Local tool shop with a trade counter

Local builders, electricians, plumbers and joiners, plus homeowners doing DIY and landlords maintaining properties.

You buy from wholesalers and brands, then sell at a markup. Fixings and consumables bring repeat custom, while power tools bring bigger one-off sales. Trade accounts and a loyalty scheme help build regular income.

• Product knowledge of tools and fixings
• Customer service and friendly advice
• Stock control and buying
• Basic bookkeeping

• Check business rates, lease terms and whether the premises has the right planning use for retail
• Check rules for selling bladed articles and age restrictions with Trading Standards
• Check your duties under electrical product safety and WEEE rules when selling electrical tools
• Public liability insurance, plus stock and shop contents cover
• Stock ties up a lot of cash, so start with fast-selling lines and expand carefully
• Competition from large chains and online sellers on price

Estimates suggest startup costs are typically around £20,000 to £80,000, depending on the premises, fit-out and how much stock you buy. Stock ties up a lot of cash, so starting with fast-selling lines can help.

Monthly revenue is typically around £8,000 to £35,000 as an estimate, depending on location, range and how many local trades become regular customers. Competition from large chains and online sellers on price is worth considering.

Check business rates, lease terms and whether the premises has the right planning use for retail. Also check rules for selling bladed articles and age restrictions with Trading Standards, plus your duties under electrical product safety and WEEE rules, and insurance cover.