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How to Start A Profitable Soft Toys Making Business in 8 Steps

    Soft toys are very popular among kids, teens, and youths. These specialty toys are soft. And generally made of clothes and acrylic fur. Generally, these toys come in different shapes and colors. In addition, different types of animal shapes are very popular. You will find the most popular name ‘Teddy Bear’. Also, they are very popular as home decor items.

    With a very small investment, you can start this business. In addition, this is a perfect business for women, housewives, and moms. Here is this article, we intend to explore how to start a small-scale soft toys manufacturing company.

    Here are the 8 Steps to Start Soft Toys Making Business

    1. Understand the Market Potential of the Soft Toy Market

    There is a good scope for these types of toys in India and the international market. Overall Indian toys industry is about 400 million US dollars. And the growth of some 15 % promises a rapid rise in this statistic. The growing middle class and increasing demand for quality and luxury goods are the main driving factors.

    Indian consumers pay more and more attention to high-quality products and thus branded articles. Although the price is often still the major deciding factor. Furthermore, presents make up a significant share of toy sales.

    There is about 50% of the market for gifts for people outside the family. Apart from the domestic market, soft toys have good potential in foreign trade. However, exporting toys need different quality checks like metal detecting.

    For beginners planning to enter the toy business, it is most essential to research the local as well as the online demand. It will provide you with detailed information regarding the taste, and latest trends of toy buyers.

    Suggested Read: Understanding Consumer Behaviour: How It is Used In Marketing

    2. Select Your Soft Toy Niche

    If you are an absolute beginner and starting with a limited budget, it is wise to select a specific category of soft toy products. There are various types of soft toy items one can choose from. Some of the popular categories are listed below:

    • Teddy Bears
    • Soft Balls
    • Interactive Soft Toys
    • Disney Characters
    • Soft Baby Pillows
    • Cartoon Characters
    • Hanging Soft Toys

    3. Create a Business Plan

    The toy industry is dynamic in nature. If you are serious about starting a successful soft toy-making company, creating a business project plan is mandatory. Furthermore, if you are looking for funds from investors, it makes it all the more important. It is advised to take help from professional business plan writers for documenting your toy business plan.

    4. Arrange Funds

    The cost and investment of starting a soft toy manufacturing business on a small scale will be in the range of Rs. 10 Lacs to Rs. 20 Lacs. However, the investment range will largely depend on the size of your toy manufacturing unit and production output.

    If you are short in funds, you are most likely to approach financial institutions and private investors for startup funding. Every investor will ask for a business project plan before committing funds for your company. Check out our article on the best business loans if interested to know where to get funding.

    5. Soft Toys Making Business Registration

    Register your business first. For a small entity, you can go for OPC registration. Obtain Trade License from the local Municipal authority. In addition, go for MSME Udyog Aadhaar Online Registration. For import, you must obtain an IEC code. Obtain a fire protection system to protect your unit from fire.

    Nowadays, GST registration is mandatory for any manufacturing-related business.

    6. Soft Toys Manufacturing Unit & Machinery

    You can start the unit at home. However, you will need to have an area of 500 Sq Ft. Also, you must arrange electricity for the machine operation. Some of the major tools and equipment requirements are

    • Sewing machines
    • Scissors, tape, needles, etc
    • Racks
    • Packing Machine
    • Other equipment

    7. Learn Soft Toys Manufacturing Process & Raw Materials

    The manufacturing of soft toys is best suitable for ladies. The process of manufacturing soft toys is too easy and simple. Basic steps include pattern, paper cutting, mold making, fabric cutting, sewing, inversion, eyes and nose pinching, stuffing, back closing, and finishing.

    First of all, the cloth is cut according to the design of the toy to prepare. And then fill the sponge into from the other side. Later buttons, ribbon, and eyes are tucked into it to make it complete. Finally, go for quality checking and packing. Now your toys are ready to go for the market.

    Basic raw material supplies are fur clothes, stuffing, eyes, ribbons, threads, etc. In addition, you must arrange the packaging consumables.

    8. Create a Website

    The demand for soft toys is not restricted locally. It has big demand from across the world. Hence, one must make attempts to make an online presence of your toy products. For that creating a website is a must. In addition, promote your products through social media platforms and list your soft toy products on online marketplaces.