Local tool shop for tradies and diyers

Tradies, small building and maintenance crews, farmers, hobbyists and home DIY customers nearby.

You buy stock from wholesalers and brands and sell at a markup. Repeat tradie customers, trade accounts, fixings sold by weight or quantity and accessories add steady sales.

• Good product knowledge of tools
• Stock control and ordering
• Customer service and sales

• Lease terms, bond and fit-out costs, check these carefully before signing
• Public liability and product liability insurance, plus cover for stock and theft
• Electrical and other products must meet Australian safety and compliance rules, check with your state fair trading or product safety regulator
• Rules on gas cylinders, fuels or other dangerous goods differ by state, check before stocking them
• Competition from big hardware chains and online sellers, so know your local niche
• Register for an ABN and check when you need to register for GST; workers compensation applies once you hire

Estimates suggest startup costs typically around $60,000 to $200,000, depending on the premises, fit-out and how much stock you carry. Lease terms, bond and fit-out costs are worth checking carefully before you sign anything.

Monthly revenue is typically estimated at around $20,000 to $90,000, depending on your location, range and customer base. That is revenue, not profit, and a shop like this usually needs around 40 hours a week from you.

Check public liability and product liability insurance, plus cover for stock and theft. Electrical and other products must meet Australian safety rules, so ask your state fair trading or product safety regulator. Also check state rules on gas cylinders and fuels, ABN and GST.