Start a spice wholesale distribution business

Restaurant groups, ethnic and specialty grocers, food manufacturers, butchers, bakeries and catering companies.

Margin on bulk purchases sold at wholesale prices, with higher volumes and standing orders from larger accounts. Specialty and imported lines can earn better margins.

• Sourcing and negotiating with suppliers
• Sales and account management
• Inventory control and basic bookkeeping
• Managing deliveries and possibly staff

• Check with the CFIA whether you need a Safe Food for Canadians licence, particularly if you import food or trade between provinces
• Provincial or municipal food premises approval and inspections by the local public health unit
• Bilingual labelling rules, and French-language requirements in Quebec
• Commercial general liability, product liability and stock insurance
• WCB or WSIB coverage once you hire staff, with rules varying by province
• Cash flow pressure from stock purchases, lease costs and customers paying on credit terms
• Exchange rate and shipping cost changes if you import

Estimates suggest startup costs typically around $25,000 to $100,000, depending on the unit lease, stock purchases, packaging and delivery setup. Cash flow can be tight because of stock costs and customers paying on credit terms.

Monthly revenue is typically estimated at around $8,000 to $40,000, depending on your range, customer base and delivery area. That is revenue, not profit. If you import, exchange rate and shipping cost changes can also affect results.

Check with the CFIA whether you need a Safe Food for Canadians licence, especially if you import or trade between provinces. Also check food premises approval, bilingual labelling and Quebec French rules, insurance, and WCB/WSIB once you hire staff.