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Daniel's Driver license

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This is a Picture of Erika playing a violin

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family picture

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You can see that she is at a Citizen's home. This is Oma Miram

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You can trade in the card for one piece of food

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This is a picture of a man Looting from Daniels fathers hard ware store.

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A hardware store typically sells hand and power tools, building materials, fasteners, keys, locks, hinges, chains,electrical supplies, plumbing supplies, cleaning products, housewares, utensils, and paint. They're designed for DIY consumers and handymen (as well as tradesmen) who need a place to source supplies for projects.

Who is this business right for?

This type of business is usually attractive to handymen, tradesmen, and those who enjoy home improvement activities. The owner should be able to advise customers on purchases and have experience with the products being sold in the store.

Long hours aren't always necessary, but weekends might be. Having a flexible schedule helps, especially during the first few years of operation.

What happens during a typical day at a hardware store?

Day-to-day activities include meeting with customers on the floor and helping them source materials for their DIY projects. Checking inventory, making purchases from suppliers, and managing staff are also essential aspects of the job.

What is the target market?

The business makes money by charging customers for tools and supplies. Usually the price is a fixed price for the item. In the case of items like rope or chain, the store may sell an item by the foot or priced by the yard.

Most customers pay by credit or cash. It's important to offer customers a variety of ways to pay you as some volume customers may require credit terms in order to do business with you. Volume orders/clients also allow you to include finance charges or terms in your purchase price. It's not uncommon for a hardware store to offer terms of 30 days to 60 days for a well-established client. However, these terms can be extended with or without interest. Most customers expect 30 days no interest.

You can establish a policy of charging interest after 30 days to collect more money from customers who need more time to pay.

How does a hardware store make money?

Ideal customers are usually DIY customers or handymen. However, a hardware store can set up trade accounts with local tradesmen to earn consistent business. For example, a store might contract with a professional carpenter to offer supplies for his business on an ongoing basis.

Clients are typically local. Advertising for a hardware store can be done one of several ways, including billboards, Yellow Page ads, pay-per-click local online ads, fliers, and email marketing to an existing customer list.

Email marketing is an underutilized strategy in this industry because most hardware stores rely on word of mouth and foot traffic. However, by emailing your existing customers on a regular basis, you can generate significantly higher revenues than relying on people randomly coming into your store when they need something.

A targeted email campaign would also allow you to better predict revenue and profit. Offer sales around holidays, for example, when business is typically slow. Entice customers with value, not discounts. Show them your own personality. Don't make the mistake of running a discount-driven business as this only cultivates fairweather customers.

What is the growth potential for a hardware store?

Hardware stores can be run as a small family-run or local shop or as a chain store. For example, Lowes, Home Depot, and other similar stores are large chain stores that operate all over the U.S. A small "mom and pop shop" may only have one location.

What are some skills and experiences that will help you build a successful hardware store?

Running a hardware store requires a strong business sense, but no specific degree or licensing other than local business or state licensing, if required in your state. Most hardware store owners, however, do have experience working for a hardware store, are former construction workers, contractors, handymen, or tradesmen.

What are the costs involved in opening a hardware store?

A small hardware store can be started for less than $100,000. Costs include rent for the building, start-up inventory, display setup, and cash reserve for staffing and labor costs. You'll also want insurance.

Start-up inventory will likely run between $50,000 and $75,000. Rent, insurance, and other related costs will vary depending on your locale.

In general, you should not spend more than 20% to 30% of your total revenue on rent. Insurance should cover liability as well as loss of your inventory. Premiums for that insurance should make up no more than 5% to 10% of the total value of your business.

What are some insider tips for jump starting a hardware store?

Location matters with this type of business, especially when you're new and unknown. If possible, try to get trade accounts open with local tradesmen to establish a baseline revenue and steady income.

How to promote & market a hardware store

Getting new customers usually involves networking with existing contacts and spreading the word through local advertising. A hardware store is highly dependent on local business from the community. So, partnering with other businesses and advertising your hardware store might help spread the word faster. For example, ask local restaurants, and other retail stores, if you can advertise in their store in exchange for a discount on products in your store.

Not only does this build goodwill in your local community, the advertising can be positioned more as a referral from the existing local business rather than paid advertising in a neutral medium, like radio or television.

Recommended: A website is essential for promoting your business and attracting customers. Weebly is a great tool.
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How to keep customers coming back

Specialization and company culture are the best ways to differentiate yourself from the competition. Another way to stand out in the crowd is to set up a website, capture the names and email addresses of your customers, and send them daily DIY tips. These tips can (and probably should) come from your own personal experiences. They don't have to be long emails, but something to keep you in the forefront of your customer's minds so that when they need something you sell, they think of you first.

How and when to build a team

Unless you are confident in your abilities to run a one-person shop, you'll probably have to open your business with a small staff of at least 3 people. Ideally, you'll want a person who can man the floor and help customers, someone to do bookkeeping, and a manager.

State & Local Business Licensing Requirements

In most states, it is necessary to obtain a Hardware Store license. Learn more about licensing requirements in your state by visiting SBA's reference to state licenses and permits.

Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, check out our informative guide, Sales Tax for Small Businesses.

Hardware Stores may also wish to look into applying for a resale certificate, which allows retailers to purchase goods intended for resale without paying sales tax.

For more information about local licenses and permits:

Reduce Personal Liability

Structuring your business as a limited liability company (LLC) ensures your personal assets are protected in the event your business is sued.
What is an LLC? Form an LLC in 5 easy steps

How much can you charge customers?

Hardware stores charge per inventory item. As such, there is no set price for all items in the store. When figuring out how much you should sell your items for, check your local competition or give yourself a gross margin on COGS of at least 40% (which is the industry average).

What are the ongoing expenses for a hardware store?

Ongoing expenses for this type of business include supplies, rent, utilities, and insurance. All of these costs will vary significantly depending on your location.

How much profit can a hardware store make?

Typical operating profit is between 1.6% and 6%, with a net profit before taxes of between 3% and 7%.

How can you make your business more profitable?

Making the business more profitable would involve supplementing your main source of income with other related services. For example, if you sell carpeting or tools and supplies for carpeting, you might partner with a local carpenter and offer installation services. You could do the same for window, door, roofing, or other major project.

Another way to make the business more profitable is to offer related products like planting or gardening supplies, which can be a supplemental source of revenue to your main product lines.

Next Steps

Get more ideas with our Business Ideas Tool.

Check out our How to Start a Business page.

Sign up at the Business Center to access useful tools for your business.

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Our guide on starting a hardware store covers all the essential information to help you decide if this business is a good match for you. Learn about the day-to-day activities of a hardware store owner, the typical target market, growth potential, startup costs, legal considerations, and more!

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This is a class photo of Daniel

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This is a picture of the train Daniel got for his sixth birthday