Starting a hardware business is not easy. It’s something you should be prepared for and have the time, money, skills, resources and dispositions needed before starting such a venture.
If you are about to set up your own company then this blog post will help you out with what steps you need to take to get started.
Start a Hardware in Kenya
Here are the 16 Steps to Start a Hardware Business in Kenya:
Register your business
To comply with the Kenyan Law, it is prudent you register your hardware either as a sole proprietorship or as a limited company.
When choosing a name for your business , its best to come up with something catchy that will set you apart from other hardware stores.
If you are the only store in town, then your company name could be anything. But if there is already a competing hardware store in the same location,it is best you have a unique name that customers can easily remember.
Identify the best location
You’ve probably noticed that most hardware stores are clustered in a particular area of town.
This is because when starting a new venture, it’s often advantageous to be near other services like construction sites and major towns.
You need a name and logo that represents who you are and what it is that you do.Branding helps you stand out from the crowd.
Obtain the necessary licenses
Business Permit-This is issued by the county government where the company is located.The cost varies from county to county.
Fire Certificate License-The county is responsible for conducting a fire audit in your premises and issue a fire certificate once you pass inspection.
Find Suppliers and Manufacturers for your Products
You now need to find suppliers and manufacturers for your stocks.This means that you will have to conduct a market analysis looking at the different types of products in the industry.Take into account the quality, the competition and price points.
Some questions you should ask are:
- What is my end goal?
- How much do I want to make?
- How much can I sell the product for?
- What are my resources and skill sets?
Once you have answered these questions, you should be in a better position to start looking at suppliers and manufacturers.
It is important that your supplier or manufacturer also has knowledge about electronics ,plumbing equipment as well as quality assurance to ensure that the product you are selling meets your buyers specifications.
Review your competition
Research your market competitors for more information on pricing, services , and how they treat their customers. This gives you a better understanding of what you need to offer your customers so that they will come back and buy from you.
You may have the best products in town, but if customers can find a similar one with more attractive features for less money at your competitor’s store, you’ll be hard-pressed to make sales.
Spending some time looking into how other companies are marketing their products is an important part of staying competitive.
Do market Research
It is important to have a good understanding of your market, for example:
- Do you need more than one type of product in order to be competitive?
- What are the best selling products and why do they sell well?
- How much would a product cost on average locally or would it be cheaper to import it?
Develop a business plan
Create a business plan for the next 18 months .
This is crucial because this helps you decide on how much money you need to invest in the company inorder to keep up with the market.