Starting an Online Toy Store; a Quick Business Plan Guide

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! You may also consider dropshipping model for your online store to further reduce the setup and overhead costs.

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.

toy store business

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!

Here’s step by step guide to develop a solid startup business plan for your online toy store.

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!

You may also want to dig deeper into the niche, i.e. Educational and developmental toys for kids with learning differences, i.e. Autism, ADHD, etc can also be a good areas to focus on.

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, as all these contribute greatly in determining the profit margin and operating expenses.

market research

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 fulfill the legal requirements as per local regulatory authority.

In most parts of the world, legal requirements for an eCommerce business are fairly less complex than that of a physical business. Doing it yourself is the most cost effective option, but depending on your local laws you may need to hire help!

labor law

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.

find suppliers

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.

Business plan writing takes time and many experts suggest hiring a business plan writer. But, you need to do this only when you need a business plan to attract investors.

use financial software

To get your small scale online toy store operational and fully functional, you can start with a one page business plan that outlines your business objectives, strategies to achieve those and an action plan.

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. Though there are various free platforms that allow you to make a quick website, but it is not a good option for long run. Moreover, website development on a later stage when business is expanding can be complex, so the best way is to get it done rightly right from the beginning.

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.

So, your action plan should focus on:

action plan

Since, it’s online business, make good use of social media platforms, email lists, banners on community websites and pay per click advertising.

But do not underestimate the power of offline marketing that can amplify your online presence.

Wrapping it up!

With the above 6 steps, you are ready with an online toy store business plan. Even if you just document everything above in an effective and interesting presentation, 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.