How to Start a Hardware Shop in India - a complete guide

So you want to start a hardware shop .Hardware shop is best choice to start your business if you have enough funds, guide and determination . But also it is also a risky business as many people leave this business after two or three years due to lack of funds, cashflow . so it became important for you to understand complete  process to start a New Hardware shop .I personally have a lot experience in hardware business as it is our family business and we earning around 2-3 lakhs per months . in this post we will guide you to a complete guide to start a Hardware shop.

Hardware shop overview 

Hardware shop mostly deals with hardware items ,building material, plumbing material , keys, chains ,agro hardware material , elaectrical material and many more DIY . so numbers of material can be endless . it completely depends on you and your location . 

Capital requires to start a hardware shop 

Now this is mmost important part ,as this business req a strong fund to start . if you are planning for starting a complete Paint and hardware store then it can cost upto 5-8 lakhs . as  said it depends on you so if you have a large fund and your targeted market is large and growing then the above range can be in two figures also . when we started it cost around 5 lakhs but after sometimes it feels insuffeicient and we have to invest another 3 lakhs .

Condition and targeted market

 It is very important to research few things before starting a hardware shop . 

1. Did you have enough funds : Although i don't  agree that money can stop you doing any cool things but yes it play important role . check yourself can you gather such a huge amount . you can take help of your relatives , friends and also government  loan facility wewill discuss all this later in post .
2. Targeted market: you should be well aware of your targeted market before entering in a business . in this case your targeted  market will be those who are going to build a house , building constructor ,farmers .you should tie up with  specific workers like  plumbers, artsman ,labours  as they can be your way to ultimate success . we will talk it later .
3. Competitor:  if you are in a market  there are already some stablished Hardware shops then it is going to be diificult for you . always look for area where competition is low . when i started the shop there were none in that market and even today only one another shop is opened recently which is struggling to remain alive .
4. Market Place;  this is most important part, and people fails due to this reason .always open your sho in a area where construction workis going on and will be in future also .always have a good space around your shop with future regards . most hardware shop get success which are in a developing area as this provide a greater chance . i think you got my point .
5. Legal work :  Regester your shops as regard to government rule and fullfill all legal work before starting .

 Growth potential and profit margin of Hardware shop

Hard ware shop has a profit margin of around 15% on average . it can be more or less depends on your marketing strategy . i beleive in mass selling . asif you can sell you products at 10% margin to a larger section then it will turn you shop in a brand .always aim for long term success .

Hardware shop have a lot more potential in upcoming generation and according to official data it is going to be increas by 200% globally in coming years.

How to start a Hardware shop

Now you have decided to start a Hardware shop . at first start research in your area and find best place for your shop . if you are going to pay rent then be carefull about space and your ownership as in future you required a lot more space than you currently think . It would be good if you can also find a store room for your extra material to store . 

now , do the legal acivity as req per government rule . in India you have to register for a GST CARD  which is compulsory also try to gain government subsidy and loan facility. i will cover that in another post . 

Now , next part is how you gone to purchase the product . you have two ways ,either you can contact an agent or youcan partner with a large wholesale shop. I  think you should do both ,means in starting purchase product from a near by wholesale shop . i agree your profit would be less but you would not have to wait for agent to supply things . so you can buy product whenever you want . this woud save your time and hence your money also. but after some time contact an agent so that you can earn more benefit.

Hardware shop will req conjugation with workers so would be better to contact some labours, workers, plumbers,electrician etc. so that whenever a customer come to your shop you can give him complete solution . this will make a feel good sense in customer mind and thus strengthen your shop's reputation. 

one important things which i feel in my early days is that you can't have all items in your shop as there are many categories . so i would pefer to have a complete items of a partiular categories . let' say if you electrical things in your shop then have all component which should be there . otherwise it can really be demerit for your shop. you will learn all this after sometimes ,as practice make man perfect .

 Now one more thing i would suggest you that look for price of your product online so to get complete overview of profit . you can even directly contact a company for more to directly supply product to reduce cost . For that look www.indiamart.com here you will find thousands of manufacturer around country . so you can check pice , contact them and get your product . this is really a good move to earn more.

Advertising your hardware shop

Marketing for your Hardware shop is most important things .although it is not that business where you can sell things online but still digitilisation can make your shop a a brand . 

1. Make a visiting card for your shop to make it more profesional . your visiting card should have your phone number , email id , your website , shop name and address 
2. make  a website for your shop you don't need to spend money . all you have to do is just go to google my business and register there with your gmail . fill up the details about your shop and then just submit . it will automatic make a website for your business . but remember to buy a custom domain for your website . also you will be listed on google map 
3. Make a facebook page for you shop and keep posting all new items , discounted items and more about shop . you may think it uneccessary but as people see your profile they began to see your shop as a reputed shop in market . although do not do much as you do not going to get a lot more customer from these things .
4. Look  for some forums like quara  . be active on them and follow people related to your topics as you have to lear continuosly and also share your views with them . i would suggest you to join our forum where  you can discuss about your business and get tips from other people in same feild .. you can also follow me on facebook also.
5. Using whatsapp is a lot better option for such type of business . think yourself  for more interesting ideas.
6. nowing coming on offline advertising , so it depends on location . if you are in city then hoarding ,banner ads can work well . but i have a trick for you . hire a person who can do job of sales manager for you outside your shop. like he can go to nearby construction sites and ask them to get product from your side . you don't need to hir a profesional   . even your family member can help you in this .
7. one more thing is that keep more than one payment method as many customer are prefering cashless payment so make your shop more professional . 

now at last , no body can tell you magic . you have to  try and fight in field and get success . please share the post to help your other friends .