Hardware business is one of the most common ventures in the country. Their prominence is an indicator of the need and demand for hardware products. Hence, let’s look at how to start and run a profitable hardware business in Kenya.

Top 10 Profitable Businesses You Can Start With 5K In Kenya

As a business person, the key reason for investing is to make a return. Various factors are key to ensuring your business is profitable. These include elements such as location, marketing, and pricing.

Is the hardware business profitable?

The answer to this is yes. However, you have to run it the right way to achieve positive results. Most analysts agree that you can make at least 10% returns on your investment capital from your hardware per month. Hence, the more you put in, the more you make.

How much capital is needed to start a hardware business in Kenya

Hardware is a capital-intensive business mainly due to the cost of buying stock. The minimum capital you need to start a small hardware business averages 500,000 shillings.

However, there is no limit on the upper side as it depends on size and location. To get a standard hardware business, you require at least 2 million shillings. This will enable you to get a sizeable stock and a good number of items.

Items to sell in a hardware

Some of the most selling items in hardware include;

  • Cement
  • Nails
  • Pipes
  • Water tanks
  • Kitchenware
  • Locks
  • Paints

These items are in demand across the country and hence the fast selling. You need to establish contact with suppliers or manufacturers to ensure you get them on time and in the right quantities and qualities.

Hardware business location in Kenya

The hardware business is ideal for locations in busy towns and areas with good transportation. This includes having adequate parking for your customers.  

The reason for this is that some of the hardware items are bulky and need transportation. Hence, the need for space and room to accommodate bigger vehicles.

A good location also ensures customers can access the business easily.

How to Start and Run a profitable hardware business in Kenya

To start a hardware business in Kenya, there are various steps that you need to know. These include;

1.  Market research and Business plan

This should be the first step before getting into the business. Research will help you understand the market deeper helping to make better investment decisions.

Some of the key items to get during market research include the best location to set up, high-demand products, and pricing.

This information you can get through engaging both consumers and competitors. Only through getting such information, you can make the right market decisions.

After research, you should develop a business plan. This is an outline of all business elements spanning from cash flows to the target market. A plan helps you to review business performance and acts as an action guideline.

A good plan should be flexible to cater to future eventualities.

2.  Business registrations

Registering your business is a necessary step when starting a hardware business as it allows it to become a legal entity.

You can register it either as a business name or a company. Here is a detailed process on how to register a business name in Kenya and also how to register a company in Kenya.

Some partners will not deal with unregistered businesses such as banks and government institutions due to their policy restrictions.

3.  Get the relevant business permits

Just like all businesses, you require various permits to operate hardware in Kenya. Hence, it is mandatory to have all of them in ensuring you are operating legally. Some of these include getting a single business permit with the county offices.

4.  Capital

Capital is a requirement to get your business going. The amount of capital depends on your ability. However, as stated earlier, you need a minimum of 500K to start a small hardware business.

You can get your capital through several approaches such as savings and loans. Some of the capital uses include buying stock and paying for rent and permits.

The capital sustains the business until breaks even.

5.  Marketing

Marketing is a key activity that helps to grow the business. Growth happens both in the form of customers and sales.

There are various ways to do marketing. To start, you can target to market through friends and relatives. However, you can also market the business online through social media presence or physically through posters and banners.


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