A hardware store business plan is a simple document that shows the market need for hardware and home improvement tools/services while estimating the potential revenues your company can gain in this market space. If the hardware store opened its doors long ago, make a past performance table and describe your failures and successes to date in a “company history” section. The past performance table should bring together your P&L statements and historical balance sheets going back 3 years. If your hardware store is just starting out, no worries – but make sure that you focus on the fact there is a market need that can support your sales projections! People are definitely taking home maintenance and upgrades into their own hands, but you have to show that your market is one of opportunity:
• How big is the target market?
• What greater region can you draw customers from (i.e., 5 mile drive? 10 miles?)
• What are some of the biggest tools/equipment you will sell, by price point?
• What's the nearest competitor and how far away are they?
• How many customers do you expect to come in per week?
• Where are the closest major chain stores – Lowes, Home Depot, etc.?
The business plan's competitive comparables section should provide readers with a sense of the market as well. How much revenue can the average hardware store in the city earn? How many people work there? What are the most popular rentals, what tools sell the best, etc.? Answers to these can help your plan in multiple ways, so do all the research you can online and by picking up the phone. You'll also have a marketing section in the plan that talks about how you plan to advertise the store – radio ads, referral cards, television spots on nighttime news? What makes sense for your company's goals and budget? Ultimately the plan needs a financial model showing at least 3 years of estimates for expenses and revenues, so make sure this is accurate as well. MasterPlans can write the hardware store business plan for you. Call a consultant today to hear about what we can do for start-up retail operations and existing businesses alike: (877) 453-2011.
