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

Updated: January 18th, 2023
Start A Building And Construction Items Distributor

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
-> Examples of established building and construction items distributor

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