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How to open a hardware store from scratch. How to open a hardware store Business plan for opening a store selling household goods |
The concept of household goods covers a huge range of products. Therefore, if you want to open a hardware store from scratch, you first need to decide what type of goods and what assortment you will trade. From this it is already worth deciding on the required area of \u200b\u200bthe premises and the initial investment. For example, if you want to open a general store, you will need at least 100 sq. m. The fewer product groups you cover, the smaller the required area, the smaller the investment. Business registrationThe business should start with the registration of an enterprise, the choice of a taxation system. For a household goods store, you can register an individual entrepreneur with a patent or simplified system. When registering OKVED, it makes sense to enter all the codes provided for this type of trade. Even if you do not trade these goods now, later, when you expand the business, save yourself from the subsequent paperwork. While all the necessary paperwork is being processed, draw up a business plan for the hardware store. It should cover the following steps in developing your business strategy:
For example, if you plan to open a store from scratch on an area of 100 sq.m, your monthly revenue should be at least 200 thousand rubles. Then you can trade not at a loss and reach payback in about two years. In this case, the margin on goods should be approximately 60%. Preparation for workThe main decision in the question of how to open a hardware store is its correct location. It is advisable to locate the point in a residential or densely populated area. Household goods are commonly used by locals and may be needed at any moment. If it is not possible to take a separate room, a point in a shopping center may well be suitable. The area of the store should be zoned for the trading floor, warehouse, utility rooms. It is best to equip the hall in the form of an open form of trade, as is customary in supermarkets. This is not only a convenient format for self-selection of products. It has been observed that when walking with a basket for goods between the shelves, customers buy more things than they originally planned. To reduce the risk of theft, you can install video surveillance. If this is an unbearable expense item, dummy cameras are suitable, which also play a deterrent role. In the trading floor, the goods are located on special racks. Dimensional can be placed directly on the floor. Separately, it is necessary to equip an area for the cashier, as a rule, at the exit from the hall. In a small store, one person can work, performing the duties of a cashier and a sales assistant. You can stimulate his work by piecework wages: the more profits, the higher the salary. Selection of assortmentWhen choosing an assortment, be guided by the fact that your main target audience is women from middle age and above. As a rule, they are interested in all the necessary goods for the home. Therefore, it makes sense to diversify the assortment with small goods focused on this category of customers. It is better to present materials and tools for repairs in limited quantities, since they are bought mainly by men, and they like to go to “male” establishments: specialized stores and markets. At a minimum, the store must have:
It is advisable to expand the range of household chemicals, since they are bought much more often than other household goods. As well as hygiene products. But for their trade it is necessary to issue a permit from the SES, the fire inspectorate. A separate rack should be allocated for stationery, especially aimed at children. Here you can also lay out inexpensive, but constantly in demand toys: soap bubbles, sandbox sets, balls. Also, if possible, it is necessary to diversify the offers with textile, hosiery products. Tights, socks, towels, bed linen - all this can significantly increase the turnover of products. But in this case, the supplier should always require a quality certificate. It is worth paying attention to seasonal products. For example, goods for a summer residence: tools, fertilizers, seeds. Or various gifts and souvenirs for the holidays. If it is difficult to figure out on your own the correct selection of the assortment, you can hire a merchandiser. Supplier selectionSuppliers today can be easily found on the Internet. These can be online stores or direct manufacturers. You also need to remember about the various wholesale bases, where you can also buy in small bulk. Often such bases also work via the Internet, delivering directly to the store. Store openingBefore opening, it is important that as many potential buyers as possible learn about this event. In addition to a beautiful, attractive sign, it is worth distributing leaflets around the area in advance. They must indicate the name, location, opening time of the store, its work schedule. Be sure to list the range of products and prices that set you apart from your competitors. Prepare in advance for the first buyers. Prepare gifts, special offers, discount cards for them. Modern hardware stores sell garden supplies, and various household goods. They resemble small supermarkets, which offer a wide range of different products. This line of business is quite promising and profitable. How to open a hardware store from scratch, you will learn in this article. Location and premisesIn order for the trade in household goods to be successful, you need to choose the right location for the outlet. The most successful option is the sleeping areas of the city, provided that there is no serious competition there. But in a shopping center or a hardware store, it makes no sense, since it is unlikely that any of the visitors will look for a rake or washing powder here. There is also no flow of potential buyers in the private sector who can provide a good trade. Once you have found a suitable location, you can proceed to the selection of premises. It should have two rooms - a trading floor and a warehouse. The total area of the premises should not exceed 40-50 square meters. meters. Since household goods do not take up much space, you will not need a spacious trading floor. Do not pay money for extra square meters. Activity registrationBefore you open a hardware store, you should settle all legal issues. To conduct this business, one of two organizational and legal forms is suitable - IP or LLC. Submit documents for registration and select the taxation system you are going to work under. To trade in a household goods store, you need to select different OKVED codes in order to easily change the assortment without making requests to the tax office:
In addition, do not forget to obtain permits from the fire inspectorate and SES. Where to get start-up capital?In order to open, you will need impressive financial resources. Starting capital can be saved or borrowed from friends. If you do not have a permanent job, you can register with the employment center and get a loan for small business development. Entrepreneurs who have solid capital on hand can purchase a franchise, that is, buy a ready-made business. This is a rather expensive type of activity, providing for large initial investments. RangeAnother important step on which the success of your business largely depends is the assortment of a hardware store. It can be any product that is difficult to do without in everyday life:
Constantly work on expanding the range of household goods store. This will affect the profitability of your business. If you want to calculate in advance whether it is profitable to open a hardware store, find out which products are in the highest demand. As a rule, these are washing powders, shampoos, shaving products, detergents and cleaning products. The assortment needs to be changed depending on the season. In spring and summer, garden tools and building materials sell better, but in winter you can focus on household chemicals, New Year's toys and souvenirs. Staff staffIn order for your hardware store as a business to bring good profit, you need to properly organize its work. Selling toothpastes and shaving creams should be experienced qualified sellers who will be able to choose the right product for buyers. The number of staff serving the trading floor largely depends on the model of displaying goods. If these are closed sections, 2-3 people are enough. In a store with open shelves, you need to hire 4-5 sales assistants. EquipmentThe most convenient way to choose the form of work is self-service. In this case, you run the risk of theft, but the revenue in these outlets will be much higher. To scare off thieves, you can install video surveillance or dummies of cameras. The "alarm" button will allow you to quickly call the employees of the security agency. Shelving and showcases should be installed around the entire perimeter of the store. It is desirable that they be mirrored. Thanks to this, you will be able to observe the buyers without any problems. You don't need any special equipment for a hardware store. In the center of the hall, you can put an island rack and baskets for sales. SuppliersWhen compiling a business plan for a hardware store, you should immediately take care of the suppliers. This is a very important point that should not be overlooked. Finding wholesalers who will sell you goods is not so difficult. Large trading companies post catalogs on their websites where you can get acquainted with prices and assortment. Do not limit yourself to cooperation only with local bases. Many large companies have representative offices in different cities, so they can easily deliver their goods to your locality. If you want to open a wholesale store for household goods, it is much more profitable to work directly with manufacturers from whom you can buy goods at the lowest prices. Advertising campaignA business plan for a hardware store should include advertising costs. Before you open a retail outlet, conduct a large-scale advertising campaign. This will help you attract your first customers. For this you can use:
Some entrepreneurs cannot choose the name of the hardware store. It should be easy to remember and bright, for example, "Clean" or "Hostess". If you find it difficult to choose, you can take any female name that you like. Related videos
Costs and profitsThe business plan includes the following items of expenditure:
To open a good hardware store with an area of 50 sq. meters, you will need 20-25 thousand dollars. Monthly revenues in it will reach 8-8.5 thousand dollars. Of these, net profit is 1 thousand dollars. Your initial investment will pay off in just 1.5 years. But this is at best, with the success and competent organization of the business. Opening a small store with a minimal assortment will require less money. For example, for a retail outlet with an area of 25 sq. meters for the initial purchase of goods will need 10 thousand dollars. If you add to them the salary of sellers and an advertising campaign, you can meet the 15 thousand dollars. The hardware store sells a wide range of goods for everyday life and the household. This is a kind of scaled-down droggery format supermarket. Key Benefits of a Home Goods Store
This article outlines the practical recommendations of the owner of the household goods outlet shown in the photo. Registration proceduresTo get started, you need to choose the right form of doing business. In order to open a household goods store, you must select one of the forms of a legal entity: Individual Entrepreneur (IP) or Limited Liability Company (LLC). Before submitting documents for registration, it is necessary to choose a taxation system. In most regions, retail trade falls under UTII, if UTII is not provided for this activity in your region, then you should choose a fifteen percent simplified tax system. If you plan to start a business from January 2013, then we recommend that you take a closer look at the patent taxation system (provided that the business will be conducted in the form of an individual entrepreneur) Choosing OKVED codes, you can not be limited in their number, since the range can be floating and will depend on consumer demand. If you specify only one main OKVED, then when diluting the assortment with new positions that do not fit this code, you must write an application to the tax authority to enter an additional OKVED. Select 52.44.2 as the main code (Retail sale of various household utensils, cutlery, dishes, glassware and ceramics, including porcelain and faience). You can also immediately enable:
Choose a roomYou can sell household goods in a separate room or on the trading floor of various stores. The best place to open a household goods store is an area in a large grocery supermarket located in a residential area. You should not chase places in the city center, no one will go far from home for a paint brush or light bulbs. The optimal variant of the footage of a retail space or a separate store is 30 - 40 square meters. If finances allow, then you can choose a larger area and supply a wider range. Retail store equipmentThe best form of store operation - self-service. Of course, in this case there is a risk of theft, but on the other hand, the revenue will be higher than in counter-type stores (In the self-service store, revenue is higher due to the impulse purchases made by customers). As a security measure, install a security call button and put dummies of CCTV cameras (with a large area, make real video surveillance). The dummies will scare away thieves, and the button will allow you to quickly call security in case of theft. For a self-service store, you will need showcases or racks around the perimeter of the retail area. For safety, you can equip the walls of the racks with mirrors (or buy mirrored glass showcases right away), then it will be easier for sellers to follow customers from anywhere in the store. For hanging goods, standing trading nets are suitable, on which hooks can be attached. In the center of the room, place an island rack, with sufficient footage, you can add baskets of the "sale" type. At the exit, place the cashier's table and the equipment of the checkout area. The target audienceThe bulk of buyers are family women, most of them are pensioners. Men will be rare visitors, mostly they come in purposefully for a certain thing and will not make impulse purchases, so the "male" assortment can be reduced to a minimum. RangeThe initial assortment can be made as follows:
You can dilute the initial assortment with the following positions:Household chemicals and hygiene products. Of course, you should not put powders and shampoos on the shelves if there is already a store with such goods in the neighborhood. If there is no competition in the vicinity, then these products will be a great way to increase sales. If household goods are not in themselves goods that need to be bought regularly, then household chemicals are bought much more often. In our store, it can act as a tool to increase the influx of customers. Household chemicals will not bring big profits, since the margin on them is not high, 25 - 30%, but it can help sell goods that are more profitable for us. For example, a buyer came for a pack of powder, bought batteries, a light bulb and a mug along the way, looked after a frying pan, and for these goods the margin is on average 80 - 100%. Stationery, goods for children. Select a shelf for stationery, but without hobbies, only the most basic. This includes small and inexpensive goods for children that will come with their parents. Stickers, soap bubbles, balls, spatulas, molds for playing in the sandbox, ice cubes, you can bring sleds in winter, swimming attributes in summer. Children's knitwear, hosiery. If the wall and one counter are free in the store, then these goods can be placed on them. Knitwear - on the wall, hosiery on the counter. This option is suitable for shops in residential areas where there are no shopping centers and clothing markets nearby. For children's knitwear, a quality certificate is required, which can be obtained from the supplier. Textile. These are sets of bed linen, pillows, blankets, towels. Seasonal itemsThe store format allows you to make the assortment floating, that is, to put goods on the shelves depending on the needs of the buyer at the moment. What seasonal items can be sold?
Supplier searchNow it’s very easy to find suppliers, fortunately, you don’t have to go anywhere, all large wholesale organizations have a catalog website or an online store where you can explore both the assortment and prices. You should not limit your search and look only at local bases, you should also pay attention to neighboring cities, especially large ones, where offers can be more profitable. Moreover, some large bases in large cities provide free delivery to neighboring settlements with a certain order amount. Usually the minimum amount is about 20,000 rubles. Drawing up an application and concluding a contract can be done via the Internet, so you don’t have to go anywhere. Another option for cooperation with wholesalers is working with sales representatives. To do this, just find the database you are interested in and ask about the availability of such a form of work, if it exists, then invite a sales representative to the store. Again, this method will save personal time, you don’t have to go anywhere, the representative will pick up applications, after which the goods will be delivered. We attract buyersThe premises are equipped, the goods are on the shelves, now you need to attract buyers. To do this, you need a sign and a pavement sign, which will indicate the list of goods offered. Discount cards for regular customers will serve as an excellent tool to increase sales. Since there will be many pensioners among the buyers, it will not be superfluous to organize discounts for this category of citizens. collapseWithout a doubt, the business of selling household chemicals and other household products is quite profitable. Any entrepreneur can organize such a business from scratch. This requires a desire, the availability of start-up capital and an understanding of the specifics of entrepreneurship. Therefore, you need to figure out how to open a household goods store from scratch and quickly reach self-sufficiency. Organization of profitable tradingTo open a hardware store, entrepreneurial activity must be legalized. For such a business, the ideal option is to design an IP. Acceptable form of taxation - UTII. Attention should be paid to the type of activity in relation to OKVED. It is better to immediately indicate the variety of the assortment. Since, with an increase in commodity items in the future, it will not be necessary to contact the tax service to open new codes. The leading code is 52.44.2 - piece trade in a variety of dishes, cutlery. You can immediately enable the following codes:
You also need to get permission to do business:
Household chemicals market researchThere is a huge competition in the household goods market. This product is in high demand. Finding a good remote location from competitors is quite a challenge. If stores with a similar assortment are close, you can look for another location. Since such an arrangement will negatively affect the profitability of the business. There are several options for a painless entry into entrepreneurship:
If you base your business on low prices, then such tactics do not always lead to business growth. Seasonality plays a significant role. This is true even when trading household products. Losses can be minimized with the right approach to business organization. It is necessary to carry out seasonal sales of goods or make timely adjustments to the existing assortment. Where to open a profitable hardware store?Before opening a hardware store from scratch, it is important to determine its location. It is best to locate the business in a residential, densely populated area. Since this type of product is used by local residents. Products may be required at any time.
You also need to consider the convenience of car parking. Formation of the product rangeThe assortment of a hardware store is the main factor that ensures the appearance of a sufficient number of buyers. As a rule, each consumer tends to make purchases in one place. Therefore, the wider the range of goods, the more likely it is to increase the customer base. It is worth focusing on different circles of consumers. You can provide the store with the necessary assortment by concluding an agreement directly with the manufacturers of the relevant products. The advantage of such cooperation is the documentation that testifies to the quality of the goods. Another option for filling the store with an assortment is direct purchases of products in wholesale markets, bases. The key to a successful business is the correct margin on the proposed range of goods. If the margin does not exceed 15% of the purchase price, then the prices will be optimal for different segments of the population. When the pricing policy of the business is built correctly, then sales will be large. In order to calculate the profitability of a business, you need to find out which category of goods is in high demand. According to statistics, these goods are:
Requirement for trade equipmentThe equipment can be used open and closed type. The self-service system is optimal, bringing excellent profits. But there is a possibility of theft of products. To prevent theft in the store, you can use CCTV cameras or their dummy. Using the principle of self-service, you need to arrange racks and showcases along the length of the room. The cashier's workplace should be located close to the exit from the trading premises. Necessary equipment:
The goods used are not perishable, so it makes no sense to provide storage conditions. Condition for proper business registrationAny undertaking requires the formation of a business plan. The project must cover the following points:
A business plan will allow you to move forward along the planned stages, to realize your plans. It will also provide an opportunity to see the weak points of the idea. Name of the outletBeginning businessmen often have difficulty choosing the name of their own business. The name of the store of household products should be easy to remember, keep on the lips. However, many do not pay enough attention to this issue. The people say this: whatever you call a yacht, so it will float.
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