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How much money does it take

Question
How much money do I need in order to start a construction supply distribution business? 
Answer
Starting a new business will require you to maintain a reasonable living standard by drawing on savings or other similar financial resources for a year or more as you get your business established. It is not uncommon for start-up businesses to require several years to become profitable and self-sustaining.

You will also need working capital to run the business. For example, as a distributor, will you carry an inventory of products and supplies, or will you take customer orders for direct shipment from your supplier to the customer? If you carry inventory, you will likely need funds to purchase the products you sell to customers. After the sale, you may need to collect your accounts receivable. If you operate as an independent sales rep, you may be able to represent various equipment manufacturers, selling their products in your area and processing orders to the manufacturer. Such arrangements are typically paid on a commission basis.

If you have determined that there is a need and a market for these products and services, either business approach may work. Write a business plan and have experts review it with you. That will give you a better idea of how much money you will need. 
Brain Trust contributor: Author of Improving Performance Results
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