Used machine tool and tooling dealer

Start-up workshops, hobby and small-batch engineers, fabricators, agricultural and vehicle workshops, and schools or colleges.

You sell machines for more than you paid and cover the refurbishment cost. Extra margin comes from cutting tools, vices, measuring kit and delivery or installation fees.

• Judging the condition and value of machines
• Basic mechanical and electrical awareness
• Buying and negotiating

• Stock can tie up cash and be slow to sell, so start small
• Check the safety rules for supplying second-hand machinery, including guarding and electrical safety testing
• Public liability, product liability and stock insurance, and goods in transit cover
• Safe lifting and moving of heavy machines, and any training or equipment needed
• Check unit lease terms, business rates and whether your use is allowed in the premises
• Keep proof of ownership for what you buy and be clear about what warranty you offer

Startup costs are typically around £12,000 to £50,000, depending on your unit and how much stock you buy. Stock can tie up cash and be slow to sell, so it makes sense to start small.

Monthly revenue is typically around £4,000 to £20,000, depending on the machines, tooling and consumables you sell. This usually needs around 25 hours a week or more, and sales can be slow.

Check the safety rules for supplying second-hand machinery, including guarding and electrical safety testing. Check public liability, product liability, stock and goods in transit insurance, plus your unit lease terms, business rates and whether your use is allowed.