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Toy Business Idea

Whether you want to sell your own uniquely designed toys or open a retail toy store, learning how to start a toy business is just the beginning of what could turn into a highly prosperous small business opportunity.

As you begin to think about how to start a toy business, you need to decide how you want to sell toys. Below are three proven ways:

1. Design and sell your own toys. You will need a prototype for each toy and financial backing. If you choose this route, be sure to hire a trademark lawyer who can walk you through the legal process of protecting your intellectual property. If your toy design is innovative or complex, you may also want to file for a patent for some or all of your toy design.

2. Operate a retail toy store. Look at franchise opportunities, existing stores for sale, or start from scratch. If you start from scratch, find toy suppliers to fill your store shelves.

3. Run a mail order toy business from your home. Look for opportunities from reputable companies.

No matter which business model you choose to pursue, you will need a business license. Also contact your local and state tax authority to learn about the state sales taxes you may be required to pay.

If you plan to run your business from home, call the local zoning board to find out if you can legally run a home business and apply for a zoning variance if needed.

Success In How To Start A Toy Business

Toys are always popular, but getting the word out about your business will be the most difficult challenge you face. As you learn how to start a toy business, think about ways, both conventional and unconventional, to let people know about your toys.

It is important for a retail store to be in a location that already attracts shoppers. It also should be some distance, preferably two miles or more, away from any other toy store. Colorful ads and fliers should be used as often as possible to attract attention to your store.

If you design your own toys, you will find the greatest profit potential will be to eventually sell them to established toy companies. Again, seek the advise of an experienced attorney to protect your interests.

Millions of sales are made through mail order catalogs each year. To cash in on some of those sales, you don’t want to spend a lot of money mailing catalogs to people who are not going to buy. Instead, buy targeted mailing lists.

There are lists available for almost any demographic, including new parents, single parents, grandparents, and related market segments. High quality lists are made up of people who have bought similar items in the past and are most likely to make toy purchases.

Finding Customers To Buy Your Toys

In addition to printed advertising, a little creativity can make your toy store a huge success. Toy stores often enhance customer recognition by hosting charity events or donating to relief organizations.

Loyalty and reward programs keep new customers coming back. Carrying new lines of toys keeps interest fresh. Direct mail is an excellent way to target potential customers, whether you are a mail order house or a retail store.

Growing Your Toy Business

The more you learn about how to start a toy business, the more familiar you will become with related items that will also appeal to toy buying customers.

Perhaps an inventory of children’s clothing would be a good sideline. Another product line with profit potential might be children’s books. Related sideline products should appeal to the same group that buys toys.

The toy business is competitive, but if you plan wisely and offer buyers something they can’t get anywhere else, you can come out ahead of the competition.

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