Local steel stockholder with a small yard

Local fabricators, builders, farms, engineering shops and contractors who need steel at short notice in small quantities.

You buy in bulk and sell at a margin, with extra income from cutting, drilling and delivery. Fast stock turnover matters more than any single sale. In the first year, with one or two people and a modest stock, sales are likely to build gradually as you win regular trade accounts.

• Knowledge of steel grades and sizes
• Stock control and buying
• Sales and trade customer service
• Safe handling of heavy materials

• Stock ties up a lot of cash and steel prices can fall after you buy
• Lifting equipment and forklifts need training and regular inspection, check your duties under health and safety rules
• Check whether the premises have the right planning use and whether business rates apply
• If you run vehicles over 3.5 tonnes, check whether an operator licence is needed
• Public liability, employer's liability once you hire, and stock and goods in transit insurance
• Offering cutting or processing may bring extra rules on equipment safety, check before you start

Startup costs are typically around £25,000 to £100,000, depending on the unit and how much stock you hold. These are estimates. Stock ties up a lot of cash and steel prices can fall after you buy.

Check your duties under health and safety rules for lifting equipment and forklifts, which need training and regular inspection. Check the premises' planning use and business rates, and whether an operator licence is needed for vehicles over 3.5 tonnes.

Monthly revenue is typically around £10,000 to £45,000, depending on your stock range and trade customers. Check insurance too, including public liability, employer's liability once you hire, and stock and goods in transit cover.