Start A Hardware Store - Business Ideas

Updated: September 15th, 2022
Start A Hardware Store

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

A hardware store sells tools, farm implements, and construction materials such as nails.

To start hardware, decide between opening your hardware store or starting a franchise. A franchise store provides access to an established name, a well-proven operational model, and a reliable supply chain. On the other hand, starting your hardware store lets you make independent decisions about how the business will operate.

Starting a hardware store requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell hardware store, or selling hardware store online, you can use this page as a guide for everything you'll need to know.

Key Stats

market size
$31.2B
revenue (monthly)
$200K
starting costs
$18.9K
gross margin
43%
time to build
270 days
growth
Organic social media
business model
Subscriptions
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Equipment & Supply Expenses

$66

$1,200

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Advertising & Marketing Costs

$75

$9,636

Software Expenses

$0

$425

Website Costs

$13

$215

Total Startup Costs

$1,754

$37,876

Successful Businesses

Business URL Rank

Do it Best - World's Largest Hardware Store

doitbest.com

113,195

AUBUCHON HARDWARE

hardwarestore.com

243,479

HBS Dealer

hbsdealer.com

315,631

America's largest hardware store

hartvillehardware.com

697,383

Mermar Electronics Inc

mermarinc.com

831,683

Top-Most Hardware & Construction Supplies

topmosthardware.ph

1,041,427

Carr Hardware - Tools, Heavy Equipment, & Party Supply Rental

carrhardware.com

1,274,630

Industrial Hardware & Specialties

industrialhardware.com

1,466,641

Hardware Store Singapore

hardwarestore.sg

1,476,825

John Wright Company, Inc.

jwright.com

1,795,262

Suffolk Latch Company

suffolklatchcompany.com

2,097,456

Pros & Cons

Pros Description

Rewarding work

Starting a hardware store can be really rewarding work. After all, you are solving an immediate issue for your customer and you're working on something you truly care about.

Meaningful business connections

You never know who you will meet as a hardware store. This could be the start of an incredible business opportunity!

Daily physical activity

Hardware Store's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the hardware store comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a hardware store, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a hardware store is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Cons Description

Crowded Space

Competition is high when it comes to your hardware store, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Finding The Right Supplier

Most businesses in this space go the supplier/manufacturer route, which isn't a bad thing! However, finding the right supplier can take a lot of time, energy and trial/error. If done properly, this process can save you months (if not years) of time and energy. More on this below in the "finding a supplier" section.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Low margins

The gross margins for your hardware store are typically around 43%, which can make it more challenging to incur new expenses and maintain profitability.

High employee turnover

In the hardware store, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a hardware store, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.