Opening a toy store is more than just selling toys—it's about bringing joy to children, inspiring creativity, and becoming a beloved part of your community.
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Owning a toy store lets you make a positive impact on families, encourage imaginative play, and stay on top of the latest trends in toys and games. If you're ready to dive into this fun-filled journey, our comprehensive guide will walk you through every step to launch your successful toy store and become the go-to destination for fun in your area.
Before starting, it's important to understand the toy market. Research helps you make informed decisions and customize your store to meet your future customers' needs.
Begin by exploring local toy stores, big-box retailers, and online shops to see what's popular. Take note of their products, pricing, and customer engagement. Talk to parents, kids, and educators in your area to learn what types of toys they want to find.
Attending toy trade shows is another great way to learn about the latest trends. You'll meet manufacturers and might find unique products for your store.
Remember, toys are in demand year-round. While sales may increase during certain seasons, children have birthdays throughout the year, and parents often look for educational and fun products. Monitor year-round trends to stock your shelves appropriately.
Who will shop at your store? Are you serving toddlers, pre-teens, or teen collectors? Perhaps you want to focus on educational toys or eco-friendly products that appeal to environmentally conscious families.
Specializing in a niche can help you stand out. For example, offering wooden toys or STEM kits can attract customers who are looking for specific items they can't find elsewhere. By focusing on a particular segment, you build a loyal customer base interested in your offerings!
A thorough business plan outlines your goals, strategies, and how you plan to make your toy store successful.
Start with your vision. Do you see your store as a fun space with interactive play areas, or a sleek boutique showcasing the latest toys? Define your mission and how you plan to achieve it.
Your business plan should cover:
To effectively reach your target audience, you'll need to create a marketing plan that outlines your promotional strategies and sales tactics. Boost your efforts by incorporating proven marketing tips for small businesses, ensuring your plan delivers maximum impact.
You'll need to select a legal structure for your business. Many toy store owners choose a Limited Liability Company (LLC) because it offers personal asset protection and potential tax benefits.
Here's what you need to do:
Check local zoning laws, especially if you plan to host events or outdoor activities. Complying with legal requirements keeps your business running smoothly and builds trust with customers.
Securing the right funding and managing your finances wisely are key to your toy store's success. Without sufficient capital, you risk running low on inventory, missing marketing opportunities, or struggling with day-to-day expenses. Smart financial management empowers you to make informed choices, minimize costs, and stay ready for unexpected hurdles.
First, tally up your startup costs. Think about inventory, leasing a suitable location, store design, staffing, and marketing. The cost to open a toy store can start anywhere from $107,500 - $196,300. Once you have an estimated number, consider your funding options:
Set up a dedicated business bank account to keep your finances organized. This makes tracking expenses and filing taxes much easier.
Effective money management keeps your store healthy. Here's how to manage your finances:
Regular financial reviews help you make informed decisions, such as when to reorder popular items or adjust marketing efforts.
Choosing the perfect location for your toy store is important because it directly impacts foot traffic, visibility, and accessibility—all of which contribute to your sales and customer base.
Find a spot that's convenient and visible. Areas near schools, parks, or family-friendly neighborhoods are ideal. Look for a location with:
Consider the size and layout to ensure you have enough space for products, play areas, and events without feeling cramped.
Design your store to be welcoming and fun. Bright colors, eye-catching displays, and interactive elements encourage customers to stay longer and explore. Consider:
Attention to detail makes your store a place that kids and parents want to keep coming back to.
Equip your store with a point-of-sale (POS) system that does more than just handle transactions. The right system can help you:
Look for a POS system that's user-friendly and offers excellent customer support.
Curating a great inventory is essential because the products you offer define your store's identity and appeal. Having the right mix of toys not only satisfies your customers' needs but also differentiates you from competitors.
Choose a mix of products that cater to your target market and niche. Consider:
Stay updated on toy trends by subscribing to industry publications and following influencers in the space.
Parents need to trust that every toy on your shelf is safe for their kids. Ensure all products meet safety standards by:
By prioritizing safety, you build trust and encourage repeat business.
Spreading the word and connecting with your community is essential for building buzz and loyalty for your toy store. With the right marketing strategies, you'll not only reach new customers but also turn them into loyal customers who keep coming back for more fun!
Promote your grand opening and beyond with these strategies:
Boost customer engagement and drive traffic to your toy store with smart local marketing strategies. Maximize your online presence by using tools like Google Posts to make your business stand out in search results.
You can also attract more shoppers with exciting promotions, like a first-purchase discount or a loyalty program that rewards your regulars!
Turn your store into a community hub by hosting events such as:
Hiring a great team and delivering exceptional service are key ingredients for setting your toy store apart from the competition. Friendly, knowledgeable staff not only guide customers to the perfect toys but also create a welcoming atmosphere that keeps families coming back.
Look for team members who are:
Provide comprehensive training so they feel confident in their roles and can offer valuable assistance to customers. Additionally, organizing team-building activities can strengthen your staff's cohesion and improve overall service quality.
Strive to exceed expectations with every customer visit. Here's how:
Encourage feedback and use it to continuously improve. Just as customer feedback is important, gathering staff feedback through employee engagement surveys can help you understand and improve your team’s satisfaction. After all, happy customers are your best advocates!
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Additional resources and support can also make a significant difference in your employees' work experience. Use tools, like flexible scheduling and access to free development resources, to enhance employee support.
Opening your own toy store is a thrilling journey that blends your passion for play with the opportunity to make a positive impact on your community.
Watching children's faces light up as they discover new toys is one of the many joys of owning a toy store, and knowing you're creating lasting memories and learning moments makes it all the more rewarding. While the path may have its challenges, the rewards of running a successful toy business are endless.
As you focus on bringing joy to kids and families, let Homebase help you manage the administrative side of your business. With Homebase's employee scheduling and time tracking tools, you can effortlessly handle your staffing needs, ensuring that you and your team are always ready to provide the best service possible.
Sharon DiMinico had a "Eureka" moment following the birth of her second child in . She recognized something was missing for the parents and children in her local community. "I saw there was a real need for a unique store that could offer high-quality toys, books, and games for little children through preteens," she recalls.
DiMinico already had some retail and business experience and knew firsthand what parents were looking for when it came to raising their children. She wrote a business plan for a special kind of toy store and presented it to her children's nursery school in Acton, Mass., where she was a board member. Her idea was not only to provide needed resources to the children, but also to supplement the school's revenue. It worked, and then some.
In March , the school opened the first Learning Express store. Six months later, DiMinico opened a second store with her sister and two friends in nearby Needham. Inspired by an article about franchising she'd read in Inc. magazine, 3 years later DiMinico licensed the company's first franchise location, in Andover, Mass. In , she began a regional developer program that accelerated growth, and today Learning Express Toys is the nation's leading franchisor of educational toy stores, with 126 stores in 35 states.
"My father was an entrepreneur and instilled in us the belief that we could do anything if we worked hard," says DiMinico. "This company is my passion and my joy. And every day I continue to learn."
DiMinico says she was attracted to the franchising model for growth not only because of the Inc. article, but also because, she says, "I believe that owners of a business will work harder and do a better job than store managers of a business."
She cites her father as her best mentor and says he inspired her along her own path. "My father started his own company when I was seven years old," she says. "He was always very encouraging and supportive."
Learning Express is on track to do more than $100 million in revenue this year, and DiMinico hopes to continue a pace of opening 5 to 10 stores a year. The brand will also open a corporate location with the launch of a new children's activity center concept, Learning Express Play, which will open in June in Bedford, Mass. And, of course, DiMinico will be there cheering on the continued growth of a brand she has nurtured, loved, and developed since day one.
Name: Sharon DiMinico
Title: Founder, CEO
Company: Learning Express Toys
System-wide revenue: $95 million
No. of units: 126 stores in 35 states
International units: 0
Growth plans: 5 to 10 stores per year
Public or private? Private
Year company founded:
Year started franchising:
Your years in franchising: 25
What inspired you to start your business?
I owned a construction/retail business for 10 years before marrying my husband and starting a family. When I was shopping for my daughter's nursery with my sister, I was amazed at how exciting and moving it was shopping for a baby. At the register, I told my sister, "My next business is going to be a kid's business." I immediately understood how parents want to provide every opportunity for their children. I looked into furniture, gear, and clothing, but decided on toys. There were not many really great toy stores in my area so I felt the timing was just right.
What is your background? How did it prepare you for starting your business?
-71, National Geographic Society. -73, sales, design, and bookkeeping at Beacon Tile & Marble, where I learned all about business (I was an English literature major). -82, Upstairs/Downstairs Tile and Bath (design, sales, and installation of ceramic tile, marble, European plumbing and hardware, and retail sales of kitchen and bath furnishings and accessories), which I sold in .
What's the best and worst advice you got when starting out?
Best: Grow conservatively.
Worst: Don't do it!
Why did you choose franchising?
I believe that owners of a business will work harder and do a better job than store managers of a business. It was also a good way to grow nationally. In we started a regional developer program and went from a local, Massachusetts-only franchise to a national franchise with 13 regional developers.
How did you get started in franchising?
Right after opening the first Learning Express store for my children's nursery school in March , I read an article in Inc. magazine about franchising. Six months later, I opened my own store. Three years later, in September , I sold my first franchise.
Did you have a partner/co-founder when you started?
No.
What were the keys to funding your brand?
I used personal funds and grew the business slowly. Our regional developer program allowed us to become a national player.
What has been the best and the hardest thing about being an entrepreneur?
Best: Having an outlet for creativity.
Hardest: Expecting others to have the same passion and vision I do.
How has your experience in running a franchise business been different from what you expected?
I expected franchisees to have the same passion and energy level that I do.
How did you transition from founding a brand to leading a brand?
It was a natural progression. As the company grew, I tried to hire people who were better at their job than I could have been.
How would you describe your leadership style?
I try to set a good example, set the goals and expectations, and then get out of the way. I do not micromanage.
What is the key to your company's success?
I attribute our success to my team. They work hard and feel good about supporting our store owners and their families.
Was being female an advantage or disadvantage for you in building your company? How?
Definitely an advantage. Women are great at multi-tasking, and a lot of multi-tasking is required when starting and building a business.
Have you found specific advantages or disadvantages to being a woman business owner?
Not really. Perhaps only that our natural tendency is to "take care" of people. I feel I do a pretty good job with my co-workers.
What has been your biggest challenge as a woman entrepreneur?
Separating home life from work life.
Why do you think there are fewer start-ups with female founders than male ones?
I'm not sure. I recently read there are more women in medical school than men now. There are more women attending college than men. Living in Massachusetts, there are many, many women entrepreneurs, CEOs of large corporations, presidents of universities, etc. We're just getting started!
What do you think is the biggest issue for women in the workplace?
I've always found that being a woman in business is advantageous, even in my former construction business.
From a woman's perspective, what notable changes have you seen for women in franchising since starting your brand?
The biggest change is that there are a lot more of them. For me personally, I would have to say the Internet has changed business more than anything else. Back in , I didn't own a fax machine or a cell . There was no social media or , no Twitter, Pinterest, or Instagram. Business has gotten a lot more complicated.
Which female leaders do you admire?
If Condoleezza Rice were running for president, I would vote for her. I'm also impressed with Carly Fiorina and Sheryl Sandberg.
Has mentorship made a difference in your professional and personal life? How?
The only mentor I had was my father, who started his company when I was seven years old. He was always very encouraging and supportive.
Are you involved in any female entrepreneur organizations?
No.
What does your typical day look like?
At the office 10 a.m. to 6 p.m.; at the kitchen table on my computer 8 to 10 p.m. Meeting schedule every other week: Mondays I meet with our president, Kathy Troknya, to discuss issues that have come up since the last time we met. We also discuss our team and their needs. Monday afternoons I meet with the Learning Express Play development team, our new children's activity concept (weekly). Tuesday mornings I meet with our development team to review new stores that are opening, people in the pipeline, and contract and lease renewals. Wednesdays I meet with the buying team in the morning to review product selection for catalogs and the inventory mix for the new stores we are opening. Wednesday afternoons I meet with the marketing and graphics departments so we can anticipate our store and e-commerce needs for the coming weeks. In between these meetings I'm answering , talking to stores, meeting with vendors, etc. I work from our lake house on most Thursdays and Fridays.
How do you maintain a work/life balance?
For the first 13 years, my office was in a converted, antique schoolhouse on our property, so when the kids came home from school they could visit with me in the afternoon. When they were in high school, we moved the office to Devens, which was only 4 miles from home. We went to every soccer game and ski race. I missed one mother/ daughter tea when my daughter was in the 8th grade and I was at Toy Fair. That's pretty good!
What are your top 5 favorite things to do?
I love to work, read, cook, go to the movies, and have dinner out with my husband and friends. Also, I'm a new grandmother and love to see my two grandsons.
What's the most important lesson you've learned so far?
No matter what business you are in, the relationship with staff, store owners, customers, and vendors is paramount.
If you could do one thing differently, what would it be?
I've made hiring mistakes along the way. And I should have gotten into e-commerce earlier.
What's the best piece of advice you have ever been given?
My father told me, "If you never spend money, you'll never make money." I have a tendency to be too conservative.
What advice would you give to women considering starting their own franchise brand?
Go for it! Be prepared to work hard!
What would you like to achieve in the next 5 years?
To increase profitability for all our store owners, open 5 to 10 stores per year, and start franchising our new Learning Express Play concept.
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