Local electrical supplies shop and trade counter

Local electricians, builders, maintenance teams, landlords and homeowners who want advice and same-day supplies.

Margin on goods sold, with trade accounts and repeat customers making up much of the income. Adding delivery to local sites can bring in more orders.

• Knowledge of electrical products and trade needs
• Selling and building trade relationships
• Stock buying and cash flow management
• Customer service across the counter

• Lease terms, business rates and planning use class for the premises: check with the landlord and your council
• Money tied up in stock, plus the risk of slow-moving lines
• Product safety and marking rules (UKCA or CE, as applicable) and WEEE and battery obligations
• Public liability, product liability and stock and contents insurance; employer's liability once you hire
• Competition from large wholesalers and online sellers, so plan how you will stand out
• Offering credit to trade customers risks late or unpaid invoices

Startup costs are typically around £25,000 to £100,000, depending on the premises, lease deposit and opening stock. Monthly revenue is estimated at around £10,000 to £45,000, depending on your trade accounts and local demand.

Check lease terms, business rates and the planning use class of the premises with the landlord and your council. Also check product safety and marking rules (UKCA or CE, as applicable) and WEEE and battery obligations.

Money tied up in stock, slow-moving lines, competition from large wholesalers and online sellers, and late or unpaid invoices if you offer credit to trade customers are all worth planning for before you open.