Almost every person in modern times envies being a businessman, and opening a hardware shop is undoubtedly one of the best small business ideas to start in India. However, since this small business idea owns minimum entry restraints, there is a neck to neck competition in this business.
This is why before entering this market, you must be well aware of the right way to conduct this business to make it the most profitable one. Also, to run your hardware business successfully, you must always obtain all the required licenses along with the GST registration of your shop.
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7 Steps to open a hardware shop in India
A traditional hardware shop retails labour and hand intensive tools such as locks, latches, keys, plumbing equipment, electrical supplies, cleaning products, housewares, paint, brushes, etc. And, the labourers, technicians, or people who prefer DIY are the principal customers of this business.
Hence, if you think this is the perfect business idea that suits your requirements, you can take the subsequent steps to start your business. Mentioned below are some measures to successfully open and run a hardware shop in India.
Step 1 – Formulate a business plan
The initial step in opening a hardware shop in India is to create a business plan. An explicit business strategy is a key to making every business successful.
Devising a business plan can help you understand the amount of investment needed to open your hardware shop and keep it running.
Also, with a business plan in mind, you can formulate effective marketing strategies to boost your sales and earnings.
Step 2 – Look for a good business location
Choosing the right location is another step that helps you flourish your hardware shop business. However, before finalising a place for your hardware shop, ensure that you pick an area that holds less competition and high customer demands.
Selecting such a location will warrant that your shop growth potential always remains high.
Step 3 – Register your business
Now that you have finalised a good location for your hardware shop, the next step includes registering your business. To register your hardware shop, you will have to choose a business name that is not registered in your state previously.
Also, if you plan to take up a distinctive trademark for your hardware shop, you must ensure that the logo you choose is unique and does not resemble any existing trademarks.
Getting a Micro, Small and Medium Enterprise registration will make it simpler for you to obtain a business loan in the long run.
Step 4 – Apply for a separate business bank account
Once you get your hardware shop registered, the next step includes opening a separate bank account for your business. Opening a dedicated business account can help you hold your personal and professional funds separate to reduce the risk of loss to your assets.
In addition to this, a business bank account can make it simpler for you to obtain a business loan or financing at a much-reduced rate to run your shop operations smoothly.
Step 5 – Get required permissions and licenses
To run a business smoothly without any intervention, you need to ensure getting all the required licenses and permits for your hardware shop.
Receiving all the sanctions will act as proof that your business has not violated the trade regulations placed by the government and you will further remain protected against the hefty fines levied on gross violations of government regulations.
Obtaining government permissions is also necessary to safeguard your business from shutting down permanently due to non-violations of the statutory policies.
Step 6 – Figure out your loan and insurance requirements
Owning enough funds is the primary requirement to start every business. It is no different when it comes to opening a hardware shop.
Hence, this is yet another crucial step that you must follow while opening a hardware shop in India. Before opening a shop business, you must always take out an estimated cost to run your shop operations smoothly.
Once you are aware of the projected expenses, take a look at your finances to understand whether you need a loan or not.
Also, if you think you do not own sufficient funds to run a hardware shop, you can take a loan under the CGTMSE scheme if you hold an MSME registration.
Apart from identifying your loan requirements, you must warrant getting insurance for your hardware shop. Getting insurance for your hardware shop will help cover your liability and protect inventory from theft, fire, or any other calamity.
Step 7 – Establish and promote your brand
This is the final step that helps you gain more and more customers. Once you complete all loans and registration processes, you must work towards establishing and promoting your brand.
To create your hardware shop into a strong brand, you must figure out the marketing strategies that help you stand ahead of your competitors.
Also, to assist and cater to your customer’s needs better, you can associate with all renowned hardware brands and promote your brand via their outlets.
Apart from this, to expand the reach of your hardware shop and boost sales, you can build a website and register your business online.
Opening a hardware shop in India is not at all difficult and with the help of these steps above you can make it a cakewalk.
However, before commencing your hardware business, ensure that you comply with all the set government rules and regulations and own all the documents necessary for the GST registration of your shop.
Also, if you do not have sufficient funds and are looking for a business loan to run your hardware shop anywhere in India, Ziploan can be your ideal pick.
At Ziploan, we can always help you get a secured loan within minutes with easy funding alternatives and flexible payback options.
So what are you waiting for? Get in touch with our team and get quick and hassle-free approval of your shop loan within minutes.
Frequently Asked Questions:
Although a good performing hardware store makes an average net profit of 10% on its daily sales, 80% of those who venture into this business close their shop in less than 2 years due to losses and cash-flow problems.
If you are planning for starting a complete Paint and hardware store then it can cost up to 5-8 lakhs.
Here are steps to open a hardware store in India:
Step 1: Register your business
Step 2: Open a business bank account
Step 3: Set up your business team
Step 4: Obtain necessary permits and licenses
Step 5: Define and promote your brand
Step 6: Offer discounts
Yes, you can avail of a quick business loan of Rs. 7.5 lakh from Ziploan for your hardware shop in India.
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