How to start a hardware store in Uganda. Starting a hardware store in Uganda may appear daunting and difficult, but I want to make this guide as simple and straight forward as possible.
This guide is for you if you want to open your own hardware store in Uganda. Let’s get started right away.
Step by step how to start hardware store in Uganda
A typical Ugandan hardware store is a brick-and-mortar establishment where a salesperson directly sells hardware products to customers in need. Niles, iron sheets, cement, paints, and a variety of other products are available in hardware stores.
HOW TO START A HARDWARE STORE IN UGANDA
Starting a hardware store in Uganda just like any other store follows steps and they are these steps that we are going to look at today.
1) MAKE A PLAN
Making a store strategy is the first step in determining how to start a hardware store in Uganda. Your store plan should outline how you intend to start and grow a successful hardware store.
Important topics to discuss include:
Understanding your customer: What kind of person is your usual customer? Are they do-it-yourself landlords and contractors, or do-it-yourself homeowners working on side projects? The way your store is designed and the weight of your product will alter depending on who you’ll be catering to.
What your financial situation looks like: How much money do you need to get started? What is your break-even point once you get started? What do you anticipate your monthly cash flow to be?
Location: This one is a no-brainer. You’ll want somewhere with a lot of foot traffic that doesn’t cannibalize the store of other stores — or put you in a position to be cannibalized in return.
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2) RAISE CAPITAL
After developing a store plan, you must raise capital to open your hardware store. The amount of capital needed to get started with hardware varies.
The cash needed to start a small hardware store ranges from 5 million UGX to 50 million UGX. The capital necessary to launch large hardware is 100 million UGX or a larger sum.
There are numerous avenues from which you can obtain this capital;
Savings
Loans from Banks
Investors in venture capital
Investors
Bank loans combined with personal savings are the most widely used means of raising funds to start a hardware store in Uganda.
We have an entire post dedicated to How To Raise Capital. It’s available here.
3) FIND A SUITABLE LOCATION
Brick and motor storees thrive in high-traffic areas because they receive a lot of exposure. You must keep an eye on the location of your hardware store while you begin your store in Uganda.
Finding a crowded area should be the best plan. When deciding where to put your gear, keep the following points in mind.
Safety: You must find a safe location to stay. You don’t want to put money in your hardware store only to have it broken into and all of your money taken.
Exposure: The more people that see your hardware store, the more probable it is that you will earn sales. You should locate your hardware store in an easily accessible location.
Parking Space: With a hardware store, you are likely to have trucks loading and offloading stock. Your hardware location needs to have space for trucks to park and load or offload.
Accessibility: Your hardware store needs to be easily accessible if you are to make real sales. Don’t place your hardware store on top of a hill or in a valley for easy accessibility. Customers don’t want to face a hard time coming to your hardware store.
4) REGISTER YOUR HARDWARE store AND GET THE REQUIRED LICENCES AND PERMITS AND INSURANCE
To operate a hardware store without intervention from the government, you must obtain the necessary licenses and permits.
If you want to learn more about the permits and licenses needed to open a hardware store, contact your local town council or city council.
I also advise you to insure your hardware store. Hardware stores are rife with cash. By insuring them, you eliminate the risk of losing your money in the event that something tragic happens to your firm.
You can hire a lawyer to assist you with registering your firm and finding a suitable insurance provider for your hardware.
5) GET SUPPLIERS
As the owner of a hardware store, you require suppliers who will provide you with stock to sell. You must build a positive relationship with your suppliers.
With a good relationship with your suppliers, you can begin receiving stock on credit 6)
6) HIRING WORKERS
The majority of hardware stores require more than one employee. You will need to hire personnel to assist you in running your hardware store.
When employing staff, keep the following in mind:
Their credentials
The availability of employees
Your hardware store’s size
When hiring employees, don’t hire based on your feelings; instead, hire based on the need for available employees and the employees’ capabilities.
If possible hire a human resource manager and let him/her do the employee hiring activity for you.
We have a full guide on how to hire workers.
and pay later.
7) START YOUR HARDWARE STORE IN UGANDA
Last but not least, you can open a hardware store. After successfully completing all of the preceding procedures, I am pleased to inform you that you are now ready to open your hardware store to the public.
Not to mention, you must consider how to market your new hardware to your customers. You may promote your hardware store in a variety of ways.
CONCLUSION
This brings us to the end of our discussion on how to start a hardware store in Uganda. Hardware stores are examples of storees that take huge sums of money to get started, but once established, you are guaranteed to recoup your investment.
So if you have a dream of starting a hardware store in Uganda, that is what is required to start one. Do you have what it takes?
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