How to start a profitable hardware business with low capital
Hardware businesses in Kenya has increased over the past years, with many people aspiring to generate profits. Most of us tend to wonder how to start a profitable hardware business with low capital and still be able to generate maximum profits.
This is practically possible provided you have the right information and be able to dry different approaches that will differentiate you from your other competitors.
starting capital for hardware business in Kenya
Before you setup your hardware business, you should be able to properly calculate the starting capital of the business to avoid unnecessary costs. Down below, is a table showing the starting capital of a certain hardware business.
|Hardware business||Starting capital (ksh)|
|Rod and Steel bars||100,000|
|Cement stock- 200 bags||100,000|
Factors to consider when starting a hardware business in Kenya
1. Location of the hardware business
You will need to choose a suitable area to run your hardware business. This location should be around construction activities and infesred with customers with high purchasing power to avoid making losses.
2. Carry your market research
You should be in a good position to carry out your market research, of which will help you know the proper starting capital and help you overcome challenges in the market. You will also learn to satisfy your customers and be aware of fast moving products in the market.
3. Obtain a business permit
To start a hardware business in Kenya, you will require a business permit from the Government to avoid unnecessary costs and harassment from the authorities.
Obtaining a business permit in Kenya costs around ksh.10,000 each year from the county offices. you should also ensure you pay taxes regularly.
4.Identify efficient suppliers
You should ensure you know the best and cheap suppliers of your hardware products, that are able to provide transportation services and efficient fast moving products.
5.Be aware of your hardware products
Ensure your hardware products are fast moving goods are are high in demand to maximise your profits. Some of the fast moving products you could include in your hardware include;
- Roofing sheets
- Rods and steel bars
- Plumbing pipes
Is Hardware business in Kenya profitable?
Provided you have fast moving goods and high end customers, there is no doubt you will make large profits. The profit margin is usually aroun9d ten percent of the total sales made, therefore if your sales amount to ksh.60,000 then you will receive a profit of ksh.6,000.
Starting a hardware business in Kenya cheaply with low capital frequently asked questions
To attract plenty of customers, a hardware store should improve staff and invest in e commerce.
Successful hardware stores usually make an average profit of ten percent of the daily sales.
Hardware stores usually are retail shoos, that sell construction equipment and automobile items.
It will cost you atleast ksh.200,000 to start a small hardware business.
You can start a small hardware opening with less than ksh.100,000 and grow it in the coming years.