Hardware Business

Business Model Name: Hardware
Type: Retail Trading

Key Products for Sale:
Cement, Steel Bars, Roofing Sheets, Plumbing Pipes, Iron Nails, Binding Wire, Gutters, Tiles

Technology Considerations
Point of Sale (POS) System for efficient transactions,
Inventory Management Software for stock control.

Market for the Products:

• Construction industry
• Contractors
• Homebuilders
• DIY Enthusiasts

Key Inputs into the Business:

• Raw materials (cement, steel bars)
• Labor (sales staff, logistics personnel)
• Equipment (forklifts, delivery vehicles)

Product Preparation Process

• Procurement of hardware items from suppliers
• Stocking and organizing inventory in-store

Quality Considerations:

• Sourcing high-quality products from reputable suppliers
• Ensuring accurate measurements and specifications Cost of Investment
  Startup capital of at least Ksh 1,500,000 This covers equipment, rent of the store, and the necessary licenses

Required Operational Infrastructure:
Retail space
Warehousing facilities
Delivery vehicles,
Office equipment (computers, POS system)

Most Suitable or Viable Location of the Business:
Along Kangundo Road or Magadi Road in Nairobi
Areas with high construction activity.

Potential Sources of Investment Capital:

• Personal savings
• Business loans from financial institutions
• Angel investors

Requirements for Effective Management
Experienced management team
Efficient inventory management system
Customer relationship management strategy

Role of Mobile Phone and ICT in the Business:

• Utilization of mobile phones for communication with suppliers and customers.
• Implementation of Inventory Management Software for real-time tracking of stock levels

Statutory Regulations and Licences

• Obtain a single business permit from the county offices for Ksh 10,000 annually
• Comply with tax regulations including acquiring a KRA ETR machine for tax payments

Pricing
Competitive pricing strategy
Offering discounts for bulk purchases to attract customers www.pricekata.com can come into play here

Profitability
Profit margin of approximately 10% of sales
Potential for higher profits through effective cost management and sales optimization

Next Steps to Take
Secure necessary permits and licenses
Identify reliable suppliers
Develop marketing strategies targeting construction industry professionals
Establish effective inventory management systems
Train staff on product knowledge and customer service practices.