Hi-fi shop with demo room and installation

Households wanting to hear equipment first, enthusiasts upgrading, and people wanting a tidy installed system.

Margin on equipment sold, paid installation and setup visits, and sales of cables, stands and accessories. Some shops add repairs or trade-ins.

• Strong product knowledge
• Sales and customer service
• Setting up and wiring audio systems

• Commercial lease terms, deposits and business rates, so check what you would owe
• Brands may require minimum stock purchases or set standards for dealers
• Stock is a big upfront cost and slow sellers tie up cash
• Public liability, stock and contents insurance, plus employer's liability if you hire
• Consumer rights on returns and faulty goods, and WEEE recycling duties for electrical retailers

Estimates for this idea are typically around £15,000 to £60,000, depending on premises, lease deposits and how much stock you buy. Stock is a big upfront cost, and slow sellers can tie up cash, so plan your buying carefully.

Monthly revenue estimates are typically around £4,000 to £20,000, depending on location, stock range and how many customers you attract. That is revenue, not profit, so rent, business rates and stock costs come out of it.

Check commercial lease terms, deposits and business rates, plus any minimum stock or dealer standards set by brands. Also look at public liability, stock and contents insurance, employer's liability if you hire, consumer rights on returns, and WEEE recycling duties.