Trade supplier of furniture fittings

Cabinet makers, kitchen installers, furniture workshops, renovation contractors and independent furniture retailers.

Wholesale margin on repeat orders, with account customers buying regularly and extra income from delivery and special orders.

• Product knowledge of fittings
• Stock control and ordering
• Building trade relationships
• Basic bookkeeping

• Tying up cash in stock, so start with fast-moving lines only
• Commercial general liability insurance and cover for stock and any vehicle
• Check zoning and licence rules with your municipality for a unit that has customer visits or deliveries
• Register for GST/HST and check provincial sales tax rules, including how to handle resale exemptions
• Payment terms, since trade customers often pay on 30-day accounts, which affects cash flow
• WCB/WSIB coverage if you hire staff (check your province)

Estimates typically put startup costs at around $10,000 to $50,000, depending on the unit you rent, the stock you hold and any delivery vehicle. Starting with fast-moving lines only helps limit the cash tied up in stock.

Estimated monthly revenue is typically around $5,000 to $25,000, depending on your trade customer base and range. The estimate assumes at least about 35 hours a week. Trade customers often pay on 30-day accounts, which affects cash flow.

Check zoning and licence rules with your municipality for customer visits and deliveries, and GST/HST and provincial sales tax rules, including resale exemptions. Also check commercial liability and stock insurance, and WCB/WSIB coverage if you hire staff.