Becoming an Entrepreneur
Opening a Cabinet Hardware Business
Launching a cabinet hardware business is your ticket to owning a good, stable business if you have the creativity and tenacity necessary to be a successful entrepreneur. We offer tips and advice that can make your business profitable, stable and built to last.
This article on opening a cabinet hardware business can help you avoid some common mistakes.
The Market for Cabinet Hardware
The builders' and cabinet hardware market is a multibillion dollar industry in the U.S. Although the industry is populated by established brand manufacturers, there are opportunities for smaller manufacturers to also make their marks, provided they have enough resources to launch an operation that can scale to the necessary production and marketing levels.
The majority of startups in the cabinet hardware business function as wholesalers, distributors or small shops capable of producing custom architectural for antique restorations and other micro-projects. The specific type of business you launch should be based on your personal skill set as well as market conditions.
Prerequisites for Cabinet Hardware Entrepreneurs
Cabinet hardware entrepreneurs need to possess a familiarity with cabinetry, woodworking and hardware installation. If the manufacture of cabinet hardware is also part of your business plan, you will also need to possess skills in the field of metalworking.
Cabinet hardware wholesalers must meet at least two essential requirements before they open their doors: Supply relationships and distribution channels. Given the importance of supply relationships to your business model, you will need to forge connections with cabinet hardware manufacturers relatively early in the startup process.
On the other side of the transaction, you will need to develop relationships with retailers, cabinetmakers, homebuilders and other buyers to create a distribution network for your inventory.
Spending Priorities for Startup Cabinet Hardware Enterprises
A "too much, too soon" approach can be deadly for startups, especially when it is applied to spending. In many instances, entrepreneurs' big dreams overwhelm their budgets, sending the business into a spending spiral that is difficult to recover from.
Startup cabinet hardware providers aren't immune to spending temptations. During your company's early stages, try to start small and only spend what is necessary for your startup's growth. Often, that means delaying hiring initiatives or other plans in order to invest in more productive areas.
In general, anything you spend on marketing is money well spent. Why? Because revenues are the engine that drives every small business. By investing in marketing and sales initiatives, you can expand your revenue base and lay a foundation for future spending in other areas.
How to Write an Effective Cabinet Hardware Company Business Plan
It's virtually impossible for your cabinet hardware business to succeed without an effective business plan.
The best business plans are practical documents that reflect actual business realities. If your business plan is based on unrealistic assumptions and best case scenarios, you will have done your cabinet hardware business a major disservice.
Instead, commit to creating the most precise business plan possible. If you're still not convinced, consider what the experts say about business plan writing.
Consider Competitors
Well in advance of opening a cabinet hardware business within your community, it's worthwhile to find out what the competition looks like. We've provided the link below to help you get a list of local competitors in your city. Complete the form by entering your city, state and zip code to get a list of cabinet hardware businesses that are close by.
If there's too much competition, it may be wise to consider starting the business in a less competitive marketplace.
Finding a Non-Competitive Business Mentor
If you are interested in starting a cabinet hardware business, it's essential that you talk to somebody who is already in the business. If you think your local competitors will give you advice, you're being overoptimistic. Why would they want to educate a future competitor?
However, an entrepreneur who owns a cabinet hardware business in a location that is not competitive to you may be more than happy to give you a few tips, as long as they don't view you as a competitive threat. In fact, they are often very willing to share startup advice with you. It can take a while to find an entrepreneur who is willing to talk, but it's well worth the effort.
How would you find a cabinet hardware business owner in another city who you can speak with?
Simply, try our helpful link below, type in a random city/state or zipcode, and start calling.
Guidelines for a Cabinet Hardware Business Acquisition
It's fairly common for cabinet hardware business entrepreneurs to gain entry through a business acquisition.
To avoid common mistakes, it's important understand the critical factors to consider when buying a business. The first criteria to consider is whether the existing business can be adequately adapted to your business philosophy.
If the business is right for you, the assistance of a business broker will help all of the rest of the pieces of the process fall in place and you will be well on your way to owning a proven cabinet hardware business.
Explore Franchising Options
You should know that your odds of avoiding failure in business zoom upwards when you opt to franchise and benefit from the prior work of others and their lessons learned.
Before opening a cabinet hardware business, you ought to investigate whether buying a franchise could increase your chances of success.
The link below gives you access to our franchise directory so you can see if there's a franchise opportunity for you. You might even find something that points you in a completely different direction.
More Startup Articles
These additional resources regarding starting a business may be of interest to you.
Share this article
Additional Resources for Entrepreneurs