Ready-made business plan for a store selling building materials with step-by-step instructions
Good day! Today I am writing another business plan, which I was asked to write in my VK group “Business Secrets for a Newbie”. Business belongs to retail.
The article is called: a business plan for a building materials store or how to open a building materials store in steps.
According to my tradition, before writing a business plan, I went to Yandex search with a request “business plan for a building materials store” and was very surprised when I saw that TOP1 is my own article that I wrote back in 2021.
Well, the information in the 2021 article is outdated, since more than half of the information has changed, so I'm writing an updated version of how to open a building materials store in 2021.
Business plan for opening a building materials store
I will start my business plan, perhaps, with the most important topic at the beginning - money.
I have several articles on this topic:
After you decide on the money to open a building materials store, we proceed to the next step - this is the registration of the form of ownership for the business.
Registration of building materials store
The business plan for opening a building materials store applies to small businesses and therefore we will choose:
You can consider in more detail what is better IP or LLC in the article “LLC or IP”.
Initially, I wanted to choose LLC, since in this case there are several serious advantages.
But all the same, I will focus on the sole proprietor, for a rather simple reason - the PSN tax can be opened on the sole proprietor, which cannot be done on an LLC.
The sale of building materials as a business remains relevant even in times of crisis, which is explained by the constant need of people to repair their property. Stores, or other points of sale, rarely become unprofitable, paying off in the first year after the start.
Step-by-step opening instructions
How much does it cost to open a building materials store
Selling building materials as a business means selling the following groups of goods:
- siding and accessories;
- floor covering;
- extruded polystyrene foam;
- timber, board;
- dry mixes (cement, putty);
- loose (sand, gravel);
- roofing materials;
- primer ;
- sealant ;
- foam ;
- silicone ;
- wall blocks;
- construction mesh;
- chain-link, sheet;
- self-tapping screws and other fasteners.
The assortment of the store depends on the area of the retail space. At the same time, the owner must allocate for sale from 3 main lines of building materials and order components for them. For example, when focusing on tiles, crosses for tiles and wedges should be presented as related products.
The relevance of the chosen type of trade is due to the following:
- In private houses and summer cottages, it is necessary to carry out work on plastering walls and filling up cracks (or other problematic points) every year.
- When purchasing an apartment or other property, the new owners of the property are striving 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.
- Continuous housing construction by private companies and the state.
- Desire and availability of funds for redevelopment or improvement of appearance in an apartment or house, associated with improving the well-being of citizens.
The video analyzes the relevance of opening a building materials store and considers the business idea itself. Taken from the Alexander channel.
Brief Investment Memorandum
To study all the features, of course, it is important to know the financial performance of the business. Even taking into account the fact that they are approximate, it is possible in any case to assess the approximate profitability and feasibility of the business. Due to the fact that we are planning to open a building materials store, here are the average figures for Russia.
So, this business plan involves opening a small store selling building materials.
The initial investment will amount to 893 thousand 600 rubles.
Total earnings in one month: 1 million 168 thousand 333 rubles.
Maximum profit for one month: 147 thousand 800 rubles.
The break-even period will be four months.
Total payback period: thirteen months.
Thus, the main points are indicated, so in the future you can move on to studying the details. We emphasize once again that these indicators are approximate, that is, they are indicated solely for a guideline. In reality, these numbers may differ slightly.
Next, we will describe in more detail all the components of this business.
Almost every modern person at least once in his life faced the need for repair or construction. This is due to different circumstances, but most often this problem appears after buying a new apartment. As you know, in many new buildings, a rough finish is offered, therefore, the owners of apartments of this type need high-quality materials. The time spent on home renovation is also of great importance. When planning to start it, people want to get everything they need on time. There is not always time to go to a large hypermarket, but a small store located nearby will be the most convenient. That is, our outlet will fully meet the needs of the target audience. Perhaps some goods will be even more expensive than in the hypermarket - this is unlikely to be a problem, since most people would prefer to save time and buy everything they need here. It turns out that high demand here will be provided with a high probability.
Construction is one of the basic human needs. Of course, the crisis has an impact on some decline in demand, however, if not major repairs, then cosmetic ones are carried out constantly.
And since there is demand, then the topic is relevant, and opening a hardware store is a good business idea. Regardless of the size of the settlement, the need for building materials exists constantly, especially for fittings, insulation, paint and wallpaper.
What are the advantages and disadvantages of running a construction business
Any business has its positive and negative sides. It is better to know about them in advance, then you will be able to open a hardware store without unpleasant surprises. What can give confidence in the correctness of the chosen solution:
- The construction business is one of the most stable areas. Against the background of a decrease in purchasing activity in other service sectors, it is less noticeable in this area.
- Statistics say that any Russian family carries out repairs in an apartment every three to five years. This guarantees a high demand for building materials.
- The business has a high profitability of at least 30%.
- The entrepreneur has the right to independently choose the appropriate direction of trade.
- Most building materials have a fairly long shelf life and storage.
- The buyer can be offered an unlimited variety of assortment, from nails to sophisticated household appliances.
- The presence of a group of products that do not depend on the season, for example, hardware and accessories.
- A small store or warehouse will require minimal investment.
Before starting a home improvement store from scratch, you need to be aware of some of the disadvantages of a business. These include:
- The existing seasonality for some types of goods. But knowing this, you can adjust to the demand: in winter, give preference to snow-removing materials and overalls; in summer - concrete, beams, tiles, everything that may be needed directly for construction.
- Limited cost markup.
- Non-compliance of personnel with the required qualifications. It is worth paying attention to periodic studies of the assortment and training a competent approach to sales.
- Staff turnover, depending on the salary of employees. If there are high-level specialists, then it is inappropriate to skimp on salaries. It is more profitable to award bonuses for excellent work than to constantly train newcomers.
- Restriction in the choice of location. The most optimal places are usually already taken.
- Dramatic changes in terms of renting premises. In this case, you can advise to conclude a contract for a long time.
- Introducing self-service is very convenient and reduces the number of employees. But in this case, there is a risk of theft of small loose goods. You can protect yourself by installing a video surveillance system and the presence of security controllers in the hall.
- High competition. In this case, only good marketing and advertising will help.
- Disruptions in the supply of goods from suppliers with a dubious reputation. Their choice must be taken responsibly.
- The risk of a sharp unforeseen increase in prices for the purchase of goods.
From the above list you can see that opening a building materials store is only the very beginning, the main difficulties await already during work. But they can be overcome if you prepare in time.
Registration of a business for the sale of building materials
This process is reduced to the usual procedure. The application is submitted to the Federal Tax Service - Federal Tax Service at the place of residence. Two forms of registration are allowed: as an individual entrepreneur - an individual entrepreneur or LLC - a limited liability company.
The application is submitted to the tax office. Together with it you need to provide:
- Passport and its copy.
- The original receipt confirming the payment of the state fee.
- TIN and its copy.
This is a business plan for building materials. means the sale of various building materials (cement, paint, wallpaper, doors, skirting boards, tiles, etc.). In this article, you will find everything you need to draw up a building materials business plan. And if you want to be among their ranks, then you can not even doubt that opening your own construction store will be one of the most economically viable investments of your funds. For this reason, we would like to present you our typical building materials business plan.
Raised investments in the amount of 120 million rubles and opened a store. In the process of work, we received a competent detailed business plan: a detailed description of the investment, a sales plan, an assessment of the market and project payback.
Gary Spartakovich, Grocery Supermarket Owner
I was very pleased with the efficiency and professionalism of the specialists. The high quality of this project made it possible to positively resolve the issue of financing. As a result, we received a loan in the amount of 200 million rubles.
Rakcheeva L. Financial director of wholesale clothing trade.
Based on the business plan, we opened our own production of drywall in the amount of 20 million rubles. The business plan contains a lot of useful information on our new line of business, the financial part is well developed. The business of the main competitors is described in great detail.
Arzhanov A., Director of drywall production
With the help of a business plan developed and drawn up by BizplaniKo, a long-term credit line was opened for this project for 5 years in the amount of 50 million rubles. for the wholesale of fuels and lubricants.
V. Ponomarev, owner of the company for the wholesale trade of fuels and lubricants
I was very surprised by your thorough approach to business analysis, with the development of a complete financial plan for investments and a schedule for their repayment.
R. Ardoev, Director of Reinforced Concrete Products Production
Over the past 5 years, I have not had to work with a more professional company. It took one call and five letters so that people unfamiliar with you and what you are going to do would penetrate the project and calculate it with detailed accuracy.