Lighting wholesaler with a small stocked unit

Electrical contractors, building and fit-out firms, retailers, and property managers.

Margin on stock sold, with better buy prices on bulk orders. Fast availability and reliable delivery let you win repeat trade accounts.

• Stock buying and inventory control
• Trade sales and account management
• Basic knowledge of lighting and electrical products

• Electrical products must meet Australian safety rules. Check the Electrical Equipment Safety System and your state regulator, especially for imported goods
• If you import, check customs, GST on imports and who is responsible for compliance paperwork
• Stock can tie up a lot of cash and some lines go out of date, so start with a small range
• Public liability, product liability, stock and property insurance
• Check lease terms and council zoning for a warehouse or trade counter
• Workers compensation insurance is needed once you hire staff, check your state scheme

Estimates suggest startup costs are typically around $25,000 to $100,000, depending on the range of stock you hold, your premises and whether you import some lines. Starting with a small range can help limit the cash tied up in stock.

Monthly revenue is typically estimated at around $15,000 to $60,000, depending on your customer base, product range and how quickly stock sells. This is revenue before costs such as rent, stock and insurance, so it is not profit.

Check Australian electrical safety rules, including the Electrical Equipment Safety System and your state regulator, especially for imported goods. Also check customs, GST on imports, compliance paperwork, lease terms, council zoning, insurance, and workers compensation once you hire staff.