Do you want to start a profitable online toy library business? Are you looking for a toy renting business plan? Here in this article, we provide a detailed online toy library business plan sample for new entrepreneurs.
Toys are the most popular item for kids. Children enjoy playing with toys. In addition, they learn several things in their childhood days with the help of different activities and educational toys.
However, a single piece of the toy is not sufficient to engage a child for a long period of time. In fact, children want to have a new toy on almost every alternate day. And definitely, they want more lucrative and adventurous toys day by day. However, it is almost impossible to buy a new toy every day for the maximum number of parents. And here a toy library works for those parents effectively.
Let us first discuss what a toy library actually is. A toy library is as same as a book library. This type of library provides toys in exchange for money for a limited period of time. Though you can start the business both offline and online, we recommend the online option. Because an online toys library eliminates the cost of having a retail location.
Who Can Start an Online Toy Library Business?
First of all, we must say this business is not perfect for rural areas. Any individual living in a metro city or suburban can initiate this business. Even you can start the operation from your home. In addition, this business is perfect for housewives or any women entrepreneurs. But remember, this is not a part-time business opportunity. You must dedicate your full time to this business. Moreover, with a small capital investment, you can get the taste of a self-rewarding entrepreneurship journey.
Cost & Investments to Start Online Toy Library Business
Broadly, two different types of investment are required in starting a toy rental service business.
One is a fixed capital investment. And it includes startup registration costs, procuring toys, and eCommerce store setup.
The other is working capital investment. This includes utility bills, manpower, transportation, etc. In online operation, you will need to pay the charges for the domain, hosting, and transaction fees.
According to your business model, you will need to arrange finance. However, it is advisable to start the business with your own capital. As your business grows, you can take finance for scaling up the business.
Online Toy Library Business Plan
1. Craft The Business Model
This is the first step in starting an online toy-renting business. And definitely, you may come up with several creative ideas for providing the service. However, here we put a series of different aspects to consider.
First of all, identify your territory. Because you will need to mention the Pin Codes where you can give the service.
Secondly, determine the age of your target audience. Generally, you can provide the toys to 1-year kids to 13 years children. However, according to your budget, you can target a specific age group.
Generally, an online toy library keeps both selling and renting options. And here also you need to determine what you will opt for.
Finally, you will need to determine the delivery and pickup options. It is better to talk with an established courier company in your city in starting. Later, you can go with your own delivery setup.
2. Determine The Products
Generally, you can sell numerous items from an online toy library. The list includes games, activity toys, educational toys, outdoor games, books, CDs, DVDs, etc. However, according to your investment capacity, you will need to determine the products you want to rent and sell from the store.
In addition, select some popular brands. You can find a lot of renowned brands in the toy industry. Talk to the distributors to get the toys for your business. In addition, also keep non-branded products. However, again it all depends on your business plan.
3. Business Compliance
It is the most important aspect. You must register your business first. If you starting your own without any partner, then you can go for sole proprietorship registration. Otherwise, you have to register the business according to the investment participation and legal responsibilities of each member.
In addition, talk to a local tax consultant about the upcoming tax liabilities. It hugely depends on the location where you are starting the business. Generally, every sale invoice attracts GST, and renting invoice attracts service tax.
4. Build The eCommerce Store
This is the most important aspect of the operational part. Because you will manage the entire operation from your online store. And it involves several different aspects. These are getting a domain name, choosing the right eCommerce platform, payment integration, etc.
First of all, you will need to decide on a relatable domain name for your business. For instant reference, you can search google for getting the existing name of online toy-renting companies.
The next step is choosing the right eCommerce platform for your business. And choosing an eCommerce platform depends on the various aspects of products, target demographic, business size, etc. As the online toy library is targeting a niche audience with limited products, we recommend Shopify.
Shopify is a self-hosted CMS created specifically to make eStores. This means, no hassle of finding a web host, installing CMS, and setting it up. All you need to do is sign up for the service and manage the eStore. This is perfect for anyone who has zero technical skills and wants to set up an e-commerce site.
Shopify has dedicated servers catering only to Shopify stores. In addition, the system has dedicated support for its clients. A 24/7 live chat facility is available. Try Shopify free here.
5. Setup The Store
Building the store with Shopify is extremely easy. And in every step, you will get help from the Shopify team. However, you will need to select the right theme and upload the photos, and other information about your business. Here we put a list for your ready reference.
- Craft an attractive logo for your company and upload it.
- You must put a catchline.
- Put the detailed contact information on the site
- Get a secured payment gateway to accept the payment online.
- In addition, put the terms and conditions of using the service of your company.
- Fix the pricing both for renting and selling options.
- In addition, craft the catalog. Here you can put different subsections.
- Write some words about your company along with your Mission & Vision.
6. Have an Operational Plan
With Shopify, you can start a business with only one employee. Even you can consider starting the operation without any employee involvement. You have to procure the toys. Make a contract with a courier company and start the operation. You only need to have a current bank account for financial transactions.
7. Promote Your Online Toy Library
For this type of business, it is advisable to promote the store online. First of all, keep a blog with your store. It is a must. A blog is extremely helpful in getting the most convertible users.
Google Adwords is the best option for the initial promotion of the store. And definitely, it is comparatively cheaper than other options.
In addition, promote your business on social media. It is beneficial. However, you can also promote your company from retail locations.
Online toy renting is an emerging phenomenon these days. And the demand for this type of service is increasing very fast. In addition, an online toy library allows you to start a lucrative venture with minimum capital risk.
Editorial Staff at NextWhatBusiness is a team of Business Consultants having years of experience in small and medium scale businesses.