Store Business Plan Template

1. industry overview.

Stores in the Hardware Stores industry primarily retail a broad range of home renovation equipment and related supplies. Products such as hardware, plumbing, electrical and paint-related tools et al are the most commonly stocked goods you will likely find in a hardware store.

If you are a follower of happenings in the industry, you would have noticed that the industry has steadily improved over the five years to 2017. As the housing market has strengthened and consumer confidence has revived, individuals have started home improvement projects that had been put on hold during the recession.

Low mortgage rates during the period have also encouraged individuals to purchase and renovate new and existing homes. This flurry of construction activity has boosted demand for industry products from both contractors and do-it-yourself consumers. Going forward, revenue generated by the Hardware Stores industry is projected to grow at a slower rate.

The Hardware Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics have it that in the united states of America alone, there are about 19,935 registered and licensed hardware stores scattered all across the United States responsible for directly employing about 148,516 people and the industry rakes in a whooping sum of $24 billion annually.

The industry is projected to grow at 1.3 percent within 2011 and 2016. It is important to state that Ace Hardware, Do It Best and True Value Company have the largest chunk of the available market share in the industry. A recent report published by IBISWorld shows that the Hardware Stores industry has moderate barriers to entry.

The report further stated that high startup costs and the saturated nature of the market may deter new companies from entering the industry. Operators that plan to enter this industry need to consider the capital investment required to establish or purchase a store.

For example, to be eligible to join True Value Company, prospective operators must have a minimum of $150,000 unencumbered cash available for investment, while the total investment to open an Ace store ranges from $823,495 to $1,563,495, depending on store size and other variable factors. Of the total investment, $150,000 to $250,000 cash is needed.

The tough part as it relates to start-up costs most likely are the need to establish a supply of hardware and other related goods from wholesalers or directly from manufacturing companies. This is so because a hardware store business cannot be started without sourcing products for sale.

Regardless of moderate barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.

Lastly, the Hardware Stores industry is pretty much open for aspiring entrepreneurs to launch their business. One good thing about hardware stores business is that the business can be opened in any part of the United States and if proper market survey and feasibility studies are conducted, then you can be rest assured of the profitability of the business.

2. Executive Summary

Mike Mendez® Hardware Stores, Inc. is a standard hardware store that will be located in High Street, Short North Arts District, Columbus – Ohio.

We have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the design of the kind of standard hardware store that we intend launching and the facility is located in a corner piece along a major road close to one of the largest residential estates in Columbus – Ohio.

Mike Mendez® Hardware Stores, Inc. will retail products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and lumber and other building materials from different manufacturers in the United States and abroad. We are set to service a wide range of clientele in and around Columbus – Ohio.

We are aware that there are several large and small chains of hardware store outlets all around Columbus – Ohio, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is well secured with various payments of options. Mike Mendez® Hardware Stores, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions that directly affects them.

Mike Mendez® Hardware Stores, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Mike Mendez® Hardware Stores, Inc. is a family business that is owned by Mike Mendez and his immediate family members.

Mike Mendez has a Diploma in Business Administration with over 5 years of experience in the retailing stores industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Columbus – Ohio, but there is a plan to open other outlets in major cities in the United States and Canada.

3. Our Products and Services

Mike Mendez® Hardware Stores, Inc. is in the hardware stores industry to service a wide range of clients and of course to make profits, which is why we will go all the way to make available a wide range of hardware and other related products from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

• Retailing hardware
• Retailing tools and equipment
• Retailing plumbing fixtures and fittings
• Retailing electrical supplies
• Retailing paint and supplies
• Retailing garden products and equipment

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the hardware stores industry in Columbus – Ohio and in other key cities in the United States of America and Canada.
• Our mission is to establish a world – class hardware store business that will make available a wide range of hardware and other related products from top manufacturing brands at affordable prices to the residents of Columbus – Ohio and other key cities in the United States of America and Canada where we intend opening chains of hardware retail stores.

Our Business Structure

Mike Mendez® Hardware Stores, Inc. do not intend to start a hardware retail store business like the usual mom and pop business around the street corner; our intention of starting a hardware retail store business is to build a standard retail store outlet in Columbus – Ohio.

Although our hardware retail store business might not be as big as Ace Hardware, Do It Best and True Value Company et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Admin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Sales Agents / Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Grows management’s effectiveness by employing, selecting, orientating, preparation, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Accountable for providing direction for the business
• Builds, interconnects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process.
• Carries out staff induction for new team members.
• Responsible for training, evaluation and assessment of employees.
• Accountable for arranging travel, meetings and appointments.
• Oversees the smooth running of the daily office cum business activities.

Store Manager:

• Responsible for managing the daily activities in the store.
• Ensures that proper records of hardware and other related products are kept and the warehouse does not run out of products.
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate.
• Interfaces with third – party suppliers.
• Controls hardware distribution and supply chain inventory.
• Oversees the workforce in the hardware sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers are purchased and retailed in good price that will ensure we make good profit
• Accountable for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Accountable for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• In control of financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• make suggestions and encourage purchase of products
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases
• Responsible for cleaning all the products and the store facility at all times.
• Ensures that toiletries and supplies don’t run out of stock.
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our hardware retail store in Columbus – Ohio is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in Ohio and key cities in the United States.

We are quite aware that there are several hardware retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Mike Mendez® Hardware Stores, Inc. employed the services of a Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Mike Mendez® Hardware Stores, Inc.;

Ability to control stock on hand, experienced work force and having a loyal customer base are some of our core strength. So also, our location, the business model we will be operating, varieties of payment options, wide range of hardware and other related products from different manufacturing brand and our excellent customer service culture will definitely count as a plus for Mike Mendez® Hardware Stores, Inc.

A major weakness that may count against us is the fact that we are a new hardware retail store outlet in Columbus – Ohio and we don’t have the financial capacity to compete with multi – million dollars’ hardware retail store outlets like Ace Hardware, Do It Best and True Value Company and co when it comes to retailing at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our hardware retail store in a corner piece property along a major road close to one of the largest residential estates in Columbus – Ohio provides us with unlimited opportunities to sell our hardware and other related products to a large number of individuals.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our hardware store outlets.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new hardware store in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

Recent trends in the hardware industry show that external competition has slightly dampened both industry revenue and profit growth.

Hardware stores have shifted business models to deal with heightened external competition and they will continue to be pressured by online retailers and larger home improvement stores. Experts projected that in 2017, the hardware stores industry is expected to profit from growing global economic conditions.

The hardware retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a hardware retailer to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize hardware stores cut across all genders above 18 years with the financial means, and who own an apartment or office/business hence the target market for the hardware store business is all encompassing. In essence, your target market can’t be restricted to just a group of people but all those who reside in and around our store location.

In view of that, we have positioned our hardware retail store to service the residents of High Street, Short North Arts District, Columbus – Ohio and every other location where franchise cum outlets of our hardware retail stores will be located.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of hardware and other related products to the following groups of people and corporate organizations;

• Construction and Real Estate Companies
• Banks, Insurance Companies and other related Financial Institutions
• Real Estate Owners, Developers, and Contractors
• The Government (Public works department)
• Schools (High Schools, Colleges and Universities)
• Sport Facilities
• Individuals and households

Our Competitive Advantage

A close study of the hardware stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading stores in Columbus – Ohio and throughout the United States. Mike Mendez® Hardware Stores, Inc. is launching a standard one stop hardware store that will indeed become the preferred choice of residents of Columbus – Ohio and every other location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of hardware and other related products from leading manufacturers available in our store at all times. It will be difficult for customers to visit our store and not see the type of hardware they are looking for.

Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a Competitive Advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives.

We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Mike Mendez® Hardware Stores, Inc. is in business to retail a wide range of hardware and other related products to the residents of Columbus – Ohio.

We are in the hardware stores industry to maximize profit and we are going to go all the way out to ensure that we achieve or business goals and objectives. Mike Mendez® Hardware Stores, Inc. will generate income by selling the following products;

10. Sales Forecast

When it comes to hardware retail stores, if your store is well stocked with various types of hardware and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Columbus – Ohio and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the hardware retail industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Columbus – Ohio.

Below are the sales projections for Mike Mendez® Hardware Stores, Inc. it is based on the location of our business and other factors as it relates to hardware retail startups in the United States;

• First Fiscal Year: $250,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Mike Mendez® Hardware Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the hardware retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus – Ohio.

In other to continue to be in business and grow, we must continue to sell the hardware and other related products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Mike Mendez® Hardware Stores, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our store in a grand style with a party for all.
• Introduce our hardware store by sending introductory letters alongside our brochure to residents, businesses and other key stakeholders in Columbus – Ohio.
• Ensure that we have a wide range of hardware and other related products from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our store.
• Position our signage/flexi banners at strategic places around Columbus – Ohio
• Position our greeters to welcome and direct potential customers.
• Create a loyalty plan that will enable us reward our regular customers.
• Engage in roadshows within our neighborhood to create awareness for our hardware retail store.
• List our business and products on yellow pages ads (local directories).
• Leverage on the internet to promote our business.
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals).
• Join local chambers of commerce and industries to network and market our products.

11. Publicity and Advertising Strategy

Despite the fact that our hardware retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our hardware retail store.

Mike Mendez® Hardware Stores, Inc. has a long-term plan of opening outlets in various locations all around Ohio and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Columbus – Ohio before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mike Mendez® Hardware Stores, Inc.;

• Place adverts on community based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers.
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around Columbus – Ohio.
• Distribute our fliers and handbills in target areas in and around our neighborhood.
• Advertise our hardware retail store business in our official website and employ strategies that will help us pull traffic to the site.
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hardware retail stores, it is normal for consumers to go to places where they can get hardware and other related products at cheaper price.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months, our products will be sold a little bit below the average price of various hardware stores in the United States of America.

We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

• Payment Options

The payment policy adopted by Mike Mendez® Hardware Stores, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mike Mendez® Hardware Stores, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our hardware and other related purchases without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard hardware shop in Columbus – Ohio and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Mike Mendez® Hardware Stores, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory  – $350,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up a standard hardware retail store in Columbus – Ohio.

Generating Funds/Startup Capital for Mike Mendez® Hardware Stores, Inc.

Mike Mendez® Hardware Stores, Inc. is a private registered business that is solely owned and financed by Mike Mendez and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Mike Mendez® Hardware Stores, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers (brands) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mike Mendez® Hardware Stores, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of hardware and other related products: In Progress

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Great News ! Mbuilders is Going Global ! april 12-15 taipe Taiwan see you at sunrise business hotel from 8-10am ! Start your own Hardware store and construction supply business today! be part of the 1st fastest growing hardware store chain in the philippines owned by Filipino!

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WHY START A HARDWARE STORE BUSINESS

Things to consider before starting a hardware store business.

 A hardware store typically sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains,electrical supplies, plumbing supplies, cleaning products, housewares, utensils, and paint. They’re designed for DIY consumers and handymen (as well as tradesmen) who need a place to source supplies for projects.

  Who is this business right for? This type of business is usually attractive to handymen, tradesmen, and those who enjoy home improvement activities. The owner should be able to advise customers on purchases and have experience with the products being sold in the store.  Long hours aren’t always necessary, but weekends might be. Having a flexible schedule helps, especially during the first few years of operation.  

What happens during a typical day at a hardware store? Day-to-day activities include meeting with customers on the floor and helping them source materials for their DIY projects. Checking inventory, making purchases from suppliers, and managing staff are also essential aspects of the job.  What is the target market? The business makes money by charging customers for tools and supplies. Usually the price is a fixed price for the item. In the case of items like rope or chain, the store may sell an item by the foot or priced by the yard.  

Most customers pay by credit or cash. It’s important to offer customers a variety of ways to pay you as some volume customers may require credit terms in order to do business with you. Volume orders/clients also allow you to include finance charges or terms in your purchase price. It’s not uncommon for a hardware store to offer terms of 30 days to 60 days for a well-established client. However, these terms can be extended with or without interest. Most customers expect 30 days no interest.  You can establish a policy of charging interest after 30 days to collect more money from customers who need more time to pay.  

How does a hardware store make money? Ideal customers are usually DIY customers or handymen. However, a hardware store can set up trade accounts with local tradesmen to earn consistent business. For example, a store might contract with a professional carpenter to offer supplies for his business on an ongoing basis.  Clients are typically local. Advertising for a hardware store can be done one of several ways, including billboards, Yellow Page ads, pay-per-click local online ads, fliers, and email marketing to an existing customer list.  Email marketing is an underutilized strategy in this industry because most hardware stores rely on word of mouth and foot traffic. However, by emailing your existing customers on a regular basis, you can generate significantly higher revenues than relying on people randomly coming into your store when they need something.  A targeted email campaign would also allow you to better predict revenue and profit. Offer sales around holidays, for example, when business is typically slow. Entice customers with value, not discounts. Show them your own personality. Don’t make the mistake of running a discount-driven business as this only cultivates fairweather customers.

  What is the growth potential for a hardware store? Hardware stores can be run as a small family-run or local shop or as a chain store. For example, Lowes, Home Depot, and other similar stores are large chain stores that operate all over the U.S. A small “mom and pop shop” may only have one location. 

 GETTING STARTED What are some skills and experiences that will help you build a successful hardware store? Running a hardware store requires a strong business sense, but no specific degree or licensing other than local business or state licensing, if required in your state. Most hardware store owners, however, do have experience working for a hardware store, are former construction workers, contractors, handymen, or tradesmen.

  What are the costs involved in opening a hardware store? A small hardware store can be started for less than php. 700,000. Costs include rent for the building, start-up inventory, display setup, and cash reserve for staffing and labor costs. You’ll also want insurance.  Start-up inventory will likely run between 560,000 and 1,322,221. Rent, insurance, and other related costs will vary depending on your locale.  In general, you should not spend more than 20% to 30% of your total revenue on rent. Insurance should cover liability as well as loss of your inventory. Premiums for that insurance should make up no more than 5% to 10% of the total value of your business.  

What are the steps to start a hardware store? Once you're ready to start your hardware store, follow these steps to ensure that your business is legally compliant and avoid wasting time and money as your business grows:  Plan your business. A clear plan is essential for success as an entrepreneur. A few important topics to consider are your initial costs, your target market, and how long it will take you to break even. Form a legal entity. Establishing a legal business

  How to promote & market a hardware store Getting new customers usually involves networking with existing contacts and spreading the word through local advertising. A hardware store is highly dependent on local business from the community. So, partnering with other businesses and advertising your hardware store might help spread the word faster. For example, ask local restaurants, and other retail stores, if you can advertise in their store in exchange for a discount on products in your store.  Not only does this build goodwill in your local community, the advertising can be positioned more as a referral from the existing local business rather than paid advertising in a neutral medium, like radio or television. 

  Recommended: Get started with local advertising for your business with a $300 credit from Yelp.  How to keep customers coming back Specialization and company culture are the best ways to differentiate yourself from the competition. Another way to stand out in the crowd is to set up a website, capture the names and email addresses of your customers, and send them daily DIY tips. These tips can (and probably should) come from your own personal experiences. They don’t have to be long emails, but something to keep you in the forefront of your customer’s minds so that when they need something you sell, they think of you first.  

How and when to build a team Unless you are confident in your abilities to run a one-person shop, you’ll probably have to open your business with a small staff of at least 3 people. Ideally, you’ll want a person who can man the floor and help customers, someone to do bookkeeping, and a manager.  LEGAL CONSIDERATIONS State & Local Business Licensing Requirements In most states, it is necessary to obtain a Hardware Store license. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits. 

 How much can you charge customers? Hardware stores charge per inventory item. As such, there is no set price for all items in the store. When figuring out how much you should sell your items for, check your local competition or give yourself a gross margin on COGS of at least 40% (which is the industry average).  What are the ongoing expenses for a hardware store? Ongoing expenses for this type of business include supplies, rent, utilities, and insurance. All of these costs will vary significantly depending on your location. 

 How much profit can a hardware store make? Typical operating profit is between 25%-300%  with a net profit before taxes of between 25%and 40%.  

How can you make your business more profitable? Making the business more profitable would involve supplementing your main source of income with other related services. For example, if you sell carpeting or tools and supplies for carpeting, you might partner with a local carpenter and offer installation services. You could do the same for window, door, roofing, or other major project.  Another way to make the business more profitable is to offer related products like planting or gardening supplies, which can be a supplemental source of revenue to your main product lines. 

This is a long form text area designed for your content that you can fill up with as many words as your heart desires. You can write articles, long mission statements, company policies, executive profiles, company awards/distinctions, office locations, shareholder reports, whitepapers, media mentions and other pieces of content that don’t fit into a shorter, more succinct space.

Articles – Good topics for articles include anything related to your company – recent changes to operations, the latest company softball game – or the industry you’re in. General business trends (think national and even international) are great article fodder, too.

Mission statements – You can tell a lot about a company by its mission statement. Don’t have one? Now might be a good time to create one and post it here. A good mission statement tells you what drives a company to do what it does.

Company policies – Are there company policies that are particularly important to your business? Perhaps your unlimited paternity/maternity leave policy has endeared you to employees across the company. This is a good place to talk about that.

Executive profiles – A company is only as strong as its executive leadership. This is a good place to show off who’s occupying the corner offices. Write a nice bio about each executive that includes what they do, how long they’ve been at it, and what got them to where they are.

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Sample Hardware Store Business Plan

Do you wish to develop a hardware store business plan?

The success of such a great business idea largely rests on a strategy or plan .

The absence of such a plan is bound to affect the business development. As a crucial tool to business success, we’ve provided a template to follow in writing your hardware store business plan.

HARDWARE STORE BUSINESS PLAN SAMPLE

By following the key sections included you’re able to put in place a streamlined plan of action. Of course, your hardware store business plan needs to be implemented in the letter.

Here, we’ll be discussing all of that and more. We welcome you to read on to find such details.

A Good Hardware Store Business Plan Must have these Sections

Before we go any further, it’s pertinent to provide a framework around which the plan will be written. Here, we’re talking about must-have sections that are key to a good plan.

These include the executive summary, company description, and the products & services sections.

Others are the market analysis, strategy & implementation, organization & management team as well as the financial plan & projection sections.

i. Executive Summary

As a brief introduction and summary of your hardware store business plan, this section should be concise enough to grab the attention of your reader.

Here, you want to give them a reason why they should read through your entire plan.

The executive summary clearly defines whether the business idea is viable or not.

More importantly, it provides an implementable plan of action that is systematically followed. To make it quick and easy to read, your executive summary should have an average of one to four pages.

You want your executive summary to make up about 10% of your entire business plan. Within this section are key subsections such as the business name & location as well as the products & services sections.

Others include the mission & vision statements, and the purpose of the plan.

Business Name & Location

What’s the identity of your hardware store business? Of key importance is the name it will go by. Another detail that needs to be included in its location.

With this information, the reader understands your business from very scratch.

Products & Services

Although there’s a product and services section in the wider plan, this must also be included in your executive summary. Now, only the basics need to be captured here.

For a fuller detail of all products and services offered by your hardware store, the reader will need to read the plan.

You’re expected to have worked out all your hardware store products and/or related services well in advance. This may require research on your part. Ensure the basics are captured under this section.

Mission & Vision

This section explains crucial areas of your plan. The mission and vision statements set the performance standards for your hardware store business plan. What more?

They help provide employees with set goals to attain, thus promoting efficiency.

Your mission statement should be action-oriented in nature.

Here, an explanation of your business’s purpose and what benefits it has for clients is provided. It should also include your business’s goals and its core functions.

Your vision statement should give a vivid mental image of your hardware store business. Here, the image of what you intend to be at some point in the future is provided. This is largely based on your goals and aspirations.

Purpose of the Plan

What’s the purpose of your plan? Every business plan has a purpose and yours shouldn’t be any different.

Whatever it is, it must include set strategies and attract investors.

ii. Company Description

The company description section of your hardware store business plan focuses on key areas such as the legal structure, the business’ history, as well as the needs you intend to meet. What more?

Consider including an overview of products and services and also a company growth summary.

Another detail that must be added is your short and long-term business goals. More importantly, you’ll need to show investors your plans for making a profit.

iii. Products & Services

This was earlier discussed as a subsection under the executive summary.

Here, you’ll need to add all the important details like the description of such services and products. Information on the market role of your products as well as its advantages must be stated.

What’s the life cycle of your hardware products? All relevant information on patents, copyright, or trade secrets should be added. Are new products in the works?

Include information on any or other ongoing developmental activities.

iv. Market Analysis

In this section of your plan, you’ll need to show significant industry knowledge.

This level of understanding largely depends on thorough market research. Here, you’ll be providing a representation or sketch of targeted market segments.

A description of the hardware store industry will also be in order. Its outlook, as well as supporting statistics, are also necessary to gain a fuller and more robust understanding of what your business is about.

Also include information on historical, current, and projected marketing data for services and products.

An assessment of your competitors is also in order. Here, you’re looking at their strengths as well as weaknesses.

v. Strategy & Implementation

With the help of an operating plan, you’re able to implement your sales and marketing strategy.

Under this section, you’re looking at costing details, pricing, promotion as well as distribution or logistics. Your strategy and implementation section must also provide promotion details and how your products will enter the market.

How will your hardware store business function? Include details on labor sources as well as the number of employees.

vi. Organization & Management Team

This is the bedrock upon which every business is structured.

Your hardware store business will need an efficient management team in place. Provide details on this by including an organizational chart with key employees highlighted.

There should be additional information on owners, their names, percentage ownership, as well the extent of their involvement. Include a profile of your management team with names, positions, responsibilities, and experience provided.

vii. Financial Plan & Projections

The financial plan and projections section is a crucial component of your hardware store business plan. Here, the help of a financial expert such as a professional accountant is needed.

Details to include are the historical financial data with balance sheets, income statements, and cash flow statements spanning the past three to five years.

There should be realistic prospective financial data. This includes balance sheets, forecasted income statements, cash flow statements, and capital expenditure.

With all of these key sections and details included in your hardware store business plan, your chances for success are greatly improved.

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Hardware Store Business Plan

This is a free, printable business plan outlining the necessary services, organization and market strategies for hardware store owners and those working in the retail sector.

Sample text from Hardware Store Business Plan:

1.0 Executive Summary

[COMPANY NAME] will be a sole proprietorship owned by [NAME]. The Company is a start-up as [NAME] will purchase the rights to the existing location for $75,000. Upon purchase of the rights, the Company will demolish the existing structure and build a new State of the Art hardware store.

[COMPANY NAME] will be a standard general hardware store that offers the parts, material, and advice to tackle any home repair, as well as lawn care. The primary focus will be to satisfy the seasonal needs of the area's customers.

The Company will service the hardware and repair needs of the [COUNTY], [COUNTY], [COUNTY] and [COUNTY] County households. The Company would like to increase sales in all market segments above with a concentration of growth in sales to homeowners who do their own repairs.

The focus of this business plan is to put forth objectives to launch operations, work efficiently and effectively, and expand internal operations giving the Company the opportunity to grow with sales growth in the surrounding County areas. [COMPANY NAME] is ready to elevate to the next step. The Company is seeking grant funding in the amount of $600,000. The grant funding will be used to launch operations including purchasing the existing land & business, construction of a new Building and purchasing equipment and displays for the store. Additionally, the Company will purchase the opening inventory, develop a website and launch an advertising campaign.

1.1 Objectives

[COMPANY NAME] has the following objectives.

1. Obtain Grant funding to purchase an existing hardware store and rebuild the retail space.

2. Customer Service - Give our customers the highest quality product and service at a fair competitive price.

3. To create a safe environment for people in the community to come for their hardware store needs.

4. To provide jobs within the community.

5. To successfully manage a hardware store.

1.2 Mission

The mission of [COMPANY NAME] is to offer quality hardware products in a customer-friendly shopping environment. Our customers will get assistance quickly and will leave the store prepared to get the job done right the first time. [COMPANY NAME] will also focus on anticipating the seasonal needs of its customers and providing the best products at competitive prices.

1.3 Keys to Success

The keys to success for [COMPANY NAME] are:

1. Location: [COMPANY NAME] will be assuming ownership of an existing hardware store. The Company plans to demolish the existing building and build a new State of the Art hardware store. We will have an existing base of customers.

2. Seasonal Products: Each season has it own unique demand on a homeowner. [COMPANY NAME] will focus on this pattern and bring in local customers by marketing these items at competitive prices.

3. Repair/Project Resource Area: The first section customers will find when they enter is a repair/project resource area that they can use to plan repairs or projects. There will be a repair/project resource person to answer questions and direct them to the section of store where the needed products are.

4. In-Store Expertise: Store employees will be knowledgeable in home repairs/projects. In addition, the repair/project resource area will be used to conduct short trainings and demonstrations in home repair and home projects.

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Hardware Retail Franchise Business Plan

Start your own hardware retail franchise business plan

Hisarlik Hardware

Executive summary executive summary is a brief introduction to your business plan. it describes your business, the problem that it solves, your target market, and financial highlights.">.

Last year  Wilusa Magazine surveyed current downtown residents and found that hardware stores are one of the top ten things needed to make downtown a great place to live.  The same reasons that make downtown a great place to live also make it a great place to work. 

The demographics of home ownership have changed radically in downtown Indianapolis.  Today’s hardware store, which more and more is dominated by the “big box stores”, is cold, uninviting, and usually involves substantial driving time from downtown Wilusa.  Hisarlik Hardware is uniquely positioned to take advantage of this new fact of life.  Conveniently located to serve the Troas, Sinope Bay, Miletus Square, and Lycia areas, as well as all of Arazawa Township, Hisarlik Hardware offers parts, materials, and advice to tackle any home or do-it-yourself (d-i-y) project, whether the customer is a complete novice or a contractor.  The focus is on helping the customer identify what they want and need as soon as they enter the store. 

Through the use of superior personal customer attention, great product selection, and reasonable prices, Hisarlik Hardware will capitalize on this promising opportunity.  A location is being secured that offers excellent traffic with a built-in magnet for urban dwellers–downtown’s only grocery store sharing the parking lot.  The Building Blocks parent organization will help efficiently lay out and plan the store to increase sales and give the customers the utmost in attention.  Hisarlik’s management team has a wealth of business, financial, and mechanical experience that will ensure a great investment and the overall success of the venture.  The projected growth rate for Hisarlik Hardware is quite steady and has the potential to grow exponentially along with the increase in residential development downtown. 

Hisarlik Hardware will produce positive cash flow its first year of operations.  Hisarlik will also produce a net profit in its first year of operations.

1.1 Objectives

There are four major objectives of this business plan, of which three are immediate and the fourth is of a longer-term nature.

• Determine the feasibility of a downtown hardware store.
• Develop the strategy to open, manage and grow a profitable downtown hardware store venture.
• Establish a firm budget to operate and manage the business from concept to start up to operation, with good cash flow and consistent profits.
• Explore potential growth in downtown market and evolve new sources of business.

1.2 Mission

Hisarlik Hardware’s  mission is to create a downtown hardware store that is reliable and convenient.  A store that offers great service and selection of hardware and home improvement products in a customer friendly environment.

Hisarlik Hardware will cater to downtown residents, downtown property managers, downtown businesses, contractors, and suburban commuters.  Our customers will become loyal because of the great advice, prompt service, good staff attitudes, the overall quality of the shopping experience, and the fact that we consistently have solutions for their needs.

1.3 Feasibility of the Business

Hector Priamson and Troy Enterprises went through a long and thorough process of looking at different business ventures that would allow them to go into business and be a long-term success.  Through this process retail hardware became a potential opportunity.  The following items are considered “must have” items in order to make Hector Priamson and Troy Enterprises  not only feasible, but a tremendous success. 

• An industry that is healthy, resistant to economic swings, and allows an entrepreneur to influence the stores results.
• A market that can deliver the kind of potential that will allow a store to be profitable.
• A store location that will be easy for customers to find, allow easy access, plenty of parking and have economic terms that allow the store to be successful. 
• A successful and cooperative “partner”, such as Building Blocks, a national hardware co-operative, that will help research, plan, market, and operate a hardware store.
• A financial package that would allow the business to begin operations and operate in terms that would be realistic and successful for all involved whether it was private investors or the bank.
• Participants must possess the business skills, a strong work ethic, and a level of competitiveness required to make the business a success. 

Building Blocks  provides all of the tools and Hector Priamson possesses the financial, entrepreneurial, mechanical, and management skills needed to be successful in this business. 

1.4 Keys to Success

• Hardware Industry:   The Home Improvement industry has been consistently growing at a rate of 7% per year for the past decade according to the US Department of Commerce, with total US Sales of over $313 billion in 2002. While the economy has fluctuated up and down over the past decade, the growth of the hardware industry has continued to grow at the same pace.  The “Big Box” stores have also created a “Do-it-yourself” mentality in this country, a mentality that has a positive effect on the independent hardware store.
• Location:   The proposed location for  Hisarlik Hardware  is Troas Marketplace, a retail and commercial property on the corner of E. Anglia St. between N. Umberland St. and N. Mercia Blvd.  Troas Marketplace primary tenants are Scamander’s Food Market located across the parking lot and Buckbasket Cleaners adjacent to the proposed site.  Scamander’s is a huge draw.  Scamander’s is the only grocery store in downtown Wilusa.  The location of this store is known to all downtown residents, one block from the trendy and hip Wessex Avenue.  The Troas Marketplace offers plenty of parking, very important for a downtown location, as well as easy access to the parking lot from E. Anglia St. or N. Mercia St.  E. Anglia St. is a major eastbound thoroughfare east of downtown.
• Urban Products:  The location in downtown Wilusa will require a different product mix than a suburban store.  There will be a unique product demand from urban dwellers.  Building Blocks will be a big part of determining the mix of products that will be right for the urban market through their IAIS program (Inventory Always In Stock).  Hisarlik Hardware will be in touch with, and focus on, the downtown urban market, delivering products that are applicable to local customers, and marketing these items at competitive prices.
• Commercial Customers:    Hisarlik Hardware will also focus on becoming the hardware products source for every building and business in downtown Wilusa.  We will work hard to establish relationships with property managers and service personnel.  There are also plans to set up a delivery service to the downtown business market making it even easier for customers to get the products they need, when they need them.  While Hisarlik Hardware may be convenient and easy to access, potential customers may not find it to be convenient to leave their offices.  There will be an emphasis to establish business accounts for each of these customers to make doing business easy for them.
• Building Blocks :  It is crucial to have a co-op like Building Blocks behind efforts to open a store like Hisarlik Hardware .  They provide all of the tools to be successful in the hardware business including research, floor plans, marketing, and systems and instructions for operating a hardware store.  To become a Building Blocks Member (Member of the Building Blocks Co-op) really means they will provide an entrepreneur a “business in box”, yet allow the members to control their own business.  There are extensive marketing programs that have been built based on input from members to help generate sales, increase traffic and ultimately increase profits.
• Repair/Project Resource Area:   Hisarlik Hardware will leverage the strength of an established reputation for superb service built by other Building Blocks Co-op member stores.  It is a reputation that has positioned Building Blocks to be the leading independent hardware stores (from Consumer Checkbook , Aug 2003), and filling the gaps in the “Big Box” retailers one-size-fits-all offerings.  The Resource area will allow the customer to ask for help or directions as they enter the store.  This area will also offer assistance as they start a project, help in finding what they need, sharing know-how in completing a project, and advice on how to get a project done.  Store employees will be knowledgeable in home repairs/projects, home improvement, and mechanical repair and retro-fit.  In addition, the resource area will be used to conduct short training sessions and demonstrations in home repair and home improvement projects.
• The Tool Room Rental :   A rental business will be established under the Building Blocks’ “The Tool Room Rentals” tool rental program.  This will not only help with the initial cash flow, but will also be a source of additional sales as every tool will need accessories to go with the rental.  We will also think about party rental items to be included in the rental inventory.  Building Blocks will aid in developing the right rental product mix for this urban market.

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Company Summary company overview ) is an overview of the most important points about your company—your history, management team, location, mission statement and legal structure.">

In the company summary section, we will review the Troy Enterprises business and corporate entity and ownership, the role of Building Blocks in the business, the proposed location, and the start-up costs and funding.

2.1 Start-up Summary

Hisarlik Hardware has worked very closely with Building Blocks Hardware  to establish a detailed start-up cost list.  Building Blocks’ knowledge, track record and expertise have been invaluable in setting up this venture.

2.1.1 Start-up Expenses

The start-up costs of Hisarlik Hardware,  as detailed below, will consist primarily of inventory, equipment and fixtures.  Hector Priamson will invest cash, benefits and labor to the start up.  Investors will contribute substantially.  The company will secure an SBA 7(a) loan to be paid back on a 7-year amortization.

There is an amount budgeted for leasehold improvements which is intended to make minor modifications to the proposed site to prepare it for opening.  These improvements include replacing missing ceiling tiles and cleaning, polishing, or redoing the floor tile.  It is anticipated that the new floor tile can be laid over the existing tile at a substantial savings with no loss in quality or durability.

2.2 Building Blocks’ Role

With the merger of Kadmus, Homer & Company and Delphi/Ouroboros,  Building Blocks  is a cooperative comprised of members who are entrepreneur-retailers.   Building Blocks  is committed to empowering the independent retailer by setting industry and market standards with their niche businesses and unique brand of creative marketing, wide product assortment, award winning merchandising and technology, and quality training and business expertise.   Building Blocks’  buying power of more than $2.5 billion annually helps pass on benefits to independent members. 

Building Blocks has been a world leader in the hardware industry in product selection and customer service for do-it-yourselfers since 1948.

Vision To be the best-in-class provider of products and solution choices that drive our members’ and our co-op’s profitability.  Mission To provide: Choices of retail and commercial solutions to drive members’ sales and profits Assortments to support the solutions Operational excellence in the delivery of products and solutions

2.2.1 Market Reseach

Building Blocks has a wealth of experience and know-how on opening new hardware stores, with 6,567 stores worldwide.  Building Blocks has become a leader in determining what factors make a hardware retailer successful. 

Building Blocks currently uses a service called Yorikle.  This service is used to define the demographics and the expenditure potential of new markets.  For Hisarlik Hardware , the report was run on a one-, two-, and three-mile radius around the proposed location.  The report showed an exceptional amount of business (only reporting households, the study does not include property managers, businesses, or commuters), especially considering that there is no direct competition in the area.  The reports also get very specific as far as what the potential market is for hardware overall as well as specific categories within a store.  There are also numbers reports for the expected growth in the area over the next five years.

2.2.2 Planning

Building Blocks supplies professional design services to maximize merchandisable space and traffic flow.  Services include fixture plans, interior signage and decor, merchandising plans, lighting, basic site plans, and exterior storefront elevations. These plans are custom developed for each location and each store’s footprint.  The associated costs are included in the start-up costs.

A unique plan will be done for the proposed site for Hisarlik Hardware .  This process will begin as soon as the lease for the property is signed.

2.2.3 Support

Building Blocks provides a variety of support to all current members as well as prospects seeking to join the co-op.  The support comes to members in the form of retail consultants, knowledge, profit building programs, retail automation, training, advertising & promotion, a national brand, buying power, semi-annual markets, and an operations and distribution network.

Retail Consultant

Every member and prospect is assigned a retail consultant who works with them on an ongoing basis.  There is also a retail operations specialist who helps prospects open new stores.  There are regional marketing staff that are available as well as individual Building Blocks staff for individual marketing programs.

All specialists share their wealth of personal knowledge as well as having access to  Building Blocks’ cumulative knowledge and experience.  Building Blocks has made this model work since 1948.  It works very well and enables members to be very successful business people and has made Building Blocks the largest retail hardware co-operative in North America.

Proven Profit Building

Building Blocks makes available a large number of programs that entrepreneurs can choose to participate in.  They include retail pricing systems, electronic order entry systems, commercial and industrial sales, category specific planograms, and direct mail circulars, just to name a few. 

2.2.4 Retail Automation

Building Blocks leads the industry in automating their stores.  Building Blocks has brought their stores into the future with the automation which is made available to members.  This is a strength of Building Blocks and a service that is available to all of their members.  This automation helps the members in many different ways including inventory control, ordering, sales, and accounts receivable, all tied together in one system called Delian .

Experienced technical support personnel work with members to ensure current retail automation capabilities are compatible with Building Blocks’ existing system.  Building Blocks’ existing system is Delian, an industry leading software program based on Triad Eagle for Windows platform.   Delian is an easy-to-use, easy-to-learn tool that contains up-to-the-minute ordering and inventory accuracy, point of sale, accounts receivable, and much more.  It contains all the daily business tools needed to manage Hisarlik Hardware .

• Inventory:  Building Blocks’ industry leading retail merchandise approach is designed to organize a store’s departments, maximize space by removing non-selling inventory, ultimately freeing up valuable floor space.  This unique concept accommodates the needs of customers by featuring the right merchandise assortment proven to increase overall profits.  Category specific guidelines and planograms maximize retail sales and inventory turns.  IAIS is based on the best selling items from the most successful Building Blocks stores.
• Ordering:  Building Blocks has made ordering easy.  The Delian program helps track the needs and generates the necessary inventory levels.  Orders can be placed through the Building Blocks e lectronic order Entry System. 
• Pricing:  Building Blocks’ Retail Pricing System enhances the ability of each store to maintain a competitive price image while maximizing profitability.  Building Blocks’ Retail Consultant will help establish retail pricing which results in increased sales opportunities and profit margins based on downtown Wilusa. 

2.2.5 Training

There are five core programs for new store owners which make up the initial training.  They are:

• Certificate of Business Management
• Certificate of Marketing Management
• Certificate of Ownership Management
• Certificate of Retail and Sales Management
• Certificate of Human Resource Management

When a member opens a The Tool Room Rentals business there is also required training that applies only to The Tool Room Rentals .  There is also a wide range of do-it-yourself programs that are on CD-ROM and video.

2.2.6 Advertising and Promotion

Building Blocks’ marketing programs are second to none in the industry.  They include every tool needed to be successful in the retail hardware business.  They include Power Events, interior and exterior signage, online programs, and custom circulars.

Every member store is assigned a field marketing manager.  The marketing manager makes the members aware of the marketing tools available and how best to use them.

There are marketing strategy programs, programs that increase traffic, increase transactions, and those that merely build the brand.  All are made available, and it is the savvy member who uses the right programs and spend their advertising dollars best.  Based on the marketing experience  Hisarlik Hardware has, this is a strength most start-up businesses do not possess.

• Marketing Strategies:  The field marketing managers work with each member to determine the needs and issues for each store.  They look at the market penetration and awareness in the market.  As this information is gathered, a list of strengths and weaknesses is developed and programs designed to work on each of the objectives.  A very basic local store marketing tool kit is given to each member.  This is designed to show members what has been successful and basic marketing information that can be used on the local level.  There are also national programs that support what is done on a local level.  They include national television, radio, and newspaper.
• Increasing Traffic:  Building Blocks has also developed programs designed to drive traffic to the stores.  They include bargain of the month, circulars, Yellow Page programs, and local television, radio and newspaper.  Circulars play a huge role in local advertising.  There are three ways to get the circulars in the hands of the consumer, newspaper insertion, ADVO circular distribution and direct mail.  Each of these programs have different costs associated with them and different penetration in the market.  Circulars can be designed for an individual store.  They are all customizable and can be generated in any volume necessary.  Building Blocks also plans four Power Events throughout the year which are nationally advertised programs supported by television, radio and print.  In 2003, Building Blocks saw a significant increase in traffic and bottom line during each of the Power Events.
• Increasing Transactions:  Programs have been developed to increase the amount of each transactions.  There are display shelving end caps, wing panels, and clip strips that help increase sales on these specially priced items.  There are also online sign making programs that help members produce professional signs and save money on creative and printing jobs.  Muzak is a program of in-store audio and messaging which customers cannot ignore, and that drives them to specials and promotions they may not have been aware of.
• Brand Building:   The brand building programs are designed to reinforce the established Building Blocks name, both on the interior and exterior of the store.  Programs have also been designed for vehicle graphics.

2.2.7 National Brand

For over 40 years, the name Building Blocks has stood for trust, service and fair prices.  Building Blocks’  brand positioning statement is “ Building Blocks is the best place to get just what you need to complete home repair and maintenance projects quickly and easily.”  It is a name with heritage and integrity.  Consistent national media and the fact that Building Blocks is the largest co-op of independent hardware store owners, has established Building Blocks as a recognizable name in retail hardware.

The bottom line is people know that the Building Blocks name means hardware.  That is an asset new businesses work for years to establish.

2.2.8 Buying Power

An independent hardware store cannot compete in the current market, without a co-op behind them.  A Building Blocks member has the benefit of $2.5 billion in buying power which is passed on in savings and profits.  That makes Building Blocks the largest co-op of its kind in North America.

This is the main factor in making sure all Building Blocks members are getting products at the best possible prices to enable them to maximize profits.

2.2.9 Semi-Annual Markets

Building Blocks holds semi-annual markets where members can buy products and plan purchases for the upcoming seasons.  Markets are held in March (Fall/Winter) and October (Spring/Summer).  Members are informed of new items and trends in the industry at these markets enabling them to make good purchasing decisions.  There are also programs which allow members to make purchasing commitments at large cash savings.

2.2.10 Operations and Distribution Network

Building Blocks has established a network of strategically placed distribution centers throughout the United States to assure timely deliveries regardless of where the store is located.  Trucks deliver at least once per week and twice if necessary.  This is a huge benefit, because this process allows excess inventory to sit in the distribution center as opposed to the store shelves.  Over 64,000 items can be purchased on a per piece basis enabling stores to get whatever quantity is needed at any time.

2.3 Company Ownership

Troy Enterprises, Inc.  is a privately-held S corporation, currently 100% owned by its founder and president, Hector Priamson and his wife Andromache Eetion.  The company will be operating under the name of Hisarlik Hardware.   There are expected to be investors in the new venture.  Individual investors will own no more than 15% of Troy Enterprises, Inc.   These investors will provide investment in the way of seed cash to help start the business and none of the investors will be active participants in any management decisions. 

2.3.1 Hector Priamson

Troy Enterprises, Inc. founder and president is Hector Priamson.  Hector is a resident of Ilion.  He is married to Andromache Eetion who is currently a realtor with Ahhiyawa, Hatti & Company. 

Hector will spend 100% of his time on this new start-up venture.  Hector has a wealth of experience in business.  He started his career straight out of college with a very exclusive “Big Eight” Accounting firm.  While with  Manapa Tarhunda and Co. Hector earned his CPA license.  His interests led him to Wilusa, where he became involved in one of the city’s unique industries, Samothracing.  He started on the accounting side of the racing business and soon broke out into the part of the business that generates the revenue, sponsorship sales. 

His career led him to Trireme Racing Group where he served as the Vice President of Business Operations.  He led the turn-around of this team and company solidifying major sponsorships with companies like Corinthian Leather, Medusa-Gorgon Oars, and Posidon Libations.  He served in that position from 1996 through 2001.  During that period of time, Hector also served on the CURRAGH Franchise Board (rules making board of the sanctioning body).  His reputation and success led him to the top marketing position, Vice President of Sales and Marketing.  Hector served in that capacity from December of 2001 through July of 2003, at which time he left the company to pursue his current business,  Troy Enterprises, Inc. 

Hector’s expertise in the entrepreneurial business of oarsports will be invaluable in his new venture.  He has a keen sense of finance, marketing, management of inventory, accounting and bookkeeping practices, and staff management.  This experience will be invaluable in leading Troy Enterprises and making sound business decisions in the future.

Hector’s resume, as Confidential and Proprietary information, has been omitted from this sample business plan.

2.4 Company Locations and Facilities

When Hisarlik Hardware began this project the key component was the location.  Hector Priamson/Troy Enterprises and Building Blocks  felt several criteria were crucial to making this venture a success.  The ideal size was determined to be between 7,500 and 10,000 sq.ft.  The price per square foot was important because the economics obviously had to work.  Adequate parking and easy access were must-have criteria while searching for locations.  A location with only street parking was not considered an alternative.  Being located on a major thoroughfare with visibility is important to get the store recognized as a solution for hardware.  Adequate signage that traffic can recognize is key.  Additionally, intangibles such as other commercial neighbors and the neighborhood makeup were considered. 

Based on these criteria, a site at 310 East Anglia Street is was selected.  It is part of the Troas Marketplace. 

This property shares a parking lot with Scamander’s Food Market and Buckbasket Cleaners which is the most important of the intangible factors.  This Scamander’s generates $12.0 million in revenue and is Scamander’s most successful store in Wilusa.  Scamander’s is the only grocery store in the downtown area, and is an icon in the downtown residential community.  In discussions with Scamander’s, they said the Troas store has much more traffic than their other locations.  They have found the average customer visits the Troas store every two days versus once a week for the others.  Hisarlik feels this is a huge advantage for its venture as this will drive more traffic, more often to the Troas parking lot.  Scamander’s is in the middle of its lease for this property and seems pleased with the results.  Hisarlik does not anticipate this advantage changing by a move by Scamander’s, whose lease extends through the year five. 

The proposed site has plenty of parking spots and excellent access from eastbound Anglia Street and northbound Mercia Blvd. 

Signage marquees sit on both streets as well as on the north, west, and south sides of 310 East Anglia Street.  Furthermore, the location is perfectly set on eastbound Anglia Street, which is one of the major thoroughfares.  There is a driveway entrance and exit to Anglia Street. 

The proposed site is ideal in size measuring 9,509 sq. ft. and was formerly an Osco Drug store that was closed as Osco downsized their Wilusa operations.  According to the landlord, the closing of this location by Osco had nothing to do with the location, but rather, a change in priority within the company.  The property needs very little in tenant improvements in order to be open for business.  The terms of the lease are currently being negotiated.  It is anticipated that Hisarlik Hardware  will retain the property within the budgeted guidelines.  There were many properties that were investigated; however, for the stated reasons this is the best option as of last November.

The neighborhood has gone through major renovation over the past 10 years.  It is now a rejuvenated upscale neighborhood.  There is also major new development around the proposed site.  There is a brand new condominium development directly across East Anglia Street.  The development is called Lemnos Square.

There are three other new condominium developments under construction that are one block away.  They are Troas Terrace, The Anatolia, and The Konya.

The proposed location is one block from the successful Wessex Avenue District.  Wilusa has done a fantastic job in bringing in new business and culture into this area of downtown.

According to Wilusa Downtown Inc., Downtown has seen record demand and occupancy levels, driving the surge of residential development.  This has led to more than 615 new residential units currently in the pipeline.

The city of Wilusa is also reviewing plans for the former Cressida Agora site.  The plans all include a large number of residential and retail sites on the 29 acre site.  This site is located 2 blocks south of the proposed location.

Development downtown is happening in many different ways.  There is commercial, residential, as well as government development currently in process or planned.  All of these things add to the desirable nature of the proposed site.  We would be “right in the middle of it.”

Products and Services

Hisarlik Hardware will offer traditional retail hardware.  These products include electrical supplies, automotive, hardware, housewares, lawn and garden, building supplies, paint, plumbing, tools and rental.  There are other small services that will be offered including key cutting, glass cutting, and other small repairs. 

Hisarlik will work with Building Blocks to develop the right product mix.  The initial order of inventory will take into account the fact that this is an urban store and the product mix may contain different items than a suburban store.  Hisarlik Hardware  will rely on Building Blocks’ expertise, knowledge, and their IAIS inventory management program in developing this initial order.

3.1 Product and Service Description

Hisarlik Hardware will stock traditional retail hardware items.  The product mix will be changed slightly from suburban stores.  The history of the store will then be used along with IAIS to develop the right product mix that takes advantage of the available square footage and maximizes profits.

Hisarlik Hardware will open a The Tool Room Rentals store within the hardware store.  This is a program that will help cash flow as well as increase sales of rental accessories and support items. 

Hisarlik will also have key cutting, glass cutting, and other small services like screen repairs.

IAIS stands for Inventory Always In Stock.  This is a program that was developed by Building Blocks based on feedback from their members.  The members were looking for assistance in managing their departments and knowing what is selling and what is not. 

This program has the following benefits to members who take part in it:

• ORGANIZE departments with a more consistent merchandise assortment
• REMOVE non-selling inventory
• FREE UP valuable floor space
• INCREASE a store’s overall profits.

Building Blocks delivers to member stores IAIS merchandising guides, assortment guides, and recommends what inventory to carry and what not to carry.

This is an invaluable tool for a new member because the new store can rely on the history of current stores to help in their merchandising.

3.1.2 Retail Pricing System

Hisarlik Hardware will once again rely on Building Blocks to deliver the correct pricing for the market.  As discussed earlier, low cost is not one of the main factors for customers to shop at a convenient hardware store location.  Hisarlik will continue to work with Building Blocks to charge the right price to maximize profits.

3.2 Future Products and Services

Hisarlik Hardware will listen to its customers to understand what other needs are not being met.  Those needs could include additional store locations in the future and an expansion of products and services offered at the current location.  There may be other businesses that can be offshoots of retail hardware that help service or provide convenience to Hisarlik customers.

Market Analysis Summary how to do a market analysis for your business plan.">

The Market Analysis looks at potential customers and potential business.   Hisarlik Hardware  explored the market segments, their needs, and did a marketing analysis. 

The need for this venture was looked at first.  Does downtown need a hardware store?  The answer was a resounding yes. 

Once the need was established,  Hisarlik needed to analyze the make up of its customers, who and how many.  Who is the potential customer?  How many potential customers are there?

Once it was determined that there was a need and who the customer is, the next step was to figure out how to make them  Hisarlik Hardware  customers.  How to get the potential customer in the store?

4.1 Market Segmentation

There are six major market segments:

• Downtown Residents:   Downtown Residents will make up as much as 40% of the potential business of the store.  This is an ever growing and expanding group.  Downtown Resident levels are at an all-time high.  There are also major projects like the former Cressida Agora site and the Troilus Townhomes in downtown Wilusa that will increase the numbers of residents.  Wilusa Downtown, Inc. estimates there are currently 615 new residential units currently in the pipeline.  In addition, 91 renovation permits were issued last year on existing downtown residential structures.
• Property Managers:   Every residential building and every commercial building downtown has a property manager that keep the properties in good repair.  These property managers all need supplies and materials that are conveniently available.  These managers will be able to rely on Hisarlik Hardware to stock what they need.  Hisarlik feels the store will prove to be a quick, easy, and convenient way to fulfill the needs of these property managers.  Hisarlik and Building Blocks both feel paint and paint supplies will be a big percentage of what these property managers will buy.  The City of Wilusa estimated there was $18.0 million in paint and wallpaper Retail Sales in 2002 (within a three mile radius of the proposed location).
• Contractors:   As stated earlier, there were 91 renovation permits and 615 new residential units under construction in the last year.  The new residential units represented $261 million investment in downtown.  Hisarlik Hardware  will work to become a reliable supplier to these contractors working in the area.  We will also open early in the morning to help supply and be a convenient source for the contractors who start work early each day.
• Downtown Business:   Every downtown business will need supplies from time to time.  The City of Wilusa states there are 2,861 businesses located within one mile of the proposed location.  As of the time of opening the focus will be to sell this group traditional retail hardware supplies.  As the business is established, Hisarlik will work to develop the Commercial Supply Network  for these businesses.
• Suburban Commuters:   Since the proposed location is on a major Eastbound thoroughfare (E. Anglia Street) out of the downtown, the potential is encouraging for Suburban Commuters to stop on their lunch hour or on their way home from work.  Research tells us that these commuters will be in search of good service and convenient shopping, things they may not find in their suburban neighborhoods.
• Commercial Sales:  This could be the largest growth area of business that Hisarlik Hardware  will have.  As Hisarlik develops a positive reputation, there will be a push to activate the MRO ( Building Blocks’ commercial and industrial supply network).  Once again with so many businesses located downtown there is an infinite amount of business.  There are also a large number of Federal, State and Local government entities located downtown.  These is also one major university and several major hospitals within two miles of the proposed location.

4.2 Target Market Segment Strategy

Each market segment is unique and requires different marketing to attract them.

• Downtown Residents:   The proposed location really takes care of this segment by itself.  Because the proposed location shares the parking lot with Scamander’s (the only grocery store downtown) it will act as a magnet to bring people to Hisarlik Hardware .  Scamander’s estimates customers visit their store every 2-3 days, which is fantastic for traffic.  Based on discussions with Scamander’s they are willing to work with Hisarlik to develop co-op programs to work together to build both businesses.  There will also be direct mail programs and circulars to downtown residents to convert old habits as the business is started.  There will also be a Building Blocks loyalty program implemented called Building Blocks Rewards.  This program not only gives valuable research data, but also helps the store learn buying habits of the regular customers.
• Property Managers:   It is expected that this group also has a significant need for downtown hardware and will find the store by word of mouth.  Hisarlik will not rely on that.  There will be a sales program to set up accounts with property managers and let them know about great service that is available.  A list will be developed to pursue and court in order to build this business.  Keeping in mind this group is in search of convenience and ease of shopping, having a delivery option will also be important to this group.
• Contractors:   Hisarlik Hardware  will have to go out and pursue this group.  Hisarlik will have to visit job sites and let contractors know that Hisarlik is an option and the most viable option available.  Delivery and hours of operation will be very important to this group.
• Downtown Businesses:   There will be a direct mail program set up to make these businesses aware of the store and that it is an option for their hardware needs.  The key to this group is awareness.  They will also be looking for an easy and convenient way to get hardware items.
• Suburban Commuters:   The direct mail program to offer hardware convenience to businesses will also create awareness with the suburban commuters.  However, it is thought that the biggest attraction will be the outdoor signage.  There will be signs on E. Anglia St. and Mercia Blvd.  Both streets are high traffic areas and should create a good deal of awareness.  Awnings are also thought to be an option on the Anglia St. side of the building.  The color will not only be a change to what traffic is used to seeing but also exposure for the business. 
• Commercial Sales:   This segment is going to come down to hard work.  It will require a dedicated sales person calling on potential customers and developing relationships with Commercial customers to turn this segment into a strong revenue stream.

4.2.1 Market Needs

Downtown residents have already expressed the need for a local hardware store, as is documented in the April 2003 issue of Wilusa Magazine .  Residents recognize the need and will be supportive of a retailer answering their concerns.  The data that has been supplied to  Hisarlik Hardware (by Yorikle, a market research firm used by Building Blocks ) shows there is a population of nearly 53,000 people and more than 20,000 households within two miles of the proposed location.  The analysis provided by Yorikle states the area could support a 19,000 sq. ft. store.  We are proposing a 9,500 sq. ft. store.  In other words, there is enough business in this area to support a store twice the proposed size.  The report has also found there is more than $2.5 million of potential sales revenue, based on the number of households alone (not including any of the other segments).  The potential is expected to grow to more than $3.0 million by 2007.

Hisarlik Hardware believes the key to the need analysis is that all of the research and potential was measured by households, and households only.  The households only make up one segment of the potential business the store expects to generate.

4.2.2 Market Trends

When Hector Priamson initially looked at the hardware business, one of the most important factors was the fact this industry seems to be immune to significant fluctuations in the economy.  Based on information from the US Department of Commerce, the home improvement retailing industry has consistently grown at a rate of 7% for the past decade and similar growth is expected for the foreseeable future. 

In the 1990’s the growth in the industry was attributable to strong home sales, economic prosperity, and significant amounts of home renovation.  Since 2000, growth has stayed at the same levels even though some of these factors have changed.  Growth since the year 2000 was attributable to low interest rates and refinancing.  According to the Federal Reserve Board, 35% of all refinancing goes to home improvement. 

What does the future hold?  93% of all Americans plan to stay in their current homes and 78% of homeowners plan to undertake home improvement projects in the next year.  How much will they spend?  69% of homeowners plan to spend as much or more in the coming year than they did last year.  Home improvement budgets have grown 31% since the year 2000.

4.3 Service Business Analysis

Hisarlik Hardware  is being encouraged by Building Blocks to enter the equipment and party rental business upon opening the store.  Based on conversations with other members, the rental component has been an overwhelming success adding to cash flow of the business as well as increasing traffic to the store.  Reports of success unanimously talk about the fact that “renters” need tools and accessories to go with the rental equipment adding to the overall profitability of the store. 

In the downtown market, the make-up of the rental inventory will vary a bit from what a suburban store might have.  Hisarlik Hardware will work with the Building Blocks Rental people to determine the inventory.  Hisarlik will rely on the knowledge and expertise of Building Blocks.

An investmentm is required upon opening for the initial purchase of the equipment to rent.  Building Blocks has the necessary training and computer support to make this a very logical addition to the traditional hardware store.

4.3.1 Competition and Buying Patterns

The “Big Boxes”, such as Lowe’s, Menard’s, and Home Depot have had a significant effect on the Home Improvement industry.  According to the National Retail Hardware Association, based in Wilusa, the Big Boxes have expanded the market, increasing consumer participation in home improvement.  However, the National Retail Hardware Association feels that the Big Boxes are nearing a saturation point, and in the future, they cannot open many more stores without it affecting and threatening other current Big Box locations. 

“This competition has not kept independent hardware stores, home centers, and lumberyards from prospering.  These stores are much more professionally operated than they were just a decade ago, and most posted strong profits last year.” —NRHA, 2004 Market Measure

Independent Hardware stores need to focus on their strengths. 

Service.   88% of consumers have a favorable opinion of small business vs.  61% for big business (the lowest since 1993). 

Convenience.   Consumers want to get everything they need in one trip to the store.  The Independent hardware stores are able to do this, because they work with their customers. 

“There are four ways to compete

• Assortment & Variety
• Service & Experience
• Convenience

But price is only one of them.” —M.  Chandler, a retail industry consultant

4.3.2 Main Competitors

There is no immediate local competition.  The nearest hardware store is 1.8 miles away on South Hasan Dag Avenue.  The store is a small, 4,000 sq.  ft., and isn’t current in its products or presentation.

Because of the lack of product and poor shopping presentation, residents do not consider this an option for hardware.  The next closest hardware store is 2.7 miles away.  There are several stores that are 3 to 4 miles from the proposed site.  Studies say customers do not want to travel more than 3-7 minutes to a location.  While these stores could serve the need, their location does not make them a viable option to downtown residents because of distance and neighborhoods. 

The “Big Box” stores such as Lowe’s, Home Depot, and Menard’s are built to serve suburban Wilusa.  The closest Lowe’s is 12.5 miles and 17 minutes west of  Hisarlik Hardware’s proposed location.  The nearest Home Depot is 10.5 miles or 16 minutes west of Hisarlik .  Menard’s is 9.3 miles and 14 minutes east of the location.  There are no stores that are convenient to the downtown market.  To get to any of these, customers must plan on spending 30-40 minutes of driving roundtrip at a minimum before even walking into the store.  Hisarlik Hardware will be a 2-3 mile drive or 5-10 minutes maximum travel to the store.  This convenience will be a major selling point for the business. 

From discussions between Hisarlik Hardware and the parent company of Building Blocks , regarding the possibility of a “Big Box” store opening in the downtown area, it seems unlikely due to the size of the potential market, cost, and lack of real estate, to build such a structure in Arazawa Township.

An analysis of competitors in the equipment and party rental field is similar to that of the hardware industry.  There is one competitor that is southeast of downtown, 1.5 miles from the proposed location.  The company, Best Rentals, Inc., handles equipment and party rentals. 

Tent rental has one competitor that is downtown.  An factor in tent rental may be the clean new equipment and, once again, great service available from Hisarlik .  American Tent and Awning is located 1.8 miles from the proposed location.  One advantage for Hisarlik in tent/party rental is that a customer can cover more bases with the variety of equipment and supplies from a rental and hardware store versus a company that focuses solely on tent rental. 

The closest tool rental company is 2.3 miles from the proposed location.  Hisarlik Hardware  feels that significant progress can be made into the tool rental business because of convenience.  Hisarlik expects to be a fantastic solution for contractors working downtown who need equipment for the day or for the project.  Residents downtown have smaller homes and condominiums, consequently they do not have room to own bulky or large quantities of equipment.  This is expected to be a benefit for the rental business. 

Strategy and Implementation Summary

Emphasize Customer Service

Hisarlik Hardware will build a reputation of fantastic customer service, building upon what Building Blocks stores and the Building Blocks brand have already established.  We will establish our business, by offering a clear cut leader in retail hardware in downtown Wilusa.

Build a Relationship-Oriented Business

Fantastic service will lead to long term loyal relationships with our customers and clients.  The goal is to have our customer base become reliant on Hisarlik to stock items and have solutions for their needs.  The customers will soon understand the value of the relationship.

Focus on Target Markets

Hisarlik will focus on the market segments identified earlier in this document.  Each of the market segments will have sales initiatives to focus on each group.

Differentiate and Fulfill the Promise

Hisarlik Hardware  can’t just market and sell products and services, we must actually deliver as well.  We need to make sure we have the knowledge-intensive business and service-intensive business we claim to have.  This service has to be consistent and deliver what the customer is looking for.

5.1 Marketing Strategy

The Building Blocks Power Events are advertising programs supported by national advertising during peak buying periods for planned home care products.  Power Events focus on those high traffic times of the year with a multimedia campaign.  A strong mix of national television and radio advertising, circulars, Sunday supplements, and POP sign kits deliver a sense of urgency to visit the store.  A small 8-page and large 12-page circular are available for each Power Event to help carry the theme and promote the sale.  There are four Power Events each year.

Hisarlik Hardware will also place ads in the Yellow Pages.  The Yellow Pages continue to be a source of a good number of customers.

Hisarlik Hardware will also rely on the media to help spread the word about this new business downtown.  Fox Television’s local morning TV show goes on location to promote local businesses.  Radio can be used in many different ways, radio remotes for the opening of the store.  Wilusa Magazine has already identified an issue, a follow up story is very appropriate.  The Wilusa Star covers new and significant businesses in Wilusa, Hisarlik feels this store will fit that description.

5.1.1 Potential Customers

Every person is a potential customer of a hardware store.  Hisarlik Hardware will carry items everyone needs.  The average household spends $135 per year on items found in a hardware store according to Yorikle, a research firm retained by Building Blocks .  The key to getting the potential customer to spend their $135 or more in Hisarlik Hardware are include the following attributes:

• convenience
• reliability
• knowledgeable
• progressive
• exceed customer expectations

All of these attributes will be present in Hisarlik Hardware.  In order to be convenient, Hisarlik will have to adapt to its environment, the location will be key to making it easy for customers to get to the store.  The store must also be open when the customers arrive.  In addition, a delivery service will be available to make it easier for regular customers to not have to leave what they are doing to get the products they need.  There will also be accounts set up to make it easier for regular customers to get items, without having to deal with petty cash, company credit cards, or company checks for each visit to the store. 

Customers expect to get great service at Building Blocks Hardware stores, which is evidenced by the fact 50% of all hardware shoppers will avoid the “Big Box” retailers and opt instead for the personal service like  Hisarlik Hardware .  We will also need to be reliable, which means that customers will depend on us to inventory what they need and understand and anticipate their needs.  Customers want to come into a hardware store having the confidence they will find what they need.  The store will possess a knowledgeable and friendly staff.  The staff has to understand and interpret what the customer needs and find the product that will fit that need.  Hisarlik Hardware will also be progressive, by that we mean we will continue to evolve and understand what the customer needs and develop new markets where the need exists.

5.2 Sales Strategy

Hisarlik Hardware  will be offering a convenient solution which all downtown residents need.  Customers will be introduced to Hisarlik through targeted advertising, direct mail, signage, and word of mouth.  Hisarlik will also take advantage of all the Building Blocks programs that help create loyalty and awareness among the potential customers in the market.

The direct sales force will consist of two seasoned sales people led by Hector Priamson.  The focus will be on property managers and all downtown businesses to create an awareness of the store location and the fact that the store is a potential solution for retail hardware needs.

Glaucus Sarpedon will also work on the commercial accounts and government accounts located in the downtown market.

5.2.1 Sales Forecast

The sales projections start in the month of March, 2004.  Sales steadily increase along with the awareness of the store through September.  In September, there is a small dip in sales then a steady rise through the Christmas season and December the stores best month of the year.  There is a traditional slow season that runs through January and February each year.  The goal of Hisarlik Hardware will be to develop programs that take as much slack out of the sales as possible and get them in line with the rest of the sales year. 

Sales are estimated by Building Blocks to be $125 to $175 per square foot of the total area of the store.  The Gross Margin will range from 40% to 45%.  There is a 25% growth predicted for the second year of sales driven by awareness, growth in rentals and growth in commercial sales. 

The immediate goal is to achieve robust sales in the first year.  It is thought that double digit percentage total sales increases can be achieved and maintained throughout the five years of this business plan.

5.2.2 Sales Programs

Building Blocks has loyalty programs like Building Blocks Rewards that Hisarlik Hardware  will participate in.  This program has been developed to build a loyal following of customers that use the card for shopping benefits. 

By the second year accounts will be set up for businesses, property managers, and contractors to make shopping easy for them.  This program will allow these customers to shop and make it easy for them to pay for items on account.  This program will have to be managed very carefully, and Hector Priamson’s financial background will prove to be very useful in managing these accounts. 

5.3 Strategic Alliances

Hisarlik Hardware has already contacted Scamander’s Food Market and have the word of the General Store Manager that they would be interested in developing programs to work together with Hisarlik for the betterment of both businesses.  Both will stand to benefit from each other.

5.4 Milestones

Hisarlik True Value has worked with True Value to establish a realistic time line to work within to have the store open for business in March of 2004.  The time line is listed in the Milestones table below.

5.5 Competitive Edge

The competitive edge has been covered throughout this document.  Location is the biggest key to this business.  There are no true competitors in our business in downtown Wilusa.  Our future customers have had to work harder to get the same or lesser service less conveniently.  We will be in their back yard and be easy to work with and have products they need. 

Hisarlik Hardware have staff that understand customer service and how to treat customers so that they want to shop in the Hisarlik Hardware environment.

Web Plan Summary

Obviously, we are in the age of computers and the Internet.  Customers are ultimately looking for the simplest, most reliable, and least consuming way to get the goods and services they need. 

Therefore, a Web strategy is important to keep up with the changing world and stay ahead of potential competition.  Customers that buy on the Internet do not care where a business is located, so it is important that a name and a reputation be established that customers can rely on whether it is in the store or on the Internet.

6.1 Website Marketing Strategy

Building Blocks has a sensational program for their members.  It allows a member to establish their own website with member information and use the established product background linked to buildingblockshardware.com.  Customers can then go on line and order products very easily.  This is a program that a normal small business could not afford to invest in. 

The Internet is also a valuable communication tool with customers.  The site includes a custom home page, store location along with a map, store hours, services and selection, in-store coupons, 1,000 item in-store catalog, and as many custom pages as a member needs.

Management Summary management summary will include information about who's on your team and why they're the right people for the job, as well as your future hiring plans.">

Hisarlik Hardware will be managed by Hector Priamson on a day-to-day basis.  He will devote 100% of his time to this venture.  There are two key employees joining Hector in this venture, Penthesilea Thracian and Glaucus Sarpedon. 

Hisarlik expects that there will be up to 17 employees in total, some full time and others part time.

7.1 Organizational Structure

Hisarlik Hardware will be managed, organized, and run by Hector Priamson.  The company will have three key employees, Hector, Penthesilea (Penthe) Thracian, and Glaucus (Glus) Sarpedon.  These three all know each other very well, Penthe and Glus having worked for Hector in the past in the oarsports industry.  They bring a unique set of skills to this venture which will prove invaluable in the future. 

The company will be organized with Hector Priamson as its president.  He will be responsible for all of the financial affairs, inventory management, cash management, manage the cashier staff, advertising, marketing, as well as the day-to-day contact with Building Blocks .  Hector will also have relationships with attorneys and accountants to stay on top of all business matters.  Additionally, he will also manage the day-to-day operation of the rental business.  While this seems like a lot, these are routine tasks Hector has performed for many different companies for many years.  As good as Hector is, he can’t do it all.  He will rely on two former employees from his. 

Penthesilea Thracian has been in the oarsports business for the better part of 30 years.  She is looking for a change and Hisarlik Hardware is just what she had in mind.  Penthe has managed teams, and developed and run programs from the ground up.  Her experience led her to winning the 1981 Salamis 500 as the crew chief of Al Cibiades’ trireme at Dardanelles Racing.  Working with large companies and manufacturers that wanted absolute accountability in their programs, Penthe was the gal that was brought in to handle it.  Over the past 5 years, she has added another unique skill that will nicely complement her mechanical skills; hospitality.  Penthe managed the hospitality program for Corinth Racing.  That job really entailed looking after people and providing great service, a skill that will be invaluable for Hisarlik Hardware . 

Glaucus Sarpedon is an extremely driven young man who graduated from Hattusili University.  Glus decided he wanted to work in oarsports.  When he put his mind to it, that is exactly where he ended up.  He joined Dardanelles Racing where he worked in the hospitality area, also gaining the valuable service quality that will be necessary for this new role.  He also had the responsibility of moving, setting up, and servicing the complete hospitality fleet.  He has mechanical skills that he will bring with him as well.  Glus also filled the role of Team Coordinator, this role is the “quarterback” of the organization.  He was responsible for anticipating what the team was going to need, when they would need it, and how much they would need.  Glus will be a huge asset to the company. 

Each of these folks have departments that will be assigned to them and a staff that will help them manage the departments.  They will be responsible for hiring the staff that will report directly to them.  Hisarlik Hardware will also develop an incentive plan rewarding successful departments and department sales growth.  The experience and trust Hector Priamson has in these two individuals will allow him to focus on managing the business.

7.2 Management Team Gaps

A review of potential gaps in the experience or know-how of this venture does not show any glaring weaknesses.  Hisarlik Hardware ‘s Achilles heel is the lack of actual hardware store business experience.  While the three key individuals do not have that direct experience, they will draw heavily upon the instruction, training, and specialist support available from the Building Blocks co-op organization. Building Blocks is in the business of passing on their experience and knowledge to assist their members to be be successful.

7.3 Personnel Plan

The personnel plan was developed in conjunction with Building Blocks and some consulting with the folks at Konya Building Blocks Hardware in Catalhoyuk. 

The plan was developed so there are at least 2 managers, 1 cashier, and 2 specialists on duty at all times.  The average number of people working at any one time is between 5.5 and 7.1 on busy Saturdays.  All employees will have the ability and knowledge to run the cash registers. 

Hector Priamson, Penthesilea Thracian and Glaucus Sarpedon will start with base pay as laid out in the following table.  The cashiers will be paid $7-$8 per hour.  Full-time specialist staff will be paid between $9 and $10 per hour.  Other part-time help will be paid $6 per hour. 

It is felt there is a pool of retired “handy men” that can fill many of these roles.  The $6 per hour employees are thought to be high school or college kids. 

Employee hiring will start in January, training will begin in February and work in March.

Financial Plan investor-ready personnel plan .">

The business will need substantial start-up capital.  It is expected that a good portion of that amount will be secured through SBA financing. 

Sales are expected to start conservatively the first year and increase steadily through the fifth year of operations.  Operating income will pay back the start-up loan over a seven year amortization. 

Inventory Turnover ratios are predicted to be in excess of 4.3.  The goal will be to get this ratio to exceed 5.0.  To do that Hisarlik will be required to purchase smartly and drive sales. 

Cash will be retained in the business to cover cash operating needs as well as future expansion of other Hisarlik Hardware locations. 

It is expected that dividends will be paid to the investors annually.  The amount of the dividends is estimated to be 50% of profits. 

After the first year of operations, it is expected that Hector Priamson will be able to trim expenses in the business as efficiency, experience, and knowledge work together and help the business operate better.  Estimates are extremely conservative in the budgeting process.

8.1 Start-up Funding

Hector Priamson will invest cash, benefits and labor to the start up.

Troy Enterprises  is in the process of negotiating with potential investors for the seed cash needed to start the business.  It is expected that a tidy sum will be raised to start the business.  It is expected that no more than 15% interest will be given to each investor.

Bank Financing

Troy Enterprises  is submitting business plans and other requested documents to financial institutions in pursuit of the additional money needed to finance the rest of the company and provide operating cash for the business.  It is expected that the loan will be a part of the SBA 7(a) program.  It is assumed that the terms of the loan will require repayment in 7 years, at a rate of 8%. 

8.2 Important Assumptions

The table below presents the assumptions used in the financial calculations of this business plan.

8.3 Key Financial Indicators

As shown in the Benchmarks chart below, our key financial indicators are:

• Projected Sales:   Projections are based on estimates calculated by Building Blocks based on demographics and potential in the market place.  Sales will consistently increase as the store gains experience, in addition to the consistent growth expected in the home improvement category nationwide. 
• Gross Margins:   Building Blocks expects that the Gross Margin can increase in years 2-5, however for this analysis, the gross margin was kept consistent at 42% on inventory sales.  Overall, the rental and other income have driven the gross margin up by 2 points.  Building Blocks expects that Gross Margin on inventory could rise as high as 44%. 
• Operating Expenses:  Operating expenses growth is primarily caused by an increase in salaries as the business gets established, as well as a small percentage increase for COL over the next five years.  Operating expenses are expected to increase at a rate of 6-8% per year. 
• Inventory Turnover:   Hisarlik Hardware  will maintain just-in-time inventory levels.  Building Blocks distribution will help maintain those levels.  Inventory is projected to turn 4.3 times per year.  The goal is to get inventory turns to exceed 5.0, through good purchasing decisions.

8.4 Break-even Analysis

The Break-even Analysis has determined approximate break-even sales as shown below.  There will be a constant monitor on this number in an attempt to lower it.  Once again, it is believed that efficiencies, experience, and knowledge will help in decreasing the break-even number. 

Sales are expected to be well in excess of this number for each month.

8.5 Projected Profit and Loss

The Profit and Loss statement makes it very clear which areas will need attention.  Payroll is by far the largest expense the company incurs (besides cost of goods sold).  Staff will need to be managed and hours regulated so that hours worked correlate to sales.  Emphasis will be placed on minimizing expenses that do not help generate bottom line. 

The company generates a profit as sales revenue gets above the break-even line.  A push on sales will be very important in generating bottom line profits.  Interest expense is also a large line item that diminishes over time, but is a necessary expense on the front end of the business.

8.6 Projected Cash Flow

The company generates a net positive cash flow in its first year.  It is assumed that Accounts Payable will be repaid in 45 days.  Repayment of debt is a significant factor in the amount of cash that gets paid out.  Long-term debt is on a 7-year amortization. 

Dividends are paid in December of each year.  The assumption is that 50% of profits are paid out to shareholders and investors.

8.7 Projected Balance Sheet

The balance sheet is very straight forward.  No significant purchases of assets are expected or anticipated. 

Using Building Blocks’ IAIS, online ordering, and weekly delivery systems allows Hisarlik Hardware  to restock inventory in a just-in-time fashion.  Inventory levels will be maintained with re-orders tied to Cost of Goods Sold.  Additional inventory purchases will be made one month prior to participation in the quarterly Building Blocks nationally advertised Power Event sales. The first Power Event coincides with Hisarlik Hardware’s  Grand Opening.  Inventory will be allowed to drop somewhat at the end of December, after the Holiday purchasing, and for year-end tax accounting purposes.

There is a possibility of rental purchases in the future if the right products are found to add to the current inventory.

8.8 Business Ratios

The Ratio Analysis looks very encouraging.  Industry Profile data is based on Standard Industrial Classification code 5252, Hardware Stores. 

• Gross margin : Increases each year and peaks at 45%.  It is anticipated that after year two, the gross margin percentage could be increased by as much as 2 points.  The Gross Margin is a little high due to the fact that the rental income is included in this calculation with no cost of sales.
• Selling, General and Administrative Expenses : It is encouraging that these expenses as a percentage of sales are decreasing.  These expense will continue to be looked at to find new savings to deliver bottom line.
• Quick Ratio : The Quick Ratio is good staying in the 2 range for the entire first 5 years.
• Net Profit margin : Net profit margin continues to grow.  The goal will be to minimize expenses and get the Net Profit margin in the 15 range.
• Inventory Turnover : Inventory turnover as calculated here is 2.3 to 3.5 times.  The goal will be to get that percentage to exceed 5 times per year.  The calculation is skewed on this table because of rental income being included in sales.

8.9 Long-term Plan

The long term plan is to develop a steady retail hardware business in the downtown Wilusa market.  As discussed, there is currently no competition.  They key will be to establish a solid business to discourage any competition from coming into the market or creating a level of loyalty that will not be fazed by competition. 

After two solid years of performance and establishment of Hisarlik Hardware , there are two areas of potential expansion.  First, look for opportunities in the current market.  What businesses can be combined logically with what has been established that will deliver additional bottom line profit.  Secondly, a second location will be developed in a new part of Wilusa.  An area that will deliver a similar characteristic to the first store that appears to be headed down the road of success.

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