During this year the toy industry received a great boost in the United States. And, although this has coincided with the need to stay at home, there are studies that claim that it will continue to grow for several more years. So it is a business opportunity for Hispanic entrepreneurs. Here we leave you one guide to opening a toy store if you are interested in this sector.
Sector projection
Are you interested in knowing how to open a toy store? If you want to invest in this industry, you should know what the projections are for the next few years. It is a profitable sector because it is always evolving; Furthermore, parents are willing to buy their children's favorite toys to see them happy.
According to a report from the NDP Group, the toy industry grew 19% during the first three quarters of 2020. The reasons for this boost can be found in changes in consumer behavior, they indicate. The quarantine forced the closure of public places and the children were forced to stay at home, so they needed something to entertain themselves.
In the same report they point out that the categories with the highest growth were:
- Games and puzzles (+42%).
- Outdoor and sports toys (+31%).
- Building sets (+ 30%).
And although representatives of the group that produced the report point out that there may be a decline in 2021, other studies predict considerable growth between 2020 and 2026. The Toy Market Report 2020 indicates that growth will be constant in the coming years.
If you want to be successful in this sector, you must keep track of trends and children's tastes.
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Guide to opening a toy store
While it is profitable to open a toy store planning is the foundation of success. So you must start by having a good business plan.
In the plan you must include the types of toys that you are going to sell, so you must know well the market demand. You must also define the target audience; In this sense, you must bear in mind that, although children are the end users, their parents are the real customers.
Calculate the budget you need and how much financing you should ask for.
The business plan of a toy company should also include where the business will be located, choose a site where children travel frequently. Finally, include what will be the marketing plan to promote the business.
How much does it cost to open a toy store
Opening a toy store can be expensive, so you must do the calculation of what you need before starting.
In addition to the money you need to register the business and get the necessary licenses, there are other expenses to consider. Among these we can mention:
- Rental of the premises.
- Cost of toy licenses when applicable.
- Purchase of toys from suppliers.
- Payment of salaries for store personnel.
- Investment in the website and digital marketing, among other expenses.
Possible start a toy store with little money if you consider a suitable strategy. For example, starting in a specific niche like educational toys. And from there go climbing.
Alternatively sell toys online, with which you save part of the expenses. This is a good option if you make the products you are going to sell yourself.
Requirements to open a toy store
Like any other business, there are a series of requirements that you must meet to start your store. The first thing is to register the business, the process and the cost of this process will depend on the state where you are going to do it.
After this you will need to get the business license, signage permit, sales tax license, fire department permit, etc. The Secretary of State's office will give you all the information you will need.
You should also find out the requirements that are required locally and federally.
Although you can find out all this information yourself, it is convenient that you seek advice so as not to overlook anything. You can also check with your registered agent.
Tips to start your business
Finally we would like to give you some tips to sell toys, take note of them:
- Look for reliable suppliers, explore well the options you have to get the best value for money.
- Providing a good customer experience will be your best ally. Make your store a kid-friendly place.
- Learn about the sector and stay informed about the market. This will allow you to better advise buyers who come to the store.
In this guide to opening a toy store we offer you the basic information to start your business. If you are looking for advice or want to know your store, do not hesitate to contact us.
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