Local stocked supplier of lab consumables

Testing and quality-control labs, water and soil testing services, university and college departments, school boards, and small manufacturers with in-house labs.

You buy in bulk and sell at a markup, often with standing orders or account pricing. Delivery fees and small kitting services, like making up class lab kits, add extra income.

• Inventory management
• Knowing lab products and uses
• Business-to-business selling
• Supplier negotiation

• Stock ties up cash, so start with fast-moving items and avoid products that expire quickly
• Chemicals and some reagents have rules for storage, labelling (WHMIS) and transport (TDG), so check with your provincial and federal regulators
• Some chemicals are restricted or need extra paperwork to sell, so check before stocking them
• Commercial general liability and product liability insurance, plus insurance on your stock
• Imported items may involve duties and customs paperwork, so check with a customs broker

Startup costs are estimated at typically around $15,000 to $60,000, depending on your premises and the stock you hold. Stock ties up cash, so one option is to start with fast-moving items and avoid products that expire quickly.

Monthly revenue is estimated at typically around $8,000 to $40,000, depending on your customer base and the range you stock. Quick local turnaround is the selling point, but remember that stock ties up cash.

Check storage, labelling (WHMIS) and transport (TDG) rules for chemicals and reagents with provincial and federal regulators. Some chemicals are restricted or need extra paperwork, so check before stocking them. Check commercial general and product liability insurance, stock cover, and customs paperwork for imports.