An online toy store can be a lucrative business, because no matter how the economy is going on, parents love to see the joy on child’s face that a brand new toy brings. It’s not just child’s birthday when the purchase is intended, but it can be a holiday gift or a present on an achievement too.
So, if you have a desire to operate your own toy store, but lacking investment, starting it online can solve most of your financial matters and provide you a smooth start!
Just like any other new business, an online toy store requires strategic planning and proper execution in marketing, operations, buying, management and financial know how, as well as customer service skills.
This article will help you remove the financial barriers with strategic moves, so you can create a fool proof business plan for your online toy store. But you must not compromise your passion and dedication, because once the toy store business is operational, it needs all your attention and loads of energy!
Step 1: Do the Needful Research
First and foremost, you need to find out what types of toys are popular for girls and boys of different age groups. Also consider the parent’s view point, as they’ll be the actual buyers. Everything that has an educational aspect is eco-friendly is a great choice!
Step 2: Identify the Target Market
Whether you want to sell in one city or want to target people nationwide, chose carefully. Consider the factors like delivery options, income groups etc.
Step 3: Get the Legal Stuff Done
Once, you are sure, what and to whom you have to sell, naming your business can be easier. The next step is to get your business name registered and fulfil the legal requirements as per local regulatory authority.
Step 4: Find the Suppliers
Well, this is most important part, because finding a supplier is really tricky. Look for suppliers with unique and valuable toy products, like this C shape surfing baby scooter by Fascol will be a more attractive option for kids and parents than an ordinary design. Consider a supplier with variety of unique stuff. Inquire if they offer drop shipping, that’s going to ease lot of your pain!
While finalizing the suppliers, communication is very much important. Do not assume things, ask them for each and every detail and make sure everything is clear when finalizing terms and conditions.
Step 5: Plan & Document the Financials
Start with creating a budget for your toy store business. Analyze, how much money is required to get started. Calculate the differences, i.e. what you have in hand and how much you need to borrow. Also elaborate the expenses that you are going to incur on website maintenance, marketing materials, hiring a staff, purchasing inventory and supplies, and insurance etc.
Step 6: The Action Plan
Once you are clear about forecasting, there’s nothing to wait! Get started with the website development first and take your online store live. You even don’t need products to be physically available to start marketing, i.e. you can chose for drop shipping. So, what you need to focus more on is marketing and sales.
Since, it’s online business, make good use of social media platforms, email lists, banners on community websites and pay per click advertising.
With the above 6 steps, you are ready with an online toy store business plan. Document everything in an effective and interesting presentation and your online toy store business plan is ready to be presented to investors.
A business plan is a plus when you look for investment, but it never ensures that investor will fund your startup. But one thing business plan does ensure, i.e. it gives you the right track to operate your business, so it can prove to be a success.
Start working on your action plan and as your marketing efforts start working, you will start receiving customers. Make sure to satisfy early customers and they will refer more people. Reward the referrals with some % off or a free gift or anything that works better for your target market.