According to research, it is said that a hardware business in Kenya is among the most profitable business. In most cases, people buy goods from hardware’s in bulk.
This is an assurance that the sells being achieved is very high. Hardware’s need to be run with a lot of patience.
I am sure that you want to be in a position of knowing how to start a hardware business in Kenya. By the end of this article, you will be in a position of understanding the whole thing.
Here are some steps that will guide you on how to start a hardware business in Kenya:
Step 1. Register your business.
It is recommended that you register your hardware as a single proprietorship or a limited company to comply with Kenyan law.
Step 2. Choose the most suitable place.
You’ve undoubtedly observed that the majority of hardware stores are concentrated in one section of town.
This is because it is frequently helpful to be near other services such as building sites and large cities when beginning a new business.
Step 3. Establishing a brand.
You’ll need a name and a logo that accurately reflect who you are and what you do.
Branding allows you to stand out in a crowd.
Step 4. Obtain all required licenses.
The county authority where the company is situated issues the business permit. The price varies from one county to the next.
Fire Certificate License: The county is in charge of performing a fire audit on your property and issuing a fire certificate after the inspection is completed.
Step 5. Locate manufacturers and suppliers for your products.
You must now locate suppliers and manufacturers for your inventory. This implies you’ll need to do a market study of the many sorts of items available in the sector. Consider the quality, the competitors, and the pricing points.
Step 6. Evaluate your competitors.
For further information on price, services, and how they handle their consumers, look into your market research. This provides you a better idea of what you need to offer your consumers in order for them to buy from you again.
Step 7. Create a business strategy.
Make a business plan for the upcoming 18 months.
This is critical because it allows you to determine how much money you need to put in the firm in order to stay competitive.
Step 8. Seek for investors or raise funds.
Look for venture financing from banks, saccos, or investors that would give you money in exchange for stock in your firm.
Step 9. Make a staffing strategy.
This is critical because you must be ready to recruit the appropriate staff when the time arrives.
Some services, such as bookkeeping and accounting, can also be outsourced.
Step 10. Figure out how you’re going to price your product.
It’s critical to have a price plan since how can you think of marketing tactics if you don’t know how much your items will cost?
Furthermore, knowing the pricing ahead of time increases the likelihood of buyers/customers purchasing from you.
Step 11. Develop a marketing strategy.
Now that you’ve established your price approach, it’s time to think about how you’ll promote and sell your product.
You must understand which promotion tactics are most suited for the sort of consumer who will be purchasing your goods.
Step 12. Determine who you want to reach.
You’ll be able to promote and sell your items more effectively if you narrow down your target demographic. So spend some time figuring out who will buy from your firm and what they are searching for in a product.
Step 13. Maintain a sense of order.
It’s critical to be organized from the start if you want your business to function properly. Make a list of all the items you’ll need so you may order them ahead of time before they sell out or become obsolete.
This also entails keeping track of your current inventory as well as what you need to purchase more of.
Step 14. Financial Management.
It’s time to take control of your finances.
Keep an eye out for expenses that may be reduced or eliminated, such as decreasing utility costs, purchasing items in bulk at a lower price, combining orders with other firms to save shipping costs, or negotiating a bulk discount with your suppliers.
Starting Capital Of A Hardware In Kenya
For any business to run, one needs to have a starting capital. This implies that the capital is the backbone of the business. You may be asking yourself what is the starting capital of a hardware in Kenya.
The starting capital for a hardware in Kenya is an average of Ksh. 500,000.
The capital is a great start as you can easily pick off your business by selling fast moving items in a strategic location.
Fast moving hardware items in Kenya include; cement, nails, paints, roofs, pillars among others. For you to make huge sales, then you need to identify the fast moving hardware items.
Hardware business Plan In Kenya
Hardware business plan is very important. One who has a business plan is able to run things in a systematic way.
Business plan enables one to identify a variety of things including hardware business opportunities that are untapped.
In addition, a business plan helps in avoiding mistakes and confusion. A hardware startup business plan may entail things like; name of the business, number of employees, sales and description of the business among others.
Hardware Business For Sale In Kenya
Hardware business for sale in Kenya can be found in different places and regions. Some may end up selling the hardware’s from Ksh. 100,000 – Ksh. 2 million.
Please note that before you buy any business including a hardware do a market research and know the main reason why the business is on sale.
Some people may sale you a business with dead stock that is not moving and claim that they are fast selling. Also, ensure the area is worth having a hardware. Check the book records over the years to ascertain the claims of stated profits.
Ways To Improve Hardware Business
This is how to improve hardware business in Kenya:
1. Get multiple suppliers to strike better deals on products
2. Market your business both online (social media, website, seo marketing etc) and offline (word of mouth, use fliers, promotions etc)
3. Build brand reputation to have easy loyal customers and more referrals.
4. Offer great service including selling good quality and faster delivers with working customer support
By following those guidelines, you will be able to improve your hardware business. Good luck.
Let me hope that up to this point you got all the answers to your questions. Let me also hope that this article was of great importance to you.