Toys will never go out of fashion. The demand for toys will be there as long as there are kids. In short, it’s a business whose demand curve is unlikely to slope downwards. Opening a toy store is a great idea and a well written business plan will ensure what you have in mind is translated into reality. Things that demand intensive focus in the plan are:
It is imperative that you are very clear about what you have in mind right from the onset, giving attention to:
1. Your Area of Interest: ‘Toys’ is a generalized term that encompasses a broad spectrum ranging from entertainment product for kids (stuffed toys, dolls, miniature models of animals, etc.) to digital elements like video games. Be specific about your target audience. Would you want to open a store that caters exclusively to toddlers, kids, young adults, or all three?
2. Your mission: Why do you want to open a toy store? Is profit the sole motive or along with profit, do you really like seeing the joy on the kids’ faces when they get a loved toy?
Your toy store for all intents and purposes is going to face tough competition. Factors like who are your nearest competitors, the market share of your nearest competitors, value added services provided by your competitors, their strength and weakness, and their target market, all these factors should be given careful thought.
Not only your business but the industry you operate in also needs assiduous attention. Year-round demand invariably translates into heightened competition.
You need to take into consideration:
– Profit Opportunities: How are you going to make a profit and how long will it take to break even? Can you expect a discount from your supplier which will make it easier for you to pass on the benefit to your customers? Care should be taken while selecting your staff.
– Technology: It is naive to expect the toy industry to remain isolated from the effects of rapid technology changes. With the explosion of personal computers, tablets, and mobile phones, games are becoming hi-tech. Be very clear about whether you will be keeping video games machines, game consoles, or PCs in your shop, since those are most likely to draw in both young and adult crowds. Remember that all these machines need big investment. Be very careful and updated of the present and the emerging technologies and the road ahead for your business.
Don’t fail to take legal issues into account. There have been instances where toys had to be recalled since they contained chemicals that posed acute health hazards. Also, pay very close attention to the marketing and sales plan that will deal with the ways and means of reaching your target audience and enticing them to your stores.