Computer parts distributor from a small unit

IT resellers, managed service providers, repair shops, system builders and small retailers who buy regularly and want quick local delivery.

You buy in volume and sell at a trade margin. Income grows with account customers, repeat orders and offering credit terms or delivery.

• Buying and negotiating with suppliers
• Stock control and basic bookkeeping
• Account management and sales
• Understanding which products trade customers need

• Cash tied up in stock and customers paying late, be careful with credit terms
• Suppliers may require minimum orders or trading history before giving good prices
• Electrical waste (WEEE) and product safety rules, check what applies to you
• Import duties, VAT and product marking rules if you buy from outside the UK
• Stock insurance, public liability and employer's liability once you hire
• Competition from big distributors, so choose a niche or service they do not cover

Estimates suggest startup costs are typically around £15,000 to £60,000, depending on your unit and how much stock you hold. Cash can be tied up in stock, and suppliers may require minimum orders or trading history before giving good prices.

Monthly revenue is typically estimated at around £15,000 to £70,000, depending on your stock, customer base and how often resellers reorder. Customers paying late is a risk, so be careful with credit terms.

Check what electrical waste (WEEE) and product safety rules apply to you. If you buy from outside the UK, check import duties, VAT and product marking rules. Also check stock insurance, public liability and employer's liability once you hire.