Home-Based parts supplier for repair shops

Independent computer repair shops, small IT support firms, schools' IT contractors and online resellers who want a local supplier with quick turnaround.

You buy in volume and sell at a trade price with a margin on each item. Repeat orders from a handful of regular accounts matter more than one-off sales.

• Knowing computer components and compatibility
• Negotiating with suppliers
• Stock tracking and order handling
• Building trade relationships

• Check whether your municipality requires a home-based business licence and whether storing stock at home is allowed
• Check your home insurance: stock and trade customers may need commercial insurance
• Provincial electronics recycling or environmental fees may apply to some products, check your provincial program
• Counterfeit or poor quality parts, buy only from trusted sources and keep records
• Check how GST/HST, PST or QST apply to resale sales in your province, including resale exemption paperwork
• Customer credit terms can tie up cash, consider prepayment for new accounts
• Handle returns and warranty claims with a clear written policy

Estimates suggest startup costs typically around $3,000 to $15,000, depending on how much stock you buy and which niche you focus on. Check whether your home insurance covers stock and trade customers.

Monthly revenue is typically estimated at around $4,000 to $20,000, depending on your niche, stock levels and number of trade customers. Customer credit terms can tie up cash, so consider prepayment for new accounts.

Check whether your municipality requires a home-based business licence and allows stock stored at home. Also check provincial electronics recycling fees, how GST/HST, PST or QST apply to resale sales in your province, and your insurance cover.