A fidget toy business is a retail outlet that sells toys and other related products. A fidget toy is a small item used for enjoyable but pointless hand movements (manual fidgeting or stimming). Some users think these toys help them deal with emotions including boredom, restlessness, and worry.
They are also utilized by those who have sensory issues. Every year, almost 3 billion toys are sold in the United States at an average price of $10. Over $35.6 billion was earned locally through direct toy sales, while over $98.6 billion was made globally by total toy sales.
Steps on How to Start a Fidget Toy Business
Table of Content
Conduct Market Research
Develop a market-based research question that is consistent with your business objective as the first step in the process for your fidget toy business. You should look for information that will help you maximize your business, help you understand what your potential market will needing, and also help you run your fidget toy business with less stress.
a. Who is the Target Market for Fidget Toy Business?
- People suffering from autism spectrum disorder
- People suffering from anxiety
- People suffering from boredom
- People who are emotional imbalance
- People who are often exposed to stress.
b. Is Fidget Toy Business a Profitable Business?
Yes, the fidget toy business is profitable because the growth in the number of people who are becoming restless, worried, or bored is on the increase hence there is a growing market for fidget toys in the United States of America and across the world.
c. Are There Existing Niches in the Industry?
No, there are no existing niche ideas when it comes to the fidget toy business.
d. Who are the Major Competitors?
- Alerting Fidget Toy
- Calming Fidget Toy
- Chewy Fidget Toy
- Resistance Fidget Toy
- Tactile Fidget Toy
- Tom’s Fidgets
- Tangle Creations
- Think Ink.
e. Are There County, State Regulations, or Zoning Laws for Fidget Toy Business?
Yes, there are zoning rules and county or state restrictions that apply to fidget toy businesses. Participants in this industry are expected to comply with these regulations in the area where their businesses are located. It is important to note that American Government Departments and Agencies usually approve deviations from the letter and the law.
Most times, a brief form is all that is required. In other situations, your request might need to go before the city council, zoning board, or another authority for a public hearing. To learn what choices are available to you, contact your local planning or zoning authority.
f. Is There a Franchise for Fidget Toy Business?
No, there are no franchise opportunities for the fidget toy business.
g. What Do You Need to Start a Fidget Toy Business?
- A feasibility report
- Business and marketing plans
- Business licenses and permits
- A good shop facilities
- EIN (Employer Identification Number)/Federal Tax ID Number
- Suppliers of fidget toys and related products
- Startup capital
Choose a Memorable Business Name
When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with. It is essential that the name you come up with can easily be pronounced, is unique and easily memorable.
Some of the catchy business name ideas suitable for a fidget toy business are;
Creative Fidget Toy Business Name ideas
- The Axiom© Fidget Toy Store, Inc.
- Boston Connect® Fidget Toy Store, LLC
- Terry Morgan© Fidget Toy Store, Inc.
- Toy Solutions® Fidget Toy Store, Inc.
- Herbert Collins™ Fidget Toy Store, Inc.
- Jerry Benson™ Fidget Toy Store, LLC.
- Daniel Jason© Fidget Toy Store, LLC
- Jonny Moore® Fidget Toy Store, Inc.
- Green Borrow© Fidget Toy Store, Inc.
- Martins© Fidget Toy Store, Inc.
- Senora Luiz® Fidget Toy Store, LLC
- Collins York® Fidget Toy Store, LLC
- Fred Darlington™ Fidget Toy Store, LLC
- Mary Geofry© Fidget Toy Store, Inc.
- The Toy’s Place® Fidget Toy Store, Inc.
- Serena Benard™ Fidget Toy Store, Inc.
- Cloe McKenzie™ Fidget Toy Store, Inc.
- Clara Whyte© Fidget Toy Store, Inc.
- Toy Heaven® Fidget Toy Store, LLC
- Henry Arnold™ Fidget Toy Store, Inc.
Register Your Business
a. What Type of Business Structure is Best for the Fidget Toy Business?
There are several possibilities when it comes to the legal form of a fidget toy company, but an LLC is the one majority of participants in this industry considered best. This is because service providers seek to safeguard themselves against law suits.
b. Steps to Form an LLC
- Choose a name for your LLC
- File articles of organization
- Choose a registered agent
- Decide on member vs. manager management
- Create an LLC operating agreement
- Comply with other tax and regulatory requirements
- File annual reports.
c. What Type of License is Needed to Open a Fidget Toy Business?
- General Business License
- Health and Safety Permit
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
d. What Type of Certification is Needed to Open a Fidget Toy Business?
You don’t need any certifications to open a fidget toy business.
e. What Documents are Needed to Open a Fidget Toy Business?
These are some of the legal documents that are required if you want to run a fidget toy business in the United States of America;
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
f. Do You Need a Trademark, Copyright, or Patent?
There may not be a need to register a brand for intellectual property protection. The nature of the company’s operations makes it possible for you to manage the business without having any reason to accuse anyone in a court of using your intellectual property unlawfully.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Fidget Toy Business?
Starting a fidget toy business might be expensive, moderately expensive, or inexpensive. However, the price of a typical fidget toy business can range from $50,000 to $250,000 or more, depending on the size, if it needs to be heated, whether electricity is needed, and how it is plumbed.
b. What are the Costs Involved in Starting a Fidget Toy Business
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits, as well as the accounting services totaling – $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
- The cost of hiring a business consultant (writing of business plans inclusive) – $2,500.
- Insurance (general liability, workers’ compensation, and property casualty) coverage at a total premium – $2,400.
- The cost of accounting software, CRM software, and Payroll Software – $1,500
- The cost of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
- The cost of shop/facilities remodeling – $25,000.
- Phone and utility deposits will cost – $2,500
- The cost of start-up inventory (a wide range of fidget toys and related products) – $36,027
- The cost of counter area equipment – $6,000
- The cost of store equipment (cash register, security, ventilation, signage) – $3,150
- The cost of launching an official website – $600
c. What Factors Determine the Cost of Opening a Fidget Toy Business?
- The size of the fidget toy business
- The choice of location
- The required licenses and permits
- The type of facilities
- The cost of branding, promotion, and marketing of the fidget toy business
- The cost of furnishing and equipping the fidget toy business – facilities
- The cost of the insurance policy covers
- Cost of registering the business
- Source of your supplies and ongoing expenses
- The cost for the purchase and customizing of uniforms, shoes, and caps for your employees
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not mandatory to build a new facility for your fidget toy business, but if you have the required finance, it will pay you to build your own facility. The building or reconstruction of it will help you come up with a facility that will fit into your business goals and vision.
e. What are the Ongoing Expenses of a Fidget Toy Business?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Shop manager (owner) – $45,000 Per year
- Merchandize manager – $32,000
- Sales boys and sales girls – $26,100 Per year
- Security guard -$24,000 Per year
g. How Do You Get Funding to Start a Fidget Toy Business?
- Raising money from personal savings
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Our fidget toy business is a neighborhood fidget toy business that will be located in a fast-growing community in San Antonio, Texas. We have been able to secure a one-year lease of a vacant shop within the city’s largest shopping mall. We are fortunate to secure a facility with an option of renewal for 5 years at an agreed rate that is favorable.
Our fidget toy business is designed and constructed to meet both the health and safety standard as recommended by the local authority.
- Sale and delivery of different brands and types of fidget toys such as DoDoMagxanadu Dodecagon, Fingears, Chuckle & Roar Pop It, Duomishu Anti-Anxiety Fidget Spinne, PILPOC Fidget Controller Pad, Appash Fidget Cube, SCIONE Fidget Spinner, Tom’s Fidgets Flippy Chain Fidget Toy, and ATESSON Fidget Spinner et al.
c. Mission Statement
Our mission is to set up a business that will make available a variety of fidget toys and other related products throughout the cities where we will establish our stores.
Our vision is to establish a toy business in San Antonio, Texas that will be the face of the fidget toy industry.
d. Goals and Objectives
The goals and objectives of a fidget toy business are to provide retail outlets where people can purchase different types of toys and other related products.
e. Organizational Structure
- Shop Manager (Owner)
- Merchandise Manager
- Sales Boys and Sales Girls
- Security Guard
a. SWOT Analysis
Our strengths as a company are excellent and detailed customer service; good facilities, great ambiance, and the perfect location for a fidget store in a metropolitan city like San Antonio.
The major weakness is the lack of economy of scale which may affect the prices of the products.
There are unlimited business opportunities available for aspirants who are interested in the toy business in busy cities like San Antonio, Texas.
The major threats to our fidget toy business are unfavorable government policies, bad press, and publicity for toys and other related products.
b. How Do Fidget Toy Businesses Make Money?
Fidget toy businesses make money by selling different types of toys and other related products.
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards/Point of Sale Machines (POS)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
d. Sales and Advertising Strategies
- Introduce your fidget toy business by sending introductory letters alongside your brochure to corporate organizations, households, sports organizations, gyms, schools, and other stakeholders throughout the city where your fidget toy business is located.
- Advertise on the internet, blogs, and forums, also on social media like Twitter, Facebook, and LinkedIn to get your message across so that folks on social media or those who read blogs will know where to go when they need to purchase fidget toys and other related products within your location
- Create a website for your business, so as to give your business an online presence
- Directly market your products
- Join local fidget toy business associations for industry trends and tips
- Provide discount days for your customers
- Advertise your business in community-based newspapers, TV, and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
a. How Much Should You Charge for your Product?
Fidget toys cost anywhere from $10 to $350.
b. How Much Profit Do Fidget Toy Business Owners Make a Year?
The report shows that fidget toy business owner makes over $45,000 annually.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the fidget toy business
- The types of products retailed in the shop
- The location fidget toy business is covering
- The management style of the fidget toy business
- The approach of the fidget toy business
- The advertising and marketing strategies adopted by the fidget toy business
- The number of years the fidget toy is in business
d. What is the Profit Margin of a Fidget Toy Business?
The profit margin of a fidget toy business is not fixed, it could range from 35 percent to 65 percent.
e. What is the Sales Forecast?
- First Fiscal Year: $220,000
- Second Fiscal Year: $280,000
- Third Fiscal Year: $340,000
Set Up your Shop/Office
a. How Do You Choose a Perfect Location for Fidget Toy Business?
- The demography of the location as it relates to people that need or patronize fidget toys
- The demand for fidget toys in the location
- The purchasing power of businesses and the residents in the location
- Accessibility of the location
- The number of fidget toy stores, and other retail stores in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Fidget Toy Business?
- Brooklyn, New York
- Chicago, Illinois
- Durham, North Carolina
- Los Angeles, California
- Green Bay, Wisconsin
- Dallas, Texas
- Manhattan, New York
- Pittsburgh, Pennsylvania
- Boston, Massachusetts
- Montclair, New Jersey
c. What Equipment is Needed to Operate a Fidget Toy Business?
You should purchase holders, cases, shelves and racks, accessories and receipt issuing machines, point of sale machines (POS), CCTV Cameras, computers (laptops), internet facilities, and telephone.
You should hire a competent shop manager, or merchandise manager, sales boys/girls, and a security guard.
Launch the Business Proper
No fidget toy store opens for business without first planning an opening party to formally launch the business. If you have a small budget, you may choose to hold a soft opening party. With the proper launching, you will let residents of your city know that it is open for business.
a. What Makes a Fidget toy business Successful?
- Choose a good location and shop facility to launch the business
- Make sure your shop is well stocked with different types of fidget toys and other related products
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your fidget toy business
- Leverage all available online and offline platforms to promote your business
b. What Happens During a Typical Day at a Fidget Toy Business?
- The shop is open for the day’s business
- Goods are properly arranged
- Customers are attended to
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Fidget Toy Business?
- Customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Experience in a retail shop environment
- Experience in managing people
- Experience in business administration
- Experience in handling different types of fidget toys and other related products.