There has been an explosive growth of the number of houses being constructed in Zimbabwe since the dollarization of the economy in 2009. Many cooperatives are being formed to help people build houses, and banks are giving out mortgages for constructing houses. How can you make money from this solid trend? This has led to a surge in the demand of hardware products. Thus starting a hardware shop business in Zimbabwe is very lucrative, with high profits.
Before you start a hardware shop business in Zimbabwe, you have to decide on the size of your business, location of business, products to offer and your target market. You should always carry out a feasibility study, market research and write a business plan before you venture into any business. Do not make the mistake of starting a hardware shop business or any other business just because someone is doing it and he/she says it’s profitable. This article will explain how to start a hardware shop business in Zimbabwe, and the hardware shop business plan.
What you need
Location and Premises
The best place to start a hardware is where there is an upcoming community of people who are building their first homes. It is however important to ascertain that you’re choosing a market that has enough purchasing power. Places you can consider are growth points as there is a lot of construction happening there, all the small towns and in the cities. You can also locate your hardware in new suburbs which are being constructed in the cities as that will be very convenient for the home owners, and there will be very huge demand. You will need premises which include the hardware shop, back offices, and a warehouse for your products. Your premises should have sufficient parking space for your customers and suppliers.
Knowledge about your market
Before you can invest your funds into this business you need to understand your market. Many small businesses fail due to poor management resulting from lack of knowledge. Identify an area with a growing demand for hardware products. It is much wiser to set up your business where there is need for your products. Secondly understand how the hardware industry operates. What are the pricing mechanisms, marketing mechanism and the needs and wants of potential customers. Carry out a SWOT Analysis and understand whether you can be able to offer something valuable and unique from competitors.
Hardware shops in Zimbabwe sell a variety of products including building materials, plumbing materials, tools, safety materials, agricultural equipment and electrical products. Examples of hardware products include bricks, cement, steel door & window frames, glass, roofing materials, abrasive products, adhesives, brushware, PVC Conduit & fittings, cables, circuit breakers, fencing & wire, nails, nuts, bolts & screws, paint, water tanks, timber products, gumboots, overalls, dustcoats & work suits, ceramic tiles & accessories, copper pipes & fittings, brassware & taps, galvanised & PVC pipes & fittings, hand tools, power tools, garden tools etc. The products which you choose to offer in your hardware shop will depend on your target market and the amount of capital you have. The products you will be sourcing them from local and international suppliers.
Management and Staff
The number of employees you need will depend on the size of your hardware store business. There is need for employees to handle finance and accounting issues. They will be responsible for all the day to day transactional accounting for the business. This will include the tracking of all transactions and the management of any government reporting. In very small owner-managed hardware businesses this role is often filled by the owner or a family member with accounting experience. Marketing staff is also required. They are responsible for marketing the company and its products through various means which include advertising. You need to retain and acquire new customers to be profitable in the hardware business.
You require a fully functional operations department. The operations department is responsible responsible for handling the operations of the hardware business.They are responsible for coordinating with suppliers and sourcing all the products which will be sold in the hardware. The operations department is also responsible for inventory control, ensuring that the shop has all the products in stock and in the right quantities, and determining when to place new orders. They are also responsible for arranging delivery of sold items to the customers. Cashiers and shop assistants are also part of the operations department.
Market for Hardware Store Business
Zimbabwe was in a recession from 2000-2008, and then the economy recovered in 2009 when the local Zimbabwean currency was dropped in favour of the United States Dollar. This led to a period of economic growth, which resulted in more disposable income for Zimbabweans. This led to a rise in construction in Zimbabwe. Many individuals are constructing houses in Zimbabwe, and they will be in need of the hardware materials. From time to time individuals carry out improvements, repairs and upgrades on their properties, needing hardware products. Other potential customers include farmers, organisations, schools, companies, construction companies, housing cooperatives, NGOs and the government.
Pre-Written Hardware Shop Business Plan : Comprehensive Version, Short Bank Loan Version, Automated Excel Financial Statements
For an in-depth analysis of the hardware shop business in Zimbabwe, purchase our business plan. We decided to introduce the business plans after noting that many Zimbabweans were venturing into the hardware store business without a full understanding of the industry, market, how to run the business, the risks involved, profitability of the business and the costs involved, leading to a high failure rate of their businesses.
Our business plan will make it easier for you to launch and run a hardware business successfully, fully knowing what you are going into, and what’s needed to succeed in the business. It will be easier to plan and budget as the hardware business plan will lay out all the costs involved in setting up and running the business. The business plan is designed uniquely for the Zimbabwean market.
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I found the business plans very informative, helpful to make appropriate decisions.
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Uses of the Hardware Shop Business Plan (PDF, Word And Excel)
The hardware store business plan can be used for many purposes including:
- Raising capital from investors/friends/relatives
- Applying for a bank loan
- Start-up guide to launch your hardware business
- As a project proposal
- Assessing profitability of the hardware shop business
- Finding a business partner
- Assessing the initial start-up costs so that you know how much to save
- Manual for current business owners to help in business and strategy formulation
Contents of the Hardware Shop Business Plan (PDF, Word And Excel)
The business plan includes, but not limited to:
- Market Analysis
- Industry Analysis
- Automated Financial Statements (monthly cash flow projections, income statements, cash flow statements, balance sheets, break even analysis, loan repayment calculations, start-up costs)
- Marketing Strategy
- Risk Analysis
- SWOT & PEST Analysis
- Operational Requirements
- Operational Strategy
- Contact Details of some suppliers
- Why some Zimbabweans in the hardware store business fail, so that you can avoid their mistakes
- Ways to raise capital to start your hardware business in Zimbabwe
The hardware business plan package consist of 5 files
- Hardware Business Plan – PDF file (Comprehensive – 71 pages)
- Hardware Store Business Plan – Editable Word File (Comprehensive – 71 pages)
- Hardware Shop Business Plan Bank Version – Editable Word File (Short version for applying for a loan – 43 pages)
- Hardware Business Plan Automated Financial Statements – (Editable Excel file)
- Hardware Business Plan Automated Financial Statements (USD Financials Version) – (Editable Excel file)
Business plan last updated in May 2020.
The financial statements are automated. This implies that you can change eg value of stock bought, markup etc, and all the other financial statements will automatically adjust to reflect the change.
Get the Hardware Business Plan (PDF, Word And Excel)
We decided to make them affordable for anyone who would want a business plan, and the price for pre-written business plans is only ZWL$900 for soft copies, and ZWL$1200 for hard copies. When you pay via Paypal, the soft copy costs US$25.
You can purchase via Paynow using Ecocash, One Money or Telecash. You just click Pay now (scroll down) and you will then be taken to Pay now website where you make the payment. Just follow the instructions; you will be done with the payment process in 2 minutes. We will email the business plan (PDF format, Microsoft word format, and a Microsoft Excel file with the financial statements) to you within 24 hours, using the email address you provided when you were paying.
If you have a PayPal account, MasterCard or Visa Card, you can purchase the business plan via PayPal. You just click Buy now (scroll down) and you will then be taken to PayPal website where you make the payment. Just follow the instructions; you will be done with the payment process in 2 minutes. We will email the business plan (PDF format, Microsoft word format, and a Microsoft Excel file with the financial statements) to you within 24 hours, using the email address you provided when you were paying.
You can also purchase hard copies and/or soft copies at our offices in Harare. Visit StartupBiz Zimbabwe, Office 103, First Floor, Gowero House, Cnr Mbuya Nehanda and Nelson Mandela, Harare . Hard copies cost ZWL$1200 and soft copies cost ZWL$900.
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