So you want to open a hardware store; congratulations! This is an exciting journey, and at Chartrent, we’d love to help you as you launch your business. The amount of information for new business owners can feel daunting, so we’ve put together a comprehensive guide on opening a hardware store for the first time.
Starting from Scratch or Taking over Ownership
To get a head start on opening a hardware store, you may choose to take over an existing local business. There are lots of online directories listing independent hardware stores currently available for sale. This can be a good way to start a new business in a location with an existing customer list. Be sure to research the reason the previous hardware store owners are selling their business, as they may have valuable insights that could affect you moving forward.
While taking over an existing hardware store can have its benefits, like existing customers and established suppliers, it’s worth critically assessing the reasons it is for sale. Only take over a business once you have all the information on its trading patterns and the terms of the sale, and once you’re confident, you can make a successful hardware store out of it.
Some large chain stores offer a franchise hardware store option. This can be a great way to start your own business with the support and guidance of a larger business network. Franchises can be a good option for first-time business owners and provide a route that requires less independent financing. Bear in mind that as a franchise owner, you may not get the final say on all decisions. As part of a larger brand, some things will be mandated by the owners.
If you want full ownership and control, setting up your own hardware store from scratch is the best option. While the initial set-up will likely involve more costs, it can be extremely rewarding to start your independent hardware store from scratch exactly as you envision it.
Opening a Physical Hardware Store
If you’re interested in opening your own hardware store, you’ve probably been to plenty of hardware stores. As a customer or as part of your competitor research, you’ve probably looked at other DIY and hardware shops and considered what you’d do differently.
The customer experience should be a priority, so try to be objective as you walk through your store. Are the shelves too high? Is everything laid out in a logical order? Is the signage clear? There’s so much to consider; it’s a good idea to split the shop floor of your hardware store into smaller sections and focus on one at a time.
Recruitment for any retail business, including a hardware store, can be a lengthy process, so make sure you start well in advance of opening. Ideally, you should seek out workers with experience of a large or small hardware store environment, but any retail or customer service experience will be beneficial.
Ensure you have all areas of the business reasonably staffed to enhance the customer experience. Having enough members of staff at your till area will reduce wait times, and you should have knowledgeable staff members in other areas of the store.
Staff training is crucial in ensuring your customers’ needs are met. Make sure you pass on all the knowledge you have on your products and services, so your staff can comfortably discuss and sell the items as well as you. You should also empower your staff with a strong business sense; let them know your financial targets as a company, and incentivise them with personal targets to strive for.
Selling Through an Online Hardware Store
You may choose to run only a physical store, or perhaps in combination with that, you’d like to sell online. Or you may opt to sell through a business website and not have a walk-in retail space at all.
Ensure you have a reliable eCommerce site, as this is how your customers will buy from you online. As much as you want your physical shop to be accessible and easy to browse, you should have the same intentions for your online shop. Make sure the checkout process is easy, and there are no potential barriers stopping your customers from paying.
There should be a very clear way for consumers to get in touch with you, whether by phone, email or through a contact form on the website. Make sure they can get in touch with you to ensure a good customer service experience.
You should also aim to have a social media presence alongside your business website or physical store. This helps legitimise the business and allows you to communicate frequently with customers. Social media can also help generate foot traffic in-store and online traffic for your website.
Legal Obligations for Hardware Stores
You will need to register your business in order to start trading. Whether you need to register as a sole trader, limited company or any other legal business entity depends on factors such as the amount of money the business makes and will determine whether or not you need to open a business bank account. Ensure you keep accurate and detailed accounts to make your tax return a smoother process each year.
For a physical retail space, there are stipulations on trading hours you will need to adhere to. You should also ensure you have the necessary business insurance to protect your company and customers. This can include general liability insurance, product insurance and public liability, etc. While the insurance will be different for an online-only hardware store, you will still need policies in place to protect your staff and stock. The Employment Rights Act 1996 outlines your obligations to workers in your business.
If you’re selling cleaning products, you’ll need to consult the guidance for selling and storage of hazardous substances. Similarly, with electrical supplies and hand and power tools, there will be additional health and safety measures you need to have in place.
General Tips for New Business Owners
For any business, including a new hardware store, establishing a good support network can make a huge difference to the success of your business. Most hardware store owners have a great relationship with suppliers and customers, building natural rapport that makes work a positive place to be.
Connecting with other local businesses is a great way to network and can also help establish your business as part of the local community. Find ways you can collaborate and support one another. Invite them to the opening of your hardware store, and consider offering a discount for local business owners. In turn, they may agree to display local advertising for your business or recommend you simply through word of mouth.
For advice on how we can support your new hardware store, get in touch today. Call 01603 426167 or email sales@chartrent.co.uk for more information.