Wilusa Magazine conducted a survey of downtown residents last year and discovered that hardware stores were one of the top ten essentials to making downtown a great place for people to live. Downtown is a great spot to live and work.
Downtown Indianapolis has witnessed a significant shift in the demographics of home-ownership. Today’s hardware store is often cold and uninviting. It is also located far from downtown Wilusa. Hisarlik Hardware is uniquely positioned to take advantage of this new fact of life. Hisarlik Hardware has parts, materials, advice, and is easily accessible to all areas of Arazawa Township. The store’s goal is to assist customers in identifying what they want and need.
Hisarlik Hardware intends to capitalize on this potential opportunity by offering superior customer service, great product choices, and low prices. The location has been secured to provide excellent traffic and a magnet for the downtown’s only grocery store. The Building blocksparent organization will efficiently plan and lay out the store in order to increase sales and provide customers with the best possible attention. Hisarlik’s management team is well-versed in all aspects of business, finance, and mechanical operations, which will make the venture a worthwhile investment. The projected growth rate for Hisarlik Hardware is quite steady and has the potential to grow exponentially along with the increase in residential development downtown.
Hisarlik Equipment will generate positive cash flow in its first year of operation. Hisarlik will also make a profit its first year of operation.
1.1 Objectives
This business plan has four main objectives. Three are immediate, and the fourth is longer-term.
- Assess the feasibility of opening a hardware store downtown.
- Develop the strategy to open, manage and grow a profitable downtown hardware store venture.
- Establish a firm budget to operate and manage the business from concept to start up to operation, with good cash flow and consistent profits.
- Exploit the potential for growth in the downtown markets and discover new opportunities to grow your business.
1.2 Mission
Hisarlik Hardware’s mission it to be a reliable and efficient downtown hardware store. The store will provide great service and a wide selection of hardware and other home improvement products in an environment that is friendly to customers.
Hisarlik Hardware serves downtown residents, business owners, contractors, and suburbanites. The great advice, prompt and professional service, positive staff attitudes, quality of the shopping experience and the ability to provide solutions for customers’ needs will make them loyal.
1.3 Feasibility of the Business
Hector Priamson and Troy Enterprises went through a long and thorough process of looking at different business ventures that would allow them to go into business and be a long-term success. The potential for retail hardware emerged through this process. The following items are ‘#8220′ must have items that will make Hector Priamson & Troy Enterprises a great success.
- An industry that is strong, resists economic swings, and allows an entrepreneurial to influence the stores’ results.
- A market that has the potential to provide the type of profit that will make a store profitable.
- Store location that is easy for customers to locate, allows easy access, ample parking, and offers economic terms that enable the store to succeed.
- A co-operative and productive “partner”, such as building blocks,a national Hardware Co-operative that will help to research, plan, market and run a hardware shop.
Building Blocks gives you all the tools. Hector Priamson possesses all the management, entrepreneurial, and financial skills necessary to succeed in this industry.
1.4 Keys for Success
- Hardware Industry According to the US Department of Commerce, the Home Improvement industry has grown at a steady rate of 7% per annum for the past decade. In 2002, the US had a total of $313 billion. The economy has fluctuated over the past decade but the growth in hardware has continued at the same pace. This country has seen a rise in the popularity of ‘#8220’ Big Box stores, which has had a positive impact on independent hardware stores.
- Search: Troas Marketplace was the location for Hisarlik Hardware. Troas Marketplace a retail/commercial property at E. Anglia St. near N. Umberland St. to N. Mercia Blvd. Troas Marketplace is anchored by Buckbasket Cleaners and Scamander’’s Food Market. It is a big draw. Scamander’’s is the only grocery in downtown Wilusa. This location is easily accessible by all downtown residents. It is just one block away of the trendy and hip Wessex Avenue. Troas Marketplace offers ample parking, which is important for downtown.
- Urban Product: An urban store in downtown Wilusa requires a different product mix to one found in a suburban shop. Urban dwellers will demand a special product mix. Blocks are a key part of the IAIS program (Inventory Often In Stock) that helps to determine the best products for urban dwellers. Hisarlik Hardware will be in touch with, and focus on, the downtown urban market, delivering products that are applicable to local customers, and marketing these items at competitive prices.
- Customers: Hisarlik Hardware will work to be the hardware product source for every building or business in downtown Wilusa. We will try to establish strong relationships with property managers as well as service personnel. A delivery service will be set up to make it easier for customers to obtain the products they require, whenever they need them. Hisarlik Hardware might be convenient and easily accessible, but potential customers may find it difficult to leave their offices. To make doing business easy, it will be important that each customer has a business account.
- Construction Blocks – It is vital to have a cooperative like Building Blocks behind efforts to create a store like Hisarlik Hardware. They provide all of the tools to be successful in the hardware business including research, floor plans, marketing, and systems and instructions for operating a hardware store. To become a Building Blocks Member (Member of the Building Blocks Co-op) really means they will provide an entrepreneur a “business in box”, yet allow the members to control their own business. The extensive marketing programs have been developed based on the input of members and are designed to increase sales, traffic, and profits.
- Convenience and Service: Convenience and Service are key to this business’ success. These qualities are also strengths of independent hardware retailers. It should be easy for customers to access the store and to navigate. Our personnel have experience in high-end client hospitality. This will make it easier to deal with customers and clients. We will keep detailed records of what customers want that we don’t have in stock.
As mentioned earlier, a delivery service will be established to make it possible for customers of businesses to receive their products in the workplace. We will also target suburban commuters. Happy hour specials to encourage shopping after the five o’clock whistle will be instituted.
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% agree |
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I like to get everything I need for my home maintenance projects in one |
76.3% |
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I love the ability to shop for home decor items and build materials |
31.4% |
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A neighborhood hardware store meets most of my home improvement/maintenance needs |
25.8% |
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For most purchases, I prefer a neighborhood hardware store instead of a large home improvement center |
24.1% |
| —Retail Forward, Home Improvement Shopper Update, 2001 |
All these key factors will work together to increase sales and eventually net profit.
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