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Almost everyone wants to become a businessman in today’s era. Opening a hardware shop In India, of your own is one of the easiest and topmost business ideas. It is also one of the most profitable avenues. But, first of all, you need to find out whether this small idea is fit for you or not. Owing to the fact that this small business idea has minimum barriers to entry, there is a cut-throat competition in this business. A typical hardware store sells hand and labour intensive tools such as fasteners, locks, keys, plumbing supplies, electrical supplies, housewares, utensils, cleaning products, paint, brushes, etc. Not everyone is cut out for this job. The prime customers are tradesmen, handymen, Do-It-Yourself (DIY) consumers, etc. Once you have found out that this business idea is a perfect fit for you, you are ready to take the next step. There is not just one step but several steps that need to be followed one after the other in a particular order in order to succeed at this business. Let’s discuss the steps to open a hardware shop in India to make sure that it is well planned out, legally compliant and registered properly.
This needs to be done to ensure you choose the best business location to open your hardware store after gauging the demand in a particular market as well as the competitors in that area. Find an area that has minimum competitors and higher demand. Then, after carefully studying the criterion, you should open your shop at the most favourable location where the growth potential is high.
You need to do good research about the type, range and quality of products you want to sell at your hardware store. Get some useful tips from the local grocery shop owners or kirana store owners to understand the local market economy and get useful insights from them.
Plan your business way ahead of starting it. A clear business plan is key to be successful at entrepreneurship. This will help you in chalking out the exact man and approximate trajectory of your business. You should figure out how much is the investment capital that you need to put in the beginning and how much will you need to keep the store running.
This will help you figure out if you need to take a loan or not. You need to figure out the best insurance plan for your business. You need to make sure that the insurance covers the liability as well as the loss of inventory. You should figure out the basic monthly expenses such as rent, water, utilities, insurance, etc. Check your profit margins while deciding the cost of every item in your store.
Try to figure out the ways to supplement your main income sources by operating and providing other related services as well. For instance, if you sell plumbing tools, you might partner with a local plumber and offer installation services at a discounted price.
Choose the right name for your business and register your business. While registering, check whether the business name that you have decided is available in your state or not. If you plan to have your own trademark, make sure your trademark doesn’t match with the already existing trademarks in your business field.
Use a dedicated business bank account for your business. This is essential so that you don’t mix up personal money with professional money. This will ensure the protection of your personal assets. When your personal and professional accounts are mixed, your personal assets such as your home, car and other valuables are at greater risk in case your business has a great loss. Also, this will help you get credit cards and other financing options in the name of your business to get better interest rates and higher lines of credit which are good for running your business smoothly.
Record your various expenses and income sources. This will help gauge the financial performance of your business. This team will help you organize your data records and this will help you in the annual filing of taxes. Learn important GST norms as well as rules & regulations too.
You need to receive the relevant permits and licenses to run your business successfully. This is needed so that you don’t violate any regulations put up in the state by the govt. if found guilty of a violation, you may be required to pay hefty fines and in case of gross violation, it may even result in the shutting down of your business.
Your brand speaks volumes about you and it tells you how your business is perceived by the public. A strong brand helps you compete well with your competitors. Figure out marketing strategies for promoting and advertising your brand. You can partner with other well-renowned brands and businesses in your area to promote your brand through their outlets. You can even set up your own website to promote and expand your business. You can ask for feedback from the customers to get good reviews from them. This will even increase your sales because of the rave reviews from your existing customers.
You can increase your sales by giving higher discounts on specific items on special occasions such as festivals viz. Diwali, Dusshera, Holi, Mid-year sales, New Year Sales, etc.
You could open your hardware store whenever you want if you feel it is a good business option for you. Just follow our step by step advice and follow it to have a successful business of hardware store in India. You could open a paint shop or an electrical hardware shop or any other hardware shop depending on the growth potential in your business location.
Khata Book Udhar Bahi Khata, Credit Ledger Account