Local trade wholesaler with a small unit

Cafes, takeaways, convenience stores, offices, B&Bs and other small businesses that buy the same items repeatedly.

You buy in bulk at lower prices and sell in smaller trade quantities at a margin. Regular weekly or monthly orders and delivery charges on small orders add to the income.

• Stock control
• Building relationships with local businesses
• Pricing and cash flow management
• Delivery planning

• Rent, business rates and unit lease terms, read them carefully before signing
• Public liability, stock, goods in transit and motor insurance, plus employer's liability if you hire
• Food hygiene and storage rules if you handle food, check with your local council
• Alcohol and tobacco wholesale have registration and licence requirements, check with HMRC before selling them
• Late-paying customers, so consider credit checks and clear payment terms
• Slow-moving stock that ties up cash or goes out of date

Startup costs are typically around £10,000 to £40,000, depending on the unit you rent, how much stock you hold and your delivery set-up. These are estimates only. Slow-moving stock can tie up cash, so choose your product area carefully.

Monthly revenue is typically around £8,000 to £35,000, depending on your product area, customers and pricing. This is sales before costs, and the figures are estimates. Expect to commit at least around 30 hours a week, including delivery planning.

Check your unit lease and business rates, and insurance such as public liability, stock, goods in transit and motor cover. Check food hygiene and storage rules with your council if you handle food, and HMRC requirements before wholesaling alcohol or tobacco.