Used machinery dealer with a small yard or unit

Start-up workshops, small manufacturers and repair shops that want working equipment for less than new, plus buyers who need a machine fast.

You earn the gap between purchase price (plus repair, storage and transport) and resale price. Some dealers also charge a fee for sourcing a machine, or sell on consignment for a commission.

• Judging machine condition and fair value
• Negotiating
• Basic mechanical or electrical know-how
• Online listing and customer service

• Startup budget: a first stock of several machines, a lease deposit and first months of rent, insurance and rigging or transport all need cash up front, so plan for a realistic float before you start
• Clear ownership: check for liens or unpaid financing before buying, for example with a UCC search in your state
• Safety: machines sold without guards or working controls can create liability, so check OSHA guidance and sell with clear written terms
• Insurance: general liability, plus coverage for stock, premises and any moving or rigging work
• Sales tax and resale certificate rules in your state, and whether a local business license is needed
• Tied-up cash: heavy machines can sit unsold for months, so budget for storage and transport

Startup costs are typically estimated at around $50,000 to $200,000, depending on how many machines you stock, your lease deposit, rent, insurance and transport or rigging. Plan a realistic float before you start.

Monthly revenue is typically estimated at around $5,000 to $25,000, depending on which machines you sell and how quickly. Heavy machines can sit unsold for months, so budget for storage and transport costs.

Check for liens or unpaid financing before buying, for example with a UCC search in your state. Review OSHA guidance on safety, sell with clear written terms, and check insurance, sales tax, resale certificate and business license rules.