hardware business plan sample pdf

Starting Hardware Store Business Plan (PDF)

Starting a hardware store business is an incredibly lucrative venture, boasting robust profit margins and a constant demand for its products and services. As the backbone of any community’s building and repair needs, hardware stores serve as essential hubs where customers can find a wide range of tools, construction materials, and home improvement supplies. These stores are more than just places to purchase tools, supplies, and building materials—they are hubs of knowledge, expertise, and essential resources for homeowners, contractors, and DIY enthusiasts alike. In an era of rapid urban development and increasing home renovation projects, the hardware store industry remains resilient and holds significant growth potential.

It is projected that the 21 st century will continue to be characterized by concerted construction activities. That stems, in part, from the projected increase in the global population. Plus, regions that have had mostly archaic infrastructure are being upgraded. Governments and the private sector are stepping up property and infrastructure development projects. Overall, residential, commercial, and industrial domains are experiencing a construction boom. For instance, the most sought-after materials right now are concrete, steel, and wood. All these dynamics are creating a huge market for hardware supplies. Thus starting a hardware retail store is bound to be lucrative owing to the ever-expanding market.  This article will outline how to start the hardware store business, and the hardware store business plan – PDF, Word and Excel.

Market Research

Carrying out market research is essential before starting the hardware store business. Market research involves identifying a market for hardware products and services, including important measurable characteristics. Seek to find out the market size for hardware products and services. Whilst doing that find out the popular products or services being offered. Check out up to date hardware industry statistics to help you in those regards. There are usually major players already operating and you should study them. Find out what kind of hardware products and services they offer. Find out about the market shares they own and control. Take time to also evaluate their customer dynamics. All this will help you zone in on a strategic target market. That is why the other area to look into is consumer attributes. What are the general hardware buying habits of consumers in your intended target market? What do they buy, how often, and how much do they spend on average? What are their source of incomes and their average incomes? Whilst you can get ready-made reports on these details, it would be wise to also conduct surveys yourself. You can unearth more details this way. By putting all these together you get a comprehensive understanding of the market. You should ensure that you have a hardware business plan before you venture into this business.

Location And Premises for a Hardware Store

A significant percentage of the demand for hardware products and services stems from the construction industry. So you can identify a location at or near a steadily growing residential area where people are at various stages of constructing their houses. It isn’t enough to only look at the steady growth of such areas alone. These must be people who generally have substantial income levels such that they can afford to buy your products. So that shouldn’t be overlooked because you might regret it later if you don’t find out about it prior.

Your location must be spacious enough to have parking space that adequately accommodates any type of vehicle i.e. for customers and suppliers. The interior of the hardware complex will also have to be spacious with products well arranged in a way that optimizes customers’ buying experience. The road network surrounding or leading to the complex must be well networked and in good shape to promote ease of access for both vehicles and those walking in on foot. Your hardware store business plan should take into account the cost of purchasing or renting premises.

Permits/Licenses, Insurance & Business Bank Account

It depends on where you will be operating from but a hardware store business has to be licensed. In most cases it starts from the basic business or company registration that is mandatory. Then you will usually need a hardware store license. You will also have to be registered with the applicable revenue authority for tax purposes. Other types of permits or licenses might be needed depending on the nature of the hardware products or services you deal with. There are countless risk factors associated with running a hardware store. Your hardware store would need insurance cover for at least general liability, property, crime, and workers. You can get more comprehensive details from reputable insurance providers. In addition to all this you must open a business bank account for your hardware store. Desist from using your personal bank account for your hardware store operations. Having a dedicated business bank account streamlines taxation and bookkeeping. It also presents an authentic brand image. It shields you from business debt liability thus protecting your personal assets. In cases where you need to apply for funding it increases your chances of being considered. Costs of insurance and licenses should be included in your hardware store business plan.

Products for a Hardware Store Business

There’s a very broad range of hardware products that you can sell in your hardware store. Some of the broad categories are agricultural implements, tool sets, protective clothing, building materials, electrical items, plumbing supplies, ironwork materials. So the range of products you can sell is quite diverse e.g. cement, bricks, paint, steel rods (or bars), pipes, adhesives, timber products, door frames, window frames ceramics, various kinds of associated accessories, water reservoirs, glassware, safety shoes, nuts, bolts, nails, screws, work suits, various assortments of hand tools and so on.

Your product range can start relatively small and grow as you add more products informed by recurring customer needs. Earlier we discussed about doing market research because it greatly helps you in knowing what to put in stock. Obviously your hardware store business plan should include money for purchasing the hardware products. Usually as a business person you might be having financial challenges to startup the business so it would be important to know what’s in demand and start off with that.

Inventory Management

Inventory management (or inventory control) refers to the recording and tracking of hardware stock in your store.  Proper inventory management is key to having a profitable hardware store business. The goal is to maintain an optimum number or amount of all inventory items. You should be able to have in stock what a customer seeks. You should be able to detect in good time hardware items that need to be replenished. If this is not properly done it leads to disruptions in sales thus negatively affecting the profitability of your hardware store business. In this day and age you are better off using inventory management software than using manual approaches. The ideal setup is to have an electronic point of sale system or software (EPOS) for your hardware store business. An EPOS with an integrated inventory management function is the best.

Business Model

The business model is the fundamental framework that outlines how a hardware store operates, generates revenue, and creates value for its customers. In the hardware store industry, the most common business model involves the sale of a wide range of tools, building materials, hardware, and related products to both individual consumers and contractors. This model often relies on maintaining an extensive inventory of products to meet the diverse needs of customers. Revenue is primarily generated through the sale of these products, with profit margins varying based on the type of items sold.

To enhance profitability, hardware stores often adopt a mix of strategies. They may offer additional services such as tool rental, key cutting, paint mixing, or even repair services for certain tools and equipment. These supplementary services not only generate additional income but also create a more comprehensive customer experience, making the store a one-stop destination for various hardware-related needs.

In recent years, hardware stores have also embraced digital transformation by establishing an online presence. This allows customers to browse products, check inventory, and place orders online, which can significantly expand the store’s reach and customer base. Some hardware stores may also explore e-commerce as a complementary revenue stream, allowing them to tap into a broader market beyond their physical location. Overall, the hardware store business model continues to evolve to meet the changing needs and preferences of customers while remaining grounded in providing essential products and services for home improvement and construction projects.

Competitive Analysis

Competitive analysis is the assessment of the differences between your hardware store’s performance and that of its competitors. The goal is to detect and examine the factors that cause those differences. In essence you are studying your competition in order to outsmart them. What you unearth from competitive analysis informs your business strategy. Identify who your competitors are and segment them e.g. primary (major focus), secondary, and tertiary. Assess their place or stake in the market. Then do a comparison of what they offer and what you intend to offer. When doing competitive analysis for your hardware store business, you are not just assimilating information. The thrust is to identify market gaps which will be the openings you need. Lacking in skillsets and experience on the current players can be a market gap. You will also get to notice some outstanding pain points consumers still struggle with. Maybe there could be a hardware niche or niches that are underserved – those are market gaps. Regulatory and legislative aspects can also provide insights into market gaps. The marks of a well done competitive analysis will be you identifying market gaps.

Staff And Management

The effective running of a hardware business requires a significant workforce. As a rule of thumb staffing needs are always informed by your intended scale of operations. Some of the key areas in this business are operations management, supply chain management, financial management and inventory management. You’ll need cashiers/till operators, general hands, supervisors, shop attendants and customer attendants as some of the vital components of your operations management team.

The operations team will be central to overseeing the supply chain and inventory management aspects. You must understand that smooth flow of a hardware store business entails consistent monitoring and evaluation of stocks. There’s also a need for a seamless framework for timeous sourcing and receipt of stock from suppliers. Financial accounting is critically important for a hardware business so as to empirically keep track of all transactions.

A hardware shop business also draws more customers when it offers delivery services. Having marketing agents is also strategic because marketing needs serious attention in light of the existence of competitors. As you can see, synching and optimizing all these components together requires a strong and dedicated team. The top management will, depending on scale of operations, constitute of either qualified hired personnel or family members. The hardware business plan should include provisions of salaries for all your workforce.

The major causes of failure of hardware stores include poor financial management resulting in losses. No wonder financial accounting must be thoroughly done when running this business. It’s also encouraged that you conduct stock takes regularly, an exercise that’ll feed into your financial management efforts.

Marketing Plan

Digital marketing must be your biggest focus. Get a website developed for the business to have brand visibility online. Buttress this by setting up active social media accounts on Facebook, LinkedIn, WhatsApp, Instagram and Twitter. Leverage on those platforms’ features such as stories, reels, and status updates to daily send out brand awareness content. Take advantage of print (e.g. fliers, posters, banners) and digital (e.g. e-fliers) media for brand awareness. Aim at exhibiting or being at strategic events such as trade fairs, expos, and the like. Explore options to get featured in strategic publications such as blogs, newspapers, podcasts, radio shows, and so on. Come up with promotionals e.g. discounts. Institute a customer loyalty programme which will be instrumental in boosting word of mouth marketing. Engage social media influencers to tap into large pools of potential customers. Overall, strive to devote at least 5 percent of your revenue towards marketing initiatives. The hardware store business plan should include a proper marketing plan for your business.

Market for Hardware Products

There are several customer sources for a hardware shop. These include building and construction (both new constructing projects and renovations), Do It Yourself (DIY) projects, agriculture industry, electrical and plumbing projects, and maintenance work. Property owners carry out renovations, upgrades, repairs on their properties, and to do that they need hardware products.  Other potential customers for a hardware store business include construction companies, organisations, housing cooperatives, schools, private companies, individuals, farmers and the government.

Keys To Profitability

Starting a hardware store business can be a lucrative venture, but like any other business, success depends on various factors. To ensure profitability in your hardware store, it’s crucial to focus on a few key strategies. First and foremost, effective inventory management is essential. Maintaining the right balance of products, avoiding overstocking or understocking, and regularly reviewing your inventory can help reduce carrying costs and increase your bottom line. Additionally, understanding your target market and offering products that cater to their specific needs and preferences can set you apart from the competition and boost sales. Diversifying your product range is essential. Offering a diverse selection of products, including traditional hardware items, seasonal products, tools, gardening supplies, and home improvement materials, can attract a broader customer base and increase sales opportunities throughout the year. Cost control is another crucial aspect of profitability. Carefully monitor expenses and overhead costs, and regularly review your financial statements to identify areas where you can cut unnecessary spending. Negotiating favorable terms with suppliers, considering bulk purchasing for commonly sold items, can help you secure better pricing on products, increasing your profit margins.

An efficient store layout and visual merchandising are critical. Creating an organized and visually appealing store layout that makes it easy for customers to find what they need can encourage impulse purchases and boost overall sales. Proper signage and strategic product placement can further enhance the shopping experience. Provide exceptional customer service. Customers often return to stores where they receive personalized assistance, expert advice, and a pleasant shopping experience. Well-trained and knowledgeable staff can make a significant difference in customer satisfaction and loyalty. Embracing technology and modernizing your hardware store operations can contribute to profitability. Implementing point-of-sale systems, inventory management software, and an online presence can streamline processes, improve efficiency, and attract a wider customer base. Marketing and promotion are indispensable for drawing customers to your hardware store. Utilize a combination of traditional advertising methods, such as local newspapers and flyers, along with digital marketing techniques like social media, email campaigns, and a user-friendly website. Offering promotions, discounts, and loyalty programs can incentivize repeat business and increase revenue.

Advantages Of A Hardware Store Business

Starting a hardware store business offers several compelling advantages that make it a promising venture in the retail industry. First and foremost, hardware stores benefit from a steady and consistent demand for their products. Whether it’s for routine home maintenance, DIY projects, renovations, or construction work, people rely on hardware stores year-round, providing a reliable customer base that can help stabilize your store’s revenue over time. Providing excellent customer service and a well-stocked inventory can lead to repeat business. Many customers return to hardware stores for ongoing projects, maintenance, or additional supplies. Building a loyal customer base can contribute significantly to long-term success.

Another significant advantage is the diverse product range that hardware stores typically offer. From basic tools and fasteners to power equipment and building materials, these establishments cater to a broad spectrum of customers, including homeowners, contractors, do-it-yourself enthusiasts, and hobbyists. This diversity not only broadens your customer base but also increases sales opportunities, as customers often find a wide array of products under one roof, making their shopping experience more convenient. The business is also very profitable. While individual items may have lower profit margins, hardware stores often make up for it through the volume of sales. High inventory turnover and a consistent flow of customers results in healthy overall profit margins.

Additionally, hardware stores tend to be recession-resistant businesses. During economic downturns, people often prioritize home maintenance and smaller-scale improvement projects, rather than undertaking major renovations or new construction. This inclination toward more modest projects can lead to increased sales for hardware stores, making them relatively resilient in challenging economic times. This stability is a compelling advantage for entrepreneurs looking to invest in a business with long-term sustainability.

Why You Need A Hardware Store Business Plan

A business plan is instrumental in helping you comprehend the profitability of your hardware store business by providing a detailed financial analysis. It outlines the expected revenue streams, including sales projections, pricing strategies, and market demand analysis. Moreover, it delves into the various factors that impact profitability, such as operational costs, volumes sold and markup margins. By quantifying these variables and examining their interplay within the plan, you can gain a comprehensive understanding of the financial landscape, enabling you to make informed decisions, identify potential areas for cost optimization, and ultimately enhance the profitability of your hardware store.

A business plan is also an essential tool for securing funding for your hardware store business. It serves as a detailed blueprint that demonstrates your business’s viability, growth potential, and financial projections to potential investors, lenders, or partners. A well-structured business plan showcases your understanding of the market, competition, and target audience, instilling confidence in financiers about the soundness of your venture. It provides a clear roadmap for how you intend to utilize the funding and achieve your business objectives, giving investors assurance that their investment will be wisely used. In essence, a business plan is your persuasive document that not only attracts financial support but also establishes a sense of trust and credibility, making it a vital tool in securing the funding needed to launch or expand your hardware store.

A comprehensive hardware store business plan is an indispensable asset for those embarking on or expanding their hardware store ventures. It provides clarity of vision, enabling you to define your store’s mission, vision, and objectives clearly. Articulating your business’s purpose and outlining your goals ensures that you and your team are on the same page, working towards a common vision. It also serves as a strategic roadmap, delineating the strategies and tactics essential for your hardware store’s growth and development. This roadmap helps in making informed decisions and acts as a reference point for measuring progress and making necessary adjustments in a dynamic market landscape.

Pre-Written Hardware Store Business Plan (PDF, Word And Excel): Comprehensive Version, Short Funding/Bank Loan Version and Automated Financial Statements

For an in-depth analysis of the hardware store business, we encourage you to purchase our well-researched and comprehensive hardware business plan. We introduced the business plans after discovering that many were venturing into the hardware business without enough knowledge and understanding of how to run the business, lack of understanding of the financial side of the business, lack of understanding of : the industry, the risks involved , costs and profitability of the business; which often leads to disastrous losses.

The StartupBiz Global hardware shop business plan will make it easier for you to launch and run your hardware store business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as you will be aware of all the costs involved in setting up and running the hardware business.

Uses of the Hardware Business Plan (PDF, Word And Excel)

The hardware shop business plan can be used for many purposes including:

• Raising capital from investors/friends/relatives
• Applying for a bank loan
• Start-up guide to launch your hardware retail business
• As a hardware store business proposal
• Assessing profitability of the hardware business
• Finding a business partner
• Assessing the initial start-up costs so that you know how much to save
• Manual for current business owners to help in business and strategy formulation

Contents of the Hardware Store Business Plan (PDF, Word And Excel)

The hardware business plan include, but not limited to:

• Industry Analysis
• Marketing Strategy
• Market Analysis
• Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortization)
• Risk Analysis
• SWOT & PEST Analysis
• Operational Requirements
• Operational Strategy
• Why some people in the hardware business fail, so that you can avoid their mistakes
• Ways to raise capital to start your hardware store business

The hardware business plan package consists of 4 files

• Hardware Store Business Plan – PDF file (Comprehensive Version – 70 Pages)
• Hardware Shop Business Plan – Editable Word File (Comprehensive Version – 70 Pages)
• Hardware Store Business Plan Funding/Bank Loan Version- Editable Word File (Short version for applying for a loan/funding – 44 pages)
• Hardware Store Business Plan Automated Financial Statements – (Editable Excel File)

The business plan can be used in any country and can be easily edited. The financial statements are automated. This implies that you can change eg the percentage markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

Click below to download the Contents Page of the Hardware Store Business Plan (PDF)

Testimonial 7

I found Startupbiz Global online when I was in desperate need of a business plan. I was overwhelmed by the quality of the business plan, it’s comprehensive and well researched! I did not have to wait to get the business plan, I got it instantly after payment. I highly recommend Startupbiz Global, and would happily use them again in the future.

Testimonial 3

I was extremely lucky to come across StartupBiz Global. Their business plan exceeded my expectations, and most importantly I was able to secure a loan from my bank. Thank you guys, now my dreams are coming true!

Testimonial 6

I purchased a business plan from you, and I’m glad to inform you that I was able to get my loan, and I’m starting my poultry farming business on the 1 st of July. This was made possible because of your business plan. Thank you very much, you made my dream come true.

Testimonial 1

StartupBiz Global provided a very professional and comprehensive business plan which I used for my business. The business plan was easy to edit, and I was able to get the funding which I wanted. I highly recommend their business plans.

Testimonial 5

I was able to understand the business side of farming because of your business plan. You did extensive research; the business plan was well prepared and fully detailed.  It made everything clear, and I have somewhere to start now. I am confident that I am going to succeed in my business because of the guidance from your business plan.

Testimonial 2

Many thanks for your incredibly efficient service and thorough business plan. I am very impressed with the business plan. Before I bought the business plan, I tried to do my own business plan – it was such a nightmare and it turned out badly, also not to mention the stress it caused me. I wish I knew about your website earlier!

Testimonial 8

Just wanted to say I am very happy with the business plan and I will gladly recommend your products, thank you very much and have a great day.

Testimonial 4

The business plan which I purchased from your website saved me TIME and MONEY! The layout of the business plan was excellent. The financial statements were detailed and easy for me to edit. I will come back to purchase another business plan soon.

Get the Hardware Business Plan (PDF, Word And Excel)

Click Buy Now  below to purchase using Paypal, Credit Card, or Debit Card. After you have purchased, you will immediately see the download link for the business plan package on the screen. You will also immediately get an email with the business plan download link. The Pre-written business plan package (PDF, Word, and Excel) costs $30 only!

If you want to purchase multiple business plans at once then click here: Business Plans Store.

The business plan package is a zipped compressed file containing the PDF, Word and Excel documents. To open the package after downloading it, just right click, and select Extract All. If you have any problems in downloading and opening the files, email us on [email protected] and we will assist you.

We wish you the best in your hardware store business! Check out our collection of business plans  , and more business ideas .

Related Posts

Starting Potato Farming Business Plan (PDF)

10 Profitable Business Ideas For Youths

Latest Innovations In Poultry Farming

Starting Tilapia Fish Farming Business Plan (PDF)

Join our mailing list to receive the latest posts and updates from our website.

You have Successfully Subscribed!

ZenBusinessPlans

Home » Sample Business Plans » Wholesale & Retail

How to Write a Hardware Store Business Plan [Sample Template]

Are you about starting a hardware store? If YES, here is a complete sample hardware store business plan template & feasibility report you can use for FREE . So we have considered all the requirements for starting a hardware store. We also took it further by analyzing and drafting a sample hardware store business marketing plan template backed up by actionable guerrilla marketing ideas for hardware stores. So let’s proceed to the business planning section .

Why Start a Hardware Store Business?

If you are looking for a business to start as an entrepreneur and you know you have an interest in running a store, then you should consider starting your own hardware store business. Although you don’t need a college degree to establish your own hardware store, but you would need some form of informal training.

It would help you to learn how to manage your own store. It is important to point out that hardware store business is one the businesses that can’t go out of fashion because of the role it plays in our society.  The startup capital for this type of business can be considered to be moderate.

As a matter of fact, you can start your own hardware store and then grow it big within a short period of time by reinvesting your profits back to the business. Below is a sample hardware store business plan template that will help you successfully write yours without much stress

A Sample Hardware Store Business Plan Template

1. industry overview.

Stores in the Hardware Stores industry primarily retail a broad range of home renovation equipment and related supplies. Products such as hardware, plumbing, electrical and paint-related tools et al are the most commonly stocked goods you will likely find in a hardware store.

If you are a follower of happenings in the industry, you would have noticed that the industry has steadily improved over the five years to 2017. As the housing market has strengthened and consumer confidence has revived, individuals have started home improvement projects that had been put on hold during the recession.

Low mortgage rates during the period have also encouraged individuals to purchase and renovate new and existing homes. This flurry of construction activity has boosted demand for industry products from both contractors and do-it-yourself consumers. Going forward, revenue generated by the Hardware Stores industry is projected to grow at a slower rate.

The Hardware Stores Industry is indeed a large industry and pretty much active in all the countries of the world. Statistics have it that in the united states of America alone, there are about 19,935 registered and licensed hardware stores scattered all across the United States responsible for directly employing about 148,516 people and the industry rakes in a whooping sum of $24 billion annually.

The industry is projected to grow at 1.3 percent within 2011 and 2016. It is important to state that Ace Hardware, Do It Best and True Value Company have the largest chunk of the available market share in the industry. A recent report published by IBISWorld shows that the Hardware Stores industry has moderate barriers to entry.

The report further stated that high startup costs and the saturated nature of the market may deter new companies from entering the industry. Operators that plan to enter this industry need to consider the capital investment required to establish or purchase a store.

For example, to be eligible to join True Value Company, prospective operators must have a minimum of $150,000 unencumbered cash available for investment, while the total investment to open an Ace store ranges from $823,495 to $1,563,495, depending on store size and other variable factors. Of the total investment, $150,000 to $250,000 cash is needed.

The tough part as it relates to start-up costs most likely are the need to establish a supply of hardware and other related goods from wholesalers or directly from manufacturing companies. This is so because a hardware store business cannot be started without sourcing products for sale.

Regardless of moderate barriers to entry, the competitive nature of the industry makes it very difficult for new operators to break even within a short period of time in the industry.

Lastly, the Hardware Stores industry is pretty much open for aspiring entrepreneurs to launch their business. One good thing about hardware stores business is that the business can be opened in any part of the United States and if proper market survey and feasibility studies are conducted, then you can be rest assured of the profitability of the business.

2. Executive Summary

Mike Mendez® Hardware Stores, Inc. is a standard hardware store that will be located in High Street, Short North Arts District, Columbus – Ohio. We have been able to lease a facility that is big enough (a 4 thousand square foot facility) to fit into the design of the kind of standard hardware store that we intend launching and the facility is located in a corner piece along a major road close to one of the largest residential estates in Columbus – Ohio.

Mike Mendez® Hardware Stores, Inc. will retail products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and lumber and other building materials from different manufacturers in the United States and abroad. We are set to service a wide range of clientele in and around Columbus – Ohio.

We are aware that there are several large and small chains of hardware store outlets all around Columbus – Ohio, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.

We have an online – service option for our customers, and our outlet is well secured with various payments of options. Mike Mendez® Hardware Stores, Inc. will ensure that all our customers are given first class treatment whenever they visit our store.

We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large our customer base may grow to. We will ensure that we get our customers involved in the selection of brands that will be in our store and also when making some business decisions that directly affects them.

Mike Mendez® Hardware Stores, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm by actively participating in our communities and integrating sustainable business practices wherever possible.

We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. Mike Mendez® Hardware Stores, Inc. is a family business that is owned by Mike Mendez and his immediate family members.

Mike Mendez has a Diploma in Business Administration with over 5 years of experience in the retailing stores industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Columbus – Ohio, but there is a plan to open other outlets in major cities in the United States and Canada.

3. Our Products and Services

Mike Mendez® Hardware Stores, Inc. is in the hardware stores industry to service a wide range of clients and of course to make profits, which is why we will go all the way to make available a wide range of hardware and other related products from top manufacturing brands in the United States and other countries of the world.

Our product offerings are listed below;

• Retailing hardware
• Retailing tools and equipment
• Retailing plumbing fixtures and fittings
• Retailing electrical supplies
• Retailing paint and supplies
• Retailing garden products and equipment

4. Our Mission and Vision Statement

• Our vision is to become one of the leading brands in the hardware stores industry in Columbus – Ohio and in other key cities in the United States of America and Canada.
• Our mission is to establish a world – class hardware store business that will make available a wide range of hardware and other related products from top manufacturing brands at affordable prices to the residents of Columbus – Ohio and other key cities in the United States of America and Canada where we intend opening chains of hardware retail stores.

Our Business Structure

Mike Mendez® Hardware Stores, Inc. do not intend to start a hardware retail store business like the usual mom and pop business around the street corner; our intention of starting a hardware retail store business is to build a standard retail store outlet in Columbus – Ohio.

Although our hardware retail store business might not be as big as Ace Hardware, Do It Best and True Value Company et al, but will ensure that we put the right structures in place that will support the kind of growth that we have in mind while setting up the business.

We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stakeholders.

As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;

• Chief Executive Officer (Owner)
• Store Manager
• Human Resources and Amin Manager

Merchandize Manager

Sales and Marketing Manager

Information Technologist

• Accountants / Cashiers
• Sales Agents / Customer Services Executive

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Grows management’s effectiveness by employing, selecting, orientating, preparation, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
• Accountable for fixing prices and signing business deals
• Accountable for providing direction for the business
• Builds, interconnects, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
• Accountable for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Admin and HR Manager

• Responsible for overseeing the smooth running of HR and administrative tasks for the organization
• Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
• Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
• Defines job positions for recruitment and managing interviewing process.
• Carries out staff induction for new team members.
• Responsible for training, evaluation and assessment of employees.
• Accountable for arranging travel, meetings and appointments.
• Oversees the smooth running of the daily office cum business activities.

Store Manager:

• Responsible for managing the daily activities in the store.
• Ensures that proper records of hardware and other related products are kept and the warehouse does not run out of products.
• Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate.
• Interfaces with third – party suppliers.
• Controls hardware distribution and supply chain inventory.
• Oversees the workforce in the hardware sales floor.
• Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
• Helps to ensure consistent quality of hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers are purchased and retailed in good price that will ensure we make good profit
• Accountable for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
• Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
• Model demographic information and analyze the volumes of transactional data generated by customer purchases
• Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
• Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
• Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
• Develops, executes and evaluates new plans for expanding sales
• Document all customer contact and information
• Represents the company in strategic meetings
• Helps to increase sales and growth for the company
• Manages the organization’s website
• Handles ecommerce aspect of the business
• Responsible for installing and maintenance of computer software and hardware for the organization
• Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
• Manages the organization’s CCTV
• Handles any other technological and IT related duties.

Accountant/Cashier:

• Accountable for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• In control of financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the organization
• Serves as internal auditor for the organization

Client Service Executive

• Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
• Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
• Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries
• Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
• make suggestions and encourage purchase of products
• Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
• Bags or packages purchases
• Responsible for cleaning all the products and the store facility at all times.
• Ensures that toiletries and supplies don’t run out of stock.
• Handles any other duty as assigned by the store manager.

6. SWOT Analysis

Our intention of starting just one outlet of our hardware retail store in Columbus – Ohio is to test run the business for a period of 3 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in Ohio and key cities in the United States.

We are quite aware that there are several hardware retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.

We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be equipped to confront our threats.

Mike Mendez® Hardware Stores, Inc. employed the services of a Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Mike Mendez® Hardware Stores, Inc.;

Ability to control stock on hand, experienced work force and having a loyal customer base are some of our core strength. So also, our location, the business model we will be operating, varieties of payment options, wide range of hardware and other related products from different manufacturing brand and our excellent customer service culture will definitely count as a plus for Mike Mendez® Hardware Stores, Inc.

A major weakness that may count against us is the fact that we are a new hardware retail store outlet in Columbus – Ohio and we don’t have the financial capacity to compete with multi – million dollars’ hardware retail store outlets like Ace Hardware, Do It Best and True Value Company and co when it comes to retailing at rock bottom prices.

• Opportunities:

The fact that we are going to be operating our hardware retail store in a corner piece property along a major road close to one of the largest residential estates in Columbus – Ohio provides us with unlimited opportunities to sell our hardware and other related products to a large number of individuals.

We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our hardware store outlets.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. Another threat that may likely confront us is the arrival of a new hardware store in same location where ours is located. So also, unfavorable government policies may also pose a threat to businesses such as ours.

7. MARKET ANALYSIS

• Market Trends

Recent trends in the hardware industry show that external competition has slightly dampened both industry revenue and profit growth. Hardware stores have shifted business models to deal with heightened external competition and they will continue to be pressured by online retailers and larger home improvement stores. Experts projected that in 2017, the hardware stores industry is expected to profit from growing global economic conditions.

The hardware retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a hardware retailer to reach out to a larger market far beyond the areas where his physical store is located.

8. Our Target Market

Those who patronize hardware stores cut across all genders above 18 years with the financial means, and who own an apartment or office/business hence the target market for the hardware store business is all encompassing. In essence, your target market can’t be restricted to just a group of people but all those who reside in and around our store location.

In view of that, we have positioned our hardware retail store to service the residents of High Street, Short North Arts District, Columbus – Ohio and every other location where franchise cum outlets of our hardware retail stores will be located.

We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of hardware and other related products to the following groups of people and corporate organizations;

• Construction and Real Estate Companies
• Banks, Insurance Companies and other related Financial Institutions
• Real Estate Owners, Developers, and Contractors
• The Government (Public works department)
• Schools (High Schools, Colleges and Universities)
• Sport Facilities
• Individuals and households

Our Competitive Advantage

A close study of the hardware stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry.

We are aware of the stiff competition and we are well prepared to compete favorably with other leading stores in Columbus – Ohio and throughout the United States. Mike Mendez® Hardware Stores, Inc. is launching a standard one stop hardware store that will indeed become the preferred choice of residents of Columbus – Ohio and every other location where our outlets will be opened.

One thing is certain; we will ensure that we have a wide range of hardware and other related products from leading manufacturers available in our store at all times. It will be difficult for customers to visit our store and not see the type of hardware they are looking for. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a Competitive Advantage for us.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Mike Mendez® Hardware Stores, Inc. is in business to retail a wide range of hardware and other related products to the residents of Columbus – Ohio. We are in the hardware stores industry to maximize profit and we are going to go all the way out to ensure that we achieve or business goals and objectives.

Mike Mendez® Hardware Stores, Inc. will generate income by selling the following products;

10. Sales Forecast

When it comes to hardware retail stores, if your store is well stocked with various types of hardware and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Columbus – Ohio and we are quite optimistic that we will meet our set target of generating enough income from the first six months of operation and grow the business and our clientele base.

We have been able to critically examine the hardware retail industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Columbus – Ohio.

Below are the sales projections for Mike Mendez® Hardware Stores, Inc. it is based on the location of our business and other factors as it relates to hardware retail startups in the United States;

• First Fiscal Year: $250,000
• Second Fiscal Year: $450,000
• Third Fiscal Year: $750,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor within our market space. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Before choosing a location for Mike Mendez® Hardware Stores, Inc. we conducted a thorough market survey and feasibility studies in order for us to penetrate the available market. We have detailed information and data that we were able to utilize to structure our business to attract the number of customers we want to attract per time.

We hired experts who have good understanding of the hardware retail industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Columbus – Ohio.

In other to continue to be in business and grow, we must continue to sell the hardware and other related products that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Mike Mendez® Hardware Stores, Inc. will adopt the following sales and marketing approach to win customers over;

• Open our store in a grand style with a party for all.
• Introduce our hardware store by sending introductory letters alongside our brochure to residents, businesses and other key stakeholders in Columbus – Ohio.
• Ensure that we have a wide range of hardware and other related products from different brands at all times.
• Make use of attractive hand bills to create awareness and also to give direction to our store.
• Position our signage/flexi banners at strategic places around Columbus – Ohio
• Position our greeters to welcome and direct potential customers.
• Create a loyalty plan that will enable us reward our regular customers.
• Engage in roadshows within our neighborhood to create awareness for our hardware retail store.
• List our business and products on yellow pages ads (local directories).
• Leverage on the internet to promote our business.
• Engage in direct marketing and sales
• Encourage the use of Word of mouth marketing (referrals).
• Join local chambers of commerce and industries to network and market our products.

11. Publicity and Advertising Strategy

Despite the fact that our hardware retail store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our hardware retail store.

Mike Mendez® Hardware Stores, Inc. has a long-term plan of opening outlets in various locations all around Ohio and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Columbus – Ohio before venturing out.

As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Mike Mendez® Hardware Stores, Inc.;

• Place adverts on community based newspapers, radio and TV stations.
• Encourage the use of word of mouth publicity from our loyal customers.
• Leverage on the internet and social media platforms like YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms to promote our business.
• Ensure that we position our banners and billboards in strategic positions all around Columbus – Ohio.
• Distribute our fliers and handbills in target areas in and around our neighborhood.
• Advertise our hardware retail store business in our official website and employ strategies that will help us pull traffic to the site.
• Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

Aside from quality, pricing is one of the key factors that gives leverage to hardware retail stores, it is normal for consumers to go to places where they can get hardware and other related products at cheaper price.

In view of that, our prices will conform to what is obtainable in the industry but we will ensure that within the first 6 to 12 months, our products will be sold a little bit below the average price of various hardware stores in the United States of America. We have put in place business strategies that will help us run on low profits for a period of 6 months; it is a way of encouraging people to buy into our brand.

• Payment Options

The payment policy adopted by Mike Mendez® Hardware Stores, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Mike Mendez® Hardware Stores, Inc. will make available to her clients;

• Payment via bank transfer
• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer
• Payment via bank draft

In view of the above, we have chosen banking platforms that will enable our client make payment for our hardware and other related purchases without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our products.

13. Startup Expenditure (Budget)

From our market survey and feasibility studies, we have been able to come up with a detailed budget on achieving our aim of establishing a standard hardware shop in Columbus – Ohio and here are the key areas where we will spend our startup capital;

• The total fee for registering the business in the Unites States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
• Marketing promotion expenses for the grand opening of Mike Mendez® Hardware Stores, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• The cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $105,600.
• The cost for shop remodeling (construction of racks and shelves) – $20,000.
• Other start-up expenses including stationery ($500) and phone and utility deposits ( $2,500 ).
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for start-up inventory  – $350,000
• The cost for counter area equipment – $9,500
• The cost for store equipment (cash register, security, ventilation, signage) – $13,750
• The cost of purchase and installation of CCTVs: $10,000
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
• The cost of launching a website: $600
• The cost for our opening party: $7,000
• Miscellaneous: $10,000

We would need an estimate of $750,000 to successfully set up a standard hardware retail store in Columbus – Ohio.

Generating Funds/Startup Capital for Mike Mendez® Hardware Stores, Inc.

Mike Mendez® Hardware Stores, Inc. is a private registered business that is solely owned and financed by Mike Mendez and his immediate family members. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the startup capital to 3 major sources.

These are the areas we intend generating our startup capital;

• Generate part of the startup capital from personal savings
• Source for soft loans from family members and friends
• Apply for loan from my Bank

N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.

One of our major goals of starting Mike Mendez® Hardware Stores, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our wide range of products such as hardware, tools, plumbing and electrical supplies, lawn, garden and farm supplies, paint and sundries and lumber and other building materials et al from different manufacturers (brands) a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.

Mike Mendez® Hardware Stores, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Leasing of facility and remodeling the shop: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Graphic Design and Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
• Creating Official Website for the Company: In Progress
• Creating Awareness for the business both online and around the community: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party planning: In Progress
• Compilation of our list of products that will be available in our store: Completed
• Establishing business relationship with vendors – manufacturers and suppliers of hardware and other related products: In Progress

More on Wholesale & Retail

Hardware Business Plan Template & Guidebook

Being successful in the hardware industry requires careful planning and a well-crafted business plan that lays out the details of your goals and strategies. Writing a business plan can be a daunting task, but with the #1 Hardware Business Plan Template & Guidebook, you can create a comprehensive plan tailored to your specific needs quickly and easily. Learn how to use this powerful tool to ensure the success of your own hardware business.

Get worry-free services and support to launch your business starting at $0 plus state fees.

• How to Start a Profitable Hardware Business [11 Steps]
• 10+ Best & Profitable Hardware Business Ideas [2023]

How to Write a Hardware Business Plan in 7 Steps:

1. describe the purpose of your hardware business..

The first step to writing your business plan is to describe the purpose of your hardware business. This includes describing why you are starting this type of business, and what problems it will solve for customers. This is a quick way to get your mind thinking about the customers’ problems. It also helps you identify what makes your business different from others in its industry.

It also helps to include a vision statement so that readers can understand what type of company you want to build.

Here is an example of a purpose mission statement for a hardware business:

Our mission is to provide the highest quality hardware products and services to our customers; to foster a safe, welcoming, and inclusive environment where our team can thrive; and to be a leader in thought, innovation, and environmental stewardship in the hardware industry.

2. Products & Services Offered by Your Hardware Business.

The next step is to outline your products and services for your hardware business. 

When you think about the products and services that you offer, it's helpful to ask yourself the following questions:

• What is my business?
• What are the products and/or services that I offer?
• Why am I offering these particular products and/or services?
• How do I differentiate myself from competitors with similar offerings?
• How will I market my products and services?

You may want to do a comparison of your business plan against those of other competitors in the area, or even with online reviews. This way, you can find out what people like about them and what they don’t like, so that you can either improve upon their offerings or avoid doing so altogether.

3. Build a Creative Marketing Stratgey.

If you don't have a marketing plan for your hardware business, it's time to write one. Your marketing plan should be part of your business plan and be a roadmap to your goals. 

A good marketing plan for your hardware business includes the following elements:

Target market

• Who is your target market?
• What do these customers have in common?
• How many of them are there?
• How can you best reach them with your message or product?

Customer base 

• Who are your current customers? 
• Where did they come from (i.e., referrals)?
• How can their experience with your hardware business help make them repeat customers, consumers, visitors, subscribers, or advocates for other people in their network or industry who might also benefit from using this service, product, or brand?

Product or service description

• How does it work, what features does it have, and what are its benefits?
• Can anyone use this product or service regardless of age or gender?
• Can anyone visually see themselves using this product or service?
• How will they feel when they do so? If so, how long will the feeling last after purchasing (or trying) the product/service for the first time?

Competitive analysis

• Which companies are competing with yours today (and why)? 
• Which ones may enter into competition with yours tomorrow if they find out about it now through word-of-mouth advertising; social media networks; friends' recommendations; etc.)
• What specific advantages does each competitor offer over yours currently?

Marketing channels

• Which marketing channel do you intend to leverage to attract new customers?
• What is your estimated marketing budget needed?
• What is the projected cost to acquire a new customer?
• How many of your customers do you instead will return?

Form an LLC in your state!

4. Write Your Operational Plan.

Next, you'll need to build your operational plan. This section describes the type of business you'll be running, and includes the steps involved in your operations. 

In it, you should list:

• The equipment and facilities needed
• Who will be involved in the business (employees, contractors)
• Financial requirements for each step
• Milestones & KPIs
• Location of your business
• Zoning & permits required for the business

What equipment, supplies, or permits are needed to run a hardware business?

• Accounting software
• Permits to operate a business in the local jurisdiction
• Hardware inventory
• Point of sale system
• Cash register
• Tax permits or certificates
• Shop tools and supplies
• Work tables or benches
• Safety equipment and supplies

5. Management & Organization of Your Hardware Business.

The second part of your hardware business plan is to develop a management and organization section.

This section will cover all of the following:

• How many employees you need in order to run your hardware business. This should include the roles they will play (for example, one person may be responsible for managing administrative duties while another might be in charge of customer service).
• The structure of your management team. The higher-ups like yourself should be able to delegate tasks through lower-level managers who are directly responsible for their given department (inventory and sales, etc.).
• How you’re going to make sure that everyone on board is doing their job well. You’ll want check-ins with employees regularly so they have time to ask questions or voice concerns if needed; this also gives you time to offer support where necessary while staying informed on how things are going within individual departments too!

6. Hardware Business Startup Expenses & Captial Needed.

This section should be broken down by month and year. If you are still in the planning stage of your business, it may be helpful to estimate how much money will be needed each month until you reach profitability.

Typically, expenses for your business can be broken into a few basic categories:

Startup Costs

Startup costs are typically the first expenses you will incur when beginning an enterprise. These include legal fees, accounting expenses, and other costs associated with getting your business off the ground. The amount of money needed to start a hardware business varies based on many different variables, but below are a few different types of startup costs for a hardware business.

Running & Operating Costs

Running costs refer to ongoing expenses related directly with operating your business over time like electricity bills or salaries paid out each month. These types of expenses will vary greatly depending on multiple variables such as location, team size, utility costs, etc.

Marketing & Sales Expenses

You should include any costs associated with marketing and sales, such as advertising and promotions, website design or maintenance. Also, consider any additional expenses that may be incurred if you decide to launch a new product or service line. For example, if your hardware business has an existing website that needs an upgrade in order to sell more products or services, then this should be listed here.

7. Financial Plan & Projections

A financial plan is an important part of any business plan, as it outlines how the business will generate revenue and profit, and how it will use that profit to grow and sustain itself. To devise a financial plan for your hardware business, you will need to consider a number of factors, including your start-up costs, operating costs, projected revenue, and expenses. 

Here are some steps you can follow to devise a financial plan for your hardware business plan:

• Determine your start-up costs: This will include the cost of purchasing or leasing the space where you will operate your business, as well as the cost of buying or leasing any equipment or supplies that you need to start the business.
• Estimate your operating costs: Operating costs will include utilities, such as electricity, gas, and water, as well as labor costs for employees, if any, and the cost of purchasing any materials or supplies that you will need to run your business.
• Project your revenue: To project your revenue, you will need to consider the number of customers you expect to have and the average amount they will spend on each visit. You can use this information to estimate how much money you will make from selling your products or services.
• Estimate your expenses: In addition to your operating costs, you will need to consider other expenses, such as insurance, marketing, and maintenance. You will also need to set aside money for taxes and other fees.
• Create a budget: Once you have estimated your start-up costs, operating costs, revenue, and expenses, you can use this information to create a budget for your business. This will help you to see how much money you will need to start the business, and how much profit you can expect to make.
• Develop a plan for using your profit: Finally, you will need to decide how you will use your profit to grow and sustain your business. This might include investing in new equipment, expanding the business, or saving for a rainy day.

Frequently Asked Questions About Hardware Business Plans:

Why do you need a business plan for a hardware business.

A business plan for a hardware business is important to outline the goals and objectives of the business, such as determining the target market, defining product offerings, creating operational plans and setting financial goals. It also provides a roadmap for the future of the business, helping to ensure that decisions are made in line with those plans. Creating a business plan allows potential investors or lenders to assess the viability of the hardware business before committing funds.

Who should you ask for help with your hardware business plan?

You should ask a business consultant, entrepreneur mentor, or relevant industry experts for help with your hardware business plan.

Can you write a hardware business plan yourself?

Writing a business plan for a hardware business is a complex task that requires research, market analysis, and financial planning. Depending on your skill set and knowledge of the industry, you may be able to write your own business plan for a hardware business. If you decide to take on the project yourself, it is important to do thorough research and market analysis to understand the industry, be aware of any potential competition, and understand the key success factors for success in the hardware sector. Additionally, you should also familiarize yourself with writing a basic business plan, as well as use reliable financial projections to create realistic projections for your venture. Ultimately, it is recommended that you at least consult with an experienced business consultant or accountant before finalizing any decisions related to your business plan so that you can rest assured knowing that your plan adheres to best practices.

Related Business Plans

Home Inventory Business Plan Template & Guidebook

Home Inspection Business Plan Template & Guidebook

Home Decor Business Plan Template & Guidebook

Health And Wellness Business Plan Template & Guidebook

Hauling Business Plan Template & Guidebook

Handyman Business Plan Template & Guidebook

Hair Extension Business Plan Template & Guidebook

Handbag Business Plan Template & Guidebook

I'm Nick, co-founder of newfoundr.com, dedicated to helping aspiring entrepreneurs succeed. As a small business owner with over five years of experience, I have garnered valuable knowledge and insights across a diverse range of industries. My passion for entrepreneurship drives me to share my expertise with aspiring entrepreneurs, empowering them to turn their business dreams into reality.

Through meticulous research and firsthand experience, I uncover the essential steps, software, tools, and costs associated with launching and maintaining a successful business. By demystifying the complexities of entrepreneurship, I provide the guidance and support needed for others to embark on their journey with confidence.

From assessing market viability and formulating business plans to selecting the right technology and navigating the financial landscape, I am dedicated to helping fellow entrepreneurs overcome challenges and unlock their full potential. As a steadfast advocate for small business success, my mission is to pave the way for a new generation of innovative and driven entrepreneurs who are ready to make their mark on the world.

• Business Plan for Investors
• Bank/SBA Business Plan
• Operational/Strategic Planning Services
• L1 Visa Business Plan
• E1 Treaty Trader Visa Business Plan
• E2 Treaty Investor Visa Business Plan
• EB-1 Business Plan
• EB-2 NIW Business Plan
• EB-5 Business Plan
• Innovator Founder Visa Business Plan
• Start-Up Visa Business Plan
• Expansion Worker Visa Business Plan
• Manitoba MPNP Visa Business Plan
• Nova Scotia NSNP Visa Business Plan
• British Columbia BC PNP Visa Business Plan
• Self-Employed Visa Business Plan
• OINP Entrepreneur Stream Business Plan
• LMIA Owner Operator Business Plan
• ICT Work Permit Business Plan
• LMIA Mobility Program – C11 Entrepreneur Business Plan
• USMCA (ex-NAFTA) Business Plan

Franchise Business Plan

• Landlord business plan
• Nonprofit Start-Up Business Plan
• USDA Business Plan
• Cannabis business plan
• Ecommerce business plan
• Online boutique business plan
• Mobile application business plan
• Daycare business plan
• Restaurant business plan
• Food delivery business plan
• Real estate business plan
• Business Continuity Plan
• Pitch Deck Consulting Services
• Financial Due Diligence Services
• ICO whitepaper
• ICO consulting services
• Confidential Information Memorandum
• Private Placement Memorandum
• Feasibility study
• Fractional CFO
• How it works
• Business Plan Examples

Hardware Retail Franchise Business Plan Sample

AUG.09, 2022

Hardware retail franchise business plan for starting your own business

Whether it be a technological thing such as a computer or a purely natural setting such as a garden, hardware installation is a must. In addition to the usage of big hardware tools, smaller ones like miniature screwdrivers are also increasing in demand. And the demand for sophisticated hardware and tools is expected to increase even more.

So, if you are wondering whether or not you should open a hardware store with franchise, you should keep all the worries aside and read this blog. In this business plan we will be listing all the details of Sam Hardware World, a hardware retail franchise in New York City. It will help you in knowing how to set up a hardware business in the United States. 

Moreover, the financial part would give you an insight into the profits you can earn via it. You could also discover whether or not you need to also consult business plan for loan to launch the startup.

Executive Summary

2.1 the business.

Sam Hardware World will be based in New York City. The business will operate in both B2B and B2C modes. The startup aims at providing hardware for setting ranging from technological to household to business offices.

2.2 Management of hardware retail franchise business

To manage hardware retail the first step is to create a business plan for a hardware store . In that business plan you must enlist all the equipment to be procured and personnel you must staff to manage the operations. Since the business activity overlaps with other businesses as well, you will need to consult retail discount store business plan and toy business plan as well besides the hardware retail franchise business plan.

In this sample business plan for a hardware franchise, we’ll explain how Sam conducted and managed his business. Since he underwent the procedure to get a franchise, you can also see this if you need to study a business plan for a franchise .

2.3 Customers of hardware retail franchise business

Knowing the customers before starting a business will help you in understanding their demands, likes, and purchasing power. The customers of the hardware retail franchise business are:

• Construction Enterprises
• Educational Institutes

2.4 Business Target

Sam Hardware World aims at boosting sales at a specified rate after regular intervals that will be mentioned later in this sample. The financial targets for the first three years are given in this graph:

Company Summary

3.1 company owner.

Sam has acquired a degree in management sciences. After working as a business consultant in a tech firm for two years, he decided to capitalize on hardware store franchise opportunities.

3.2 Why the hardware retail franchise business is being started

Sam started the hardware shop business to benefit from the perks of doing one’s own business. He had unique hardware business ideas thus he decided to step only into this type of enterprise.

3.3 How the hardware retail franchise business will be started

Step1: Conduct Research

The first step is to research the types of hardware businesses with a special focus on franchise hardware stores. You must search for hardware store franchises for sale and select the best among them.

Step2: Make Hardware Business Plan

Next, you will have to devise a hardware shop business plan to ensure you systematically carry out the operations of your business. In your business plan for hardware shop, you should enumerate in detail the executive plan, marketing plan, sales strategy, and financial plan.

Step3: Set up the Hardware Store

In the next stage, you must acquire the place where you would be installing your setup. While procuring the equipment, it is equally important to start recruiting talent.

Step4: Market & Establish a Web Presence

To reach your target customers, you will need to exploit the media platforms and websites to get renowned.

Step5: Manage Finance

Last, you will have to create balance sheets for cost analysis and determining prospective profits.

Services of hardware retail franchise business

If you are thinking of starting a hardware business you must want to know are hardware stores profitable? Well, running a store can be extremely profitable provided you have some unique ideas. To get them, you should search for how to start a hardware business or how to start a store, mark your location, and analyze what others in the domain are doing. Your prospects will depend on your research on potential localities and selecting the right one for launching your franchise hardware store.

• Technical Hardware Products

Our major products will be hardware related to technology use such as computers and components, input and output devices, mobile parts and accessories, etc.

• Construction Hardware

The second category of our products will include hardware that is needed during construction projects.

• Garden Décor & Hardware 

We’ll also provide hardware that is generally needed by households and institutions to set up the deck, or do landscaping. 

• General Tools

We’ll also provide hardware tools that are required for minor and major repairs.

Marketing Analysis of hardware retail franchise business

Before you open a hardware store you must undergo a thorough analysis of all the available markets and explore hardware store franchise opportunities related to each market. It is to first, determine your customer groups, and second, identify the market trends and the price you can set provided your financial targets. The rates of your competitors in retail store hardware businesses and purchasing power of your target customers should also be catered to in the analysis.

excellent work

excellent work, competent advice. Alex is very friendly, great communication. 100% I recommend CGS capital. Thank you so much for your hard work!

Considering the importance of accurate marketing analysis in the business plan, you should hire a marketing expert. However, for a rough idea, you can search on your own on how to start a hardware company and the best locations to open a hardware franchise. 

In this hardware shop business plan pdf we are providing the details of Sam Hardware World. 

5.1 Market Trends

According to IBISWorld, nearly 15k hardware stores are running successfully in the United States. If you go through the hardware store financial district and some hardware retailing magazines you can see that the market size has reached $36 billion in the US alone. Therefore, the market trends are going right and you should not worry about the prospects if you completely understand how to start a hardware store and conduct it. Source – https://www.ibisworld.com/united-states/market-research-reports/hardware-stores-industry/#IndustryStatisticsAndTrends

5.2 Marketing Segmentation

In this section, you should divide the whole population into distinct groups of your target customers. Since the customer groups of hardware stores overlap with other businesses, you can take help from business plan for video game store as well as business plan for farmers market .

5.2.1 Construction Enterprises

Our biggest group of customers will belong to the construction enterprise. They are expected to procure our hardware specified for their work as well as the general tools that are needed for generic tasks.

5.2.2 Offices

The second category of our target customers will be the offices. They will avail of our services and products mainly for setting up the office spaces. The products they would need would range from printers and computers to electronics.

5.2.3 Households

The third category of our target customers comprises households who will need all of our products but in a minor number. Their purchases can be related to technological items as well as garden & yard tools.

5.2.4 Educational Institutes

Educational institutes will also be a group of our target customers as they will be needing the same products that are demanded by offices and households.

5.3 Business Target

The business targets of Sam Hardware World are:

• Attaining a CSAT score of more than 90% within a year of our launch
• Expand the product line by the end of the first year

5.4 Product Pricing

For the first year, we aim at keeping our prices lower than that of our competitors. Afterward, we’ll bring them in the same range as theirs.

Marketing Strategy of hardware retail franchise business

If you are looking for a marketing plan, you have landed on the right page. In this business plan sample, we’re providing a detailed business plan for Sam Hardware World.

6.1 Competitive Analysis

• Our location is ideal for a hardware store. It is because we have several colleges, offices, and small businesses in our vicinity. In addition, the residential community is also not far away.
• We will be offering discounts to construction managers so that they procure the hardware from us and come into a long-term partnership.
• Our strategy to keep prices low during the first year will benefit us in reaching out to the target customers.

6.2 Sales Strategy

In this sample business plan for a hardware franchise, we are giving the sales strategy of Sam Hardware World. However, for more ideas you may also want to visit business plan for a stationery and vape shop business plan .

• We will offer small hardware products as gifts with large purchases.
• We will run social media campaigns to get known to a wider audience.
• We will offer a 20% discount to customers who enter into a long-term partnership with us.

6.3 Sales Monthly

6.4 Sales Yearly

6.5 Sales Forecast

Personnel plan of hardware retail franchise business

If you’re looking for how to start a hardware business , you must know that hiring the right people for the right job is of utmost importance. Owing to its significance, you must include the list of required people along with their job descriptions in a business plan in any format. This will enable you to select the most talented individuals for opening a hardware store with a franchise. 

7.1 Company Staff

Sam will be the CEO. He will need the following people for available positions:

• 2 Sales Managers to manage hardware sales in different domains
• 1 Accountant to maintain financial record
• 1 Social Media Manager to manage online platforms
• 1 Store Operator to manage the inventory
• 1 Customer Care Executive to maintain contracts with long-term customers
• 1 Cleaner to maintain the facility
• 3 Drivers to procure and transport inventory to and from sites

7.2 Average Salary of Employees

Financial plan of hardware retail franchise business.

You may be starting a business out of passion, but you would want to know how much profit can anyone make after they open hardware stores. Practically, hardware stores earn a lot. If the business operations and financial flows are managed then the business can yield immense profit.

To ensure that the finances go as projected, you must make a comprehensive financial plan for your business. That should include the break-even analysis, projected profits on a monthly and yearly basis for at least the first three years, gross margin calculations, balance sheet, and business ratios.

In this retail business plan we are providing the financial plan of Sam Hardware World.

8.1 Important Assumptions

8.2 break-even analysis.

8.3 Projected Profit and Loss

8.3.1 profit monthly.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

8.5 Projected Balance Sheet

8.6 business ratios.

How profitable is a hardware store?

As you can see from the financial part of this hardware retail franchise business plan in pdf, the hardware store can be immensely profitable if you provide unique services. If you have competitive advantages, that would be a plus.

How do I start my own hardware business?

If you are looking for how to set up a hardware store you must study at least one sample hardware retail franchise business plan. The first step is doing research and the second is documenting a detailed business plan. 

Is a hardware store a good investment?

Owning a hardware store is the best investment you can make. It is because setting up and running a hardware store is not much difficult. You can make profits right after starting a hardware store.

Download Hardware Retail Franchise Business Plan Sample in pdf

OGSCapital’s team has assisted thousands of entrepreneurs with top-rate business plan development, consultancy and analysis. They’ve helped thousands of SME owners secure more than $1.5 billion in funding, and they can do the same for you.

Add comment

E-mail is already registered on the site. Please use the Login form or enter another .

You entered an incorrect username or password

Comments (0)

mentioned in the press:

Search the site:

OGScapital website is not supported for your current browser. Please use:

Hardware Store Business Plan Sample PDF Example | Free Download Presented by BizMove

Watch This Video Before Starting Your Hardware Store Business Plan PDF!

Checklist for Starting a Hardware Store Business: Essential Ingredients for Success

If you are thinking about going into business, it is imperative that you watch this video first! it will take you by the hand and walk you through each and every phase of starting a business. It features all the essential aspects you must consider BEFORE you start a Hardware Store business. This will allow you to predict problems before they happen and keep you from losing your shirt on dog business ideas. Ignore it at your own peril!

For more insightful videos visit our Small Business and Management Skills YouTube Chanel .

Here’s Your Free Hardware Store Business Plan DOC

Free book for you: how to start a business from scratch (pdf).

Copy the following link to your browser and save the file to your PC:

https://www.bizmove.com/free-pdf-download/how-to-start-a-business.pdf

Make-Versus-Buy

An important aspect of value analysis is to determine whether it would be more economical for your firm to manufacture a component part or to buy the part from a supplier.

Even if you have a supplier who gives you a good price on materi­als you purchase in fairly large quantities, it may be worthwhile to determine how much it would cost your firm to make such materi­als. Sometimes such an analysis provides valuable insights for negotiating price with a supplier. In this way, you have a better knowledge of what the breakdown of costs are to manufacture the component, and will be in a better position to realistically evaluate the price and discount schedule which the supplier offers. Obviously, if your firm can make the same part less expensively than it could buy it from a supplier, you should seriously con­sider manufacturing it yourself.

Many small businesses will make parts where they feel they have the know how and equipment and will buy where the technology is beyond their expertise, or where the part cannot be handled with existing equipment. However, since capabilities improve and technology changes from year to year, it is important to consider the make-versus-buy decision on a regular basis.

Companies in highly competitive industries often have to find ways to make as many of their own parts as possible to reduce costs. Firms in growth industries, on the other hand, usually can make better use of their capital to expand product lines, rather than investing it in equipment, materials and additional space for making components.

One very important thing to remember when making the decision whether to make or buy components, is to base the decision on all the facts. Often, the facts are incomplete and misleading at first glance. Quick decisions are therefore best avoided where possible. Here are two summary checklists which you might want to consider before you make a "Make-versus-Buy" decision.

SUMMARY/CHECKLIST: FACTS TO CONSIDER BEFORE DECIDING TO MANUFACTURE A COMPONENT

If, at first glance, a make - buy decision seems obvious, look again: Can better suppliers than current ones be found?

Can a lower price, without loss of quality, be obtained?

Consider all costs involved in production:

Overhead - make sure the normal overhead is applicable and that the 'real' overhead is not exceptionally high or low; for instance, waste or space requirements should not be significantly higher than normal

General administrative costs

Will you depreciate the required capital as quickly as you would if you invested it elsewhere?

Consider that production efficiency may be low at first, since you will need time to iron out any bugs in the operation.

Consider whether the required quantities will be large enough to justify the set-up costs and manpower training needed to produce the component, but not so large so as to disrupt production schedules.

Determine whether the demand for the part is stable, seasonal or temporary.

Be sure your company can produce the desired quality with the con­templated production process.

Check for patent considerations which would require you to obtain a license in order to make the part.

Determine whether present knowledge and personnel are adequate for producing the part, or a special skill is involved.

Determine whether you can use present equipment, or whether new equipment must be leased or bought.

Determine whether special considerations will affect scheduling manpower and production.

SUMMARY CHECKLIST: FACTS TO CONSIDER

BEFORE CHOOSING TO BUY A COMPONENT

If, at first glance, it looks better to buy a component rather than make it, look again!

Consider all costs involved in buying the component:

Packaging costs

Freight and shipping expenses

Receiving costs

Any extra handling costs

Determine whether the supplier is reliable.

Determine whether the supplier can meet the quality standards for producing the component.

Check to see if the supplier guarantees the quality of the com­ponent.

Check the supplier's defect rate for producing this component, and how much would it cost you to make repairs on returned items due to the defective component.

Determine whether you will normally receive deliveries on time.

Determine the probability that the supplier might be unable or unwilling to supply you due to a strike, fire, or the needs of more important customers.

Selecting Suppliers

Every business must periodically review and evaluate its present suppliers and compare them with alternate suppliers. In some cases where you have a very limited selection of suppliers, this may be an easy task. However, if you can buy nationwide, or worldwide, you can never be certain that you have the very best supplier.

Furthermore, for every important component which you buy, more than one supplier should be available so you are protected in case of emergency.

What Makes a Desirable Supplier

When evaluating a supplier, several characteristics should be considered:

Reliability of the material - Is quality consistent from one unit to the next? This may concern the physical characteristics of the product, as well as efficiencies and durability in operation and the number of units that fail to stand up during use the way customers have the right to expect.

Price - There are many aspects to price in addition to a low price. Lowest price is not necessarily a primary indication of a good supplier. A desirable supplier can be counted on to charge fairly when something has to be ordered urgently and price cannot be established. When orders are increased, when changes in specification have to be made or when misunderstandings occur which lead to damage or rework, in these situations it is important to have a supplier who is fair and reasonable. Reasonable quantity discounts and credit terms are two other aspects on which the quality of a supplier can be judged.

Delivery - Quick and reliable delivery from a supplier is always desirable. When delivery is unreliable, problems of stockout can occur which creates the need to keep un­necessarily high safety stocks in inventory. Slow delivery can also result in the need to maintain larger average in­ventories because it is more difficult to predict how many units will be required between order date and delivery.

Servicing Problems - Another aspect of supplier quality concerns the way the supplier adjusts shortages in delivery, and provides repair or replacement of unsatisfactory or de­fective material.

Stability - You want suppliers who have the financial and managerial resources to provide an uninterrupted flow of goods or services.

Special Services - Suppliers who agree to space deliveries are more desirable than those who don't. They allow you to take advantage of quantity discounts by purchasing larger quantities yet do not make it necessary for you to increase storage space or inventory carrying costs by delivering the entire order at once. Other services that may make some suppliers more desirable than others include creativ­ity in problem solving and in making suggestions for im­provements in usage of the materials they supply.

Accessibility of Seller - Sellers that are difficult to contact, are less desirable than those whose decision makers are available for quick quotations or for discus­sions to rectify any problems that may come up.

Everyone needs To be knowledgeable about the Decision Making Process. We all rely on advice, and tools or techniques, to assist us in our daily lives. When we head out To eat, the restaurant is the instrument which provides us with all the information needed to decide what to purchase and how much to spend. Running a Business also requires making decisions using techniques and information - how much stock to maintain, what price to sell it at, what credit arrangements to offer, just how many people to hire. Decision Making Process in business is the systematic process of identifying and solving problems, of asking questions and finding answers. Decisions usually are created under conditions of uncertainty. The future isn't understood and sometimes even the past is suspect. This manual opens the door for company owners and managers to find out about the variety of techniques that may be used to improve your decision making process in a world of uncertainty, change, and uncontrollable circumstances. A General Approach to Decision Making Process. Whether or not a scientist, an executive of a significant corporation, or a small business owner you are able to gain from improving your decision making abilities. The general approach to systematically solving issues is the same. The following 7 step approach to enhance management decision making can be used to examine nearly all issues faced by a business enterprise. State the problem. A problem first must exist and be recognized. What is the problem and why is it a problem. What's ideal and how do current operations vary from that ideal. Describe why the symptoms (what's going wrong) and the causes (why is it going wrong). Try to specify all terms, concepts, factors, and relationships. Quantify the problem to the extent possible. If the problem, not accurately and quickly filling customer orders, then try to ascertain just how many orders were incorrectly full and how long it took to fill them. Define the Objectives. What are the goals of the analysis. Which goals are the most crucial. Objectives usually are said by an action verb like to decrease, to increase, or to improve. Returning to the client order problem, the major goals is: 1) to raise the proportion of orders filled correctly, and 2) to reduce the time it takes to order and process. A sub-objective could comprise to simplify and streamline the order filling procedure. Grow a Diagnostic Framework. Next set a diagnostic framework, that is, determine what approaches will be utilized, what kinds of information are needed, and how and where the information is available. Is there going to be a customer questionnaire, a review of business records, time and movement tests, or some thing different. Which are the assumptions (facts assumed to be right ) of this analysis. Which are the standards used to evaluate the study. What time, funding, or other limitations are there. What type of qualitative or other special techniques will be used to examine the data. (Some of that will be covered shortly). To put it differently, the diagnostic framework establishes the scope and methods of the whole study. Collect and Assess the Data. The next step is to gather the data (by following the procedures created in Step 3. Raw data is then tabulated and coordinated to ease analysis. Tables, charts, graphs, indicators and matrices are some of the standard tactics to organize raw data. Analysis is your important prerequisite of sound business decision making. What does the data show. What facts, patterns, and trends can be seen in the information. Many of the qualitative methods covered below can be used during the step to ascertain details, patterns, and trends in data. Of course, computers are used widely during this measure. Generate Alternative Solutions. After the analysis was completed, some specific conclusions about the nature of the issue and its resolution must have been reached. The next step is to create alternative solutions to the problem and position them in order of their net benefits. But how are alternatives best generated. Again, there are some well established techniques such as the Nominal Group Method, the Delphi Method and Brainstorming, among others. In these methods a group is involved, all of whom have reviewed the information and analysis. The approach will be to get an informed group indicating a variety of possible solutions. Grow an Action Plan and Implement. Pick the ideal solution to this issue but be certain to understand clearly why it's best, which is, how it achieves the objectives created in Step 2 greater than its alternatives. Then develop a productive method (Action Plan) to implement the solution. At this point an important organizational thought arises - who will be responsible for seeing the implementation through and what power does he have. The selected manager ought to be accountable for seeing that all of tasks, deadlines, and reports have been performed, met, and composed. Details are important in this step: schedules, reports, activities, and communication will be the key elements of any action program. There are lots of methods available to decision makers implementing an action plan. The PERT method is a way of setting out an entire period like an action program. PERT will be covered soon. Evaluate, Obtain Feedback and Monitor. After the Action Plan has been implemented to Solve a problem, management must evaluate its effectiveness. Evaluation Criteria have to be ascertained, feedback stations developed, and observation performed. This Step should be done following 3 to 5 weeks and again at 6 months. The target is to answer the bottom line question. Has the issue been solved?

machine-shop maid-service mailbox makeup-artist makeup-studio manpower-agency marketing-consultant mary-kay masonry massage meal-prep mechanic medical-billing medicine-wholesale men-clothing merchandise metal-fabrication microfinance microfinance microgreens milk-dairy million-dollar mineral-water mink-lash mobile-app mobile-car-wash mobile-mechanic momos money-transfer mortgage-broker moving mug-printing mushroom music-studio mystery-box nail-art office-space-rental oil-change oil-mill oil-refinery online-retail optical organic-farming outsourcing owner-operator-trucking paintball-field paper-bag-making parking-lot

Copyright © by Bizmove.com. All rights reserved.

Sample Hardware Store Business Plan

Do you wish to develop a hardware store business plan?

The success of such a great business idea largely rests on a strategy or plan .

The absence of such a plan is bound to affect the business development. As a crucial tool to business success, we’ve provided a template to follow in writing your hardware store business plan.

HARDWARE STORE BUSINESS PLAN PDF SAMPLE

By following the key sections included you’re able to put in place a streamlined plan of action. Of course, your hardware store business plan needs to be implemented in the letter.

Here, we’ll be discussing all of that and more. We welcome you to read on to find such details.

A Good Hardware Store Business Plan Must have these Sections

Before we go any further, it’s pertinent to provide a framework around which the plan will be written. Here, we’re talking about must-have sections that are key to a good plan.

These include the executive summary, company description, and the products & services sections.

Others are the market analysis, strategy & implementation, organization & management team as well as the financial plan & projection sections.

i. Executive Summary

As a brief introduction and summary of your hardware store business plan, this section should be concise enough to grab the attention of your reader.

Here, you want to give them a reason why they should read through your entire plan.

The executive summary clearly defines whether the business idea is viable or not.

More importantly, it provides an implementable plan of action that is systematically followed. To make it quick and easy to read, your executive summary should have an average of one to four pages.

You want your executive summary to make up about 10% of your entire business plan. Within this section are key subsections such as the business name & location as well as the products & services sections.

Others include the mission & vision statements, and the purpose of the plan.

Business Name & Location

What’s the identity of your hardware store business? Of key importance is the name it will go by. Another detail that needs to be included in its location.

With this information, the reader understands your business from very scratch.

Products & Services

Although there’s a product and services section in the wider plan, this must also be included in your executive summary. Now, only the basics need to be captured here.

For a fuller detail of all products and services offered by your hardware store, the reader will need to read the plan.

You’re expected to have worked out all your hardware store products and/or related services well in advance. This may require research on your part. Ensure the basics are captured under this section.

Mission & Vision

This section explains crucial areas of your plan. The mission and vision statements set the performance standards for your hardware store business plan. What more?

They help provide employees with set goals to attain, thus promoting efficiency.

Your mission statement should be action-oriented in nature.

Here, an explanation of your business’s purpose and what benefits it has for clients is provided. It should also include your business’s goals and its core functions.

Your vision statement should give a vivid mental image of your hardware store business. Here, the image of what you intend to be at some point in the future is provided. This is largely based on your goals and aspirations.

Purpose of the Plan

What’s the purpose of your plan? Every business plan has a purpose and yours shouldn’t be any different.

Whatever it is, it must include set strategies and attract investors.

ii. Company Description

The company description section of your hardware store business plan focuses on key areas such as the legal structure, the business’ history, as well as the needs you intend to meet. What more?

Consider including an overview of products and services and also a company growth summary.

Another detail that must be added is your short and long-term business goals. More importantly, you’ll need to show investors your plans for making a profit.

iii. Products & Services

This was earlier discussed as a subsection under the executive summary.

Here, you’ll need to add all the important details like the description of such services and products. Information on the market role of your products as well as its advantages must be stated.

What’s the life cycle of your hardware products? All relevant information on patents, copyright, or trade secrets should be added. Are new products in the works?

Include information on any or other ongoing developmental activities.

iv. Market Analysis

In this section of your plan, you’ll need to show significant industry knowledge.

This level of understanding largely depends on thorough market research. Here, you’ll be providing a representation or sketch of targeted market segments.

A description of the hardware store industry will also be in order. Its outlook, as well as supporting statistics, are also necessary to gain a fuller and more robust understanding of what your business is about.

Also include information on historical, current, and projected marketing data for services and products.

An assessment of your competitors is also in order. Here, you’re looking at their strengths as well as weaknesses.

v. Strategy & Implementation

With the help of an operating plan, you’re able to implement your sales and marketing strategy.

Under this section, you’re looking at costing details, pricing, promotion as well as distribution or logistics. Your strategy and implementation section must also provide promotion details and how your products will enter the market.

How will your hardware store business function? Include details on labor sources as well as the number of employees.

vi. Organization & Management Team

This is the bedrock upon which every business is structured.

Your hardware store business will need an efficient management team in place. Provide details on this by including an organizational chart with key employees highlighted.

There should be additional information on owners, their names, percentage ownership, as well the extent of their involvement. Include a profile of your management team with names, positions, responsibilities, and experience provided.

vii. Financial Plan & Projections

The financial plan and projections section is a crucial component of your hardware store business plan. Here, the help of a financial expert such as a professional accountant is needed.

Details to include are the historical financial data with balance sheets, income statements, and cash flow statements spanning the past three to five years.

There should be realistic prospective financial data. This includes balance sheets, forecasted income statements, cash flow statements, and capital expenditure.

With all of these key sections and details included in your hardware store business plan, your chances for success are greatly improved.

Leave a Comment Cancel Reply

Your email address will not be published. Required fields are marked *

• Business Plans Handbook
• Business Plans - Volume 02
• Hardware Store Business Plan

Hardware Store

FICTIONAL BUSINESS PLAN

OSHKOSH HARDWARE, INC.

123 Main St. Oshkosh, WI 54901

The following fictional plan outlines how a small hardware store can survive competition from large discount chains by offering products and providing expert advice in the use of any product it sells. This plan is fictional and has not been used to gain funding from a bank or other lending institution.

EXECUTIVE SUMMARY

The business, goals implementation.

• JOB DESCRIPTION-GENERAL MANAGER

QUARTERLY FORECASTED BALANCE SHEETS

Quarterly forecasted statements of earnings and retained earnings, quarterly forecasted statements of changes in financial position, financial ratio analysis, details for quarterly statements of earnings.

Oshkosh Hardware, Inc. is a new corporation which is going to establish a retail hardware store in a strip mall in Oshkosh, Wisconsin. The store will sell hardware of all kinds, quality tools, paint and housewares. The business will make revenue and a profit by servicing its customers not only with needed hardware but also with expert advice in the use of any product it sells.

Oshkosh Hardware, Inc. will be operated by its sole shareholder, James Smith. The company will have a total of four employees. It will sell its products in the local market. Customers will buy our products because we will provide free advice on the use of all of our products and will also furnish a full refund warranty.

Oshkosh Hardware, Inc. will sell its products in the Oshkosh store staffed by three sales representatives. No additional employees will be needed to achieve its short and long range goals. The primary short range goal is to open the store by October 1, 1994. In order to achieve this goal a lease must be signed by July 1, 1994 and the complete inventory ordered by August 1, 1994.

James Smith will invest $30,000 in the business. In addition the company will have to borrow $ 150,000 during the first year to cover the investment in inventory, accounts receivable, and furniture and equipment. The company will be profitable after six months of operation and should be able to start repayment of the loan in the second year.

The business will sell hardware of all kinds, quality tools, paint, and housewares. We will purchase our products from three large wholesale buying groups.

In general our customers are homeowners who do their own repair and maintenance, hobbyists, and housewives. Our business is unique in that we will have a complete line of all hardware items and will be able to get special orders by overnight delivery. The business makes revenue and profits by servicing our customers not only with needed hardware but also with expert advice in the use of any product we sell. Our major costs for bringing our products to market are cost of merchandise of 36%, salaries of $45,000, and occupancy costs of $60,000.

Oshkosh Hardware, Inc.'s retail outlet will be located at 1524 Frontage Road, which is in a newly developed retail center of Oshkosh. Our location helps facilitate accessibility from all parts of town and reduces our delivery costs. The store will occupy 7500 square feet of space. The major equipment involved in our business is counters and shelving, a computer, a paint mixing machine, and a truck.

Oshkosh Hardware, Inc. will operate in the local market. There are 15,000 potential customers in this market area. We have three competitors who control approximately 98% of the market at present. We feel we can capture 25% of the market within the next four years. Our major reason for believing this is that our staff is technically competent to advise our customers in the correct use of all products we sell.

After a careful market analysis we have determined that approximately 60% of our customers are men and 40% are women. The percentage of customers that fall into the following age categories are:

The reasons our customers prefer our products is our complete knowledge of their use and our full refund warranty.

We get our information about what products our customers want by talking to existing customers. There seems to be an increasing demand for our product. The demand for our product is increasing in size based on the change in population characteristics.

At Oshkosh Hardware, Inc. we will employ three sales people and will not need any additional personnel to achieve our sales goals. These salespeople will need several years experience in home repair and power tool usage. We expect to attract 30% of our customers from newspaper ads, 5% of our customers from local directories, 5% of our customers from the yellow pages, 10% of our customers from family and friends and 50% of our customers from current customers. The most cost-effective source will be current customers. In general, our industry is growing.

We would evaluate the quality of our management staff as being excellent. Our manager is experienced and very motivated to achieve the various sales and quality assurance objectives we have set. We will use a management information system which produces key inventory, quality assurance and sales data on a weekly basis. All data is compared to previously established goals for that week and deviations are the primary focus of the management staff.

The short term goals of our business are:

• Open the store by October 1, 1994
• Reach our breakeven point in two months
• Have sales of $ 100,000 in the first six months

In order to achieve our first short term goal we must:

• Sign the lease by July 1, 1994
• Order a complete inventory by August 1, 1994

In order to achieve our second short term goal we must:

• Advertise extensively in September and October
• Keep expenses to a minimum

In order to achieve our third short term goal we must:

• Promote power tool sales for the Christmas season
• Keep good customer traffic in January and February

The long term goals for our business are:

• Obtain sales volume of $600,000 in three years
• Become the largest hardware dealer in the city
• Open a second store in Fond du Lac

The most important thing we must do in order to achieve the long term goals for our business is to develop a highly profitable business with excellent cash flow.

Oshkosh Hardware, Inc. Faces some potential threats or risks to our business. They are discount house competition. We believe we can avoid or compensate for this by providing quality products complimented by quality advice on the use of every product we sell. The financial projections we have prepared are located at the end of this document.

JOB DESCRIPTION: GENERAL MANAGER

The General Manager of the business of the corporation will be the president of the corporation. He will be responsible for the complete operation of the retail hardware store which is owned by the corporation. A detailed description of his duties and responsibilities is as follows:

Train and supervise the three sales people. Develop programs to motivate and compensate these employees. Coordinate advertising and sales promotion effects to achieve sales totals as outlined in budget. Oversee purchasing function and inventory control procedures to insure adequate merchandise at all times at a reasonable cost.

Prepare monthly and annual budgets. Secure adequate line of credit from local banks. Supervise office personnel to insure timely preparation of records, statements, all government reports, control of receivables and payables and monthly financial statements.

Administration

Perform duties as required in the areas of personnel, building leasing and maintenance, licenses and permits and public relations.

User Contributions:

Comment about this article, ask questions, or add new information about this topic:.

Hardware Store Business Plan (PDF, Excel, Word)

Description

• Executive summary
• Company overview
• Products and services
• Operation plan
• Market and industry overview
• Sales & marketing plan
• Financial plan
• Risk management plan
• Potential funding sources

PURCHASE NOW

You may also be interested in.

Market research

Business planning

Sales & Marketing

• Mega Menu Categories
• Business Ideas
• Business Idea Alerts
• All Categories

• Side Hustles

• Business Plans

How to Write a Hardware Business Plan in Kenya [Free Template]

A good hardware business plan in Kenya will help you make your business a reality much faster. 

You can absolutely get started and run your business without a plan. 

However, if you are looking to start a hardware business that stands out from the competition, you might need a business plan. 

Let me write your business plan...

Not sure where to start your business and need a detailed roadmap? Looking to take your business to the next level? Do you need a well-crafted business plan that can guide your growth and set you on the path to success?

We charge from:

Tap the button below to chat on WhatsApp or call 0713140158.

The problem is, writing a hardware business plan from scratch is not easy. It is even harder if you are starting your first business and have no finance or business experience. 

That is why a hardware business plan template like this one comes in handy. This template will act as a roadmap to help you easily come up with a business plan for your hardware business.

What is a Hardware Business Plan in Kenya? 

A second-hand clothing business plan in Kenya is a written document that clearly describes what you are trying to achieve with your hardware business and how you plan to achieve those goals or objectives. 

This business plan is like a roadmap that will help you take your hardware business from the ground to a level where it can comfortably generate profit. The hardware business plan outlines your goals, strategies, goals, marketing, and financial forecasts.

So, whether you are starting a small hardware business or plan on going large scale, this document will come in handy. 

Let’s find out. 

Why Do I Need  A Hardware Business Plan in Kenya? 

There are several reasons why you might need a business plan for second-hand clothes before getting started. In a nutshell, a business plan will help you to: 

• Clearly understand what you want to achieve with your hardware business 
• Set clear goals and identify obstacles that might stand in the way of achieving these goals early on
• Come up with a clear strategy to attract customers and achieve profitably 
• Track and measure your business progress 
• Secure external funding 
• Keep your team focused on the same objective and business goal 
• Understand how much money you need to start the business 
• Calculate the profitability of the hardware business 
• Study your competition and come up with strategies to outsmart them 
• Come up with effective marketing strategies to put your hardware business in front of the customers.
• Minimize the chance of running into risks and losing your money 

Why is This Hardware Business Plan Template Important?

As we mentioned, writing a hardware business plan from scratch is not easy. There are a lot of things to consider and you always run the risk of going into details that don’t matter. 

This template will help you to: 

• Write your business plan much faster 
• Avoid unnecessary details that don’t matter in your hardware business 
• Get a clear picture of what you should include in your plan 

So, think of this template as a roadmap to help you devise an effective plan for your hardware business. 

Types of Hardware Business Plans in Kenya

There are two main types of hardware business plans that you can use: 

• Traditional business plan
• Lean business plan

Traditional Hardware Business Plan in Kenya

This is the most common business plan format. It is usually very detailed and can be dozens of pages long.

Use this format if you are starting your hardware business on a large scale and/or require outside funding. 

A typical traditional business plan contains the following sections: 

• Executive summary
• Company description
• Product or service description 
• Market analysis
• Organization and management team 
• Marketing and sales
• Financial projections

You don’t have to cover all these sections when writing your hardware business plan. 

Just focus on the sections that make the most sense for your business and what you are trying to achieve. 

For instance, are you looking for funding or do you just need a detailed roadmap to help you get started and grow fast? 

Check Our Full Hardware Business Plan Template:

DOWNLOAD PDF TEMPLATE

Lean Hardware Business Plan in Kenya

This is a much-simplified version of the conventional business plan. It is actually just a one-page table summary of the most important elements of your business plan. 

You can write a lean hardware business plan in about an hour or less. Use this format if you are looking for an action plan or outline to help you start your business. This plan is usually just for you and your team, not outsiders (like investors)

You can’t use a lean business plan if you are looking to take a loan or an outside investment. 

A lean hardware business plan contains the following key sections: 

• Identity: A short description of your business
• Problem: The problem you are trying to solve 
• Solution: The unique solution you offer for the problem plus a description of your products/services 
• Competition : Other people trying to solve the same problem, their weaknesses and strengths 
• Expenses: The cost of starting your hardware business 
• Target markets: Who your customers are
• Marketing activities: The strategies you will use to reach your customers and the cost of your products/services
• Sales channels: How you’ll sell your services and products to your customers
• Revenue streams: The different ways your hardware business will make money
• Partners and key resources: The people and resources you will need to work with for your business to be successful
• Team: The people that will help you run the business and their roles
• Milestones : How you will test and begin your business

You can either use the lean or traditional business plan based on the size of your hardware business and the reason for writing the business plan. 

Check Our Lean Hardware Business Plan Template:

DOWNLOAD LEAN TEMPLATE

When Not to Use this Hardware Business Plan Template 

Using a template is a great way to complete your business plan fast. However, there are situations when using a template may not be ideal. 

This is especially true if you are starting a big business or startup that requires detailed reporting. While we try to include as many sections as possible, this template comes with limited instructions that may not comprehensively cover big businesses that require outside funding. 

Otherwise, if you are okay with a template, you can go ahead and download either the lean or traditional business plan template.

Share this:

L.K. Nathans

I am a personal finance enthusiast and digital marketer. My work here is to help you navigate your financial journey and achieve your main money goals. Through Omoka Digital, I provide practical tips, strategies, and insights on budgeting, saving, investing, and debt management. My aim is to empower you with the knowledge and tools you need to make informed financial decisions and improve your financial well-being.

Related Articles

Cyber Cafe Business Plan in Kenya [Free PDF Template]

How to write a hotel business plan in kenya [free pdf template], how to write a boutique business plan in kenya [free template], leave your thought here cancel reply.

Your email address will not be published. Required fields are marked *

Save my name, email, and website in this browser for the next time I comment.

This site uses Akismet to reduce spam. Learn how your comment data is processed .

Sending login info,please wait...

Sending info,please wait...

Sending register info,please wait...

Machinery & Hardware Business Plans

Computer laser accessories business plan.

Brilliant Points develops cutting edge laser/optical controls for computers used in large audience business presentations.

Electronics Repair Business Plan

Abbey Electronic Services offers repair of electric and electronic, commercial and household, appliances and audio/visual equipment, both with or without warranty coverage.

Electronics Repair Shop Business Plan

Tucson Electronics specializes in the repair and service of home entertainment electronic equipment.

Equipment Rental Sales Business Plan

Equipment Rental is an established heavy-equipment rental and sales business.

Fire Rescue E-commerce Business Plan

FireRescue Depot is a start-up showroom and Internet e-commerce business supplying fire and emergency rescue departments with specialized, heavy-duty, hydraulic rescue tools.

Hardware Retail Franchise Business Plan

Fusek's True Value is a start-up member/franchise in the revitalized downtown area, serving the retail hardware needs of condo and townhouse owners, property managers, and businesses.

Heavy Equipment Maker Business Plan

Tricky Widgets Manufacturing is a start-up manufacturer of heavy equipment machinery.

Machine Tooling Business Plan

Machine Tooling is an established company specializing in designing and building machines, machine tools and automated systems.

Retail Hardware Store Business Plan

Clara’s Hardware offers quality hardware products in a customer-friendly, shopping environment.

Solar Water Heater Distributor Business Plan

Sun Heat is a start-up company offering solar water heating systems to California residents.

Surveyor Instrument Business Plan

Bottlieb Innovations manufactures digital measuring instruments for surveyors.

Tools Rental Business Plan

Borrow My Tools is a start-up company serving the San Mateo, CA community with home improvement tools for lease or rental.

Starting a business can be tricky because of all the details you need to keep track of. These sample business plans for machinery and hardware supplies businesses will help you make sure you get your business plan right, and will set the stage for the future success of your business.

If you’re looking to develop a more modern business plan, we recommend you try LivePlan . It contains the same templates and information you see here, but with additional guidance to help you develop the perfect plan.

The quickest way to turn a business idea into a business plan

Fill-in-the-blanks and automatic financials make it easy.

No thanks, I prefer writing 40-page documents.

Discover the world’s #1 plan building software