Entrepreneur Idea Guide

How to Start a Hand & Power Tools Business

These tips are written for aspiring entrepreneurs who plan on opening a hand and power tools business. Read these tips before you begin your venture.

Wondering how to start a hand and power tools business? We take you step-by-step from start to success.

How to Create Effective Hand & Power Tools Company Business Plans

Struggling to get the attention of lenders and investors? Maybe it's because you're lacking a high quality business plan.

The financial section of your business plan is especially relevant to funding concerns. Since investors and lenders rely heavily on your business plan's financial forecasts, fudged numbers and vague forecasting are a sure way to sabotage your funding efforts.

With so much riding on your business plan, we recommend getting a firm grasp on business plan financial basics before you start writing the other parts of your business plan.

Check Out Competitors

Well in advance of opening a hand and power tools business in your town, it's a good idea to find out how many competitors you have. We've provided the link below to help you generate a list of competitors in your area. Complete the form by entering your city, state and zip code to get a list of hand and power tools businesses that are close by.

Is the local market large enough to support another hand and power tools business? If not, you had better be sure that you are doing things much better than the competition.

Talk to People Who Are Already in the Business

If you want to open a hand and power tools business it's a wise move to have a conversation with someone who is in the business. Local competitors are not going to give you the time of day, mind you. It'd be crazy for them to teach you the business.

However, an entrepreneur who owns a hand and power tools business on the other side of the country may be willing to share their entrepreneurial wisdom with you, once they realize that you are not going to directly compete with them in their community. In fact, they are often very willing to share startup advice with you. Our estimate is that you may have to contact many business owners to find one who is willing to share his wisdom with you.

Where can you find an entrepreneur who is running a hand and power tools business in a different locale who can assist you?

No problem! Just use the link below and try a random city/state or zipcode. Then start dialing for advice until you are successful.

Financial Benefits of Buying a Hand & Power Tools Business

Startup hand and power tools businesses carry a host of financial risks and concerns. Without an operational history, it's hard to predict how your startup will actually perform in the marketplace.

Financial risk management requires you to at least consider the possibility of setting your startup plans aside to explore acquisition opportunities. Established hand and power tools businesses have reliable revenue streams and loyal customer bases both of which will shape your company's financial landscape.

An acquired business also has documented assets and earnings - a big advantage with lenders and investors.

Consider Franchising

If you want to tap into an existing brand name and a proven system, you ought to check into whether it makes sense to franchise instead of doing everything yourself.

Prior to starting a hand and power tools business, it's worthwhile to determine whether franchising might help you avoid common entrepreneurial mistakes.

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.

Other Useful Articles for Startup Entrepreneurs

These additional resources regarding starting a business may be of interest to you.

Consideration Before Buying a Franchise

Naming My Business

How to Find Start-Up Capital

Share this article


Additional Resources for Entrepreneurs

Lists of Venture Capital and Private Equity Firms

Franchise Opportunities

Contributors

Business Glossary