Novelty and gift wholesaler with a small warehouse

Independent gift shops, tourist and souvenir stores, convenience and variety stores, market vendors, party suppliers and online sellers.

Markup on bulk-bought stock, with volume discounts for bigger orders. Repeat accounts, minimum orders and delivery or shipping fees add steadier income.

• Buying and negotiating
• Inventory and order management
• Building long-term customer accounts
• Basic bookkeeping

• Lease terms, zoning and the city or county business license for the unit: check with your local authorities before signing, as a license is likely needed before you trade
• Seller's permit or resale certificate rules in your state, and collecting sales tax from buyers without resale certificates
• Product safety and labeling rules for toys and children's items, and any import rules if you buy from overseas
• Insurance for stock, premises and general or product liability, and workers' compensation once you hire
• Cash tied up in inventory and slow-paying accounts, so consider payment terms carefully

Startup costs are typically around $40,000 to $150,000, depending on the unit lease, the range of stock and how much inventory you carry. Cash tied up in inventory is a key risk to plan for.

Monthly revenue is typically estimated at around $5,000 to $25,000, depending on your customer accounts and order sizes. Slow-paying accounts can strain cash, so consider payment terms carefully.

Check lease terms, zoning and your city or county business license before signing for a unit. Also check your state's seller's permit and resale certificate rules, product safety and labeling rules for toys, and any import rules.