Neighbourhood car parts shop

Do-it-yourself drivers, independent garages and mechanics, small fleets and local delivery businesses.

You sell parts at a markup over distributor cost. Trade accounts with local garages bring repeat orders, and walk-in customers buy at retail prices.

• Knowing cars and parts, or willingness to learn fast
• Customer service at the counter
• Stock control and ordering
• Building trade relationships with garages

• Commercial lease terms and how much cash your opening stock ties up
• Commercial general liability and product liability insurance, as wrong or faulty parts can cause accidents
• Provincial rules for batteries, oil, tires and other fees or environmental handling, which differ by province
• Competition from chains and online sellers, so plan how you will stand out
• WCB/WSIB coverage and registration once you hire staff, plus French-language signage rules if in Quebec

Startup costs are typically estimated at around $40,000 to $200,000, depending on the premises and how much opening stock you carry. Opening stock can tie up a lot of cash, so check your lease terms too.

Monthly revenue is typically estimated at around $12,000 to $60,000, depending on your location, stock range and how many garages and drivers you serve. Chains and online sellers are competition, so plan how to stand out.

Check commercial lease terms, commercial general liability and product liability insurance, and provincial rules for batteries, oil, tires and environmental fees. Also check WCB/WSIB registration once you hire, and French-language signage rules in Quebec.