Hardware stores in South Africa provide a variety of goods like building materials, plumbing supplies, electrical products, tools, and hardware equipment. A hardware store is a very lucrative business to start in South Africa, with huge profits. Hardware stores cater for both large and small projects. These projects range from small home improvements to big construction projects. The tools and materials needed to complete these types of projects are available at hardware stores. This article will outline how to start a hardware store business in South Africa, and the hardware store business plan – PDF, Word and Excel.

Market Research

It’s important that you carry out market research before you start the hardware store business. Important decisions to make include deciding on the location of your business, the products you will offer, your target market and the size of your business. Understand your target market, and what kind of products they want. Assess the competition at your proposed location. You should always carry out a feasibility study, market research and write a business plan before you venture into any business. Do not make the mistake of starting a hardware store business before carrying out research and without a good hardware store business plan.

Location & Premises

Business premises that have a high ceiling are ideal for hardware stores to create ample storage space. The premises also need to be quite spacious in terms of width, you might have to use a forklift to move large and heavy building materials. The space needs to be large enough to fit all your products. Your premises should also be easily accessible by trucks, as this creates convenience when delivering your products from suppliers or when customers are collecting their products.

Location is an important decision to make, and it’s determined by your target market. There are several places when you can locate your hardware store. People are always looking to improve their homes by extending them or renovating them. Residential areas are ideal places to set up shop. A hardware store at a residential area will need you to understand your market so that you can offer exactly what they need. Explore unlikely locations such as rural areas. Houses are expensive and land is also expensive in urban areas some have resorted to building their dream houses at rural areas where land is ample and building is much cheaper. Rural areas that still don’t have electricity and running water have less construction and developments happening compared to rural areas with electricity and running water. There are new development projects that take years to complete due to the amount of construction and the amount of work involved. The work is mostly completed in phases and can take up to 8 years to complete. Opening a hardware store close to a new development project can prove to be lucrative. Your hardware store business plan should cater for the costs of renting or buying premises.

Products for Hardware Store Business

Hardware shops in South Africa sell a variety of products including building materials, plumbing materials, tools, safety materials, agricultural equipment and electrical products. Examples of hardware products include Brickforce , Cement, Door Frames, Window Frames , Doors , Glass, Asbestos , Ceiling Products , Tiles, Abrasives , Adhesives , Brushware, Hinges , Nuts, Bolts, Nails, Screws,  Sockets , Cables, Fencing & Wire , Lawnmowers , Wheelbarrows , Hoses, DIY Hand Tools , Screwdrivers , Spanner Sets , Paint, Water Tanks, Timber Boards, Bathroom Accessories, Toilet Seats , Safety Boots & Shoes, Pipes, Hand tools,  Power tools,  Garden tools etc. The kind of products which you sell will depend on your targeted market and the amount of capital which you have. The products can be sourced from South Africa manufacturers, Distributors and International Suppliers. 

Hardware Shop Business Plan South Africa

Staff & Management

The number of employees you need will depend on the size of your hardware store business. The is need for finance/accounting personnel who will be responsible for all the day to day transaction accounting for the hardware store business. This will include the tracking of all transactions and the management of cash flow, and ensuring there are enough funds available to meet the day to day payments.

Operations & logistics personnel are responsible for coordinating with suppliers and sourcing all the products which will be sold in the hardware, and arranging delivery of sold products to customers. They are also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. You also require cashiers and hardware shop assistants. Your hardware shop business plan should cater for the salaries of your employees.

Knowledgeable staff members will add value to your team by helping the customers buy the correct products. There is a wide range of products available at hardware stores, customers often get confused. Anyone can easily find themselves making small blunders such as purchasing wall tiles instead of floor tiles. If you have inexperienced staff members on your team their training program should focus more on learning about the different products sold in the store so they are able to give informed advice to customers.

Market

A hardware business has multiple sources of customers, these include; building & civil construction, home and business renovations, small DIY projects, agriculture, and maintenance work. All these projects can’t be completed without a hardware store. This type of business has the advantage of offering services to a market that’s totally dependent on it. Having a reliable market makes you feel more secure and confident, you feel less anxious about the possibilities of failure. You already have a reliable market, it’s all up to you to make sure that you are ahead of your competition. Studying what your competitors do with the intention to see what you can do better will help you get ahead.

Many individuals are constructing houses in South Africa, and are always in need of the building materials.   From time to time individuals carry out improvements, repairs and upgrades on their properties, and this requires hardware products. Other potential customers include farmers, organisations, schools, companies, construction companies, housing cooperatives and the government.

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 shop business in South Africa, purchase our hardware store business plan. We decided to introduce the business plans after noting that many South Africans were venturing into the hardware business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.

Our business plan will make it easier for you to launch and run a hardware shop 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 the hardware shop business plan will lay out all the costs involved in setting up and running the hardware business. The business plan is designed specifically for the South African market.

USES OF THE HARDWARE SHOP BUSINESS PLAN (PDF, WORD AND EXCEL)

The hardware store 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 shop business
  • As a hardware store project proposal
  • Assessing profitability of the hardware stores 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 business plan includes, but not limited to:

  • Market Analysis
  • Industry Analysis
  • 5 Year Automated Financial Statements [ Income statements, cash flow statements, balance sheets, monthly cash flow projections (3 years monthly cash flow projections, the remaining two years annually),break even analysis, payback period analysis, start-up costs, financial graphs, revenue and expenses, Bank Loan Amortisation]
  • Marketing Strategy
  • Risk Analysis
  • SWOT & PEST Analysis
  • Operational Requirements
  • Operational Strategy
  • Why some South Africans in the hardware business fail, so that you can avoid their mistakes
  • Ways to raise capital to start your hardware store business in South Africa
  • Directory (Contact details of hardware products suppliers)

The Hardware Store Business Plan package consist of 4 files

  1. Hardware Store Business Plan – PDF file (Comprehensive – 83 pages)
  2. Hardware Store Business Plan – Editable Word File (Comprehensive – 83 pages)
  3. Hardware Store Business Plan Funding Version – Editable Word File (Short version for applying for a loan – 48 pages)
  4. Hardware Store Business Plan Automated Financial Statements – (Editable Excel file)

The financial statements are automated. This implies that you can change eg the markup, salaries etc, and all the other financial statements will automatically adjust to reflect the change. 

GET THE HARDWARE STORE BUSINESS PLAN (PDF, WORD AND EXCEL) – R400 Only.

We decided to make the business plan affordable to anyone who would want to start the business, and the price for the pre-written business plan is only 400 Rands.

We have several payment methods which you can use.

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Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Visa Card/MasterCard 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 sales@bizbolts.co.za and we will assist you.

Payment Method 2 (Instant EFT – FNB, Absa, Standard Bank, Nedbank, CapitecBank and Investec. )

Click Buy Now below to purchase. After you have purchased, you will instantly see the download link for the business plan package on the screen. We will also email you the download link. Get instant access to the business plan now!

If you want to purchase multiple business plans at once using Instant EFT 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 sales@bizbolts.co.za and we will assist you.

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