Local specialist hardware and ironmongery shop

Tradies and builders who need parts quickly, plus renovators, home owners, farmers and local maintenance crews.

You buy from wholesalers and importers and sell at a markup. Trade accounts with regular customers give steady income, and cut-to-length or made-to-order items can add margin.

• Knowing fixings, fittings and metal products
• Customer service and giving practical advice
• Stock control and ordering

• Lease terms, bond and fit-out costs, and whether the zoning allows retail hardware
• Public liability and stock/contents insurance
• Tying up cash in slow-moving stock
• Competition from large chains, so check that your area has demand for specialist stock and service
• Safe storage and handling of heavy items, and any rules on selling certain products (check your state's regulator)
• Register for GST once your turnover reaches the threshold

Startup costs are typically estimated at around $40,000 to $150,000, depending on the lease, bond and fit-out, and how much opening stock you carry. Be careful about tying up cash in slow-moving stock.

Monthly revenue is typically estimated at around $15,000 to $60,000, depending on your location, range of stock and how many tradies and home owners become regular customers. Large chains are competition, so check there is local demand.

Check lease terms, bond and fit-out costs, and whether zoning allows retail hardware. Also look at public liability and stock insurance, any rules on selling certain products with your state's regulator, safe handling of heavy items, and GST registration at the threshold.