Sale of building materials as a business. Sample business plan for a building materials store

Our article today is about how to open a building materials store from scratch. You will learn how profitable this area of ​​business is and how to achieve quick success in entrepreneurship.

Every year the number of new buildings is rapidly increasing. In a short time, many new areas and residential areas are appearing. Naturally, a wide variety of materials will be needed for construction, so we can conclude that a business selling building materials is a profitable and promising business.

Advantages and disadvantages of a construction business

  • Great demand for the product. Construction materials are in great demand in any region of the country. Their popularity is due to the fact that a person builds or repairs something throughout his life. To do this, he needs materials, so the demand for this product not only does not fall, but also grows every year. Therefore, if you want to invest your money profitably, then the construction business will provide you with a stable income and high profits.
  • Product range. If you believe the statistics, then opening a small hardware store is a hopeless undertaking doomed to failure. The thing is that competition in the construction business is quite serious. You have to fight for customers with large construction hypermarkets that offer a wide range of goods and competitive prices. Therefore, in order to interest visitors, it is necessary to provide a wide variety of goods or decide on the format of the store, for example, to sell a certain product in a large assortment.
  • Additional services. Do not forget that you can make a profit not only from selling goods, but also by providing additional services to customers. For example, not all buyers have the opportunity to independently deliver their purchases to their destination, and building materials are quite large goods. Therefore, there is a need to organize a delivery service. You can make good money by providing this service.

Building materials store: business plan

The chosen business idea needs competent implementation. A skillfully drawn up business plan will help you with this.

The business plan should outline the profitability of the idea, payback period and expected profit from the business. As noted above, the cost of opening a hardware store depends on the region and sales volumes. It is difficult to indicate the exact amount, but it is worth noting that you are unlikely to be able to open a hardware store from scratch. The only option is to find an investor who will be willing to finance your project. But finding a rich person who will believe in the success of your idea is quite difficult, so you can count on this option only if you are a specialist in this field of knowledge.

Registration of a business selling building materials

If you have the necessary start-up capital to open a business, then you can safely begin registering your activities.

First of all, it is worth deciding on the material and legal form of the activity. You can choose one of two options: registering as an individual entrepreneur or founding a legal entity - a Limited Liability Company. When choosing a form of activity, consider the volume of investment. If you plan to open a small hardware store, you can safely register as an individual entrepreneur. If you organize a large business, open a hypermarket or a network of construction stores, you will have to register a legal entity (LLC).

Having decided on the form of activity, you should select the appropriate OKVED codes. The most convenient option is to pay a single tax on imputed income.

It is also required to obtain permits for activities from the SES, fire service, city administration, chamber of commerce, and even a certificate from the traffic police (in the case of parking on the premises of the store).

Collecting and processing all the necessary documents is a rather labor-intensive process. If you have little understanding of legal intricacies, then entrust this matter to an experienced lawyer.

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Location and premises rental

Its profit will directly depend on the correct choice of store location. Therefore, it is very important to choose a favorable location in the city. Choose crowded areas with high traffic. It is advisable that there are no competitors nearby.

Quite advantageous places to open a hardware store are areas of new buildings, the construction market, and the industrial zone of the city.

There are no special conditions for the store premises. The main thing is that it is located in a non-residential building. It is also advisable to provide parking and convenient access roads for loading and unloading goods near the store.

Depending on the sales volume, choose a suitable area for your store. As discussed above, small stores are unprofitable, so the area of ​​the premises must be at least 200 square meters. m. As for repairs, an expensive, designer interior in this case will not affect the number of sales in any way. Therefore, I recommend that you do not bother with expensive repairs. It is enough to meet the minimum requirements: the room must be clean, dry, tidy, with good ventilation. In addition, the fire and sanitary services have their own requirements for the premises, so you will have to comply with all standards (ventilation, storage conditions for goods, etc.).

Store format

Before you start implementing this business idea, you should decide on the store format by choosing the appropriate direction. Building materials are sold in different ways. They are sold in small retail outlets, in stalls at construction markets or bases, in supermarkets or in narrow-profile, specialized points of sale.

  1. Small building materials store. The total area of ​​this outlet is from 20-50 sq. m. Naturally, it is impossible to place a large assortment of goods in such a room, so it is better to focus on one thing. For example, you can sell paint or wallpaper, drywall or flooring.
  2. Large stores with a total area of ​​about 150-200 sq. m. In such a room it is already possible to place a small assortment of goods. You will be able to trade several types of building materials at the same time. This could be the same paint, wallpaper, glue, parquet, tiles, pipes and much more. It all depends on competition and demand for the product. You should analyze these nuances before deciding on the assortment of your hardware store.
  3. Construction supermarkets. The area of ​​these retail outlets is from 1000 sq. m. In such stores, customers are given the opportunity to choose everything they need for construction and renovation in one place. A large assortment, favorable prices and promotions attract a large number of people, so this business format is considered the most successful. The only negative is the large financial investment. Opening a construction supermarket requires a lot of money, so, as a rule, there are several owners of such outlets at once.
  4. Store-warehouse. This business format consists of renting two separate premises. The first is the warehouse where the bulk of the goods are stored. And the second department is a sales area for customers, where the entire range of products is displayed in small quantities. This business format is quite profitable because you don’t have to equip a large sales area or hire a lot of staff. 2-3 sales consultants, several loaders and security guards will be enough.

Construction materials store equipment

You don’t need any special expensive equipment for the store. Therefore, this item will not be too costly for you financially.

Necessary equipment for a hardware store

  • Showcases and racks for displaying goods;
  • Cabinets with glass doors;
  • Retail nets for hanging goods on the walls;
  • Packing table;
  • Equipped place for cashier and sales assistant (table, chairs, cash register);
  • Trolleys and shopping baskets.

Construction store assortment

As mentioned above, the assortment depends on the area of ​​the store. Therefore, first of all, decide on the format of your outlet and after that, start purchasing goods for sale.

Standard product groups for a hardware store:

  • Wallpaper and glue. If you sell this product, then the assortment should be large enough, as they say, for every taste. Today, the variety of wallpapers is pleasantly pleasing; you can choose from paper, vinyl, washable and original fabric wallpapers.
  • Dry building mixtures (sand, cement, gypsum);
  • Paint and varnish products (for external and internal work);
  • Partial coverings (tiles, laminate, tiles, linoleum, carpet, parquet);
  • Plumbing (sinks, toilets, showers, hydroboxes, taps, mixers, bathroom furniture and much more);
  • Doors (interior, entrance, made of materials - wood, glass, or an economical option made of fiberboard);
  • Electrical equipment (lights, lamps, chandeliers, lanterns, wires, LEDs);
  • Construction tools.

In general, a wide range of goods can be placed in a large area. If the store area is small, give preference to selling a certain group of goods.

Suppliers

For any entrepreneur, finding suppliers is a very responsible task. After all, the wholesale price of the product, its quality and business profit depend on this.

You can find good suppliers in your city or via the Internet. The most profitable option is to cooperate with manufacturers of building materials and purchase goods directly.

Hired personnel

The number of sales and, accordingly, profits will depend on the work of store employees. Therefore, finding experienced and responsible workers is a very important matter.

A sales consultant must have all the information about the product, be able to communicate with clients, and skillfully and unobtrusively offer assistance in choosing a product. It is advisable that each department have its own sales consultant who is competent in this area of ​​knowledge.

Employee salaries should be stimulating, not fixed. In this way, you will protect yourself from lazy people who go to work just like that. An employee whose salary depends on sales volumes will work many times more.

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How much does it cost to open a building materials store?

As the practice of experienced entrepreneurs shows, opening a small construction stall with an area of ​​up to 50 square meters will cost you 400-500 thousand rubles. A small part of this amount will be spent on renting premises, and the main part on the purchase of goods. On average, the markup on building materials is 20–30%, which is not that much. In addition, you still need to pay salaries to employees, purchase a new batch of goods, and pay taxes. As a result, the net profit in the first stages is minimal. Therefore, opening a small hardware store is profitable only if you purchase goods at low prices and the possibility of markup of more than 30%. Otherwise, there is no point in trading building materials.

To open a construction supermarket, you need a fairly large amount of money, from 3 million rubles or more. But, despite the fairly substantial investments, the payback of the outlet is quite fast. Therefore, if you have money, then investing it in the construction business is quite profitable.

Advertising campaign

Opening a hardware store is not the most important thing; it is important to attract buyers to the outlet. How to do this?

Attracting buyers is an important nuance, without which you will not see profit. Therefore, you should not skimp on advertising, hire competent specialists in this field and the result will not be long in coming.

  • Advertising around the city. Posters, banners, advertisements, leaflets, all this attracts people's attention. Therefore, use all possible promotion methods.
  • Advertising on the Internet. Create a website for your hardware store, where all information about the product range, contact numbers and address will be available, as well as the ability to purchase goods online.

* The calculations use average data for Russia

1. PROJECT SUMMARY

The goal of the project is to create a trading enterprise, a wholesale base of building materials in Simferopol, Republic of Crimea. It is expected that the region will actively develop in the coming years, associated with government injections, as well as with an increase in its popularity as a resort. In this regard, an increase in construction volumes is expected, and, accordingly, an increase in demand for building materials.

The main difficulties in implementing the project are related to establishing supply channels - finding a manufacturer of high-quality materials from the range under consideration, as well as organizing effective logistics. First of all, the organization of transportation of goods across the Kerch Strait requires attention, which so far is carried out only by ferry.

The project does not require the use of special technologies or the involvement of highly qualified specialists. Investment costs amount to 11,855,000 rubles.

Key indicators of the project's economic efficiency are given in Table. 1.

Table 1. Key project performance indicators

2. DESCRIPTION OF THE COMPANY AND INDUSTRY

The project involves the creation of a wholesale base of construction materials in Simferopol. The main area of ​​work is lumber; In addition, it is planned to expand the range to include sand, crushed stone, and cement. Such a narrow focus at the first stage will allow us to consolidate purchase volumes and obtain a more favorable input price. In addition, this will simplify logistics and warehouse management.

The base area is an unheated warehouse with convenient access roads for heavy vehicles and a covered area; the presence of a railway dead-end is also provided, because Delivery of goods will occur primarily by rail. In close proximity to the warehouse there is an office to accommodate administrative and sales personnel. Warehouse area – 100 sq.m., platform area – 250 sq.m., office area – 20 sq.m.

The main competitive advantage of the company is working directly only with manufacturers of building materials, due to which it becomes possible to ensure competitive prices and uninterrupted supplies of material in any volume. Narrow specialization, as mentioned above, also provides advantages in price, logistics and business management, that is, it reduces operating costs, making the enterprise more profitable.

Today, the Crimean Federal District is a very attractive area for investment. The main source of income for the region is tourism and beach holidays. Due to the blocking of such popular destinations among Russians as Egypt and Turkey, we should expect extremely high interest in domestic tourist destinations. In addition, the popularity of Crimea as a resort is ensured by its political role. At the same time, the entire infrastructure of the peninsula is in a state far from the average for the country as a whole. Mass construction of hotels and tourist infrastructure facilities begins, primarily at the expense of private investors.

In 2014, the Government of the Russian Federation approved the target program “Socio-economic development of the Republic of Crimea and the city of Sevastopol until 2020”, for which 681,221.18 million rubles were allocated. budgetary and extrabudgetary funds. All this allows us to say that even in the conditions of a difficult economic situation in the country, the region will develop, and any development involves construction - both residential and industrial, as well as the reconstruction of old buildings. Thus, the need for building materials becomes obvious.

Difficulties in the industry arise due to the lack of established supply channels from Russian manufacturers, as well as due to logistical limitations - communication with the peninsula is currently carried out only by ferry. An administrative resource can be extremely useful for smoothly crossing the crossing. If unhindered transportation of goods across the strait is established, the only serious limitation for the development of the project will be removed. According to the plans of the Government of the Russian Federation, by the end of 2018 the construction of the bridge crossing should be completed, which will finally eliminate the logistics problem. By this time, the project should have developed a stable customer base and captured a market share of at least 5% of the total lumber market on the peninsula.

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The competitive environment in the industry has been formed, there is a fairly large number of offers, however, during the season, many suppliers have problems with logistics and product availability; in 80% of cases the problems are caused by delays at the ferry crossing. This confirms the thesis that a key role in the implementation of the project is played by: the presence of a stable supply channel and a well-functioning scheme for transporting goods across the strait. By offering a competitive price and meeting stated delivery times, you can win a significant market share. The quality of the product in this case plays a secondary role, however, of course, when choosing a supplier, it is necessary to pay serious attention to checking the quality of the product.

The business is seasonal, so it is necessary to organize a base before the onset of the construction season; the first active purchases usually begin in mid-March. To find a suitable location, as well as to prepare documents related to business registration and rent, you should reserve two months. The delivery time for goods by rail can reach 30-50 days, depending on the region of dispatch, which also needs to be taken into account. Thus, the start date for the project can be considered January 1, 2017.

As an organizational and legal form, it is advisable to choose an individual entrepreneur with a simplified taxation system. In the future, as turnover increases, the option of registration in the Free Economic Zone of Crimea will be considered in order to reduce the tax burden. Types and volumes of investment costs are given in Appendix 1.

3. DESCRIPTION OF GOODS (SERVICES)

The main activity of the enterprise is the sale of softwood lumber - boards and edged beams. In addition, the assortment includes sand, crushed stone, and cement. Full information on products is given in Table. 2. Prices are given taking into account all costs of delivery to the base warehouse. Variable costs are given in Appendix 2.

Table 2. Project assortment matrix


Lumber is used in construction for flooring, roofing, formwork, etc. The scope of application is very wide. Sand is used in the zero construction cycle, for the preparation of CFRP, concrete, plaster, etc. Crushed stone can be used in the production of concrete and reinforced concrete, and in the construction of highways. Portland cement grade 500 is used for the preparation of CFRP and concrete. Considering the widespread use of frame-monolithic construction technology, the high need for cement is beyond doubt.

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As a rule, only the most general requirements in terms of quality are imposed on such goods, so it makes no sense to base a sales policy only on the consumer characteristics of the product. All suppliers are manufacturers, which eliminates the intermediate markup of intermediaries. Suppliers are selected taking into account the possibility of uninterrupted provision of planned procurement volumes. The supplier also arranges delivery. Lumber and cement are transported by rail, and sand and crushed stone are transported by sea. Delivery time: crushed stone and sand – 10-14 days, cement – ​​up to 30 days, lumber – up to 50 days.

Monitoring of competitive prices in the region showed that the average price level today is as follows:

Lumber – 9250 rub./m. cubic;

River sand – 2000 rub./t;

Crushed gravel – 2800 rub./t;

Cement PC-500 – 4800 rub./t.

At the same time, goods are not always in stock in the required quantity, especially at the height of the construction season.

4. SALES AND MARKETING

Sales are carried out using both active and passive methods. The role of the sales representative is performed directly by the entrepreneur. Work is carried out with construction organizations, including visits to construction sites.

Passive sales are carried out through Internet marketing, as well as through your own website. Considering the low level of quality of work of local webmasters, the development is transferred to specialists from one of the large cities of Russia. It is assumed that it is possible to make a reservation through the website. In addition, information about the company’s prices and products is posted on all local online information platforms and in catalogs. Information about the company is also placed in printed free catalogs distributed in construction stores.

The base's operating hours are Tuesday-Sunday from 08.00 to 17.00. Trade is carried out by two sellers; They work in shifts six days a week. Sales are made on the basis of full prepayment and self-pickup. If necessary, company managers can order transport at the buyer’s expense.

The pricing policy is diversified. Depending on the volume, the client may receive a discount. For regular or promising clients, a deferred payment is provided. Accounts receivable control is carried out by company managers.

The sales plan is given in Appendix 5.

5. PRODUCTION PLAN

The project does not provide for production of products, only wholesale trade. However, the specifics of the materials sold also require compliance with certain technologies for storage, loading, etc. In particular, loading and unloading of bulk materials is carried out using a wheeled excavator based on a tractor; Loading and unloading of lumber and cement in containers is carried out using a forklift. Maintenance of the trading platform and warehouse is carried out by loaders and drivers.


Costs for equipment, staffing and wages are shown in Appendix 4.

To operate loading machines, qualified workers with appropriate permits and at least 5 years of experience are hired. For other work, special qualifications of workers are not required; they can be recruited for the season, without maintaining wages for the winter.

To form the initial warehouse stock, the following volumes of goods are required (Table 4).

Table 4. Initial warehouse stock


Table 5. Fixed costs (per month)

6. ORGANIZATIONAL PLAN

The project involves the execution of all administrative duties directly by the entrepreneur. He is required to have knowledge of the basics of accounting and the basics of entrepreneurship, legislation in the field of entrepreneurship and labor protection. In addition, to successfully work with construction companies, knowledge of construction technology is necessary. All employees report directly to the entrepreneur.

To perform their primary duties, employees are subject to the most general requirements related to their field of activity.

7. FINANCIAL PLAN

Organizational and legal form – individual entrepreneur. The taxation system is simplified, the object is income reduced by the amount of expenses.

Investment costs – 11,855,000 rubles. Own funds – 3,000,000 rubles. It is planned to attract credit funds for the missing amount of 8,855,000 rubles. Loan term – 36 months, rate – 18%. The loan is repaid in annuity payments, starting from the third month of using the loan.

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The calculation of financial indicators takes into account the sales volume of each type of product and the seasonality factor. The financial model of the enterprise is given in Appendix 7.

8. EVALUATION OF EFFECTIVENESS

The effectiveness of the project is assessed using generally accepted integral indicators obtained by analyzing the projected financial results of the enterprise over a five-year period, taking into account the discount rate. Despite the fact that the project has the potential for a low level of risk, the discount rate was adopted at 24%, which allows us to judge the high financial stability of the project, because integral indicators are at a high level (Table 1).

9. RISKS AND GUARANTEES

Table 6. Potential risks and countermeasures and warnings


The project can be characterized by a medium degree of risk.

10.APPLICATIONS

Denis Miroshnichenko
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If you believe experienced entrepreneurs, opening a small retail outlet in this area will bring its owner more losses than profits. The reason for this conclusion lies in the fact that the costs of renting a retail area and warehouse, wages, taxes and utilities take away almost all the profit and do not give the business the opportunity to develop.

Is it really impossible for an entrepreneur who wants to open a small building materials store without significant investments to create a profitable business? Let's figure it out.

Usually, in search of materials for repair and construction, a potential buyer is inclined to go to a large construction center, the area of ​​which can be 1000 or even 2000 sq.m. The reason for this is several factors: the ability to purchase everything you need in one place, a wide range, and receiving a free consultation with a specialist if questions arise.

But there are also cases in which the buyer is more likely to go to a small construction pavilion: collecting materials that have run out during renovations, purchasing a small amount of building materials for cosmetic repairs, the location is close to home.

The moment that determines the profitability of a business is the choice of an advantageous location for sales. While large sellers are forced to sell their goods on the outskirts of the city, you can expand your business in a residential building, shopping center or local market.

How to choose and prepare the right premises for a store

Where to start to get building materials from scratch? To open a profitable point for selling construction and finishing materials, experts recommend paying attention to the first floor of a residential building near new buildings, or a construction market located within the city.

When opening such a business in a residential building, make sure there is an emergency exit in the premises - this will be needed to pass a fire safety inspection. If the apartment is located in a residential building, in order to process documents and legally carry out trade, you will need to remove it from the housing stock.

The profitability of your business will increase significantly if you own the retail space, but entrepreneurs do not recommend rushing into this and working in rented premises for the first 2 years.

If soon after opening, you discover that this place is not profitable month after month, then it will not be difficult for you to simply leave this outlet, without the need for subsequent sale of real estate.

If you choose a construction market, before purchasing products and renting premises, walk through the pavilions, study what your future competitors are selling and at what price.

Remember: you will be of greatest interest to the buyer only if you offer a unique product that is not on the market, or the same one, but at a more attractive price.

Decoration of a building materials store

When preparing a trade and warehouse 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 business. To prepare the premises you will need an average of $6,000 - $9,000.

Equipment for a building materials store

To trade building materials, you will need to purchase a cash register, as well as counters, display cases and shelving that will help in displaying finishing materials. Organize the lighting on the shelves in such a way as to create an opportunity to clearly see the products on offer.

If your business sells power tools, be sure to equip your display cases with several outlets.

Registration of a business selling building materials

The sale of building materials, like any business, requires pre-registration with the tax and pension authorities. For a small pavilion, registering as an individual entrepreneur is sufficient; this will help significantly save on taxes.


OKVED codes To register such activities, they present an impressive list, depending on the presence or absence of a trading platform on the Internet, courier delivery and other specifics. The main code that you will need when registering is 47.52 Retail trade in hardware, paints and varnishes and glass in specialized stores.

What documents are needed to open a building materials store?

Construction materials cannot be obtained without passing inspections and paperwork. You will need to obtain a permit and patent to trade. What is needed to obtain a permit: the following documents must be submitted to the trade department of the city administration:

  1. Conclusion from the fire inspection and SES;
  2. A certified copy of documents confirming your registration as a legal entity or individual entrepreneur;
  3. Lease agreement or documents confirming ownership of retail and warehouse premises;
  4. Certificate of registration with the tax office;
  5. Document on the qualifications or education of the founder;
  6. Information about the operating hours of the enterprise.

As for the trade patent, it can be obtained from the tax office. When applying for a patent, you will go through the procedure of registering a cash register. All these activities can take from two weeks to several months, and the cost of registration and preparation of all documents necessary to start activities will be about $300.

Construction store assortment

When choosing an assortment for your organization, it is very important to provide the buyer with products of various price categories. As a rule, at least two thirds of products are presented in the middle price segment and one third remains for cheap and expensive representatives.

The assortment of the trading platform may consist of the following construction products:

  • Paints, varnishes;
  • Cement;
  • Tile;
  • Wallpaper;
  • Skirting boards;
  • Hand power tools;
  • Construction accessories;
  • Gypsum;
  • Parquet, linoleum, laminate;
  • Self-leveling floors;
  • Various primers;
  • Spatulas, brushes, rollers, etc.;
  • Drywall;
  • Glue;
  • Construction mixtures, etc.

Construction materials store staff

To open a building materials store, owners usually limit themselves to hiring one salesperson, or, in order to save money, stand behind the counter themselves.

A seller working as a single person must have sufficient knowledge in the field of construction, design and architecture, as well as a good knowledge of the range, purpose and features of each item of goods.

If you have an experienced and knowledgeable person behind the counter, your organization's sales will be 30% higher than otherwise, so it is recommended to take this moment with great responsibility and attention.

Profitability of a hardware store

Let's calculate the profitability and find out how much it costs to open building materials with an area of ​​about 100 sq.m.

Investments:

  • Purchase of goods for sale – $10,000;
  • Registration, inspections and paperwork – $300;
  • Cosmetic repairs, preparation of the trade and warehouse area for work – $8,000;
  • Purchase of shelving and cash register – $7,000.

Total: $25,300.

Monthly expenses:

  • Rent, utilities – $560;
  • Replenishment of goods - $4,000;
  • Salary to the salesperson – $280;
  • Accounting – $80;
  • Taxes – $130.

Total: $5,050.

Profit:

We will take into account the profit based on the trade margin - 45%.

The cost of sold building materials for the month is $4,000.
Profit for the month – $5,800.
Gross profit – $750.

Thus, with regular sales of at least 40% of the total stock of goods monthly, the investments made will pay off in 3 - 3.5 years of operation.

Speaking about how to open a hardware store from scratch and make it profitable, it is useful to know a few from experienced entrepreneurs:

  1. Group products. Location matters a lot. It is important here that the buyer can familiarize himself with all products of one category in one place. Also distribute the products according to their intended purpose. Let brushes and rollers lie next to paint products, and screws and keys next to screwdrivers;
  2. Samples. Each product, which has a wide range of colors and textures, should have a catalog of samples that can be examined and touched. Place samples according to color scheme and indicate the article number for each item;
  3. Access. Give customers the opportunity to turn on and see how a drill or any other power tool works. Open access to your products;
  4. Don't stop at one outlet. One small pavilion will not be able to generate a sufficiently high and stable income. By developing and opening new points, you can protect your business from sudden surges in demand and significantly increase your income.
  5. Something that the buyer may forget about. Small consumables, such as light bulbs and batteries, are best placed near the cash register. The buyer will definitely remember that he wanted to purchase them while waiting for payment or his turn.

In this article we have given recommendations regarding building materials. Calculations and experience of entrepreneurs in this area have shown that, under certain circumstances, this enterprise can be truly profitable and effective.


The sale of building materials as a business remains relevant even in times of crisis, which can be explained by the constant need of people to repair their property. Stores or other points of sale extremely rarely become unprofitable, breaking even in the first year after the start.

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Services provided

Selling building materials as a business means selling the following groups of goods:

  • siding and components;
  • insulation;
  • gutters;
  • floor covering;
  • brick;
  • extruded polystyrene foam;
  • foam;
  • drywall;
  • forest, board;
  • dry mixes (cement, putty);
  • bulk (sand, crushed stone);
  • roofing materials;
  • dye;
  • primer;
  • sealant;
  • foam;
  • silicone;
  • wall blocks;
  • construction mesh;
  • chain-link, sheet;
  • screws and other fasteners.

The assortment of the store depends on the area of ​​the retail space. In this case, the owner must select at least 3 main lines of building materials for sale and order components for them. For example, when focusing on tiles, tile crosses and wedges should be presented as related products.

Relevance

The relevance of the chosen type of trade is due to the following:

  1. In private houses and summer cottages, it is necessary to annually carry out work on plastering walls and sealing cracks (or other problematic areas).
  2. When purchasing an apartment or other property, new property owners strive to improve their housing, taking into account their financial capabilities. This can be either a major overhaul with leveling the walls, or a cosmetic one - painting the existing wallpaper.
  3. Continuous construction of housing by private companies and the state.
  4. The desire and availability of funds to remodel or improve the appearance of an apartment or house, associated with improving the well-being of citizens.

The video analyzes the relevance of opening a building materials store and discusses the business idea itself. Taken from the Alexander channel.

Market description and analysis

The construction materials market in Russia can be characterized as follows:

  1. According to research by independent consulting companies, the cost of imported materials has increased since 2015 (by 42%), which is associated with the fall of the ruble. At this time, the policy of import substitution began to be actively pursued.
  2. In 2015-2016, there was a decrease in the total production of building materials in the country.
  3. Since 2016, domestic companies began to actively modernize the production process, which led to an improvement in the quality of manufactured goods. This made it possible to replace most imported analogues.
  4. The annual growth in demand for construction services and materials until 2015 fell from 18 to 11%. According to analysts, by 2020 a return to pre-crisis levels is expected.
  5. The main supplies come from Belarus and Kazakhstan.

Target Audience

The target audience of the building materials market is represented by the following categories of people:

  • average income and above - 60%;
  • income above average, high (focused on prestige and quality of goods) - 20%;
  • spontaneous buyers - 20%.

Competitive advantages

The competitive advantages of a building materials store include the following:

  • cumulative discount of 1-10%;
  • system for receiving bonuses when purchasing certain groups of goods;
  • weekend promotions;
  • free delivery when paying a check for more than 5,000 rubles;
  • raffle of gifts among discount card holders.

It is possible to provide additional services related to the organization of repair and construction work. The team can be staffed or specialists can be selected as needed with the help of companies directly involved in the construction process.

Advertising campaign

  • block on television and/or radio stations;
  • distribution of leaflets and business cards;
  • holding promotional events;
  • concluding contracts with construction companies;
  • placing a banner in places with the greatest flow of people (shopping mall, railway station);
  • stretching along the road in the city center (in traffic jams);
  • development of your own website;
  • contextual advertising on Youtube;
  • using clicks or active links through bloggers.

Step-by-step opening instructions

Step-by-step instructions for organizing your own business look like this:

  1. Market analysis according to economic zoning. This service can be ordered from specialists (cost starts from $200).
  2. Preparation of a business plan. You just need to download the finished document on the Internet and use it as a basis when planning your own store. The second option is to pay economists for the development (from $500 to $3,000).
  3. Registration.
  4. Finding and renting (or building) a store.
  5. Repair.
  6. Purchase and supply of equipment and supplies.
  7. Selecting suppliers of goods for sale and concluding agreements with them.
  8. Organization of an advertising campaign.
  9. Search and recruitment of company personnel.

Documents

The business owner chooses how to register after evaluating potential buyers. When targeting construction firms and state-owned companies, it is better to register as an LLC or OJSC. In other cases, registration of an individual entrepreneur is suitable.

It is necessary to register a case from scratch in the following sequence:

  1. Contact the registration center to obtain a certificate. You need to have a passport and a receipt for payment of the state duty in the amount of 800 rubles for an individual entrepreneur or 4000 for an LLC. When registering an enterprise, especially if more than one owner is planned, it is important to prepare the Charter and Minutes of the meeting of founders in advance.
  2. Register with the tax service. Here you have to choose the form of tax payment - UTII (unified tax on temporary income) or simplified tax system. The simplified taxation system can range from 6 to 15%.
  3. Contact the Pension Fund.

Additionally, you will need to obtain permissions from the following services:

  • city ​​administration;
  • fire inspection.

Room and location

The location of the hardware store should be chosen taking into account convenient access for large vehicles and the mandatory availability of parking. This may be the central or sleeping part of the city. If you plan to open a super- or hypermarket, a location outside the city limits is allowed.

The minimum store size is 30 m2: 20 m2 for retail space and at least 10 m2 for warehouse. These zones can be combined. Repairs in them are carried out at the expense of personal funds, or with the help of suppliers of certain types of goods (wallpaper, plumbing). The second case is a publicity stunt.

Equipment and inventory

Equipment and inventory required to start a business:

Staff

To successfully operate a building materials store, you will need to recruit the following staff:

Job titleNumber of peopleCandidate requirementsJob responsibilitiesSalary in rubles
Control1
  • financial literacy;
  • 5 years of experience in a similar position.
  • monitoring the work process of employees;
  • resolving issues related to supply and delivery;
  • organizational issues.
30 000
Accountant1
  • work experience of at least 3 years;
  • financial literacy.
  • preparation and submission of accounting documentation;
  • carrying out inventory;
  • work with current primary documents.
30 000
Salesman2
  • work experience of 1 year;
  • competent speech;
  • communication skills;
  • goodwill.
  • consulting clients;
  • display of goods.
15 000
Cashier2
  • work experience of 1 year;
  • cash register knowledge;
  • goodwill.
  • working at the cash register;
  • keeping the workplace in order.
10 000
Security Guard2
  • age up to 50 years;
  • special security certificate;
  • experience.
  • territory control;
  • working with a video surveillance system;
  • assistance in resolving conflict situations before the arrival of the competent authorities.
15 000
Total8 140 000

Financial plan

To carry out financial calculations, the following initial data is taken:

  • LLC registration;
  • renting premises on the territory of a shopping center in a residential area of ​​the city;
  • store area - 200 m2;
  • work schedule - from 8 to 22.00 7 days a week without a break;
  • advertising: banner, promotions.

How much does it cost to open a building materials store?

To implement the chosen business idea, you will need to distribute start-up funds as follows:

Regular expenses

Monthly costs are distributed as follows:

Income

With marketing support before the store opens, we receive the following data:

  • goods are sold per month for an average of 320,000 rubles;
  • net profit is 110,000 rubles.

Schedule

The process of introducing a business idea occurs as follows:

Stage1 month2 months3 months4 months5 months6 months7 months8 months9 months
Market analysis+
Preparation of a business plan+ +
Preparation of a package of documents +
Obtaining additional permissions +
Construction/rental of premises +
Repair work +
Purchasing and completing inventory +
Website creation + +
Search for suppliers +
Advertising campaign +
Assortment of goods +
Recruitment +
Opening +

The immutable truth is that a person must live somewhere, which means that housing construction will never stop. And housing is deteriorating, which means it needs to be repaired from time to time. In my entrance, only one of the new movers is doing repairs. The elevator is put out of service by transporting building materials. I go out onto the landing, and there are bags of cement, some cans and sheets of plywood or something else. Understanding people have long understood that the sale of building materials is a popular business.

However, lately I have often heard customer dissatisfaction with low-quality building materials. Who does it depend on? Clearly from the sellers. I think that people’s demands for the quality of building materials will only continue to increase. Do you think those who have been selling building materials for a long time are ready to improve the quality? I personally doubt it. Since they are already accustomed to high margins, they are unlikely to reduce their profits by supplying high-quality materials.

Here is a niche you can safely enter. I won’t say that the niche is simple, but it is in demand with a new approach. Times are changing, but people in this niche are in no hurry to change their views. You can start this business without investment by acting as an intermediary between customers and suppliers. Conduct a detailed analysis of the building materials market. If you seriously intend to enter this market, then one way or another you need to do it. Make a list of all building materials manufacturers in your area, as well as all sellers. I am sure that you will find shortcomings in both.

In our city, for example, bricks are transported from other cities, despite the fact that there is more than one brick factory in the city. Does this fact mean anything? Likewise, in your region there will be a not very high-quality supplier who can be replaced by a supplier from another region. The main thing is to find and negotiate prices. By gradually studying the needs of the market, you will have a complete picture of where and what to buy and at what prices you can sell. Profit can also be calculated in advance.

Now directly sale of building materials as a process. I don’t know how this process is organized in your region, but my observations in our market speak of purely passive sales. The vast majority of sellers place advertisements in newspapers and sit by the phone waiting for a call with an order. Do you think we can use this moment? It's definitely possible! You should move on to active sales. Several agents are needed who would analyze the allocated area for repairs or construction and would immediately offer building materials with delivery.

It is worth noting that in cities there are teams of construction workers who work. As a rule, suppliers have a direct connection with foremen and interest them with bonuses for orders. Explore this opportunity in your area. Your trump card is the quality of building materials. Don't forget about this when talking with the foreman. And these details should be explained to customers. And if you can somehow prove the higher quality of your materials, then that will make all the difference.

Along with agents, it is imperative to create an online store for building materials, since society is moving towards computerization. The sooner you start, the sooner you will get results. Combining work “in the field” and on the Internet will yield results.

To increase profits you can combine production of building materials and sale of building materials. For example, you can produce paving slabs, and take all other items from suppliers. In any case, you will provide customers with building materials with delivery across the entire list.

An additional feature in your business selling building materials can be the sale of used building materials. To include this topic in your business, you will need a constantly updated database of buildings subject to demolition in your region. A team of “destroyers” is recruited and all recyclable building materials are collected from destroyed buildings. Floor slabs are especially in demand.

My friend, who is directly involved in construction, once had a database of all hangar buildings in the region. At any moment he was ready to dismantle these hangars, move them and build them again at the specified location. He offered a good price for these used hangars. It seems that his margin was not small.

At some point in your development, your sale of building materials will require the creation of a storage area.

Do not forget that this activity is regulated by section 14 of the Rules for the sale of certain goods (Resolution No. 55 of January 19, 1998 of the Government of the Russian Federation). This section concerns the specifics of selling building materials.

This is where it is indicated how to sort the goods, how to sort and check for completeness, and then store them. By adhering to the provisions of this resolution, you will save yourself from problems.
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