Hardware Store Business Plan and SWOT Analysis

Hardware Store Business Plan, Marketing Plan, How To Guide, and Funding Directory

The Hardware Store Business Plan and Business Development toolkit features 18 different documents that you can use for capital raising or general business planning purposes. Our product line also features comprehensive information regarding to how to start a Hardware Store business. All business planning packages come with easy-to-use instructions so that you can reduce the time needed to create a professional business plan and presentation.

Your Business Planning Package will be immediately emailed to you after you make your purchase.

Product Specifications (please see images below):

  • Bank/Investor Ready
  • Complete Industry Research for the Industry
  • 3 Year Excel Financial Model
  • Business Plan (26 to 30 pages)
  • Marketing Plan (24 to 28 pages)
  • 425+ Page Funding Directory
  • PowerPoint Presentation
  • Loan Amortization and ROI Tools
  • Three SWOT Analysis Templates
  • How to Start a Business Guide
  • Easy to Use Instructions
  • All Documents Delivered in Word, Excel, and PowerPoint Format
  • Meets SBA Requirements

Despite the rise in big-box stores, local hardware stores remain popular especially in rural markets. These businesses are able to provide a number of items that are commonly used by people engaging in home repair, or among contractors that need specific parts for specific jobs. The gross margin is generated by a hardware store are considered a moderate and are typically around 50%. The startup costs associated with this type of business is usually around $100,000 to $200,000 depending on the size of the store and the amount of inventory that we carried at the onset of operations. These businesses often thrive when he develop ongoing relationships with area real estate developers and general contractors that need specialty parts on an ongoing basis. This is one of the ways that many smaller hardware stores are able compete with their big-box competitors.

Given the economic stability of these businesses, many banks are willing to provide a strong degree of capital support for the establishment or expansion of a hardware store. In this case, a hardware store business plan is going to be required. This business plan should feature a three-year profit and loss statement, cash flow analysis, balance sheet, breakeven analysis, and business ratios page. A full-scale competitive analysis should be included within the business plan in order to ensure that the small hardware store is not in a direct competition with a big box retailer. A large-scale demographic profile should be included as well that not only takes a look at people engaging in their own home improvements, but also among real estate developers and general contractors that will use the business on an ongoing basis. If the entrepreneur is seeking capital from the bank then he the substantial analysis of the collateral that will be acquired with the borrowed funds should be included as well.

A hardware store SWOT analysis should also be produced. As it relates to strengths, hardware stores are typically able to remain profitable and cash flow positive in any economic climate, while also having the ability to expand rapidly once they establish a client base, and the barriers to entry are considered a moderate.

For weaknesses, these businesses face constant pressure from large-scale big-box retailers that are able to provide their customers with an expansive selection of general and specialty merchandise. As such, the hardware store must find ways that allows them to differentiate themselves from other competitors in the market.

For opportunities, these businesses can readily expand by simply establishing new locations in markets that do not have a significant number of other hardware stores in operation. Additionally, these businesses can develop specialty service lines that allows them to provide a differentiating factor.

Outside of the ongoing competitive issues associated with a hardware store, there are no known threats that would impact the way that these companies conduct business.

As it relates to the hardware store marketing plan, a full-scale marketing and advertising campaign should be undertaken in order to familiarize area general contractors, roofers, real estate developers, electricians, plumbers, and other trades people with the products and services that are offered to the hardware store. This will ensure an ongoing and predictable stream of revenue from the Onset of operations. Additionally, a large-scale marketing campaign that targets individual homeowners should also be done. This will allow the business to effectively reach an audience of people who are in continual need of specialty hardware products. Additionally, many local hardware stores often focus on the fact that this is a locally owned business and supports an area business person. A substantial online presence should also be included that may or may not feature e-commerce functionality. By listing the entire inventory of the hardware store on this website, which should be mobile friendly, the hardware store can effectively reach a large number of people within a local or regional market. A web development firm can be hired to assist the entrepreneur in developing this type of online platform.

Hardware stores are going to be around forever about the technology that is associated with delivering these products to homeowners as well as contractors has changed significantly. By operating a highly specialized capacity, many entrepreneurs have found that they are able to thrive as a hardware store owner. This is especially true if the hardware store maintains employees that can assist the homeowner with completing a specific project. As such, these businesses can remain profitable despite changes in the economy as well as continued changes in the hardware product marketplace.