home Audience 3 Open a building materials store from scratch. How to open a hardware store

Open a building materials store from scratch. How to open a hardware store

Our article today is about how to open a building materials store from scratch. You will learn how profitable this area of business is and how to achieve quick success in entrepreneurship.

Every year the number of new buildings is rapidly increasing. In a short time, many new areas and residential areas are appearing. Naturally, a wide variety of materials will be needed for construction, so we can conclude that a business selling building materials is a profitable and promising business.

Advantages and disadvantages of a construction business

Great demand for the product. Construction materials are in great demand in any region of the country. Their popularity is due to the fact that a person builds or repairs something throughout his life. To do this, he needs materials, so the demand for this product not only does not fall, but also grows every year. Therefore, if you want to invest your money profitably, then the construction business will provide you with a stable income and high profits.
Product range. If you believe the statistics, then opening a small hardware store is a hopeless undertaking doomed to failure. The thing is that competition in the construction business is quite serious. You have to fight for customers with large construction hypermarkets that offer a wide range of goods and competitive prices. Therefore, in order to interest visitors, it is necessary to provide a wide variety of goods or decide on the format of the store, for example, to sell a certain product in a large assortment.
Additional services. Do not forget that you can make a profit not only from selling goods, but also by providing additional services to customers. For example, not all buyers have the opportunity to independently deliver their purchases to their destination, and building materials are quite large goods. Therefore, there is a need to organize a delivery service. You can make good money by providing this service.

Building materials store: business plan

The chosen business idea needs competent implementation. A skillfully drawn up business plan will help you with this.

The business plan should outline the profitability of the idea, payback period and expected profit from the business. As noted above, the cost of opening a hardware store depends on the region and sales volumes. It is difficult to indicate the exact amount, but it is worth noting that you are unlikely to be able to open a hardware store from scratch. The only option is to find an investor who will be willing to finance your project. But finding a rich person who will believe in the success of your idea is quite difficult, so you can count on this option only if you are a specialist in this field of knowledge.

Registration of a business selling building materials

If you have the necessary start-up capital to open a business, then you can safely begin registering your activities.

First of all, it is worth deciding on the material and legal form of the activity. You can choose one of two options: registration as an individual entrepreneur or founding a legal entity - a Limited Liability Company. When choosing a form of activity, consider the volume of investment. If you plan to open a small hardware store, you can safely register as an individual entrepreneur. If you organize a large business, open a hypermarket or a network of construction stores, you will have to register a legal entity (LLC).

Having decided on the form of activity, you should select the appropriate OKVED codes. The most convenient option is to pay a single tax on imputed income.

It is also required to obtain permits for activities from the SES, fire service, city administration, chamber of commerce, and even a certificate from the traffic police (in the case of parking on the premises of the store).

Collecting and processing all the necessary documents is a rather labor-intensive process. If you have little understanding of legal intricacies, then entrust this matter to an experienced lawyer.

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Location and premises rental

Its profit will directly depend on the correct choice of store location. Therefore, it is very important to choose a favorable location in the city. Choose crowded areas with high traffic. It is advisable that there are no competitors nearby.

Quite advantageous places to open a hardware store are areas of new buildings, the construction market, and the industrial zone of the city.

There are no special conditions for the store premises. The main thing is that it is located in a non-residential building. It is also advisable to provide parking and convenient access roads for loading and unloading goods near the store.

Depending on the sales volume, choose a suitable area for your store. As discussed above, small stores are unprofitable, so the area of the premises must be at least 200 square meters. m. As for repairs, an expensive, designer interior in this case will not affect the number of sales in any way. Therefore, I recommend that you do not bother with expensive repairs. It is enough to meet the minimum requirements: the room must be clean, dry, tidy, with good ventilation. In addition, the fire and sanitary services have their own requirements for the premises, so you will have to comply with all standards (ventilation, storage conditions for goods, etc.).

Store format

Before you start implementing this business idea, you should decide on the store format by choosing the appropriate direction. Building materials are sold in different ways. They are sold in small retail outlets, in stalls at construction markets or bases, in supermarkets or in narrow-profile, specialized points of sale.

Small building materials store. The total area of this outlet is from 20-50 sq. m. Naturally, it is impossible to place a large assortment of goods in such a room, so it is better to focus on one thing. For example, you can sell paint or wallpaper, drywall or flooring.
Large stores with a total area of about 150-200 sq. m. In such a room it is already possible to place a small assortment of goods. You will be able to trade several types of building materials at the same time. This could be the same paint, wallpaper, glue, parquet, tiles, pipes and much more. It all depends on competition and demand for the product. You should analyze these nuances before deciding on the assortment of your hardware store.
Construction supermarkets. The area of these retail outlets is from 1000 sq. m. In such stores, customers are given the opportunity to choose everything they need for construction and renovation in one place. A large assortment, favorable prices and promotions attract a large number of people, so this business format is considered the most successful. The only negative is the large financial investment. Opening a construction supermarket requires a lot of money, so, as a rule, there are several owners of such outlets at once.
Store-warehouse. This business format consists of renting two separate premises. The first is the warehouse where the bulk of the goods are stored. And the second department is a sales area for customers, where the entire range of products is displayed in small quantities. This business format is quite profitable because you don’t have to equip a large sales area or hire a lot of staff. 2-3 sales consultants, several loaders and security guards will be enough.

Construction materials store equipment

You don’t need any special expensive equipment for the store. Therefore, this item will not be too costly for you financially.

Necessary equipment for a hardware store

Showcases and racks for displaying goods;
Cabinets with glass doors;
Retail nets for hanging goods on the walls;
Packing table;
Equipped place for cashier and sales assistant (table, chairs, cash register);
Trolleys and shopping baskets.

Construction store assortment

As mentioned above, the assortment depends on the area of the store. Therefore, first of all, decide on the format of your outlet and after that, start purchasing goods for sale.

Standard product groups for a hardware store:

Wallpaper and glue. If you sell this product, then the assortment should be large enough, as they say, for every taste. Today, the variety of wallpapers is pleasantly pleasing; you can choose from paper, vinyl, washable and original fabric wallpapers.
Dry building mixtures (sand, cement, gypsum);
Paint and varnish products (for external and internal work);
Partial coverings (tiles, laminate, tiles, linoleum, carpet, parquet);
Plumbing (sinks, toilets, showers, hydroboxes, taps, mixers, bathroom furniture and much more);
Doors (interior, entrance, made of materials - wood, glass, or an economical option made of fiberboard);
Electrical equipment (lights, lamps, chandeliers, lanterns, wires, LEDs);
Building tools.

In general, a wide range of goods can be placed in a large area. If the store area is small, give preference to selling a certain group of goods.

Suppliers

For any entrepreneur, finding suppliers is a very responsible task. After all, the wholesale price of the product, its quality and business profit depend on this.

You can find good suppliers in your city or via the Internet. The most profitable option is to cooperate with manufacturers of building materials and purchase goods directly.

Hired personnel

The number of sales and, accordingly, profits will depend on the work of store employees. Therefore, finding experienced and responsible workers is a very important matter.

A sales consultant must have all the information about a product, be able to communicate with clients, and skillfully and unobtrusively offer assistance in choosing a product. It is advisable that each department have its own sales consultant who is competent in this area of knowledge.

Employee salaries should be stimulating, not fixed. In this way, you will protect yourself from lazy people who go to work just like that. An employee whose salary depends on sales volumes will work many times more.

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How much does it cost to open a building materials store?

As the practice of experienced entrepreneurs shows, opening a small construction stall with an area of up to 50 square meters will cost you 400-500 thousand rubles. A small part of this amount will be spent on renting premises, and the main part on the purchase of goods. On average, the markup on building materials is 20–30%, which is not that much. In addition, you still need to pay salaries to employees, purchase a new batch of goods, and pay taxes. As a result, the net profit in the first stages is minimal. Therefore, opening a small hardware store is profitable only if you purchase goods at low prices and the possibility of markup of more than 30%. Otherwise, there is no point in trading building materials.

To open a construction supermarket, you need a fairly large amount of money, from 3 million rubles or more. But, despite the fairly substantial investments, the payback of the outlet is quite fast. Therefore, if you have money, then investing it in the construction business is quite profitable.

Advertising campaign

Opening a hardware store is not the most important thing; it is important to attract buyers to the outlet. How to do it?

Attracting buyers is an important nuance, without which you will not see profit. Therefore, you should not skimp on advertising, hire competent specialists in this field and the result will not be long in coming.

Advertising around the city. Posters, banners, advertisements, leaflets, all this attracts people's attention. Therefore, use all possible promotion methods.
Internet advertising. Create a website for your hardware store, where all information about the product range, contact numbers and address will be available, as well as the ability to purchase goods online.

Despite the fact that during the economic crisis, construction volumes decreased significantly, the need for various building materials continues to grow. If you are planning to open your own building materials store, you can rest assured that it will become a profitable enterprise.

Where to start opening a store?

Before you start a business in the trading field, decide. If you have decided on construction, then consider the following important factors.

Before opening a hardware store from scratch, you need to decide on the format of the outlet and choose a trading strategy. If you do not have large start-up capital, you can think about opening a pavilion or a small store. Its assortment may consist of 20–30 of the most popular items.

Entrepreneurs who prefer to work for the future can open a larger store with an assortment of 100 items. Luxury products should be added to the most popular products - expensive floor coverings or imported ceramic tiles.

Material base

For a building materials store to be profitable, it is necessary to ensure a flow of customers. To do this, you should locate the outlet in disturbed areas or in places with good transport links. It is desirable that as many new buildings as possible be located nearby. Thanks to this, you will be able to attract more potential buyers. You can also ask how to open a hardware store on the market.

The premises for the store should be chosen in a non-residential building. Pay attention to parking and convenient access, since buyers usually come by car to buy building materials. In order not to spend a lot of money on purchasing a premises, you can rent it. Draw up a detailed business plan for a hardware store, and then decide which option is more suitable for you.

Business registration

Many people are interested in how to open a building materials store from scratch and what documents will be needed for this. To register a hardware store, you can open an individual entrepreneur or LLC.

Provide the following documents to the tax office:

Receipt of payment of the registration fee;
Notarized application;
A copy of the applicant's passport.

After registering a business, you should purchase a cash register and register it. This is what the tax office does. This process will take approximately two weeks. Some stores that sell cash registers offer expedited registration. If you don't want to wait, use this service. In this case, you will receive the documents in your hands in literally three days.

Equipment

To open a small store, you don’t have to purchase special equipment.

Can be placed indoors:

Shelving;
Showcases;
Counters;
Podiums.

To purchase all these things you will have to allocate approximately 100 thousand rubles.

The most important thing is to provide optimal conditions for storing goods.

Therefore, you should take care of:

Heating the room;
Ventilation;
Air conditioning.

The room should be dry, clean and warm.

The business plan for a hardware store should include all necessary communications:

Water supply;
Sewerage;
Electricity.
Recruitment

As a rule, all building materials stores are open seven days a week. The most convenient opening hours are from 9 am to 9 pm. For such a schedule, you need to hire at least two salespeople.

The work schedule can be any.

A hardware store should hire only qualified, competent salespeople, since this is the only way to get ahead of your competitors.

Selection of assortment

Before you start working, you need to create an assortment. Some entrepreneurs, when developing a business plan for a building materials store, plan to offer customers a wide selection of products. But this will require a large room. European building materials stores can have an area of over 10 thousand square meters. meters.

You should not trade only expensive or only cheap products. Any client must find a product that suits his financial capabilities. If some item in the assortment is not in demand, you should not remove it from sale. Simply reduce the stock of these products in your warehouse.

Even beginners are well aware of how serious the competition is in the construction industry. Therefore, if you want to compete adequately in the market, we recommend that you choose a narrow niche and sell a certain group of products. Alternatively, you can offer customers a wide range or variety of wallpaper or paint.

Advertising

Advertising costs largely depend on the location of the store. If there are no competitors operating nearby, advertising costs will be minimal. Otherwise, you will have to fight tough competition with other stores. Many consumers prefer to shop at a place they trust.

For a full-fledged advertising campaign you will have to shell out 20–25 thousand dollars. To do this, you should use a traditional set of tools. Before you open a store, run a commercial on local television. Such advertising is usually quite effective, but it is not cheap. The spectacular exterior design also perfectly attracts buyers. Think carefully about how to name your hardware store so that the sign attracts the attention of passersby.

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Work with providers

To ensure a sufficient assortment in a large store, it is necessary to have more than 100 suppliers. If you have a large starting capital on hand, this will not be a problem. But unfortunately, many beginning entrepreneurs are financially strapped, so they try to buy goods for sale. But not all suppliers agree to such conditions. Basically they prefer 100% prepayment.

If you manage to gain trust, building materials will be supplied with deferred payment or at a good discount. Goods for sale are sold at high prices, so you won’t be able to make a good profit from them.

Some stores operate with minimal inventory. They do not want to freeze their working capital, so they make purchases several times a week. Their frequency depends on sales. In this case, you need to work clearly with suppliers. This is a rather risky form of doing business.

Business profitability

It is worth noting right away that retail trade entails high costs and is characterized by low profitability. But despite this, all large companies trade in retail. A good store is the face of the company.

Wholesale and retail trade in building materials differ in organization. In wholesale trade, it is enough to find several large clients and constantly work with them, but in retail trade you need to try to satisfy the needs of all clients.

Construction materials are purchased wholesale by foremen, architects and professional builders, but goods are purchased retail by consumers who do not know exactly what they need. Therefore, you need to hire only qualified personnel to work in the store who will help customers make their choice. How much it costs to open a hardware store can be easily calculated by adding up all the costs and adding mandatory payments to them.

Prospects for further development

A business such as trade in building materials will develop successfully, since people are constantly building or repairing something. Many new houses are delivered with rough finishing, so you have to buy high-quality finishing materials. Those entrepreneurs who can offer consumers quality products at affordable prices will undoubtedly win.

Trade in construction materials is a stable business that does not require large investments. If the trading process is organized correctly, you are guaranteed to provide yourself with an average level of income. In order not to burn out during the low season, try to change the assortment on time.

* The calculations use average data for Russia

1. PROJECT SUMMARY

The goal of the project is to create a trading enterprise, a wholesale base of building materials in Simferopol, Republic of Crimea. It is expected that the region will actively develop in the coming years, associated with government injections, as well as with an increase in its popularity as a resort. In this regard, an increase in construction volumes is expected, and, accordingly, an increase in demand for building materials.

The main difficulties in implementing the project are related to establishing supply channels - finding a manufacturer of high-quality materials from the range under consideration, as well as organizing effective logistics. First of all, attention is required to organizing the transportation of goods across the Kerch Strait, which so far is carried out only by ferry.

The project does not require the use of special technologies or the involvement of highly qualified specialists. Investment costs amount to 11,855,000 rubles.

Key indicators of the project's economic efficiency are given in Table. 1.

Table 1. Key project performance indicators

2. DESCRIPTION OF THE COMPANY AND INDUSTRY

The project involves the creation of a wholesale base of construction materials in Simferopol. The main area of work is lumber; In addition, it is planned to expand the range to include sand, crushed stone, and cement. Such a narrow focus at the first stage will allow us to consolidate purchase volumes and obtain a more favorable input price. In addition, this will simplify logistics and warehouse management.

The base area is an unheated warehouse with convenient access roads for heavy vehicles and a covered area; the presence of a railway dead end is also provided, because Delivery of goods will occur primarily by rail. In close proximity to the warehouse there is an office to accommodate administrative and sales personnel. Warehouse area – 100 sq.m., platform area – 250 sq.m., office area – 20 sq.m.

The main competitive advantage of the company is working directly only with manufacturers of building materials, due to which it becomes possible to ensure competitive prices and uninterrupted supplies of material in any volume. Narrow specialization, as mentioned above, also provides advantages in price, logistics and business management, that is, it reduces operating costs, making the enterprise more profitable.

Today, the Crimean Federal District is a very attractive area for investment. The main source of income for the region is tourism and beach holidays. Due to the blocking of such popular destinations among Russians as Egypt and Turkey, we should expect extremely high interest in domestic tourist destinations. In addition, the popularity of Crimea as a resort is ensured by its political role. At the same time, the entire infrastructure of the peninsula is in a state far from the average for the country as a whole. Mass construction of hotels and tourist infrastructure facilities begins, primarily at the expense of private investors.

In 2014, the Government of the Russian Federation approved the target program “Socio-economic development of the Republic of Crimea and the city of Sevastopol until 2020”, for which 681,221.18 million rubles were allocated. budgetary and extrabudgetary funds. All this allows us to say that even in the conditions of a difficult economic situation in the country, the region will develop, and any development involves construction - both residential and industrial, as well as the reconstruction of old buildings. Thus, the need for building materials becomes obvious.

Difficulties in the industry arise due to the lack of established supply channels from Russian manufacturers, as well as due to logistical limitations - communication with the peninsula is currently carried out only by ferry. An administrative resource can be extremely useful for smoothly crossing the crossing. If unhindered transportation of goods across the strait is established, the only serious limitation for the development of the project will be removed. According to the plans of the Government of the Russian Federation, by the end of 2018 the construction of the bridge crossing should be completed, which will finally eliminate the logistics problem. By this time, the project should have developed a stable customer base and captured a market share of at least 5% of the total lumber market on the peninsula.

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The competitive environment in the industry has been formed, there is a fairly large number of offers, however, during the season, many suppliers have problems with logistics and product availability; in 80% of cases the problems are caused by delays at the ferry crossing. This confirms the thesis that a key role in the implementation of the project is played by: the presence of a stable supply channel and a well-functioning scheme for transporting goods across the strait. By offering a competitive price and meeting stated delivery times, you can win a significant market share. The quality of the product in this case plays a secondary role, however, of course, when choosing a supplier, it is necessary to pay serious attention to checking the quality of the product.

The business is seasonal, so it is necessary to organize a base before the onset of the construction season; the first active purchases usually begin in mid-March. To find a suitable location, as well as to prepare documents related to business registration and rent, you should reserve two months. The delivery time for goods by rail can reach 30-50 days, depending on the region of dispatch, which also needs to be taken into account. Thus, the start date for the project can be considered January 1, 2017.

As an organizational and legal form, it is advisable to choose an individual entrepreneur with a simplified taxation system. In the future, as turnover increases, the option of registration in the Free Economic Zone of Crimea will be considered in order to reduce the tax burden. Types and volumes of investment costs are given in Appendix 1.

3. DESCRIPTION OF GOODS (SERVICES)

The main activity of the enterprise is the sale of softwood lumber - boards and edged beams. In addition, the assortment includes sand, crushed stone, and cement. Full information on products is given in Table. 2. Prices are given taking into account all costs of delivery to the base warehouse. Variable costs are given in Appendix 2.

Table 2. Project assortment matrix

Lumber is used in construction for flooring, roofing, formwork, etc. The scope of application is very wide. Sand is used in the zero construction cycle, for the preparation of CFRP, concrete, plaster, etc. Crushed stone can be used in the production of concrete and reinforced concrete, and in the construction of highways. Portland cement grade 500 is used for the preparation of CFRP and concrete. Considering the widespread use of frame-monolithic construction technology, the high demand for cement is beyond doubt.

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As a rule, only the most general requirements in terms of quality are imposed on such goods, so it makes no sense to base a sales policy only on the consumer characteristics of the product. All suppliers are manufacturers, which eliminates the intermediate markup of intermediaries. Suppliers are selected taking into account the possibility of uninterrupted provision of planned procurement volumes. The supplier also arranges delivery. Lumber and cement are transported by rail, and sand and crushed stone are transported by sea. Delivery time: crushed stone and sand – 10-14 days, cement – up to 30 days, lumber – up to 50 days.

Monitoring of competitive prices in the region showed that the average price level today is as follows:

Lumber – 9250 rub./m. cubic;

River sand – 2000 rub./t;

Crushed gravel – 2800 rub./t;

Cement PC-500 – 4800 rub./t.

At the same time, goods are not always in stock in the required quantity, especially at the height of the construction season.

4. SALES AND MARKETING

Sales are carried out using both active and passive methods. The role of the sales representative is performed directly by the entrepreneur. Work is carried out with construction organizations, including visits to construction sites.

Passive sales are carried out through Internet marketing, as well as through your own website. Considering the low level of quality of work of local webmasters, the development is transferred to specialists from one of the large cities of Russia. It is assumed that it is possible to make a reservation through the website. In addition, information about the company’s prices and products is posted on all local online information platforms and in catalogs. Information about the company is also placed in printed free catalogs distributed in construction stores.

The base's operating hours are Tuesday-Sunday from 08.00 to 17.00. Trade is carried out by two sellers; They work in shifts six days a week. Sales are made on the basis of full prepayment and self-pickup. If necessary, company managers can order transport at the buyer’s expense.

The pricing policy is diversified. Depending on the volume, the client may receive a discount. For regular or promising clients, a deferred payment is provided. Accounts receivable control is carried out by company managers.

The sales plan is given in Appendix 5.

5. PRODUCTION PLAN

The project does not provide for production of products, only wholesale trade. However, the specifics of the materials sold also require adherence to certain technologies for storage, loading, etc. In particular, loading and unloading of bulk materials is carried out using a wheeled excavator based on a tractor; Loading and unloading of lumber and cement in containers is carried out using a forklift. Maintenance of the trading floor and warehouse is carried out by loaders and drivers.

Costs for equipment, staffing and wages are shown in Appendix 4.

To operate loading machines, qualified workers with appropriate permits and at least 5 years of experience are hired. For other work, special qualifications of workers are not required; they can be recruited for the season, without maintaining wages for the winter.

To form the initial warehouse stock, the following volumes of goods are required (Table 4).

Table 4. Initial warehouse stock

Table 5. Fixed costs (per month)

6. ORGANIZATIONAL PLAN

The project involves the execution of all administrative duties directly by the entrepreneur. He is required to have knowledge of the basics of accounting and the basics of entrepreneurship, legislation in the field of entrepreneurship and labor protection. In addition, to successfully work with construction companies, knowledge of construction technology is necessary. All employees report directly to the entrepreneur.

To perform their primary duties, employees are subject to the most general requirements related to their field of activity.

7. FINANCIAL PLAN

Organizational and legal form – individual entrepreneur. The taxation system is simplified, the object is income reduced by the amount of expenses.

Investment costs – 11,855,000 rubles. Own funds – 3,000,000 rubles. It is planned to attract credit funds for the missing amount of 8,855,000 rubles. Loan term – 36 months, rate – 18%. The loan is repaid in annuity payments, starting from the third month of using the loan.

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The calculation of financial indicators takes into account the sales volume of each type of product and the seasonality factor. The financial model of the enterprise is given in Appendix 7.

8. EVALUATION OF EFFECTIVENESS

The effectiveness of the project is assessed using generally accepted integral indicators obtained by analyzing the projected financial results of the enterprise over a five-year period, taking into account the discount rate. Despite the fact that the project has the potential for a low level of risk, the discount rate was adopted at 24%, which allows us to judge the high financial stability of the project, because integral indicators are at a high level (Table 1).

9. RISKS AND GUARANTEES

Table 6. Potential risks and countermeasures and warnings

The project can be characterized by a medium degree of risk.

10.APPLICATIONS

Denis Miroshnichenko
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Capital investments: 800,000 rubles,
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Net profit: 65,414 rubles,
Payback: 12.3 months!

According to a study conducted by ABARUS Market Research, the Russian retail trade market for building materials, compared to the West, is at an early stage of development. At the same time, the annual growth rate is 20%. In 2007, the volume of the retail trade market for household goods and repairs was more than $14 billion in Russia. In 2011, the market volume was about 17 billion dollars, and by 2020 the market volume will be about 30-35 billion dollars. (expert opinion).

About 80-90% of the construction market volume is accounted for by large chain companies (both Russian and foreign), and the remaining part of the market is divided between single stores and small retail chains (regional). Taking into account the fact that several new foreign players are planning to enter the Russian market, as well as taking into account plans to expand existing federal chains, the market share of “single stores” will decrease.

In connection with the above, small stores cannot compete with federal retail retailers either in prices or in the range of products offered.

But if you want to start a business in the retail trade segment of building materials, you can try to open a small retail outlet in the “Near-Home” format.

This type of store has the following advantages:

The opportunity to open a store in an area where federal chains will not enter due to the impossibility of obtaining large turnover.
A special range of products presented and an individual approach to the buyer.

1. Organization of retail trade in building materials

1.1. Room

The premises in which it is planned to open a retail hardware store in the convenience store format must meet the following criteria:

Area 30-50 sq.m.
The premises should be located in a residential area, within walking distance for buyers.
Lack of other stores selling building materials in the immediate vicinity.

1.2. Equipment

The choice of equipment can be approached quite freely, so to reduce the cost of purchasing equipment, some of the racks and shelves for goods can be made with your own hands, and some of the equipment can be bought used

1.3. Staff

The store must be open 7 days a week, operating hours from 9.00 to 20.00. For these purposes, it is necessary to have 2 sellers on staff. (work in shifts, two after two)

1.4. Range

During repairs, it often happens that there is not enough wallpaper glue, the hacksaw blade for metal is broken, there are not enough nails, the glue has disappeared somewhere, the neighbor took the screwdriver and did not return it. The buyer is not interested in going to a construction hypermarket for such small things; he is ready to buy all this close to home, even at a higher price; therefore, all this should be presented in an assortment.

Approximate assortment of the store:

For optimal operation, the range of products sold should be about 300 items.

1.5. Suppliers

The choice of suppliers must be made from wholesale companies operating in the region. These companies themselves deliver products to the store; if you work with them for a long time, it is possible to provide a deferred payment.

Replenishment of inventory and assortment must be carried out on a weekly basis.

2. Technical and economic calculations

2.1. Opening capital costs

To maintain the assortment and uninterrupted trade, inventory must be at least two months' revenue (at purchase prices), and the optimal balance is 2.5-3 months' revenue.

2.2. Revenue

The revenue of a small (up to 50 sq.m.) hardware store in the “At home” format, located in a densely populated residential area, with a well-chosen assortment, and also in the absence of competitors in the immediate vicinity, is about 400 -500 rubles. per month.

To calculate payback and profitability, the monthly revenue was taken as 400 thousand rubles.

2.3. Cost price

The markup on products sold is 50-80% depending on the product, for calculations we took an average markup of 60%

2.4. General expenses

2.5. Calculating the profitability of a building materials store

2.6. Payback calculation

3. Organizational issues

3.1. Organizational form

The optimal organizational and legal form is an individual entrepreneur.

3.2. Tax system