Tips on How to Open a Toy Store

Proper inventory management is important in the toy store business. Ordering the right products, stocking and selling popular toys can increase the business profitability. Profitability depends on many factors such as cost of toys, regular patronage and operational costs.
Over the years big box toy stores have competed to open retail stores or connect with distributors. Variable estimates in recent years from 2012 to 2018 are 2.5 to 4.5 percent.
A store owner should be people oriented, interested in toys and collectibles. They need proper networking, distribution deals and unique ideas.
toy store
How does a toy store make money?
The store makes money through the sale of toys. They can focus on personalized services, home delivery, vending machines, and paid store games.
         Sale of toys
         Focus on personalized services
         Home delivery
         Vending machines
         paid store games
Steps to Opening a Toy Store
The first step is to write a business plan. Make sure you form a legal entity, register for taxes and open a business bank account.
Other steps involve setting up a business account and getting insurance cover. More considerations are establishing a web presence, define your brand.
         Write a business plan
         Form a legal entity
         Register for taxes
         Open a business bank account.
         Setting up a business account
         Get insurance cover
         Establish a web presence
         Define your brand
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Cost of opening a store
The cost of opening a store depends on many factors. The costs include location, type of inventory, local taxes, insurance, leasing. Others are cost of customizing the store, staff wages, advertisement.
         Cost of location
         Type of inventory
         Local taxes
         Cost of customizing the store
         Staff wages
Learn the trade
You need to have previous experience working in a toy store or hospitality industry. It is important to have quality mentorship and basic business knowledge. Learn through apprentice programs, seminars, trade workshops.
         Gain experience
         Get quality mentorship
         Attend seminars, trade shows
         Develop business knowledge
Toy store expenses are utilities, rent, and staff wages. Others include insurance, local government levies, advertisement costs. More are cost of decoration, phone calls, store expenses and transportation.
         Staff wages
         Advertisement costs
         Store expenses
         Purchase of inventory
         Government levies
The manufacturer fixes the retail price of the toy. Therefore charges depends on the price of each toy.
The toys attract very small margins and stores need to sell huge volumes. There are low cost toys and expensive toys. some stores supplement income by selling non toy related merchandise.
To operate a store out of a physical location you can acquire the property or lease. To purchase the property you need a certificate of occupancy. The business should conform to zoning requirement and building codes for renovations.
Legal Requirements
You need a license and permit to operate. The business requires sales tax on the products. Register the business as a limited liability company and you need local licensing.
Many smallholder stores are one man businesses. However retail business requires a store clerk, bookkeeper, cashier, store manager. The size of the store would determine the number of employees you hire.
Get repeat customers
To keep customers coming back you can offer home delivery and toy storage. Other ways to encourage repeat patronage sell video games, offer sweets, promotions and public demonstration. A good strategy includes advertisement, discounts.
The business is highly competitive and you need an effective marketing strategy. Use newspaper advertisement, social media, deals. Focus on holidays, special occasions and birthdays. Build a website or online store to push your products and use customer reviews


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