Local trade counter for locks and hardware

Locksmiths, builders, maintenance teams, property managers, housing associations and some walk-in customers.

Margin on stock sold over the counter and on account. Trade accounts, regular orders and local delivery bring repeat business.

• Product knowledge of locks and door hardware
• Stock control and supplier negotiation
• Building trade relationships

• Stock ties up a lot of cash, so start with fast-moving lines
• Check business rates, lease terms and planning use for the premises
• Check insurance for stock, theft and public liability, and security for the premises, since you are holding security products
• Customers on account may pay late, so check credit terms and consider credit checks
• Check that products meet relevant standards and are described accurately

Startup costs are typically around £10,000 to £50,000, depending on the unit, the amount of stock you hold and your insurance and security. These are estimates. Starting with fast-moving lines can limit the cash tied up in stock.

Monthly revenue is typically around £4,000 to £20,000, depending on your range, location and how many trade accounts you win. Customers on account may pay late, so treat these figures as estimates and plan your cash flow.

Check business rates, lease terms and planning use for the premises. Also check insurance for stock, theft and public liability, security for the premises, credit terms for account customers, and that products meet relevant standards and are described accurately.