Small-warehouse fabric wholesaler

Upholsterers, dressmakers and sewing studios, small clothing brands, quilt and craft shops, interior decorators and independent fabric retailers.

You earn the margin between your bulk buying price and your wholesale price per metre or per bolt. Repeat accounts and minimum order sizes keep sales steady. Some customers buy on trade terms.

• Knowing fabrics, weights and fibre types
• Negotiating with suppliers
• Stock and cash flow management
• Building trade relationships

• Stock is your biggest cost and risk. Slow-moving fabric ties up cash, so start with a small range
• Check federal textile labelling rules and the Competition Bureau's guidance if you label or relabel goods
• Check flammability and product safety requirements for fabrics sold for upholstery or children's items
• If you import, check customs duties, a customs broker and import permits with the CBSA
• Check how GST/HST and any provincial sales tax apply, including resale exemptions for trade buyers
• Commercial general liability and property or stock insurance, and check your municipality's zoning for the unit
• Offering payment terms to trade customers carries a risk of late or unpaid invoices

Estimates suggest startup costs typically around $25,000 to $120,000, depending on how much stock you buy and the unit you rent. Stock is your biggest cost and risk, so starting with a small range is worth considering.

Monthly revenue is estimated at roughly $8,000 to $40,000, depending on your fabric range, trade customers and how much stock you carry. Slow-moving fabric ties up cash, and late-paying trade customers are a risk if you offer payment terms.

Check federal textile labelling rules and Competition Bureau guidance, flammability and product safety requirements for upholstery or children's items, and CBSA customs rules if you import. Also check GST/HST, zoning for your unit, and insurance.