Local fixings supplier with a small unit

Local builders, joiners, maintenance teams, small manufacturers and workshops that need steady supplies of fixings.

Margin on bulk sales of fixings, with regular account customers and delivery charges adding to income. Larger repeat orders from manufacturers improve cash flow.

• Good product knowledge of fasteners
• Negotiating with wholesalers and manufacturers
• Stock control and bookkeeping
• Building trade relationships

• Stock ties up cash, so start with fast-selling lines
• Check business rates, planning use class and lease terms for any unit
• Public liability and stock or contents insurance, plus employer's liability once you hire
• Offering credit to trade accounts carries a risk of late payment, so check customers before agreeing terms
• Check whether you need to register for VAT as turnover grows
• Check safe handling of heavy boxes and any van you use for deliveries

Startup costs are typically around £8,000 to £40,000, depending on the unit, the range of stock you hold and whether you buy a delivery van. Stock ties up cash, so starting with fast-selling lines is worth considering.

Monthly revenue is typically around £4,000 to £20,000, depending on your range, how many trade accounts you win and whether you supply small manufacturers. This is an estimate of turnover, not profit.

Check business rates, planning use class and lease terms for any unit. Check whether you need to register for VAT as turnover grows, and check safe handling of heavy boxes and any van you use for deliveries.