In the current situation of the gradual development of the Russian economy, many innovations of the world market are far from always developing. So, for example, this often happens due to the weak development of the franchise institution and poor-quality economic analysis of the local market. As a result, the number of businessmen who decide to work on a franchise, one or two years after opening, decreases by fourteen percent, while the number of entrepreneurs developing their own business, but still closing the business after the same period, reaches 85%.
A franchise does not guarantee a successful business, but it allows you to accelerate the development of your own business. The entrepreneur begins to work with an existing business model and techniques that have already been tested in practice.
Construction industry
At the present stage, our country is steadily increasing the pace of construction: cities are expanding, rural settlements are becoming more beautiful. The scale of the transformations is different: only redecoration is done somewhere, and somewhere there is a full-scale restoration of buildings, modern giants are being built, construction is underway in the private sector. As a result, there is a growing interest in construction equipment, tools and materials. The Russians want to make effective investments, rely on reliable trading networks that sell high-quality products. So, many businessmen have a logical question: "How to open a building materials store from scratch?"
Such a case requires that the entrepreneur be well informed about the key points of construction. What to do to those whose knowledge and skills are limited to repair in an apartment? This is already a lot, and to make it easier to develop a business at the initial stage, you can buy a franchise for a hardware store.
The franchise in the construction sector makes it possible to do business in various formats and at any financial levels. However, it is not so easy to find a profitable license in the construction sector, since this area is assessed as very conservative in terms of organizational reforms. Such an approach and serious changes in the economic situation in Russia limit the development of the sector, stop the implementation of state reforms that are aimed at improving the structure and expanding the scope of new construction methods.
But these problems still do not hide the fact that the franchise of a construction store occupies an advantageous place in the list of commercial licenses. Now in Russia, franchise-based activities cover not only the construction of buildings, but also the production of tools, equipment and materials.
Opening a franchise building store is a great opportunity to create your own distribution network that will bring a steady income:
- An experienced leading company will provide an opportunity to achieve profitable deliveries of cheap, but high-quality goods.
- The leading company will provide information on the organization of retail construction trade, help you choose the right path of development.
- Trading will go even without much money and additional advertising costs.
- The franchise buyer will immediately take a firm position in the market and will be favorably different from competitors.
Newbie Benefits
It is quite difficult for an entrepreneur who first started his business in the construction field to find his own place, but, evaluating the experience of other businessmen, it is still possible to work profitably.A ready-made business plan for a construction company, which has been repeatedly worked out in past years, will make it possible to find the right direction of commerce, ignore mistakes and excess expenses - this is what the franchise of a building materials store provides. Usually, to start a business you need to have half a million rubles.
A qualified employee, following the franchise program of a construction store, can effectively work with a buyer who is sometimes not able to independently deal with goods on store shelves. In addition, a construction franchise will help:
- indicate the correct device store;
- find reliable suppliers, manufacturers of quality products;
- organize a trading system;
- improve the skills of sellers, as well as the effectiveness of their work;
- organize logistics for the supply of goods.
Leading Firm Activities
The leading company is obliged to record your right to dispose not only the brand name and logo, but also effective methods of conducting and organizing the business. It is important to carefully read the franchise agreement, make sure that the leading company secures the obligation to help the franchisee in every possible way (conduct trainings for staff, share working methods in marketing, logistics, documentation, economic and other business support). If the contract does not contain a word about the real help that the leading company will provide, there is no point in acquiring such a franchise for a hardware store.
The beginning of the way
At the initial stage, it is most effective to pay attention to the “light” franchise. Such a business involves a small set of services. However, they will be quite enough for the formation of a profitable business. Starting cooperation through a franchise of a store of construction and decoration materials, an entrepreneur should clearly understand the financial side of a future enterprise. It is necessary to calculate the estimated demand, turnover and profit, to determine profitability.
Room
A franchise must open a building store in a passable place. Saving on renting a suitable room, choosing a small store on the outskirts, is impossible, because a favorable location almost always determines the continued success of a business. It would also be nice to organize your own website to place prices, photos, publish information about promotional offers.
The franchise price and the required investment are directly dependent on the scale of the business. Building materials stores are conditionally classified by area, focus and assortment:
- in rooms up to 100 square meters. m placement of up to 20 goods is possible;
- in rooms up to 200 square meters. m - up to 50 products;
- in rooms up to 1 thousand square meters. m - up to 100 products.
The most profitable franchises. "Metrics"
Where is the home improvement franchise sold and which business model to choose? One of the profitable franchises is Metrica. This is a typical hypermarket for construction and electrical products. In our country, 58 Metriki stores sell products, and the franchise institute began operating in 2012. The volume of investments in the business is about three million rubles, and the cost of the franchise is 360 thousand rubles. Royalty - 2% of the turnover (royalty payments to the leading company begin from the second month of trading).
The list of products that will be presented in a particular hypermarket is individually coordinated. If necessary, you can purchase from a leading company up to 40% of goods on credit. Loan payments in this case begin after 6 months, but the leading company has a delay of one and a half months for the supply of goods. The estimated payback franchise is 12 months.
The most profitable franchises. Tool City
There is an example of a franchise hardware store and World Wide. The online store delivers goods to our country and some CIS countries.The site appears on the Internet five days after signing the franchise agreement. According to the leading company, the first orders will appear within ten days. The average bill is almost five and a half thousand rubles. Revenues - from 140 thousand rubles after one and a half months after the start of trade. Own funds need to be invested 69 thousand rubles. This amount includes: development of an online store website with the possibility of further management independently, advertising on the Internet, regulation of crediting payments, placement of goods. A businessman who has bought a franchise will receive printed advertising and training materials, the opportunity to independently connect contextual advertising to the site. Business payback - from three months.
Businessman activity
The entrepreneur independently manages a franchise company. Interestingly, an already proven business is not at all a guarantee of success. The franchise of a building materials store (franchising by itself) represents a business model, a methodology for trading building materials, and concepts for interacting with customers. But the effectiveness of these tools depends on the work of the owner of the company.