Start a neighborhood flooring showroom

Homeowners doing renovations, landlords and property managers, and local contractors and builders who buy at trade prices.

You earn the margin between distributor cost and your selling price. Extras include underlayment, trim, adhesives and installation referrals or installation fees.

• Product knowledge of flooring types
• Measuring and estimating materials
• Sales and customer service
• Managing inventory and supplier accounts

• Lease costs and length, since rent is often the biggest fixed expense
• Sales tax registration and a local business license, check with your state and city
• If you offer installation, check whether your state requires a contractor license and whether you need extra insurance
• General liability insurance and workers' compensation once you hire staff
• Cash tied up in inventory and returns, so start with fast-selling products

Startup costs are typically around $40,000 to $150,000, depending on the size of the space, lease terms, display samples and how much stock you carry. These are estimates, so get local quotes for rent and inventory before committing.

Monthly revenue is typically estimated around $15,000 to $75,000, depending on location, product mix and how many contractor accounts you win. Revenue is not profit, so rent, inventory and staff costs come out of it.

Check with your state and city about sales tax registration and a local business license. If you offer installation, check whether your state requires a contractor license and extra insurance. Also check general liability, and workers' compensation once you hire staff.