Building And Construction Items Distributor

Success Stories

Pros & Cons

How Much Does It Cost To Start A Building And Construction Items Distributor? (In 2024)

Pat Walls

•

Updated: January 18th, 2023

Looking to start a building and construction items distributor?

But curious about:

how much it costs to start a building and construction items distributor?
what are the typical building and construction items distributor startup costs?
or the actual cost of starting building and construction items distributors?

Well, we have the data to prove it, supported by real building and construction items distributors and how much they actually cost to start.

Let's go over it.

Learn more about starting a building and construction items distributor:

Where to start?

-> Pros and cons of a building and construction items distributor

Need inspiration?

-> Other building and construction items distributor success stories

Other resources

Equipment & Supply Expenses

Starting a building and construction items distributor may require purchasing some equipment, whether that's for producing the product or packaging the goods, or equipment needed in the back office.

Cost	Required?	Min Cost	Max Cost
Cleaning Supplies ➜	Optional	$63	$200
Uniforms	Optional	$0	$500

Retail Business Expenses

If you plan to have a brick & mortar location for your building and construction items distributor, you must weigh the costs of your rent, as it may be the most expensive part of running your business.

Rent costs for your building and construction items distributor very much depends on your location. This cost will vary by both region and specific areas of town: a lease in the heart of Manhattan could cost over $80,000/month in rent. Meanwhile, a storefront lease in Florida or Tennessee could cost less than $1,000/month.

Cost	Required?	Min Cost	Max Cost
Building improvements and remodeling	Optional	$0	$950

Business Formation Fees

There are a few key costs associated with forming your business entity, such as setting up an LLC and getting trademarks, copyrights, and patents sorted.

Cost	Required?	Min Cost	Max Cost
Set up business: LLC & Corporations	Required	$50	$500
Small Business Insurance	Recommended	$500	$2,000
Permit and License Fees	Optional	$50	$700
Trademark	Optional	$0	$700
Lawyer Fees	Optional	$0	$1,500
A Patent ➜	Optional	$5,000	$15,000

Software Expenses

Your building and construction items distributor needs software to run efficiently!

Why spend money on software? Because it can help you save time and automate certain parts of the business, so you can focus on the most important matters. Software and technology can help you grow your business, and save you from expensive personnel costs.

Cost	Required?	Min Cost	Max Cost
Accounting & Invoicing Software	Recommended	$0	$50
Project Management Software	Recommended	$0	$25
Payroll Software	Optional	$0	$200

Office Space Expenses

It will be your call to determine if you need office space. It is not a requirement but may be necessary as your building and construction items distributor grows.

Cost	Required?	Min Cost	Max Cost
Rent ➜	Optional	$0	$5,750
Utility Costs For Office Space ➜	Optional	$0	$1,150

Employee & Freelancer Expenses

Cost	Required?	Min Cost	Max Cost
Payroll Costs & Fees ➜	Optional	$150	$250
Employee Hiring Expenses	Optional	$1	$2
Employee Rewards ➜	Optional	$0	$100

Inventory Expenses

If you sell a physical good, you'll likely have to start with some inventory.

Cost	Required?	Min Cost	Max Cost
Upfront Costs For Inventory	Optional	$300	$5,000
Inventory Storage	Optional	$0	$5,000
Package Design ➜	Optional	$50	$3,000
Shrinkage	Optional	$0	$1,000
Distribution costs	Optional	$0	$750

Vehicle Expenses

Cost	Required?	Min Cost	Max Cost
Mode of Transporation	Optional	$0	$10,000
Commute cost	Optional	$2	$4

Training & Education Expenses

Cost	Required?	Min Cost	Max Cost
Online Learning Sites	Optional	$0	$1,000
Consulting fees	Optional	$0	$1,000

Website Costs

Every business should have a website, and it's worth spending a bit of money to set it up right.

Cost	Required?	Min Cost	Max Cost
Domain Name ➜	Required	$12	$200
Business Email Hosting Service ➜	Recommended	$1	$15

Food Business Expenses

Cost	Required?	Min Cost	Max Cost
Initial Ingredients	Optional	$25	$500

Advertising & Marketing Costs

Cost	Required?	Min Cost	Max Cost
Business Signage ➜	Optional	$75	$2,486

Specific Industry Expenses

Cost	Required?	Min Cost	Max Cost
Handyman Tools	Optional	$0	$500

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