Plan To Open A Building Materials-Trading Store

Construction materials are one of the important elements of the construction industry. The more the country grows, the more companies and factories are growing.

The living standard of people increased, many urban areas, apartments, villas, or houses were built more. Roads are upgraded to ensure traffic, etc. All need construction materials.

It can be said that these are indispensable and always needed materials in the future. Therefore, many ideas of investment and business related to construction materials are chosen by many people to get rich.

Today’s topic will be to learn about the Plan for Building Materials-Building Materials Store . Open the material store to pay attention to what matters and what to prepare before starting. We invite you to read the following analysis to better understand!

BUSINESS PLAN OF CONSTRUCTION MATERIALS – MARKET SURVEY OF CONSTRUCTION MATERIALS BUSINESS

Although there is a lot of demand for construction materials, but not in any locality, any area can operate smoothly.

Once you have identified the location where you plan to trade in your building materials store, find out if there is a lot of demand for housing, factories or warehouses around you.

For example, the area has been upgraded by households before, so they will not need to build in the future. Then the area you choose will not have the potential to trade in building materials.

Therefore, we must first investigate whether the demand for materials of customers at the present time and in the future is much or not. This is one of the conditions for making a decision to choose a business location.

The second is a competitor. Despite the high customer demand but there are too many competitors who are building materials stores that opened before, it is difficult for you to trade here.

Because customers who buy construction materials will need large amounts of money, they tend to buy debt. Customers are in debt at the old stores, they will continue to buy goods at that old building material store, which is due to habits. So you will be very hard to compete with these stores.

FIND SUPPLIERS AND DISTRIBUTORS OF MATERIALS

There are three suggestions for you to consult in finding distributors, supplying construction materials.

+ Import goods directly from the Construction Materials Company: when you import goods from here, you will obviously become a direct distribution agent of the company and receive the lowest price, with a discount by order and There are support programs.

However, these companies will require you to import goods in large quantities so you will need to prepare some initial capital. Therefore, you should consider carefully the import of goods here if the capital is limited.

+ Import goods through regional agents: these are dealers of building materials distribution for the above construction materials companies we just mentioned.

Entering goods here you will not have to hold many goods at the beginning, you want to enter as much as you can. Price and quality of goods are guaranteed so you can be assured. Most construction material stores choose to import goods from this distributor.

+ Importing goods from abroad: if you have a large amount of capital, you can invest in building a building material store to import goods from abroad. The import price will be high and extra costs for shipping from abroad will be charged. So it will cost a lot of cost, you should carefully calculate!

DOES THE CONSTRUCTION MATERIALS BUSINESS NEED TO BUY VEHICLES TO TRANSPORT CONSTRUCTION MATERIALS?

Many material shop owners only focus on opening a building material store and importing goods for business. They forget that remote customers or customers who buy in large quantities will need transportation.

Therefore, to avoid losing customers and not serving good customers, you should invest in buying a car to transport. If in rural areas, trading construction materials such as sand, cement, stone, bricks, ..

you can buy a tractor. If you trade in finished construction materials such as ceramic tiles, furniture, plumbing, shower, sink, … then you can invest in a pickup truck and small truck.

IN THE PROCESS OF TRADING CONSTRUCTION MATERIALS, ATTENTION MUST BE PAID TO MANAGING CASH FLOW

The biggest consideration in managing cash flow is the debt of customers. Customers will often buy debt, while you need money to turn around and enter the next batch.

According to me, you should not leave your debt too long and not give 100% debt. For example, you only give customers 60% of the bill and must pay within 3-6 months.

So you will know when you can recover the capital to rotate. Trading in construction materials requires a large amount of capital to maintain so if you keep your debt forever, how can you do business.

ORGANIZE THE OPENING DAY TO ATTRACT CUSTOMERS

On the opening day, you can hire unions to dance to pray for good luck, trade expensive and attract attention to customers in the region. In addition, there should be discount programs or gifts, etc. to please those customers.

HUMAN RESOURCES – MANPOWER TO CARRY AND TRANSPORT

Another problem that we cannot ignore in the construction material business is that of exploiting manpower. For stores that sell natural building materials such as sand, stone, brick, cement, etc., more manpower is needed. You can hire 2-3 workers locally to do this. Should be men because of the heavy workload and need health.

SELLING PRICES OF CONSTRUCTION MATERIALS – PRICING OF CONSTRUCTION MATERIALS

Normally, all prices of construction materials are listed by the company, so there is no common price on the market. The owner of a building materials store will set a price according to habits and who it is. If you are familiar, the price will be cheaper than other strangers.

However, keep in mind that customers will find out and compare prices at building material stores and then decide to buy products so if you overestimate, you will lose customers.

DEVELOP DISCOUNT PROGRAMS TO ATTRACT CUSTOMERS

In order to attract customers, we should build discount programs such as multiple purchases that will receive invoice discounts, referring others to buy goods will receive% commission. On special occasions, there should be gratitude gifts for big customers and familiar customers.

HOW MUCH IS THE INVESTMENT CAPITAL FOR CONSTRUCTION MATERIALS BUSINESS

Depending on the size and type of construction materials you plan to do business to determine how much capital is. As mentioned above, customers who buy construction materials tend to buy debts, so you need to have a backup fund to keep your business running while waiting for customers to pay.

Small and medium scale, you will need about 350 million – 500 million to trade construction materials. There are many costs incurred so you should calculate carefully before deciding to open a building materials store offline!

AUTHOR

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