Leather goods wholesaler with a small warehouse

Retail shops, department store buyers, gift and souvenir stores, hotels and online retailers that want fast restocking and a range in one place.

The margin between your bulk purchase price and trade price, with larger orders earning volume discounts. Quick delivery and dependable stock help you win repeat customers.

• Buying and stock planning
• Supplier and retailer relationships
• Selling at trade shows and in person
• Managing cash flow and credit

• Zoning, business licence and occupancy rules for your unit (check with your municipality)
• Stock tied up in unsold goods: fashion changes and holiday ordering is seasonal, so plan buying carefully
• Customs duties, CUSMA or other trade agreement rules, and import paperwork for overseas stock
• GST/HST registration and WCB/WSIB coverage once you hire staff (rules vary by province)
• Commercial general liability, property and stock insurance, including theft and fire cover
• Credit risk from retailers who pay late or close

Startup costs are typically around $60,000 to $250,000, depending on your unit, how much stock you buy and your showroom setup. These are estimates, so plan buying carefully because unsold stock can tie up your cash.

Check zoning, business licence and occupancy rules for your unit with your municipality. Also look at customs duties, CUSMA or other trade agreement rules for overseas stock, GST/HST registration, WCB/WSIB coverage if you hire, and insurance.

Monthly revenue is typically around $8,000 to $35,000, depending on your range, retailer base and how often they reorder. That is revenue, not profit. Expect at least about 30 hours a week and watch for late-paying retailers.