Trade leather supplier with a small warehouse

Footwear and bag makers, upholsterers, saddlers, furniture and auto interior workshops, and small manufacturers.

Margin on bulk purchases, sold by the hide, side or square foot, with better prices for repeat and larger accounts. Extra income can come from cut-to-size services and delivery fees.

• Sales and account management
• Stock control and buying
• Knowledge of leather grades and finishes

• Zoning and any business licence your municipality requires for a warehouse or unit
• Import duties, customs and any permits for exotic skins (check CITES and other federal rules)
• Commercial general liability and property insurance covering stock, plus fire and water damage
• WCB or WSIB coverage if you hire, as rules vary by province
• Cash tied up in stock and customers paying slowly on trade credit
• Exchange rate swings if you buy in US dollars or euros
• Climate control for stock through humid summers and cold winters

Startup costs are typically around $20,000 to $80,000, depending on the size of your unit, the range of hides you hold and your fit-out and insurance costs. These are estimates, and stock is usually the largest part of the spend.

Monthly revenue is typically around $8,000 to $40,000, depending on your range, your trade customers and how often they reorder. Slow-paying trade customers and cash tied up in stock can affect what you actually keep.

Check zoning and any business licence your municipality requires for a warehouse or unit. If you import, check duties, customs and CITES or other federal rules for exotic skins. Also check insurance for stock, and WCB or WSIB coverage if you hire.