Let’s face it: with a predicted market value of almost $17 billion by 2025, baby businesses are booming. Thanks to the rising demand in infant hygiene and nutrition, researching “baby stores names” is more trendy than ever.
Do you spend your day googling “selling baby clothes online business?”
If so, you’re in business baby. From creating a baby store name to selling baby products, read our handy guide to starting your very own baby business store!
Planning out Your Baby Business
If you want your baby company to be successful, you’ve got to start with a successful plan. Not only will this plan help you to identify your target market, but it will also leave room for the unknown.
For instance, start by asking yourself what your ongoing and startup costs will be. Think about who you’re marketing your products to.
Another important thought is: how long will it take for your business to become profitable?
Of course, figuring out what the perfect startup business name is will be crucial too. Fortunately, we’ve done all the hard work for you. Let’s talk about how much it costs to start a baby business.
Whether you’re starting on your own or buying a franchise, investing in a brand-new baby store is a big deal.
You’ll need money for everything from:
- Purchasing or leasing a storefront
- Fulfilling inventory orders
- Hiring staff members
- Buying point-of-sale systems
- Acquiring accounting devices
- Obtaining display racks
- Paying for living expenses
In a nutshell, you’ll need anywhere between $250,000 and $500,000 to begin your baby business.
Expect for employee payroll to be your biggest expense. On top of that, keeping enough inventory in stock is expensive as well. Also, maintaining computer systems and your business property will be your third largest expense.
Now, your target market should be anyone who:
- Is expecting to have a baby
- Already has a baby
- Knows someone else with a baby
Keep in mind that budget-friendly stores are much more in demand than upscale boutiques. To make money, you have to buy your baby products at a discount rate from a wide range of distributors and manufacturers.
Earning a profit will be as simple as reselling your wholesale products at a standard retail rate.
How convenient is that?
Creating a Legal Baby Company
When it comes to creating a legal company, it’s all about playing by the rules. For those of you are planning to form an LLC, this will prevent you from being held responsible if your baby business is brought to court. If LLCs aren’t your thing, consider forming a DBA or a corporation instead.
Finding a registered agent website will help your business safe and compliant. The next step is to register your business to file federal and state taxes every year. To do so, you’ll have to apply for an employee identification number.
Luckily for you, getting an employer identification number is both free and easy to do. Visit the Internal Revenue Service website to obtain an employer identification number via mail, fax, or online.
Here comes the fun part: opening up a new business credit card and bank account for your company. In case you didn’t know, this is the best way to keep business and personal accounts separate. Otherwise, your company could be sued for your personal assets if it’s taken to court.
If you want to separate your company’s assets from your personal assets, the tax and accounting process will be much easier. Plus, adding a company credit card to the mix to be a great way to build credit for your business too. This is a good time to establish your company accounting records as well.
FYI – keeping detailed and accurate records will make filing your annual taxes way less stressful. It also helps tremendously if you know your tax bracket and the resulting implications. After you’ve made sure that your business is legit, you’ve got to get your hands on the necessary licenses and permits for your company. If not, your baby business could get hit with fines or closed down.
Nobody wants that, right? We didn’t think so!
Following Local & State Regulations
If this is your first rodeo, then you should know that following the local and state regulations for your baby store is your number one priority. To find out what the laws are in your area, contact the Small Business Administration to learn more.
Also, checking in with your county, city, or town clerk’s office is a smart idea too. Now that we’ve got that covered, most baby businesses have to charge a sales tax on their services or goods.
What is a Certificate of Occupancy (CO), you ask?
Fair question. If you’re planning on running your baby business out of an official storefront, then you’re definitely going to need to get a CO. This will let everyone know that you’ve met the necessary requirements for regulations, zoning laws, and building codes.
For those of you who are intending to lease a business storefront, know that it’s your job to acquire a Certificate of Occupancy. Before you sign the lease, ask your landlord if you are allowed to get a Certificate of Occupancy for your baby business.
That being said, make sure that you renew your CO whenever you plan to do a renovation of your store. If these renovations occur before your opening, tell the landowner that you won’t start making payments until you receive a CO.
What’s the real deal about building or purchasing a baby store location?
Similar to leasing a baby business, it’s your responsibility to obtain a CO from local authorities or officials. The last step in this process is to get reliable insurance for your company. This is an essential part of becoming a business owner.
Planning to hire staff members means that you’ll have to pay for worker’s compensation too!
Building Your Baby Brand
Chances are that you been thinking about building your baby brand for years now. For the uninitiated, your baby brand will reflect your company’s mission, goals, and overall vibe. Yes, that includes how your brand is received by your target audience.
But wait – there’s more. Building an iron proof brand will help you to leave your competitors in the dust. To market or promote your baby products, put your brand and company name in any place that expecting or new parents would visit, including:
- OB/GYN offices
- Pediatric offices
- The civic center
- Daycare centers
- The local library
Launching a direct mailing campaign can reach families that are already looking for baby products or services. Establishing a blog with baby tips is helpful as well. Better yet, make a social media profile to connect with new or expecting parents in your region.
Investing in newspaper ads or placing ads online is another smart marketing move. That way, you’ll be able to snag as many future clients as you can.
But here’s the catch: how do you keep consumers coming back from more?
Surprisingly, the answer is simple. Your baby store opening should be as exciting and fun as possible. To take it up a notch, you could always:
- Rent a jump house
- Hire clowns
- Find a face painter
- Have a snack station
In addition to this, offering customer specials at the door will encourage customers to check out your fun and beautiful business.
For the next year, running bargains will be a great way to help you build up your clientele too. Continue to offer excellent customer service and competitive prices.
It doesn’t hurt to create a website for clients to learn even more about your services online either. Pro tip: invest in digital marketing for baby product companies!
Get Into the Baby Business Today
Looking to get into the baby business?
If so, then you’ve come to the right place. For those of you who are still feeling clueless, planning out a baby business isn’t as hard as you think. In fact, all that you have to do is fundraise enough capital to get started.
The rest is simple: purchase or lease a storefront. Next, focus on fulfilling inventory orders and hiring staff members. After that, acquiring accounting devices and obtaining display racks should be stress-free.
Now that you’ve made sure that your baby business is legitimate, follow local rules and regulations. Once you get the proper paperwork together, host a grand opening to attract new customers. Keep your prices low and you should be good to go!
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