Trade letterbox supplier to shops and builders

Independent hardware shops, small builders' merchants, builders, joiners, door and window fitters and property maintenance firms.

You buy in bulk at a lower price and sell in smaller quantities at trade prices, with margin coming from quick availability, local delivery and a good range.

• Building trade relationships and selling to businesses
• Buying and negotiating with suppliers
• Stock control and basic bookkeeping
• Reliable delivery and organisation

• Cash tied up in stock, so start with fast-moving lines and a small range
• Public liability and product liability insurance, plus goods in transit cover if you deliver
• Check the standards that apply to the products you sell, for example for security or fire resistance, and keep supplier paperwork
• Trade customers often expect credit terms, so check how you will manage late payments
• Storing stock at home or in a garage may need permission from a landlord or mortgage lender, and a unit has its own business rates and lease terms to check

Startup costs are typically around £3,000 to £15,000, depending on how much stock you buy and how you deliver. These are estimates only. Cash tied up in stock is a risk, so consider starting with fast-moving lines and a small range.

Monthly revenue is typically around £2,000 to £10,000, depending on how many shops, builders and fitters you supply and how often they reorder. These are estimates, not guarantees, and revenue is not profit after stock and delivery costs.

Check the standards that apply to the products you sell, such as security or fire resistance, and keep supplier paperwork. Also check insurance including goods in transit cover, how you will manage late trade payments, and any permission needed to store stock.