What you need in Hardware business

The hardware business is very lucrative in Kenya. Especially when the government is prioritizing housing projects across the country. The need for housing is an ever-growing demand which can’t be easily satisfied. This is necessitated by the growing urban population.  Taking this opportunity to start a hardware business won’t be bad. But most entrepreneurs wonder what is the startup capital for the hardware business.

This article highlights key things that you should know about the hardware business. Among them is the startup capital that you need.

What you need to start a hardware business.

Hardware, just like any other business, has requirements that entrepreneurs need to be aware of before getting to it. It’s in order if you can create a checklist that can guide you in the process so that you don’t forget.

Location

Appropriate location is key when choosing where to run a hardware business. For a brick-and-motor retail business, the best location should take visibility, affordability, and rental terms into consideration. You need to verse yourself very well with these key location factors.

Additionally, you should check on the target market. Understand the products and customers you intend to serve. Failure to know customers’ buying patterns won’t allow you to make informed decisions.

As part of location factors for consideration, check on the competition. It is a smart move to place your store close to a big competitor. This helps in visibility from customers whenever they visit your competitor thus reducing marketing expenses.

Compatibility is another important feature you need in your checklist while looking for a proper location. Its only food exceptional businesses such as a restaurant that can stand alone in the market. Otherwise, a cluster of stores operating the same or nearly the same businesses pool customers together.

Finally, in location decisions, consider accessibility. Is it a place where customers and suppliers can easily access it?

Capital

Hardware businesses require a substantial amount of capital to start it. Capital in this sense is the monetary amount required to purchase stocks for resale. Although a good one would be an amount of not less than sh.500,000, it depends on other factors.

What is the floor space you have? Consider your capability? How about the vision you have for your hardware business? The money required to start a business, though important is not everything. Someone can start with sh.50,000 and succeeds while another one can start with sh.1Million and fails. Reason? All business factors such as the ones mentioned above are interdependent. You can not count success on the availability of capital only. Its more of strategy, but you have to employ all techniques to make it a success.

The main reason why hardware businesses require a huge amount of capital is the prices of the inventory. Most of the items are of high value hence few stocks.

Categories of items to start with in the hardware business

• Building materials such as cement, metals, etc
• Home improvement-Brushes, paints, and protective gear among others
• Plumbing-Pipes, fittings, taps, valves, and others
• Electricals-Cables, switches, plugs, etc
• Hand Tools-Hammers, pliers, screwdrivers, etc
• Power Tools-Cordless drifts, angle grinder among others

You can check here to see the learn about the sales strategies to employ to your hardware business.