In recent years, the population of our country has been actively building and no less actively repairing new and old apartments. Many cities are now experiencing a construction boom. And so everyone needs building materials. Sale of materials and other components necessary for construction and repair is a profitable business. Many entrepreneurs have understood this, so there are many stores of the corresponding orientation. But there are still unoccupied niches and attractive opportunities in this business. Consider how to open a building materials store.

Store Format

Building materials and related product names are sold in different ways. In construction markets, in small stalls, in warehouse stores, in building supermarkets and in ordinary building materials stores. Before starting this business, you need to figure out what types of hardware stores exist. And which of these types suits your capabilities. Or maybe you will study what is there and come up with something of your own. So, the conditional division of building stores:

1. Small shops, from 20 to 50 sq.m. plus a warehouse of approximately the same area. In such a store, one or two groups of goods are usually presented, from 30 or more items. For example, wallpaper. Or paint. Or floor coverings. Along with the main group of goods, related products may be sold. For example, wallpaper and wallpaper paste of several types, suitable for the types of wallpaper that are present in the assortment of the store.
2. Larger stores, up to 200 sq.m. total area, the area of ​​the trading floor in this case can be 100-120 sq.m. In such a store, several dozen groups of goods can be presented. There may be wallpaper, and paint, and several types of flooring, and plumbing, and board, and pipes. The total number of articles of goods can reach up to 5-6 thousand items.
3. Large building stores with sales area from 1000 sq.m. and extensive storage facilities. In such a store, there are usually at least ten departments, where you can find almost everything that may be needed for repair and construction. Groups of goods number in the hundreds, and names in the thousands.
4. Store-warehouse. There is no division into warehouses and a trading floor. The goods are presented to customers in the volumes and quantities that are available in the store. On average, the size of such integrated trading enterprises ranges from 2,000 to 3,000 sq.m. But there are also small stores, warehouses, where goods of one or two directions are sold.

Required Documentation

First you need to register in the Unified State Register as entity. After that, you can receive a certificate of registration with the tax authorities.

Usually, owners of hardware stores choose one of two legal forms doing business - (IP) or (LLC). IP is convenient if you do not have a very large store, and you are its sole owner. An LLC is usually used for a larger business and if there are co-founders.

You will need to choose a taxation system. This choice may depend on local laws, laws on this matter may vary in different regions.

A convenient tax is UTII (), in most regions of the country, all retail trade enterprises, which include a building materials store, fall under it.

If in your city UTII is not provided for this kind of activity, then you can choose the simplified tax system -. This tax is 6% if the object of taxation is income, and 15% if the object of taxation is income reduced by the amount of expenses.

Since 2014, a new taxation system, patent, has been introduced. It consists in acquiring a patent for each type of activity. This system of taxation is possible only for individual entrepreneurs.

You should receive a notification from the State Statistics Committee that your enterprise has been assigned codes according to OKVED (All-Russian Cadastre of Species economic activity) that match your entrepreneurial activity.

In addition, you will need to obtain permissions from the following authorities:

• City Administration.
• Chamber of Commerce.
• Fire inspection.
• GAI (when organizing parking).

Shop space

Criteria for choosing a location for a building materials store:

• The proximity of a busy highway with a constant flow of cars.
• New building area.
• in the major construction market.
• Close to similar stores that do not duplicate your store.
• In the area of ​​the industrial zone of the city - there you can find a suitable room at a bargain price.
• The premises must be in a non-residential fund, so firefighters will not allow the sale of flammable substances, which make up a significant part of the assortment of a hardware store, in a residential area.
• There must be ample secure free parking next to the store.
• Convenient access roads should lead to the store.
• For a large warehouse-shop selling large quantities of bulky goods, it is desirable to have access railway tracks.
• The store must comply with the requirements of the SES and the fire inspection for the conditions of storage and sale of goods.

The next question to be solved is renting or buying out the premises? Owning a property is, of course, convenient, but it requires large investments that will not return soon.

Therefore, if you already have your own suitable premises, great. This will solve a lot of problems. If there is no room, and you do not have a solid initial capital, then it is better to rent a room for a store. Perhaps it will be a lease with a subsequent purchase if your store does well and you have a stable high income.

Store equipment

The set of equipment is standard and simple and includes:

• One-sided racks attached to the walls for the layout of goods.
• Double-sided racks, which are placed in the central part of the hall.
• Display cabinets with glass doors to accommodate small-sized goods.
• Show-windows counters for some departments of shop.
• Trading nets for hanging goods.
• Fasteners and hooks for placing goods on the walls.
• Packing table.
• Cash register, one or more.
• Shopping carts and baskets.

Product range

Choosing the groups of products that should be in your store should be after considering the following questions:

• Store size. If you have a supermarket large area, then you will be able to have a wide and varied assortment. If your store is small in size, then you need to choose one direction.
• Availability of similar stores in your city or area. If you want to sell floor coverings, make sure there is no similar store nearby.
• Buyers' needs. Study the building products market, find out what is lacking and what products are in abundance.

In any case, your store should have a wide range of products. The modern buyer is spoiled by the abundance of goods and is unlikely to return to the store with a meager assortment. If the area does not allow you to exhibit a large number of goods, you can work according to catalogs, under the order.

We list the standard product groups for a building materials store:

Suppliers

Suppliers can be searched personally by visiting all the wholesale bases of the city, or via the Internet. The first method is convenient because it is easier to agree on conditions with personal contact, the second is that you don’t have to go anywhere and drive, just look at the catalogs of the right companies and compare prices.

Don't limit yourself to suppliers based in your city, especially if your city is small. Look for suppliers in nearby major cities. This is usually more beneficial.

Often, large bases deliver goods to neighboring cities for free with a sufficiently large order. In many cases, you can not only make an application for a product, but also conclude an agreement with a supplier via the Internet.

Store employees

To open a hardware store and ensure it flourishes, you must find experienced employees. Your store should be managed by a person who has worked in this field for more than one year. After all, the assortment of goods, contacts with suppliers, and personnel management depend on it.

Sales consultants must have all the information about the product, in addition, they must understand the construction and repair process itself in order to give advice or advice. If your store has several departments, then each should have at least one consultant who thoroughly understands the product of this department.

In addition to sales assistants and management staff, you will need cashiers, room cleaners, a warehouse manager and loaders.

The remuneration of store employees should be stimulating: a salary and a bonus, the amount of which depends on the quality of work and the quantity of goods sold. With this approach, employees work most efficiently.

Building materials store business plan

Opening small shop building materials, an area of ​​about a hundred square meters, according to experienced entrepreneurs working in this business, it costs 300 - 400 thousand rubles.

The average turnover for one month is 200,000 rubles. This is with a trade margin on goods of 20-30%.

Most of the turnover is spent on settlements with suppliers (about 70%). That is, 60,000 rubles remain. And still need to pay salaries and taxes. There will be a very small amount left.

Therefore, it is profitable to open a small store only if you have the opportunity to purchase goods inexpensively from suppliers and make a mark-up on it in the store by more than 30%. In addition, it is necessary to agree with suppliers on the supply of all goods without prepayment, for sale. And one more thing - the room. If the rental price is high, your business may become unprofitable.

Conclusion: it is profitable to open a small building materials store if you have inexpensive premises (best of all, if you own it) and favorable working conditions with suppliers.

Opening of a store with an area of ​​about 200 sq.m. will require an amount of 1.5 million rubles, including the full cost of payment for the goods. Monthly turnover of funds - 800-900 thousand rubles, net profit after taxes - 50-60 thousand per month.

Supermarket of building materials, occupying 1500-2000 sq.m. will require investments in the amount of 8-10 million rubles. The turnover of such a store is approximately 3 million rubles per month, and the net profit is about 150,000 rubles.

This trading option is the most profitable for the business owner and the most convenient for the client, because he can purchase all the main and related products for repairs in one place.

Building Materials Store Promotion

Since the competition in this business is high, and the location of the store may not always be the best in terms of marketing - often such stores are located on the outskirts of the city or in industrial areas - advertising becomes of paramount importance.

By the time the store opens, it is necessary to prepare advertisements in the local press, if possible, on radio and television. You can also install advertising posters and banners on the streets of the city, announcing the opening of a new store, its benefits and discounts for the first customers.

Be sure to start your website on the Internet, because now they are looking for everything that they might need. The site should be made with high quality, it should attract attention, give an idea of ​​your assortment and prices. It should contain information about the time of your work, options for the delivery of building materials, your contact numbers. Don't forget to update it regularly.

Another effective form of advertising is cooperation with repair and construction companies and teams. They will bring their customers to you and buy materials from you if you give them the opportunity to receive discounts or percentages on the sales of new customers they attracted.

You can attract sales representatives who will offer your product to firms involved in interior design, repair and construction. This way you can find profitable regular customers who will purchase large quantities of goods from you.

Be sure to issue discount cards, simple or accumulative, to regular customers. Don't forget to run promotions when new types of goods appear. Invite design consultants or builders to participate in these promotions. Organize Internet and SMS newsletters of your store to regular customers.

* Calculations use average data for Russia

1 220 000 ₽

Starting investments

473 000 ₽

133 000 ₽

Net profit

18 months

Payback period

Opening a building materials store means starting a profitable business that is in demand at any time. By investing about 1 million rubles, you can earn 150 thousand rubles a month.

“Repairs cannot be completed, they can only be suspended” - worldly wisdom indicates one of the reasons why it is worth opening a hardware store. There will always be a demand for building materials: while some are building, others are repairing and vice versa. The development of the construction market in Russia contributes to the fact that they build and repair a lot. Even if the housing does not need to be repaired, nails, a hammer, a screwdriver and so on will come in handy in everyday life. Therefore, opening a hardware store from scratch is great idea for profitable business. To figure out how to start your own business and how much it will cost, we offer detailed guide, which will answer the basic questions of a novice entrepreneur.

1. Market overview

The dynamic development of the construction industry and the real estate market in Russia contributed to the growth in demand for building materials. This was accompanied by the emergence of new retail outlets - from small pavilions to construction hypermarkets. The building materials market has grown by 20% annually.

Today, there are more than a thousand universal and specialized chains of hardware stores on the market, while the top 10 largest retailers account for almost 25% of the market. The crisis of 2014-2015 consolidated the success of large hardware stores. The growth of competition in the market and the regional leadership of large market players led to the fact that other construction stores faced problems: a decrease in sales and, as a result, a deterioration in their financial condition.

The difficulty of competing with construction hypermarkets lies in their aggressive pricing policy and a wide range of products covering all stages of construction and repair. When planning a purchase, a potential client tends to choose a large shopping center. There are many reasons. This is the breadth of the range, lower prices, the ability to buy everything you need in one outlet, service (consultations, delivery services, etc.).

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However, there are situations in which the buyer will rather go to a small hardware store. This is the purchase of a small amount of building materials for cosmetic repairs, the addition of materials that ended during the repair, minor household issues that require urgent solutions. In this regard, since 2015 among building stores there has been a tendency to change the structure of the assortment with the replacement of building materials with household goods.

The defining moment in this area of ​​trade is the advantageous location of the store. While large retail outlets occupying vast areas are forced to be located on the outskirts of the city, small hardware stores can open in a residential building, mall or at the local market. Therefore, despite high level competition in the building materials market, this direction can become profitable business. The main thing is to correctly choose a place and plan all stages of opening a retail outlet.

Thus, a hardware store as a business has its advantages and disadvantages. The main advantage is the high demand for the product, which guarantees a stable income. According to statistics, the average family in Russia makes repairs every 5-7 years. This does not include purchases to maintain repairs. The profitability of a hardware store can be 30-32%, depending on the margin on goods.

Difficulties in the business of selling building materials:

Fierce competition in the industry. The market will have to compete not only with small retail outlets, but also with construction hypermarkets, which can offer the consumer a wide range and lower prices;

Price policy. It is necessary to set the optimal price for goods, since inflated prices will scare away potential clients, and too low prices will not allow to recoup the business. The best option is to analyze the pricing policy of competitors and reduce prices by 2%;

The need to provide a wide range of products to interest the consumer. Firstly, there is an important task to correctly form the assortment, taking into account the preferences of the target audience. Secondly, there is a need to establish contacts with a large number of suppliers and choose the most suitable ones;

Seasonality of sales. Statistics show that the peak of retail sales is recorded in the spring and autumn months, summer sales are 70-80%, and winter - 50-60% of the maximum. Moreover, seasonality is also noted for individual commodity items, which is why a wide assortment of a hardware store is important.

2. Store format and assortment

As mentioned above, it is more rational for a novice entrepreneur to open a store in the “neighborhood” format. Its scale can also be different: from a small pavilion with building materials to a supermarket. It all depends on the chosen place for trading and financial capabilities. We will look at how to open a hardware store, using the example of a small supermarket offering customers more than 100 items of goods.

For a store of this sales format, you should bet on consumables used in repair work(fasteners, paints and varnishes, adhesives, construction tools). Based on the format of the store, its assortment is determined, which should include the following categories of goods:

paint and varnish products (paints for interior and exterior works, primers, impregnations, varnishes and coatings for various materials, as well as rollers, brushes);

building mixtures, cement, primer, putty, alabaster, etc.;

mounting foam, sealant, liquid nails, mounting glue;

hardware of various modifications and sizes, nails, screws,

wallpaper. This group of goods should be represented by a wide range to satisfy the tastes and requirements of different consumers. Related products include adhesives, brushes, etc.;

floor coverings (laminate, linoleum, carpet, parquet and related products in the form of fasteners, underlays, skirting boards, etc.);

construction tools (rollers, spatulas, hammers, nail pullers, drills, screwdrivers, etc.).

Ready-made ideas for your business

Before forming the assortment, a thorough analysis of the market, suppliers and assortment of competing stores should be carried out. This will allow you to determine consumer demand and select products in such a way as to create a unique offer in the market. Important! You will be of the greatest interest to the buyer in two cases: if you can offer a unique product that is not on the market, or the same one, but at a more attractive price. The fact of proximity to the house is also significant, however, since building materials do not belong to spontaneous purchases, therefore, you should not rely only on this.

The main recommendations for the formation of the assortment of a hardware store:

it is desirable that each group of goods be represented by several manufacturers in different price categories. At the same time, goods of the middle price segment should be at least 60% of the entire range;

choose trusted, high-quality suppliers, since the reputation of the store depends on this;

when choosing suppliers, also pay attention to whether they are presented in other stores. Unique offers on the market will attract buyers;

if a product is not in demand, its stocks should be reduced, but not completely excluded from the assortment.

It is also proposed that the store operate in a self-service format. As practice shows, such a system contributes to the growth of sales. For this format, the goods should be divided into categories for convenience. A consultant is provided for each department (or related departments).

Advantages of a hardware store operating in the mini-market format:

convenient location for clients. Hardware stores located within walking distance, in certain cases, are the most attractive option than hypermarkets remote from the city;

range variability. The area and format of the store allow us to offer a wider range of products than in construction pavilions. Not only products of popular manufacturers, but also less common brands can be presented here. Construction hypermarkets usually work with certain brands and are not inclined to change suppliers. Smaller stores are more flexible and can work with a wide range of suppliers.

customer loyalty system. At the moment, not many hardware stores pay attention to customer acquisition policies. You can correct this mistake and provide, for example, a system of discounts for regular customers.

3. Choice of location and premises

As with any retail establishment, the location of a hardware store is important. Favorable location determines 70% of the success of the outlet. The assessment of the location of the store takes into account such parameters as the characteristics of the area, the ease of parking, the intensity of the pedestrian flow, visibility and noteworthiness, and proximity to similar enterprises. A good option would be the area of ​​new buildings, as well as sleeping areas, remote from large hardware stores.

Ready-made ideas for your business

When choosing a premises for a store, the question arises: to rent a retail space or to acquire it as a property? Entrepreneurs recommend not to hurry with the purchase of retail space and work in the rented premises for the first two years. In case you make a mistake with the choice of a retail outlet or things don’t work out, it will be much easier to simply free up the rented area.

Requirements for the premises of a hardware store:

The required store area is at least 100 sq. m. Otherwise, there is a risk that the store will be unprofitable.

The trading floor should be square or rectangular in shape, without unnecessary bends - this will make it easier to place showcases and make the most efficient use of the available space.

Ceiling height must be at least 2.7 m.

From the trading floor there should be two entrances - for visitors and for loading goods. With a sales area of ​​100-150 sq. m. for a warehouse will require 50-70 sq.m.

The presence of heating, ventilation, air conditioning, plumbing, sewerage, ventilation and electricity in the room.

Special investments in the repair of premises for a hardware store will not be required. Enough to fit the room sanitary requirements was dry, clean and well lit. Rent of commercial premises with a total area of ​​150 sq.m. on average, it costs about 100,000 rubles a month. When dividing the leased area into premises for various purposes, 100 sq.m. on the trading floor, 40 sq.m. for a warehouse and 10 sq.m. for technical rooms.

4. Equipment of the sales area

The retail space should be well lit. The interior for a hardware store is quite simple and does not require large investments. However, when planning the budget for the project, you should include the cost of repairs. One way or another, some minimal alteration of the rented premises will be required. For this type of expenses, plan at least 20,000 rubles.

When preparing a trading and storage area, there is no need for expensive finishing materials. The finished room should be bright, clean and dry. Make inexpensive cosmetic repairs and take care of good ventilation. This is all that is required from the premises for successful sales of your enterprise. The technical equipment of a hardware store should contribute to the growth of sales, ensure the productivity and payback of trade and comply with safety regulations. In this regard, the trading floor must be provided with reliable lighting and ventilation equipment.

In addition, you should purchase commercial equipment - racks, showcases, cash counter, cash register. Since the store operates in a self-service format, several racks will be required on which the goods will be placed. For initial stage The store has two cash registers. However, it is necessary to zone the trading space so that, if necessary, one more cash desk can be placed.

Equipment costs

	Name	price, rub.	Quantity, pcs.	Total cost, rub.
	Wall rack
	Wall panel
	Island rack
	Cash counter
	POS system with cash register
	Security and fire alarm
	Baskets and trolleys (including cargo)

5. Search for suppliers and purchase of goods

Suppliers should be sought in person, visiting the city's wholesale depots, or via the Internet. The first method is convenient because in a personal conversation it is easier to agree on partnership conditions; the second is that you can save on transportation costs, cover a wide range of potential partners, find more profitable terms and conclude contracts with suppliers not represented in the local market. It is recommended to use a mixed way of working with suppliers: buy some of the goods immediately, and take some for sale.

Ready-made ideas for your business

Having decided on the suppliers, it is necessary to purchase goods for the store. Practice shows that for an average hardware store, the formation of the initial assortment will require 500-700 thousand rubles. Based on the specifics of demand and the conditions of suppliers, it will be necessary to purchase additional goods. The main thing in this matter is to correctly calculate the required volume of goods in order to diversify the assortment, but to avoid oversaturation of product shelves.

6. Recruitment

The main staff in the store are sales assistants. It is on them that the success of trading largely depends. For a store with an area of ​​100 sq.m. four sales assistants, three cashiers and one manager will be enough. Requirements for sales consultants: knowledge of construction products, the ability to unobtrusively offer their help and win over the client, organization, responsibility, courtesy.

Since the hardware store is open seven days a week and is open for 12 hours: from 9:00 to 21:00, a shift schedule for staff should be provided. It is recommended that two sales assistants and a cashier work on each shift. Sales consultants are interchangeable staff and can provide assistance to each other if necessary. The functions of a manager and accountant can be delegated to employees, or assigned to the entrepreneur himself, which will save money in the first months of work.

In the future, it is recommended to introduce a separate position - a procurement manager. His responsibilities will include working with suppliers, forming an assortment of goods, drawing up a logistics chain for the delivery of goods, and developing a pricing strategy. Before starting work, the staff must be trained, having familiarized themselves with the range of products, their characteristics and sales technology.

In this example, the entrepreneur performs the main functions of a manager - goes through all registration procedures, recruits personnel, negotiates with landlords and suppliers, purchases goods, and is engaged in the strategic promotion of the store. The manager organizes the work process, controls the work of sellers, carries out the acceptance and recalculation of goods and draws up the relevant documentation.

The preparatory stage will take about two months, during which it is envisaged to go through registration procedures, establish partnerships with suppliers, search for suitable premises, recruitment, purchase of equipment and goods.

7. Advertising and promotion of a building materials store

The target audience of the hardware store is retail buyers, 60% of which are the male population of the city aged 23 to 65 years. Another group of consumers are corporate clients represented by construction and installation teams, with whom contracts are concluded and work is carried out on the billing system.

Advertising of a hardware store can be divided into two types - passive and active. Passive advertising includes signs, banners, pavement signs, etc. Active advertising involves the distribution of leaflets, distribution of business cards, articles in specialized publications, advertising on radio and television. Another effective advertising tool is cooperation with repair and construction companies and teams. They will bring customers to the store and buy building materials, and the seller will give a percentage of the sales of attracted customers.

Since the competition in the segment is quite high, it is necessary to carefully consider the advertising strategy. The most effective forms of advertising for this store format are advertising in elevators, distribution of leaflets, placement of a bright sign. It is important to note that the sign must be located on the facade of the store building and be clearly visible from the road when moving in any direction.

Competent registration of a trading floor is an important element of marketing strategy. It is necessary to provide convenient navigation in the store and place the goods in such a way that each position is visible to the buyer. Marketers have long established that the correct display of goods in stores largely generates demand and allows you to increase sales by 10-15%. Particularly important is the placement of products such as wallpaper, flooring and other finishing materials.

Basic merchandising rules for hardware stores:

classification of the placement of the entire presented range of products; separation of large and small-sized goods;

competent placement of product groups on the trading floor in accordance with the locations of the main customer flows;

bulky goods should be placed around the perimeter of the store to improve the visibility of the trading floor. If the area of ​​the store allows, then the goods are located on the lower shelves under the demonstration sample. If the area of ​​the store is limited, then the issuance of large-sized products is carried out at the warehouse with the assistance of a sales assistant;

goods of small dimensions are placed according to their classification and are presented in several copies, which attracts the attention of the buyer. For the layout of such goods, racks with hooks and fasteners are used. Small, vulnerable goods are located in an area with good overview;

the main volume of finishing materials requires a special layout on special equipment: a showcase for wallpaper with rollers, demonstration stands. The most convenient grouping of wallpapers is by color;

in the checkout area there is small-piece goods, consumer goods and related products;

broadcast of accompanying information, allowing buyers to navigate the trading floor;

effective placement of consultants on the trading floor.

Thus, start-up costs advertising campaign will amount to 72,000 rubles. It will take an average of 3 to 6 months to promote the store and reach the desired sales volumes - during this time, buyers have time to get to know and get used to the new outlet.

8. Business registration

Retail trade in building materials does not require any special permits. To open a hardware store from scratch, you will need to collect a package of documents, which includes a sanitary and epidemiological conclusion from Rospotrebnadzor, permission from the fire inspectorate, regulations to the store. It will also require contracts for the removal of solid waste, disinfestation and deratization of the premises.

For reference commercial activities you can register an LLC or an individual entrepreneur with a simplified taxation system (“income minus expenses” at a rate of 15%). The choice between an individual entrepreneur and an LLC will depend, first of all, on the scope of the future business. If you plan to open one small store, then IP will be enough. If you plan to open a large construction supermarket or a chain of stores, it is better to register an LLC. In this case, you need to select the type of activity according to the OKVED-2 classifier: 47.52 Retail trade hardware, paintwork materials and glass in specialized stores.

9. Cost planning

When planning expenses, they should be divided into three groups: initial investments, variable and fixed costs. And now in order.

Initial investment - the amount that is required to open a business. This includes all costs incurred in the early stages of the project, from the cost of finding premises to the purchase of equipment and goods. The initial investment according to our example will amount to 1,220,000 rubles. Please note that to the initial investment added working capital, which will be spent on proving the purchase of goods and covering expenses in the first months of work.

Initial Costs

	Amount, rub.
Rent for 1 month
Premises renovation
Set commercial equipment
Business registration, obtaining permits
Purchase of goods
working capital

Variable costs consist of the cost of acquiring goods, including shipping. Fixed expenses consist of rent, utility bills, fund wages, advertising expenses, taxes and depreciation charges.

fixed costs

	Name	Amount per month, rub.
	Rent
	Communal payments
	Depreciation
	payroll with deductions
	Taxes (average)

10. Calculation of revenue and profit

When planning sales volume, some seasonality should be taken into account construction business- the peak of sales falls on the spring and autumn months, and the fall in sales - in the winter. The planned sales volume is calculated based on the average check amount of 3,000 rubles and the number of customers - 400 people per month. With these parameters, the average revenue will be 1,200,000 rubles per month. You can reach the declared sales volume in the fifth month of the store's operation, taking into account the seasonality of the business.

How much can a hardware store earn

We consider, based on the volume of revenue, a markup on building materials of 65% and all expenses indicated in the tables above.

Gross profit (revenue-cost): 1,200,000 -727,000 = 473,000 (rubles)

Profit before tax: 473,000 - 269,000 = 204,000 (rubles)

Net profit: 204,000 - (473,000 * 0.15) = 133,050 (rubles)

Of course, in the first months of work you should not expect such a profit, however, when you reach the planned sales volume, you can earn about 130 thousand rubles. per month. In this case, it will be possible to recoup the initial investment in 1.5 years after the start. Please note that the above calculations are approximate. To get started successful business, it is necessary to develop a business plan for opening a hardware store. This will allow assessing the prospects for the development of such a business in a particular region, taking into account the nuances of a particular project and competently planning each stage of implementation.

11. Risks

When planning a business, it is also worth considering the risks that an entrepreneur may face at different stages of the project. Its specificity determines the following risks of activity:

increase in purchase prices for goods, unscrupulous suppliers. In the first case, there is a risk of increasing costs and, as a result, the selling price, which may negatively affect demand. In the second case, the risk is associated with interruptions in the trading process due to a lack of goods. It is possible to reduce the likelihood of these threats with a competent choice of suppliers and the inclusion in the contract of all necessary conditions that provide liability supplier in case of their violation;

insufficient level of demand. Firstly, the demand for building materials has a pronounced seasonality; secondly, it is closely interconnected with the economic situation in the country. In this regard, the risk of a low level of demand is one of the most probable and may arise both due to the low solvency of demand, and due to high distribution costs. It is possible to reduce the risk with careful planning of store activities and financial results, competent choice of retail space, holding various promotions and discounts, encouraging repeat purchases, flexible pricing;

competitor reaction. Since the market for building materials is quite saturated and the competition is high, the behavior of competitors can affect strong influence. To minimize it, you need to create your own client base, constant monitoring of the market, the presence of a customer loyalty program and the formation of competitive advantages;

property risks. This category includes risks associated with damage and theft of goods. The self-service system increases the likelihood of this risk occurring. Minimizing the threat will allow the sales assistant to check the goods that enter the store, control the situation on the trading floor;

Refusal to provide rental premises or increase the cost of rent. Since location is one of the most important parameters for trading, the loss of a place threatens with big losses. To reduce this risk, it is necessary to conclude a long-term lease and carefully choose the landlord;

problems with staffwhich means low qualification, staff turnover, lack of motivation of employees. The easiest way to reduce this risk is at the stage of recruitment, hiring employees who meet all the requirements. It is also worth considering bonus motivation for employees;

decrease in the store's reputation among the target audience due to errors in management or a decrease in the quality of services. It is possible to mitigate the risk with constant monitoring of the quality of goods and services, receiving feedback from store customers and taking corrective measures.

SUMMARY

Like any business, a hardware store has its advantages and disadvantages. The main advantage is the high demand for building materials. It is provided not only by those consumers who make repairs in new buildings, but also by residents who carry out repeated repairs. This means that one consumer repeatedly visits the hardware store, which ensures sales. Therefore, there are a lot of potential buyers at the hardware store.

The negative point is the high competition in the market. It is especially difficult for small hardware stores to survive in the fight against chain hypermarkets. However, even under such conditions, you can find your niche. A well-chosen assortment, active advertising, advantageous location and loyalty to customers will help in this.

If you manage to win over your consumer, then the store can start profitable work in 3-4 months after opening, and the initial investment will pay off in 1-1.5 years. A building materials store is able to earn about 1.5 million rubles. per year and become promising business who has room to grow.

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Profitability calculator for this business

• Capital investment: 800 000 rubles,
• Average monthly revenue: 450 000 rubles,
• Net profit: 65,414 rubles,
• Payback: 12.3 months!

According to a study conducted by ABARUS Market Research, the Russian building materials retail market, compared to the Western market, is at an early stage of development. At the same time, the annual growth rate is 20%. In 2007, the volume of the retail market for home and repair goods was more than $14 billion in Russia. In 2011, the market volume amounted to about $17 billion, and by 2020 the market volume will be about $30-35 billion. (opinion of experts).

About 80-90% of the construction market volume falls on large network companies (both Russian and foreign), and the rest of the market is divided among themselves by single stores, small retail chains (regional). Taking into account the fact that Russian market several new foreign players are planning to enter, and taking into account plans to expand existing federal chains, the market share of "single stores" will decrease.

In connection with the above, small stores cannot compete with federal retailers either in prices or in the range of products offered.

But if you want to start a business in the building materials retail segment, you can try opening a small retail outlet in the “At Home” format.

This type of store has the following advantages:

1. Opportunity to open a store in an area where federal chains will not enter due to the impossibility of obtaining large turnovers.
2. A special assortment of the presented goods and an individual approach to the buyer.

1. Organization of retail trade in building materials

1.1. room

The premises in which it is planned to open a retail hardware store in the neighborhood format must meet the following criteria:

• Area 30-50 sq.m.
• The premises should be located in a residential area, within walking distance for buyers.
• Lack of other stores selling building materials in the immediate vicinity.

1.2. Equipment

The choice of equipment can be approached quite freely, so to reduce the cost of purchasing equipment, part of the racks and shelves for goods can be made by hand, and part of the equipment can be bought second-hand

1.3. Staff

The store must work 7 days a week, working hours from 9.00 to 20.00 for these purposes, it is necessary that there are 2 sellers in the state. (work in shifts, two after two)

1.4. Range

During repairs, it often happens that there was not enough glue for the wallpaper, the blade of the metal hacksaw broke, there were not enough carnations, the glue got lost somewhere, the neighbor took the screwdriver and did not return it. The buyer is not interested in going to the construction hypermarket for such small things, he is ready to buy all this near the house, even at a higher price, in connection with this, all this should be presented in assortment.

Approximate assortment of the store:

• Expendable materials for tools
• Mounting glue
• Wallpaper glue
• Nails, dowels, bolts, etc.
• Construction tools
• other related product.

For optimal operation, the range of products sold should be about 300 positions.

1.5. Suppliers

The choice of suppliers must be made from wholesale companies operating in the region. These companies themselves are engaged in the delivery of products to the store, with long-term work with them, it is possible to provide a deferral of payment.

Replenishment of inventory and assortment must be carried out on a weekly basis.

2. Feasibility studies

2.1. Capital cost of opening

To maintain the assortment and uninterrupted trade, inventory should be at least two monthly revenues (in purchase prices), and the optimal balance is 2.5-3 monthly revenues.

2.2. Revenue

The revenue of a small (up to 50 sq.m.) hardware store in the "At Home" format located in a densely populated residential area, with a well-chosen assortment, as well as in the absence of competitors in the near distance, is about 400-500 tr. per month.

For calculations of payback and profitability, the amount of monthly revenue was 400 thousand rubles.

2.3. Cost price

The markup on products sold is 50-80%, depending on the product, for calculations for the average markup of 60% was taken

2.4. General expenses

2.5. Calculation of the profitability of a building materials store

2.6. Payback calculation

3. Organizational moments

3.1. Organizational form

The optimal legal form is an individual entrepreneur.

3.2. Taxation system

A hardware store is a promising type of business with a payback period of 12-15 months. with a profitability of ~20%. The Russian construction market is developing annually at a moderate pace of 7-15%, this is due to an increase in the number of new real estate put into operation, capital and dacha construction. The direction of development of the construction industry is strongly influenced by state policy and financial condition. During crises, the purchasing power of the population falls, which leads to a decrease in real estate purchases and a decrease in sales of materials for construction stores. In the article, we will analyze how to open a building materials store from scratch.

Advantages and disadvantages of opening a hardware store

Main the target audience hardware store: builders and foremen. Consider the key advantages and disadvantages of creating a clothing store.

Advantages	disadvantages
High profitability of the business and its payback within 12-15 months.	High competition in this segment due to the high profitability of the niche. ~80% occupied by chain stores
"Hot Niche". High demand for building materials and equipment	The need to provide a wide range of products
Moderate initial investment when opening a franchise store ~ ​​900,000 rubles. + consulting support for franchisees	Influence of seasonality on sales volume: decrease by 50-60% in winter.

About 80% of the entire construction market is divided between large grid companies (according to ABARUS Market Research). There is a trend towards a decrease in the number of retail construction and hardware stores and their displacement by chain stores. Small stores cannot provide a wide range of products or low prices (as in Leroy Merlen, for example), their only competitive advantage may be the proximity of the location to objects under construction, residential complexes, cottage settlements, etc. Building materials are best sold in the spring and in the period September-October. In summer, sales are reduced to 70-80%, and in winter to 50-60%.

How to open a building materials store: main types

To open a hardware store, you need to determine its type and the necessary initial investment.

Shop types	Peculiarities
Small shops (60-90 m²)	Engaged in retail sales. They are characterized by a small narrowly focused assortment: 100-250 items of goods. To open a store you need ~$9000-14000.
Medium size stores (200-250 m²)	They offer a wider assortment: 4000-6000 items. Satisfy the needs of consumers who buy not only the essentials, but also decorative elements and related materials. The opening will cost $40,000-60,000.
Supermarkets (from 1000 m²)	A wide range of products: 10,000-15,000 items. In addition to retail space, supermarkets have own warehouses, which facilitates the demonstration of goods and subsequent delivery to the consumer. Opening costs: ~250000-350000$. Investments or additional partners are needed.
Store-warehouse (small wholesale base)	Differs in a narrow assortment in comparison with a supermarket. Items for sale that do not need to be shown. Benefits of a store-warehouse minimal requirements for finishing the premises. Well-known and widely used products are sold. Profit is achieved by increasing the volume of sales, tk. the markup on goods is minimal. Opening a warehouse store will require large storage areas.

How to choose store locations

To choose, you must first appreciate the environment of the future store. Since the store is an offline business, the key success factor will be its proximity to new buildings, residential complexes, construction markets, busy highways. There are no strict requirements for the premises for a hardware store, an important condition is the availability of parking spaces for customers' cars. There is no need for a special aesthetic appeal of the room - everything should be extremely functional. The optimal area will be a store >200 m2, smaller stores are not profitable due to the small breadth of the assortment. The room must be provided with ventilation and compliance with fire regulations. To open a small shop, it is recommended to have your own premises, if the premises are larger than 500 m2, it is more profitable to rent it.

One of the advantages of opening a hardware store franchise is that it belongs to a network, regular suppliers and a wide range of products, technical and Information support franchisees, debugging business processes, staff training (communication scripts). The average cost of a franchise is ~350,000 rubles.

Supermarkets and small wholesale bases are usually located outside the city limits, since it is difficult to find such premises in the center. The place is chosen with convenient transport interchanges, but in a non-residential fund, in order to avoid problems with the fire department. For a super-large object, it is advisable to provide for a railway connection.

Search for partners and suppliers

One of the difficulties of opening a hardware store from scratch is finding and working with suppliers, many suppliers require prepayment for goods and materials. If you establish yourself as a reliable counterparty, then you can agree on preferential terms deliveries, delivering goods for sale without prepayment. These conditions release additional cash for business development.

Some building materials/equipment are more profitable to order in China. To search for Chinese suppliers, you can use major international portals, supplier aggregators: Aliexpress.com, Taobao.com. It is not necessary to know Chinese / English, there are many intermediary firms in the Russian Federation that can deliver them from these sites.

Product range

Without a properly selected assortment, the profitability of a building materials store will be low. A simple strategy would be to copy the assortment of successful competitors.

• If you open a small store that is not a representative of a well-known brand, then focus on the mass buyer. Sell ​​inexpensive tools and materials in a wide range. Despite the low prices, the goods must be of high quality.
• Distributors cannot independently set the cost of goods, because all prices are strictly regulated. The advantages of a distributor are the support of large suppliers and manufacturers: the provision of benefits and discounts when providing goods.
• Medium and large building materials stores sell goods of different price segments: expensive and cheap. This combination allows you to increase profitability.

If there is not enough demand for a certain product, do not abandon it completely. For trade in construction goods, the breadth of the assortment is important, many buyers make complex purchases to solve various construction problems.

How to open a hardware store: business registration

To open a hardware store, you must register in tax office at the place according to one of the organizational and legal forms of doing business: an individual entrepreneur (IP) or LLC. The table below shows the main stages of registration, the advantages of the form, and the required list of documents. When registering a business, you must select the type of activity according to the OKVED classification codes. This is an important procedure, approach it responsibly, not indicating the type of activity and not paying taxes will lead to litigation. OKVED codes for a hardware store:

52.46 - (for a shop of paints and varnishes); 52.46.1- "Retail sale of hardware"; 52.46.2 - (for a store of paints, varnish and enamels); 52.46.3 - (glazing materials store); 52.46.4 - (shop selling equipment for crafts); 52.46.5 - (shop of sanitary equipment); 52.46.6 - (horticultural equipment and supplies store); 52.46.7 - "Retail sale of building materials not included in other groups"; 52.46.71 - (timber trade); 52.46.72 - (sale of bricks); 52.46.73 - (sale of metal and non-metal structures). If it is planned to trade through an online store, then the OKVED code is suitable: 52.61.2 - “Retail trade through teleshops and computer networks (electronic commerce, including the Internet).

Form of business organization	Benefits of using	Documents for registration
IP ( individual entrepreneur)	It is used to open a small hardware store (up to 200 m²). Number of staff 1-2 people	receipt of payment of the state duty (800 rubles); certified application by a notary in the form No. P21001; application for the transition to special taxation regimes: UTII (otherwise it will be the default OSNO); copy of all pages of the passport.
OOO ( limited liability company)	Used to open a hardware store (>200m²). LLC is more profitable for attracting additional financing/loans, partners and scaling	application in the form No. Р11001; charter of LLC; a decision to open an LLC or a protocol if there are several founders (partners); receipt of payment of the state duty (4000 rubles); copies of the founders' passports certified by a notary; application for the transition to special taxation regimes: UTII (by default it will be OSNO). By law, the authorized capital of an LLC cannot be less than 10,000 rubles!

The best choice of a preferential taxation system for a hardware store would be UTII(single tax on imputed income), in order to switch to this system, a municipal law must be adopted on the possibility of applying UTII at the location of the store. There are conditions for the transition to UTII: up to 100 employees and the cost of fixed assets up to 100 million rubles. The interest rate on UTII is 15%. The advantage of this tax is its linkage to the physical data of the store: area, number of employees, etc. When opening a small store, this is beneficial.

If in your region it is not possible to switch to UTII, then an entrepreneur or organization it is optimal to choose the simplified taxation system (simplified taxation system) income minus expenses with an interest rate of 15%.

When registering a business, you must immediately apply for the transition to a preferential taxation regime (UTII or STS), otherwise the next opportunity to apply will arise only at the end of the current calendar year.

Necessary documents for the operation of the store

Below is a list of all the necessary documents for the operation of the store:

• documents from firefighters and SES;
• copy of certificate of state registration with the signature of the head and the seal of the enterprise;
• a copy of the lease agreement or certificate of ownership of warehouse and retail premises;
• certificate of the tax service on registration;
• certificate of operation with the signature of the head;
• a document confirming the level of education and qualifications of the head.

Advertising

For offline business, location is important - it is the best advertisement and the opportunity to get potential customers. If there is no traffic of visitors, then the place of the store is probably unsuccessfully chosen. Additional advertising may be the use contextual advertising Yandex or Google. This allows you to attract target buyers to the website of the online store (or landing page).

Store staff

The main staff of the store are sales consultants. When hiring employees, you must have construction experience > 3 years. To reduce the cost of searching through recruiting agencies, you can use free bulletin boards avito.ru, irr.ru or thematic forums. Initially, the seller may be the entrepreneur himself. To increase the number of sales, it is necessary to conduct continuous training of sales personnel, develop selling scripts and introduce a system to reward the seller when fulfilling the sales plan.

Comparison of wholesale and retail trade

The table below compares wholesale and retail.

Wholesale	Retail
In wholesale trade, you work with a narrow circle of customers (B2B). Interaction is carried out under long-term contracts - the shipment of goods is regular.	In retail, you work with various private buyers who are pushing (B2C). Usually, buyers cannot evaluate the properties and benefits of materials themselves. There will be a need for staff able to ascertain customer requirements and recommend an acceptable purchase option.
The main difficulty is the conclusion of contracts with contractors and business on supplies, high responsibility.	The main difficulty is in the constant creation of traffic of visitors to the store.

Rating of business success factors

1. Store location.
2. Sellers Qualification. The desire to work towards the end result.
3. Trust of suppliers of goods, deferred payments and discounts provided by them.
4. Warehouse and store area.
5. Advertising support of the point of sale.
6. Proper organization of the work of the outlet and the exposition of goods.

Evaluation of the attractiveness of a business by a magazine site

Business Profitability	(4.0 out of 5)	Business Attractiveness 3.7
Project payback	(4.0 out of 5)
Ease of starting a business	(3.0 out of 5)
A building materials store requires moderate initial costs ~ 900,000 rubles. (if the store is franchised). In case of self-opening, the costs will increase for the paid stocks of materials and equipment from suppliers and will amount to ~ 2 million rubles. The key success factor of the store is its location close to new buildings, residential complexes, construction sites. Payback of business ~12 months. Sales growth is carried out through the introduction of continuous training of personnel in sales and a system of encouragement and motivation in the implementation of the sales plan. Business requires expert knowledge in installation, construction, finishing work - this will allow you to orient customers and select goods for solving their problems.

One of the conditions for the transfer of activities related to the retail sale of goods to the taxation system in the form
UTII is the implementation of this activity through the objects of stationary or non-stationary trading network.

The main condition for the application of the taxation system in the form of UTII is the use of the object of trade in retail sales. At the same time, it does not matter whether, after the retail sale of the goods, there will be subsequent shipment and delivery to customers of the purchased products from the warehouse. In any case, if this sale is made through a store, it is recognized as a retail sale that can be transferred to payment. So it is indicated in the submitted letter of the Ministry of Finance of Russia.

These conclusions are based on the provisions establishing that the taxation system in the form carried out through shops and pavilions with a sales floor area of ​​​​not more than 150 sq.m.

Trading floor area - a part of a store, pavilion (open area), occupied by equipment designed for displaying, demonstrating goods, conducting cash settlements and servicing customers, the area of ​​cash registers and cash booths, the area of ​​​​working places for service personnel, as well as the area of ​​​​passages for buyers.

Here, for example, if a product is sold simultaneously with its demonstration in the office, and then issued at the warehouse, then this activity cannot be equated with retail trade subject to UTII. As specified in the Determination of the Supreme Arbitration Court of the Russian Federation dated November 6, 2012 No. VAC-13781/12, an office space used to demonstrate goods and conclude contracts for the retail purchase and sale of building materials, in the event that goods are released to customers not in this room, but in a separate warehouse building, cannot be qualified as an object of a stationary trading network.

note

An office space where contracts for the purchase and sale of building materials are concluded cannot be qualified as a trading place located in an object of a stationary trading network. Therefore, the activities for the sale of building materials, carried out using office space, does not apply to retail trade, and is not subject to the payment of UTII (Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation of February 15, 2011 No. 12364/10).

Retail sale requires the presence of an object of trade

As seen from judicial practice, the main claim of the inspectors is the non-recognition of entrepreneurial activity as "retail trade".

So, if the sale of goods according to samples is carried out in a stationary distribution network, it is recognized as retail.

A stationary trading network with trading floors is recognized as a trading network located in buildings and structures (their parts) intended for trading, having separate premises equipped with special equipment, designed for retail trade and customer service. This category of commercial facilities includes shops and pavilions.

A stationary trading network that does not have trading floors means a trading network located in buildings, structures and structures (their parts) intended for trading, which do not have separate and specially equipped premises for these purposes, as well as in buildings, structures and structures ( their parts) used for the conclusion of contracts of retail purchase and sale, as well as for bidding. This category of shopping facilities includes covered markets (fairs), shopping malls, kiosks, vending machines and other similar objects.

A store is a specially equipped building (part of it) designed to sell goods and provide services to customers and provided with trading, utility, administrative and amenity premises, as well as premises for receiving, storing goods and preparing them for sale.

In the Resolution of the Presidium of the Supreme Arbitration Court of the Russian Federation No. 15460/12 dated April 16, 2013, we find the conclusion that if the premises in which the merchant carries out retail according to samples, located in the object of a stationary distribution network, then this activity for the sale of goods carried out by the company in this building belongs to the activity subject to the taxation system in the form of UTII.

EAT. Yudakhin, for the journal "Regulatory acts for an accountant"