Local building supply yard

Local contractors, framers, renovators, farmers and homeowners doing their own projects.

You buy from suppliers and sell at a mark-up, with delivery fees and trade accounts for regular contractors. Margins per item are modest, so repeat trade customers matter most.

• Knowing building materials and how they are used
• Sales and customer service
• Managing stock and cash flow
• Building relationships with contractors

• Zoning and permits for a yard or storage site, check with your municipality
• Commercial general liability and property insurance, plus cargo cover if you deliver
• Large stock outlay and slow-paying contractors can strain cash flow, so check credit terms carefully
• Forklift and safe-handling training for staff, and WCB/WSIB coverage once you hire (rules vary by province)
• Winter slowdowns in many regions and swings in lumber prices
• Register for GST/HST (or QST in Quebec) as required, and in Quebec check French-language rules for signage and documents

Startup costs are typically estimated at around $150,000 to $600,000, depending on your site, stock levels and equipment. Monthly revenue is estimated at roughly $40,000 to $200,000, depending on your range, location and customer base.

Check zoning and permits for a yard or storage site with your municipality, plus insurance such as commercial general liability and property cover. Also check forklift training, WCB/WSIB coverage once you hire, GST/HST or QST registration, and French-language rules in Quebec.

Estimates suggest at least around 40 hours a week. Useful skills include knowing building materials, sales and customer service, managing stock and cash flow, and building relationships with contractors. Check credit terms, as slow-paying contractors can strain cash flow.