Neighbourhood hardware and metal goods shop

Local contractors, renovators, handymen, property managers and home owners who want quick, expert help close to home.

Retail margin on products sold, plus trade accounts for regular buyers and small service fees such as key cutting or cutting metal to length.

• Product knowledge of fasteners, fittings and metals
• Stock control and ordering
• Friendly, patient customer service

• Commercial general liability and property insurance, plus cover for stock and theft
• Municipal business licence and zoning rules for retail premises, which vary by city
• Big-box store competition, so focus on service, trade accounts and hard-to-find items
• Heavy stock ties up cash, so start with fast-moving lines and expand slowly
• Registering for GST/HST (and PST or QST where it applies) and collecting the right tax
• WCB/WSIB coverage and workplace safety rules once you hire staff, which vary by province

Estimates suggest startup costs are typically around $50,000 to $250,000, depending on premises and stock. Heavy stock ties up cash, so starting with fast-moving lines helps. Monthly revenue is estimated at roughly $12,000 to $50,000, depending on location and trade accounts.

Things to check include your municipal business licence and zoning rules for retail premises, which vary by city, plus GST/HST (and PST or QST where it applies). Also check commercial general liability and property insurance, and WCB/WSIB rules once you hire staff.

You need product knowledge of fasteners, fittings and metals, solid stock control and ordering, and friendly, patient customer service. Estimates suggest at least about 40 hours a week. Focus on service, trade accounts and hard-to-find items to compete with big-box stores.