2 answers
kayla
Student
San Luis, Arizona
2
Questions
Asked
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What are something I can do to open a small toy shop?
If i wanted to open a toy shop where should I start? Who would I need to be involved with in the business?
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2 answers
david kirk
Retired Computing Manager
472
Answers
Syracuse, New York
Updated
david’s Answer
Hi, Kayla,
Running a toy shop sounds like fun. And you would enjoy all the little customers browsing the toys. Starting a business, though, is always a bit tough. It doesn't seem to matter whether it's a toy shop or a large enterprise, some steps are similar, but different in scope. Some possible items to consider:
- you would need a business license
- you would need a bank account for "Kayla's Toy Shop" - that's different than a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need written agreements with toy manufacturers and distributors to process your orders for inventory.
- you will need a line of credit from the bank, so you can purchase toys prior to selling them.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory and refunds.
- you will need to buy appropriate shelving and other furniture for the store
- you will need professional assistance in creating ads for the store.
- you will need to advertise in multiple media to announce your store and ongoing sales.
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the store begins to stabilize with inventory rollover and customers.
However, with all that, if it feels right and the neighborhood seems right, it can be a source of endless smiles. All the best to you in your pursuits.
Running a toy shop sounds like fun. And you would enjoy all the little customers browsing the toys. Starting a business, though, is always a bit tough. It doesn't seem to matter whether it's a toy shop or a large enterprise, some steps are similar, but different in scope. Some possible items to consider:
- you would need a business license
- you would need a bank account for "Kayla's Toy Shop" - that's different than a personal account.
- you might need a tax id from the Federal government
- you need business liability insurance and business property insurance
- you need a business phone number
- you need to rent space and probably have a minimum one-year lease.
- you probably need a tax accountant
- you will need written agreements with toy manufacturers and distributors to process your orders for inventory.
- you will need a line of credit from the bank, so you can purchase toys prior to selling them.
- you will need to hire at least one employee to ensure the store is always open.
- you will need an appropriate software accounting system to track payments, inventory and refunds.
- you will need to buy appropriate shelving and other furniture for the store
- you will need professional assistance in creating ads for the store.
- you will need to advertise in multiple media to announce your store and ongoing sales.
- you will need sufficient cash for initial obligations, and enough in savings to handle all costs for the first few months until the store begins to stabilize with inventory rollover and customers.
However, with all that, if it feels right and the neighborhood seems right, it can be a source of endless smiles. All the best to you in your pursuits.
Thank you, david for the advice.
kayla
Tyghe Boone-Worthman
Strategy Program Manager
10
Answers
Denver, Colorado
Updated
Tyghe’s Answer
Hi Kayla,
I would suggest starting by creating a business plan, if this is something you are serious about. Doing that will give you three advantages: 1) clarifying for yourself how you will go about setting up your business and what you will do to make sure it is successful, 2) ensuring you understand whether there is a true need for a small toy shop in the area you want to open it, and 3) will help you get investment/loans. There are a lot of resources online to help you build one. I would also suggest going to your local library and talking to a librarian: they often have lots of good sources.
As far as who you would be involved with in your business, that kind of depends. The biggest one I can think of, on an ongoing basis, would be one or more manufacturers/suppliers/distributors of toys for you to sell at your store. I don't know anything about this specific industry, so what I would suggest is using Google to search for other small toy stores in different areas and reach out to them. Tell them you are thinking about starting a similar business and want to know if they would be willing to take some time to answer questions about there business. They should have a lot more insight than anybody else into that type of business. You can also try searching LinkedIn for owners of small toy shops and reach out.
You can also try reaching out to some toy manufacturers/suppliers/distributors to see if they have any insight they can give you.
Hope that helps!
I would suggest starting by creating a business plan, if this is something you are serious about. Doing that will give you three advantages: 1) clarifying for yourself how you will go about setting up your business and what you will do to make sure it is successful, 2) ensuring you understand whether there is a true need for a small toy shop in the area you want to open it, and 3) will help you get investment/loans. There are a lot of resources online to help you build one. I would also suggest going to your local library and talking to a librarian: they often have lots of good sources.
As far as who you would be involved with in your business, that kind of depends. The biggest one I can think of, on an ongoing basis, would be one or more manufacturers/suppliers/distributors of toys for you to sell at your store. I don't know anything about this specific industry, so what I would suggest is using Google to search for other small toy stores in different areas and reach out to them. Tell them you are thinking about starting a similar business and want to know if they would be willing to take some time to answer questions about there business. They should have a lot more insight than anybody else into that type of business. You can also try searching LinkedIn for owners of small toy shops and reach out.
You can also try reaching out to some toy manufacturers/suppliers/distributors to see if they have any insight they can give you.
Hope that helps!
Thanks for your encouragement!
kayla