Start a bicycle and parts distributor from a small unit

Independent bike shops, which pay for stock on trade terms.

You buy from manufacturers at wholesale prices and sell to shops at a margin. Earnings depend on order size, repeat business and how well you manage stock and delivery costs.

• Sales and account management
• Stock control and purchasing
• Managing cash flow
• Knowledge of bikes and the cycling trade

• Large stock purchases tie up cash, so plan your cash flow before committing
• Brand agreements may set minimum orders or sales targets, so read them carefully
• Credit risk: check new trade customers and agree payment terms clearly
• Check product safety rules for bicycles, e-bikes and batteries, including storage and transport of lithium batteries
• Check import duty, VAT and customs rules if buying from abroad
• Business rates, unit lease terms, and insurance for stock, goods in transit and public liability
• Employer's liability insurance if you hire staff

Startup costs are typically around £20,000 to £80,000, depending on your unit, how much stock you buy and the brands you take on. These are estimates, so plan your cash flow before committing to large stock orders.

Monthly revenue is typically around £15,000 to £60,000, depending on the brands you hold, how many shops you supply and your payment terms. This is revenue before stock, rent, business rates, insurance and wages.

Check product safety rules for bicycles, e-bikes and batteries, including storage and transport of lithium batteries, import duty, VAT and customs rules if buying abroad, brand agreement terms, insurance, business rates and lease terms, and employer's liability if you hire.