Regional computer components distributor

Computer resellers, repair shops, managed IT providers and small system builders who buy stock regularly.

Margin on each item sold at trade prices, with better supplier pricing and larger orders as volume grows. Some income may come from delivery fees or supply contracts.

• Sales and account management
• Inventory and purchasing
• Basic bookkeeping and cash flow management
• Knowledge of computer hardware

• Stock is a big upfront cost and can lose value quickly as products are replaced
• Commercial general liability and stock or property insurance, check what your insurer needs
• WCB or WSIB coverage once you hire staff, rules vary by province
• If you import directly, check customs, duties and CBSA requirements
• Provincial electronics recycling fees and sales tax rules for resale differ by province
• Extending credit to customers can cause cash flow problems, check accounts before offering terms
• Check municipal zoning for the unit and any business licence needed

Estimates suggest startup costs typically around $25,000 to $100,000, depending on stock levels and the rented unit. Stock is a big upfront cost and can lose value quickly as products are replaced.

Monthly revenue is typically estimated at around $20,000 to $100,000, depending on your product range, number of trade accounts and order sizes. Extending credit to customers can cause cash flow problems, so check accounts first.

Check municipal zoning and any business licence for your unit, plus commercial general liability and stock insurance. Also check WCB or WSIB coverage when hiring, provincial electronics recycling fees, resale sales tax rules, and CBSA requirements if you import.