DIY enthusiasts or fans, have you been coveting the sweet dream of opening a DIY store for some time? You can enhance your habit and make money at the same time. More and more people and families are concentrates on building DIY ability for their kids, So, do you want to open your own DIY store?
Good news: in this article, we go over all the steps you will need to take to start your business.
DIY is the first item of household equipment expenditure. It is thus ahead of the furniture and household appliances market.
The DIY market includes ( DIY ):
There are various materials: tools, electricity, heating, wood and joinery, building, decoration, plumbing.
In terms of numbers, it is estimated that DIY weighs nearly 25 billion euros today.
While the market experienced strong growth a few years ago, it has stabilized since 2014. Involved? The decreasing number of moves.
However, a slight increase is still notable over the past two years, with the growth of + 0.6% in 2015 against + 0.8% in 2014.
This positive development should be qualified; indeed, there are strong disparities according to the distribution methods :
In terms of departments, the most dynamic sales in 2015 were :
Turnover in the building department lost 6%. However, articles related to the building should not be banned in favor of other departments! Indeed, the real estate market was reviving in 2016 (low-interest rate, reinforced PTZ +, extended Pinel system); therefore, on the contrary, it is necessary to bet on building articles: paint, glue, etc.
On the other hand, regarding electricity, the trend is towards energy consumption. So, bet on suitable equipment.
Finally, large DIY stores (Castorama, Brico Dépôt, Leroy Merlin, etc.) are gaining ground and expanding their surfaces to the detriment of small DIY stores.
Considering the rise of specialized hypermarkets to the detriment of independent players, it is more important than ever to carry out a market study before opening a DIY store.
In addition to the major trends in the national market mentioned above, your market research should consider the dynamics at the local level.
In particular, this should enable you to find the answers to the following questions:
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Have you done your DIY store market research? You can now choose your concept.
To set up a DIY store, you have three options.
The first is to open your store as an independent, alone or with associates: you will take care of everything, development of the DIY store business plan, choice of products, implementation of a marketing strategy. Your greatest difficulties? Make yourself known, remain competitive against the big names in the sector, and gain the trust of your future customers.
The second is to take over a DIY store: you remain completely independent, free to choose your own strategy. In addition, you leave with a considerable advantage since you keep the previous customers. Be careful; however, the opportunities are rare, and you will obviously have to buy the business from the former owner.
Finally, the last possibility is to become a franchisee. The advantages are numerous: in addition to benefiting from immediate fame, territorial exclusivity, and pre-negotiated rates with suppliers, you will be supported throughout your project—an attractive choice when you know that competition from DIY superstores is gaining ground every day.
However, the franchise does not only have advantages in terms of constraints: you will have to agree to lose part of your autonomy, pay entry fees, as well as an annual fee. For example, becoming a Mr. Bricolage franchisee requires paying an entry fee of 9,150 euros, having a personal contribution of 200,000 euros, and paying an annual fee set at 2% of turnover excluding tax.
Many recognized franchises with a proven concept are looking for entrepreneurs: Bricomarché, Mr. Bricolage, Brico Cash, Weldom.
If you wonder how to open a profitable DIY store, a large part of what you decide on is where to go.
Do you plan to open a small hardware store or a large area offering a wide choice of materials?
In the first case, you can bet on location in the city center, if possible in a place with high traffic.
In the second, you will be forced to walk away. However, choosing a commercial or industrial zone near a busy axis (a peripheral exit, for example).
While your marketing plan will help you grow your customer base, you can't bank on it all: your location needs to be strategic, visible, and consistent with your concept.
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As with any business creation: you will need to choose a legal status to create a DIY store.
The most appropriate legal form will depend in part on your conditions: the amount of capital available to you, number of partners, etc.
Several options are available to you, but the choice is important because it will depend on the method of taxation of the company, your social system as a manager, and your responsibility for the company's debts.
The initial investment size will obviously depend on the size of your retail space and the concept (hardware store or supermarket).
In particular, you will need to plan:
Do not hesitate to ask for quotes from several suppliers and to negotiate your partnerships before committing yourself.
As for staff requirements, the size of the workforce will again depend on that of the store.
In particular, it will be necessary to provide staff for the following positions:
Regarding the training of sales staff, although there are specific diplomas for working in a DIY store, these are by no means compulsory. Therefore, you can simply recruit salespeople passionate about DIY or embark on the adventure on your own if you open a small neighborhood hardware store.
The main qualities required are linked to the commercial aspect of the profession: a sense of service, accessibility, advice, etc. Being methodical and rigorous is also necessary, particularly concerning stock management.
The next step in starting a DIY store is to establish a marketing plan. The goal? Promote yourself: bring in new customers and retain existing customers.
There are many options available to you; for example, you can:
You will have to make your choice and quantify the cost of the actions you want to put in place to integrate them into your estimated budget.
After you've done your market research, chosen your concept, found your location, and established a marketing strategy, you can start working on your DIY store business plan.
The business plan is the reference document for the search for financing. And This is a detailed, argued, and costed presentation of your project. It is structured in several parts: summary, presentation of the company, product and service offer, market study, commercial strategy, financial forecasts, etc.
The business plan of a DIY store has several objectives:
You arrive at the final step to make your project a reality: the search for funding.
The construction of your business plan will serve as an argument. You will have to convince that your business will generate sufficient profitability:
Several possibilities are available to you to raise the sum necessary for the creation of your business: professional credit, leasing, equity investment, business creation assistance.
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