Local building materials yard

Local contractors, masons, landscapers, DIY homeowners and small developers who want fast pickup and local service.

Markup on materials sold at the counter, plus delivery fees. Trade accounts with regular customers bring steady repeat orders.

• Stock control and ordering
• Sales and customer service
• Knowledge of building materials
• Managing a small team

• No single industry license is usually required to sell building materials, but check with your city or county about a general business license, zoning approval, a certificate of occupancy and any permits for outdoor storage, plus stormwater and dust rules
• If you deliver with heavy trucks, check federal and state rules on commercial driver's licenses, vehicle registration and weight limits with your state DMV or transport department
• General liability, commercial property and workers' compensation insurance once you hire
• Equipment safety: forklift operators need training under OSHA rules
• Cash tied up in stock, and bags spoil if they get wet or sit too long
• Sales tax registration and resale certificate rules in your state

Startup costs are typically around $40,000 to $150,000, depending on your premises, the amount of stock you carry and whether you add delivery vehicles or equipment. This is an estimate, and cash tied up in stock is worth planning for.

Monthly revenue is typically around $15,000 to $60,000, depending on your location, product range and how many contractors and homeowners buy from you. This is an estimate of revenue, not profit, and it assumes at least about 40 hours a week.

Check with your city or county about a general business license, zoning, a certificate of occupancy, outdoor storage permits, and stormwater and dust rules. Also check commercial driver rules for heavy trucks, OSHA forklift training, insurance, and sales tax registration and resale certificates.