Neighbourhood hardware store

Local homeowners, renters, landlords, small contractors and tradespeople who want quick, convenient help close to home.

Retail margin on products sold, plus extras like key cutting, screen and glass repair, tool sharpening, paint mixing and small-order delivery to contractors.

• Practical product knowledge
• Stock control and ordering
• Friendly, patient customer service

• Competition from large chains on price, so plan how you'll stand out (service, range, location)
• Stock tied up in slow-moving items; check how much opening inventory you really need
• Municipal business licence, zoning and signage rules; check with your municipality
• Rules for selling regulated items such as propane, certain chemicals or ammunition; check with your provincial regulator
• Commercial general liability and property insurance, plus WCB/WSIB coverage once you hire (rules vary by province)
• Winter and seasonal swings in demand, which affect cash flow

Startup costs are typically around $60,000 to $250,000, depending on premises, opening inventory and fit-out. Check how much opening stock you really need, as slow-moving items tie up cash.

Monthly revenue is typically around $15,000 to $70,000, depending on location, range and season. Demand swings with winter and other seasons, which affects cash flow. Plan on about 40 hours a week or more.

Check your municipal business licence, zoning and signage rules. For regulated items such as propane, certain chemicals or ammunition, check with your provincial regulator. Also ask about liability and property insurance, and WCB/WSIB coverage once you hire.