Neighbourhood music shop with lessons and repairs

Local players, students and parents, school music programs, church and community groups, and music teachers.

Retail margins on instruments and accessories, plus rental fees for school instruments, repair charges and sometimes a cut of lesson room rentals.

• Good instrument knowledge across several families
• Retail and stock management
• Customer service and advice
• Local networking with teachers and schools

• Commercial lease terms and rent, a major fixed cost that must be covered through slow months
• Commercial general liability and contents insurance, and a municipal business licence, check with your municipality
• GST/HST registration and provincial sales tax rules, check with the CRA and your province
• Stock tied up in cash, with seasonal peaks around back-to-school and the winter holidays
• Competition from large chains and online retailers, so local service and repairs matter

Startup costs are typically estimated at around $40,000 to $150,000, depending on premises, stock and fit-out. Rent is a major fixed cost and stock ties up cash, so allow for slow months.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on location, stock range and whether you add rentals, repairs or lessons. Revenue is not profit, and seasonal peaks fall around back-to-school and the winter holidays.

Check your commercial lease terms, commercial general liability and contents insurance, and whether your municipality requires a business licence. Also check GST/HST registration and provincial sales tax rules with the CRA and your province.