Small produce wholesale unit with a coolroom

Independent greengrocers, restaurants, caterers, food trucks, market stallholders and small food manufacturers.

You buy in volume and sell at a markup. Larger regular orders and a wider customer base spread the fixed costs of rent, cold storage and staff.

• Buying produce and managing stock to limit waste
• Managing cash flow and supplier accounts
• Handling and packing goods safely
• Leading a small team

• Food business registration and premises requirements, check with your local council
• Whether any staff need a high risk work licence to operate a forklift, check your state's workplace safety regulator
• Workers compensation insurance once you hire, plus public liability and stock insurance
• Coolroom running costs and power failures that can spoil stock
• Lease commitments and tight margins, test demand before locking in
• Customer credit risk if you offer trade accounts

Estimates suggest startup costs are typically around $40,000 to $150,000, depending on your leased unit, coolroom, stock and delivery arrangements. Lease commitments and tight margins mean it helps to test demand first.

Monthly revenue is typically estimated at around $30,000 to $150,000, depending on your customers, order volumes and how much stock you move. Margins can be tight and spoilage reduces what you keep. The estimate assumes at least about 40 hours a week.

Check food business registration and premises requirements with your local council. Also check whether staff need a high risk work licence to operate a forklift with your state's workplace safety regulator, plus workers compensation, public liability and stock insurance.