Tips to Starting A Successful Hardware Business
Starting a hardware business is a great way to make money. Hardware businesses are stable and you can always find customers for them. To start a successful hardware business, you will need to rent or buy a shop space from where you can sell your products.
You should also take care of the inventory that you will be selling. If your products are not good quality then people will not buy them, so make sure that they are of high quality and last long.
Once you have all the necessary things in place, then it is time to start promoting your business by getting people know about your hardware and what kind of services or products do you offer them at present.
But before you get to that, here are some helpful tips;
-Find a niche. Hardware businesses can be successful in any industry, but it’s important to choose a niche that you’re passionate about and knowledgeable about. You’ll need to be able to answer questions from customers and potential partners, so make sure you have an interest in what you’re selling.
-Find your target market. Once you’ve chosen your niche, it’s time to find the right people who will buy what you’re selling. Think about who needs this product, who would benefit from it, and how much they will pay for them and then go find them.
-Build a prototype. You don’t need fancy equipment or a big budget for this step, just some creativity and knowhow about how things work together. This will help you figure out if there’s even demand for your product before investing money in manufacturing large quantities of it.
Now that you have decided on your area of sales and you are ready to set up your business, here are the processes you should follow.
What is the cost of starting a hardware Business in Kenya
To determine the cost you will need to know the prices of products you want to sell in your hardware. Hardware business is one of the most expensive business to start as it requires good amount of money to get started. On average, you will need between Ksh.500,000 to Ksh,10 million to start a successful hardware business in Kenya. This is exclusive of rent and salaries for your employees.
Processes To Follow When Starting a hardware Business In Kenya
Choosing Your Store Location
If you’re looking to start a hardware business in Kenya, one of the first things you’ll want to do is choose a location for your store.
There are many factors that go into this decision, but here are a few things you should keep in mind:
* Consider the demographics of your immediate area. Who lives there? What is their income range? This will help you determine what kinds of products will be best for your customers, as well as what kind of display or marketing materials will best suit them.
* Consider how many other stores are nearby. If you’re located within a mile or two of several other hardware stores, it can be difficult to compete with them. However, if there aren’t any other options in your area, this could work out well for you.
Building a Solid Business Plan
Before you start stocking shelves with merchandise or hiring employees, take some time to create an executable plan for your company’s future. If you’re not sure where to start, here are some tips for creating your own business plan:
-Write down what your business is all about. What do you want it to be? How will it look? What will it do? What are its core values?
-Figure out what resources you need to make that happen. Are there any tools or supplies that will help make this dream come true? Are there any people who could help make this dream come true? What kind of money do you need to get started? How much money do you think the business will generate each month once it’s up and running? How much profit do you want this company to make each year after expenses are paid off?
-Draw up a timeline for when things will happen in order for them to happen according to schedule. Write down when certain milestones need to be reached so that you can move onto the next step. How long do you think it will take for this dream to become reality? Set a deadline for when all of this needs to happen by.
Choose a hardware business name and register your company.
Choosing a name for your business is one of the first steps in starting a hardware business. The name you choose will be your brand, and it can make or break your business. It’s important to choose a name that accurately describes your product or service, but also leaves room for growth.
After choosing your business name, you’ll need to register as a private limited company with the registrar of businesses in Kenya. This will allow you to start receiving payments from customers and suppliers through electronic bank transfers in your business name.
Finding the Right Inventory and Suppliers
When you’re starting a hardware business in Kenya, it’s important to find the right inventory and suppliers.
The first thing you should do is come up with a list of items that are going to be the core of your business. You’ll want to make sure that these things are readily available in Kenya and that you can get them for an affordable price.
The next step is figuring out where to get those items from. If there are any businesses in your area that sell the same type of product, consider buying from them instead of ordering from a distributor or directly from another country.
Some of the fastest moving hardware products in Kenya include;
Steel bars and rods
Iron Sheets
Nails
Cement
Door hinges
Roofing nails
Flooring tiles
Welding materials
Plumbing material
The third step is finding out how much it will cost to ship these items from their location to yours.
You should also take into account any taxes or fees associated with importing goods into Kenya before making your purchase decisions.
Takeaway: Starting your own hardware business can be difficult at first, but if you do it right, you will succeed.
Developing the Right Pricing Strategy
A price-sensitive consumer base means that you need to be careful about how you set your prices. At the same time, remember that it’s important to have some wiggle room so you can adjust your prices if necessary.
To create a pricing strategy for your hardware business, start by asking yourself these questions:
* What is the value of your product? Are you selling something that people will use every day or just occasionally? Is it something they need to buy repeatedly?
* How much competition do you have? Are there many other companies selling the same thing as yours? If so, how do they price their products?
* What kind of market do you want to target with your products? Do you want to target people who are just looking for cheap-and-cheerful items or more affluent customers who would prefer quality over quantity?
Your pricing strategy should be based on several factors including:
The cost of manufacturing the product.
The cost of transporting the product from your factory to the customer’s location.
The profit margin that you have set for yourself as a business owner.
You’ll also need to consider what market you’re trying to reach with your product and how much they are willing to pay for it. If you’re targeting a specific demographic, such as students or working professionals, then their budget will be different than if you’re going after families with children who need school supplies every year.
READ:5 Steps in Starting a Successful Hotel Business in Kenya
Getting the Proper Licenses and Permits
Before you can open your hardware store, you will need to apply for the necessary licenses and permit. This will include business permit obtained from your county government. You will also need to make sure that the products you are selling meets the KEBS standards and that they are of high quality.
Staff your hardware business
When you’re running a hardware store, you need to be able to trust that the people who work with you are reliable and responsive. In Kenya, these qualities are especially important because the local market is so competitive. As a small business owner, you’ll want to be able to rely on your employees to help identify customer needs and meet them with speed, efficiency, and professionalism.
Cashiers and loaders are some of the key employees you will need in your hardware. you will also need to determine how many people will be responsible for stocking shelves with inventory such as screws, nails, nuts and bolts.
Market your hardware business
The best way to market your business is to sell quality products and offer great services. Your pricing will go along way as well. However you may need to spread the word for your business to be known among the locals and beyond. Social media advertising and various online advertisement platforms can help you achieve this
NOTE: Starting a small hardware business requires research, planning and commitment, but it can be very rewarding and profitable if you do it well.
