Local household goods distributor with a small warehouse

Independent grocers, dollar and variety stores, hardware stores, restaurants, hotels, schools and property managers that want one local supplier.

You buy by the pallet and sell by the case at a markup. Revenue grows with the number of regular accounts and the size of each order, and with reliable delivery routes.

• Business-to-business selling
• Inventory and order management
• Route planning and delivery
• Managing cash flow

• Check zoning and your city or county business license for a warehouse or storage space
• Check your state's sales tax registration and resale certificate rules, and how to handle tax-exempt buyers
• General liability, product liability, commercial auto and property insurance
• Workers' compensation insurance once you hire staff, and forklift or lifting safety rules
• Some products, such as chemicals and disinfectants, have labeling and storage rules, so check with suppliers and agencies
• Large stock purchases tie up cash, and some customers pay slowly

Startup costs are typically around $25,000 to $100,000, depending on warehouse rent, pallet-sized stock purchases, a delivery vehicle and insurance. These are estimates, and large stock orders can tie up cash, so plan carefully.

Monthly revenue is typically around $15,000 to $70,000, depending on your product range, pricing and how many stores and businesses you supply. Some customers pay slowly. This is revenue rather than profit, and these are estimates.

Check zoning and your city or county business license for warehouse space. Check your state's sales tax registration and resale certificate rules, including tax-exempt buyers. Also look at insurance, workers' compensation once you hire, and labeling rules for chemicals.