How to Start a Baby Store

Sunday, April 13, 2014

How to Start a Baby Store

By opening a baby store, you can help expectant parents and family members get the supplies and clothing they need for their little ones. If you enjoy children, this can be a very fulfilling business and it can be extremely lucrative at the same time. Babies require many different goods and the supply will keep on coming. Many people find joy in looking at baby items and shopping for baby gifts. So, why not be the one to supply those popular items. Before opening up a baby store, make sure to get to know what products sell best, and learn the guidelines that will lead you to success.

Instructions:

Creating a Plan for Opening a Baby Store

Create a plan for what type of setup you would like to use for your store. It can be helpful to visit various baby stores in order to see what stands out as most impressive to you and what doesn't. Take notes on what you like, such as using bright colors or certain baby themes. While some may want to keep it simple, others may enjoy the look of paintings on the wall, such as, nursery rhymes or fairy-tale themes. Many options are available when it comes to designing a baby store.

Study products that sell. Basic necessities, toys, and furniture are just some of the items you could sell. However; it's important to decide what kind of products you would like to sell and look into what items seem to be most sought after. It's also essential that you look into different types of brands. If you are going to sell cribs or car seats, make sure no recalls are out on the items that you are selling. Overall, it's important to put safety first when starting a baby business.

Pick a location that is near a busy intersection or that can easily be seen by the public. It's also sometimes best to rent rather than purchase property, especially during low economic times. Overall, it may be smart to sign a short lease when just starting out. This way you can give your company time to grow and see if your business becomes relatively profitable.

Consider purchasing a franchise. Purchasing a franchise provides many benefits. The company will take the time to help you with setting up the store, provide professional training, information on inventory guidelines, options for computer programs and advertising for getting started. If you want to be successful, it's important to learn what it takes and a franchise may be the key to your investment. Just remember to soak up all the benefits you can from them by getting all of your questions answered.

Save enough money before starting your baby business. It's helpful to have approximately six months of monthly fees saved for operating your business and paying any necessary employees in which you plan to hire. This gives the store time to grow before expecting a steady income. Keep in mind, as with any business, unexpected accidents might occur, so be sure to be financially prepared by setting money aside. Having this money set aside also will help show your business lender that you are financially prepared.

Acquire a business license. Opening up a baby store will require getting a business license. The rules and regulations will vary depending on your state and locality. Use a website such as the government's Business website and enter in your information to get the forms you will need to get your business license or permit (see References). You also will receive information on getting a tax ID, which you can use for paying your business taxes.

The Technical Details of Starting a Baby Store

Gather all the documents you need for a business loan, if necessary. If you are in need of a loan to get your business up and running, it's best be prepared when applying. Remember that lenders want to know your situation and what entitles you to a loan before gaining your trust. The documents you will need are: A business plan, which is a detailed plan of why you need the money and how the money will be spent; Cash flow projections, which is proof that you will be able to pay back the loan and is the most important information a lender will need; Financial status, which is a list of your assets and debts, as well as income; and a credit report.

Shop around and look for wholesale distributors to fill your inventory. Many various wholesale products can found and purchased online. Take time to compare prices to get the best deals on your inventory supplies. Or if selling used items, you can offer credit for gently used baby clothes and equipment.

Talk to your franchise about the types of insurance you should get for protecting your small business. They will let you know what your options are and what type of protection is necessary.

Tip

Choose a particular niche to drive traffic to your business. For example, you may want to convey the image of a high-end baby retailer or you may want to sell used clothing.

Warning

Setting up a baby retail store will not be quick. You should expect to devote 12 to 18 months to this process and have cash reserves on hand in case you are not profitable right away.

References

Opening a Baby Store

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1 comment:

Baby ShopDecember 11, 2013 at 8:39 PM
Baby Shop, Baby Store, Baby Store Business, How to Start a Baby Store
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Easy Tips and Ideas to Start Business

Although anyone can start a business, many people fail because of a bad product or improper research. If you want to start your own business, you can improve your chances for success before you even begin. In order to make your business successful, start strong and make sure that your idea will hold out for the long haul.

Have a Good Product

Ensure that you plan to sell something useful. Although you may think that your product is important or special, that doesn't mean the general public will agree. Ask friends, family and strangers what they think of your product. If they don't seem that interested, ask them why. With their suggestions, you can either improve the product or scrap the idea completely. According to Brad Sugars of Entrepreneur magazine, most small businesses fail because they sold a product that didn't have an adequate market. This also applies to small businesses that provide a service. A lawn-care business might be useful for part of the year in a northern state, but it is in-demand year-round in the south. Consider whether people will actually want to use your service and get constructive advice from those not afraid to give their opinion.

Research Local Businesses

Research local companies before starting up your own business. This will not only give you an idea of the amount of competition you will have, but it will also help you price your product or service. If you're looking to start a wedding photography business, you may find during your research that the market is over-saturated in your area. If not over-saturated, you should contact each business and ask them for a price list. Alter your prices so you can stay competitive with the competition in town. Researching similar local businesses will also help you decide where to locate your business location. Try not to start up a store or office close to another business of your type. If your small business is located away from similar business types, this will cause locals to choose you over businesses that are farther away from where they live.

Get Professional Advice

You may know someone who has started their own successful business. Ask him for advice and listen to his stories of how he started his company. You may gain useful advice on the good and bad ways to start a business. Local entrepreneurs can also introduce you to local product providers or advertisers that you may not have met without their help. Accept any advice with open arms, especially if the advice is coming from someone successful in the area.

How to Calculate Business Start Up Costs

Starting a business in no easy endeavor. It takes a great deal of research, perseverance and hard work. While sweat equity will make your small business more successful, you will most likely need real capital to get the business started. Before you start raising capital and/or investing your own funds, the first thing you need to do is determine the total start-up costs.

Step 1

Determine your costs of sales. For most small businesses this means inventory, the cost of raw materials, manufacturing equipment, shipping, packaging, and warehousing. However, not all businesses sell products. In this case, the cost of sales is primarily the direct labor involved in making the sale. For example, to open a small shoe business entails purchasing enough inventory ($10,000) to stock the store.

Step 2

Determine professional fees. Planning your business structure, i.e., limited liability corporation or general partnership, means hiring an attorney. There may also be the need to pay an attorney for help with establishing trademarks, copyrights, and patents. In this scenario, that puts total professional fees at an estimated $20,000.

Step 3

Determine technology costs. Technology can greatly reduce the cost of labor for small business if used effectively. Most small businesses require computers, printers, cell phones, website development, Internet access, software applications, information security, data storage, and outsourced information technology (IT) consulting. If the cost of technology is $10,000 to start, add an additional $5,000 a year for maintenance (hint: maintenance is not included in start-up costs).

Step 4

Determine administrative costs. This varies with business types and may include items such as business insurance, office supplies, product packaging, parking, rent, express shipping, desks, chairs, fax machines, phones, or anything else necessary to operate the business daily. A good estimate for start-up administrative costs would be $5,000 for the first six months.

Step 5

Determine initial sales and marketing costs. Now that you have your product, you need to let folks know about it. Sales and marketing costs generally include marketing materials for presentations, printing stationery, business cards, advertising, trade show events, and public relations. These initial sales and marketing costs can add up to $3,000.

Step 6

Determine the wages and benefits needed to secure a staff. This includes employee salaries, benefits, workers compensation, and payroll taxes. Let's put the cost of wages and benefits estimated at $20,000 for the first three months of business.

Step 7

Add all costs associated with starting the business for a total. Be sure to only include business start-up costs that will be incurred in the first three to six months of operations. For this example, the calculation is: $10,000 + $20,000 + $10,000 + $5,000 + $3,000 + $20,000 = $68,000.

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Sunday, April 13, 2014