Paper exporter with a small warehouse

Overseas distributors, small printers and converters that want flexible order sizes and quick delivery from Canada.

You sell stock at a markup over your bulk purchase price, plus handling or packing charges where they fit. Margins improve with repeat customers and well-filled containers.

• Sales and supplier negotiation
• Inventory and logistics planning
• Managing cash flow

• Stock ties up cash and paper can be damaged by damp, so check storage conditions and insurance for stock and premises
• Check zoning and any business licence required by your municipality for a warehouse
• Check export permit, customs and destination rules for your products, including wood-based and recovered paper
• Overseas payment risk: consider letters of credit, deposits or export credit insurance
• WCB/WSIB coverage and workplace safety rules apply once you hire staff, and they vary by province
• Heavy handling, so plan safe lifting and equipment

Startup costs are estimated at typically around $25,000 to $100,000, depending on the size of the unit, how much paper stock you buy, and your equipment and insurance. Stock ties up cash, so plan your cash flow.

Monthly revenue is estimated at typically around $5,000 to $25,000, depending on stock levels, order sizes and how many overseas customers you serve. Overseas payment risk is worth planning for with deposits or letters of credit.

Check zoning and any business licence your municipality requires for a warehouse, plus export permit, customs and destination rules for your products, including wood-based and recovered paper. Also check WCB/WSIB coverage and safety rules if you hire staff.