How to Start Building Material Business in 2023?

However, the construction industry has more than just one profitable business idea. The building material business is one of them. Our country is the second largest country in terms of population, so it is a big market for every business sector. Talking about the last few years, India has seen a rapid growth in the works of buildings and other construction.

As a result, the building material business has seen an unprecedented boom and this is the reason why entrepreneurs who are associated with the supply of construction materials. They are making a good profit. But it is also important to keep in mind that the list of major building materials includes cement, urea, brick, sand, steel, stone, tile, glass, pipes, doors, windows, iron grills, etc.

And if grills and sand are left out, then the responsibility of delivering building materials on large construction sites is the responsibility of the companies manufacturing them. That is to say, construction materials at large construction sites are purchased directly from the companies that make them.

But if houses are being built for residential in your city and area, then whatever building material is used in them, it is purchased from a local building material shop. So if you start this business in the right area at the right time, you can also make a lot of money from it. 

What is Building Material Business?

You know very well that whenever a building, house, etc. is built. So a lot of materials are needed to prepare it completely. First of all, when you think of building your house, then your mind is curious to know the price along with the picture of brick, cement, urea, sand, gravel etc. After that, the picture of stone / tile, window, door, railing, grill etc. also starts emerging in the brain.

All the materials we have talked about above are included in the list of building materials. But this list is not limited to this, but it includes every small and big thing used in the construction of a building or house.

Not every entrepreneur running a building materials business has to have every building material. There are also entrepreneurs in the local market who have opened only cement stores, some supply only and only urea. Some supply only bricks, while some are selected entrepreneurs. Who are dealing in all the materials related to building materials.

Things to keep in mind before starting a building material business

There is no doubt that by starting a building material business, you can earn a lot of money. That’s because you can make a profit by buying goods at low prices and selling them at expensive prices. But it should also be borne in mind that today’s customers are very conscious. 

He may have come to your shop by finding out the price of the ingredients from the first ten shops. If he thinks that you are offering him the same at a higher price than others. You could lose that customer.

This is why you should choose the right supplier who will provide you with the material at reasonable prices according to the market. But it has often been seen that people who buy more quantity of any material, they get that material comparatively cheaply. According to this, then you may need to invest heavily in starting a building material business. 

A building material store may need to store many items such as cement, rods, tiles/stones, pipes/tanks, paints/paints, etc. This is the reason why starting such a business may require more space than others. He also has to take care of how and where the entrepreneur will manage this space, and how he will manage the content.

How to Start a Building Materials Business?

However, many people will think that if they have enough money to start a building material business, then they can do this work easily. But this is not true, even to start this kind of business, you need a lot of previous experience. If you are ignorant of this field, believe me, you cannot achieve success in this business.

Therefore, the interested person who wants to start his own building material business, but he has no information about it. So he should first get experience in doing this work, for this if he wants, he can start working in an existing building material store.

1. First prepare a list of ingredients

As we have already mentioned that it depends on the entrepreneur doing building material business, what material he is going to make part of his store. Because different entrepreneurs are sitting only by opening cement stores keeping in mind their ability to invest and new issues, someone is doing business of selling only bricks, someone is doing business of selling only bricks, someone is only selling small items like faucets, taps, glasses, toilet commodes, sinks, wash basins, etc.

There are only a few entrepreneurs who have made all these goods even paints a part of their building material store. It’s up to you what content you want to make part of your store. Make a list of any content you want to make part of your store. So that you do not have trouble tracking and ordering that goods.   

2. Manage the space according to the material

The list of building materials includes every small and big item. There is no doubt that if you want to make cement, urea, paint, pipe, tank, etc. a part of your store then you need comparatively large space. Space requirements also depend on the building materials you plan to store in your store. 

According to the list you have prepared, select the place for the shop at such a place. Which is connected to the local market, and where all types of vehicles and even big trucks can easily come and normal traffic is not affected while loading and unloading them.    

3. Get the necessary licenses and registrations

The entrepreneur can get a license under the Shops and Establishment Act from the local authority by registering his business under proprietorship. Since the entrepreneur is selling expensive goods, his annual turnover can easily exceed the GST limit.

It is better that the entrepreneur gets the GST registration of his business done in advance. The entrepreneur may also need to open a PAN card and a current or business bank account in the name of the business.

4. Where to buy building materials?

We all know that there are hundreds of products in a building material store. And they are not manufactured by one company, but by different companies. So if you want to buy content directly from their manufacturers, then you have to contact the sales team of different companies.

And every company’s product sample has to be kept in your store, so that you can show them that sample according to the customer’s choice. In this system, you can get the material at some cheap prices, which will help you to survive in a competitive environment.

The second system is to go to the already existing building material store in the area where you are doing your own building material business and get the number of the supplier of that area, and provide offers to supply goods to your shop too. But in this, you can get the material at a slightly higher price than the first system. But the advantage of this is that the ordered material reaches your shop through a phone call.       

5. Hire employees in the shop

If you already have any knowledge and experience in this business, then in the initial phase you can also run your building material store alone. But if you plan to start this business on a large scale then you may need not one but 4-5 employees.

According to the list provided by the customers, they can take out goods from different places of the store and give it to the customers. In this, if you want, you can appoint 1-2 experienced employees and 1-2 fresher employees.  

6. Attract customers

You brought goods to your building material store, but if you do not have customers, then how will you earn? No matter what the business is, one of its biggest challenges is how to increase the number of customers.

So if you want to win customer trust, you can reduce your profit whenever customers come to you in the beginning. That is, if your competitor in the same market is earning two rupees on an item, then you can earn only one rupee, and give a profit of one rupee to your customer.

Apart from this, building contractors, masons, plumbers, etc. located in that area are people who have an active role in building construction. Maintain good behavior with them and if possible, plan to give them some reward on the purchase they refer.    

Provide facilities to deliver materials to the house

Building material is heavy goods, no customer can carry it on his hand or head. If possible, provide free delivery facility to customers in a certain radius of your shop such as three kilometers. And for a distance beyond three kilometres, they can ask them to pay the fare.

At present, a lot of building material business entrepreneurs keep in touch with rickshaw, street, small hand, truck owners of the area. So that if needed, they can immediately call them to their store and deliver the goods to the address set by the customer.     

Cost of starting a building material business

However, how much it will cost to start a building material business depends on which building materials you are going to make part of your store. And how much of each material you are willing to buy. There is a possibility of investment of crores of rupees in starting this kind of business on a large scale.

But if you also want to start a small store with cement, urea, pipes, paints and small accessories. So you can assume that your 20-25 lakh rupees will be spent in starting this business.   

Profit in Building Material Business

Generally, building material business is considered a profitable business, because by doing this kind of business, people are earning up to millions of rupees a month. But it completely depends on the number of customers coming to the entrepreneur, the purchases made by them, etc. In the early stages of the business, the goal of the entrepreneur should not be to earn money but to win the trust of the customers.

For this, if he wants, he can reduce his profit / margin and give its direct benefit to the customers. Because once the entrepreneur has managed to win the trust of the customers, those customers will come to the same shop again and again. And in this way, gradually the entrepreneur’s dream of earning millions of rupees from the building material business will be fulfilled one day. 

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