Furnace parts supplier with a small stocked unit

Maintenance firms, commercial heating contractors, manufacturers and heat-treating shops that can't afford to wait days for a part during a shutdown.

Margin on parts sold from stock, supply agreements with regular accounts, and extra charges for rush delivery or after-hours calls.

• Stock control and ordering
• Technical product knowledge
• Selling to trade accounts

• Stock ties up cash, so start with a small range of fast-moving parts and avoid overbuying slow items
• Parts for gas-fired equipment may need certification (such as CSA); check with your provincial regulator and your suppliers
• Commercial general liability, product liability and property and stock insurance
• Check zoning rules, business licence requirements and fire code for storing stock at your location
• WCB/WSIB coverage and workplace safety rules apply once you hire staff; check with your province
• Registering for GST/HST once you pass the small supplier threshold

Startup costs are typically around $25,000 to $100,000, depending on your premises, the range of parts you stock and how much you buy up front. Stock ties up cash, so starting with fast-moving parts is worth considering.

Monthly revenue is typically around $10,000 to $50,000, depending on your range, trade accounts and location. These are estimates of revenue, not profit, so allow for stock, rent and running costs when you plan.

Check zoning rules, business licence requirements and fire code for storing stock at your location. Parts for gas-fired equipment may need certification such as CSA, so check with your provincial regulator and suppliers. WCB/WSIB applies once you hire, and GST/HST registration once you pass the small supplier threshold.