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How to Start Your Very Own Baby Business and Store: A Useful Guide

StrategyDriven Starting Your Business Article |baby business|How to Start Your Very Own Baby Business and Store: A Useful GuideLet’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
  • Gyms
  • 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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4 Things to Think About When Starting Your Own Cannabis Business

StrategyDriven Starting Your Business Article |Cannabis|4 Things to Think About When Starting Your Own Cannabis Business

The market for licensed cannabis products is growing at an encouraging rate if that is the line of business that you are thinking of launching into and as is the case with any new venture, you will need to have all the angles covered in order to set off on the right footing.

A good starting point would be to create a checklist of things that you need to organize so that your cannabis business is good to go. This will likely include things such as insurance, and you can find help at charlesriverinsurance.com to guide you on the most affordable options, plus you need to understand all about regulatory and taxation issues.

An industry that lacks clear federal guidance at present

A key point to consider is the fact that the cannabis industry is defined by what can be described as a fragmented regulatory landscape.

The fundamental problem is that federal policy relating to the distribution of cannabis products varies across different state lines. Some states have fully embraced the cannabis industry while others are not so welcoming and regulations reflect that.

It is important that you take the time to familiarize yourself with the regulations and understand clearly what you can and can’t do within your state and when dealing with customers across state lines.

Get your head around the tax rules

The tax rules surrounding the sale and distribution of cannabis products can be quite punitive and restrictive in terms of what you are able to claim in allowable business expenses.

The bottom line is that you should expect to pay a high proportion of taxes in comparison to what you would pay if you were selling a product that was fully legal according to the current tax rules.

It would be a smart move to get professional guidance on the tax rules.

Business insurance

Every business needs to have adequate protection against potential claims and losses and it is especially relevant when you are running a cannabis business.

Insurance for running a cannabis business can be expensive if you don’t get help from a reputable insurer who has knowledge of the industry and how to provide the cover you need in the most cost-effective way.

Licenses and permits

A major expense that you will have to contend with if you intend to launch a cannabis business is the cost of obtaining the relevant licenses and permits that are required.

It depends on what part of the cannabis industry you are going to be trading in when it comes to what licenses you might need to obtain and the cost of obtaining all the necessary permissions will likely represent a significant percentage of your startup costs.

If you intend to cultivate or dispense cannabis products the cost of obtaining the right licenses may even appear prohibitive at first glance, but you might take the view that the opportunities that await you make that investment more justifiable.

If you cover all of these major bases when evaluating your cannabis business plan it should clear the path to open the doors of your business and allow you to focus on building a successful and profitable venture.

4 tips for starting a business in a poor economy

At one point in our life, we’ve probably all been there. The economy is like a rollercoaster, and from time to time you do reach new lows.

Quite often, these lows give some people a new lease of life. Companies are forced to offload employees, and this means that an increased number of people are without work and ultimately asking, “what’s next?”.

Well, for many of these, a new business is one solution. The economy doesn’t make it easy, but it shouldn’t be a direct obstacle that tells you to turn around and do something else.

If you are considering starting a business in this sort of climate, it’s time to read on and find out our four most recommended tips for doing so.

The location is crucial

Without trying to be patronizing, we really can’t emphasize the importance of location, location, location. It’s something that can make or break your business in these tough times, and this infographic perhaps describes it in the best detail:

StrategyDriven Starting Your Business Article | Entrepreneurship | 4 tips for starting a business in a poor economy

No, you shouldn’t be targeting those locations which are faring the best during these tough times, but you need to be shrewd about how your potential market is going to react. If you are selling high-end products, you need to assess whether the area you are about to venture into is ready for these, and vice versa.

Use the economy to your advantage

There are a lot of ways that the economy is going to hurt you during these times, so you should be trying to take advantage wherever possible.

Lowering costs is one of these and whilst negotiating with suppliers, understand that you probably hold the upper hand. They will be feeling the pinch as well, so use the economy as an excuse to get even better deals. Whether it’s rents, products or equipment, this is something that you must use to your advantage to drive those margins up.

Start as small as can be

Of course, if you have major backing behind you, this next point might be invalid.

For everyone else, starting small is crucial advice. If you don’t necessarily need office space, don’t hire it. The same rules apply to employees, as both of these elements are fixed costs that are going to heap pressure onto your business.

Start as small as you can, and scale up when the market signals that it is time to do so.

Watch the competition closely

The competition is going to be an excellent signal on just how you are going to perform in this market. It will indicate just how flat the market is, and provide you any ideas on how you can treat it differently.

Sometimes, it might suggest that the market has become extremely price sensitive – and this might not fit within your business plan. Or, it might suggest the otherwise, and a creative marketing plan is all you need. Analyze the competition and then plan your strategy accordingly.

Three No-Brainer Outsourcing Opportunites for Growing Businesses

StrategyDriven Managing Your Business Article |Business Expansion|Three No-Brainer Outsourcing Opportunites for Growing BusinessesIs your growing business falling behind your competitors because you’re stretched too thin? Entrepreneurs know better than anybody that there are only so many hours in a day. If you’re spending too many of them attempting to manage your whole operation and too few of them doing the creative thinking and growth-oriented work required to take your business further, you need to think about outsourcing.

If you’d like to outsource the most draining aspects of your operation in the hope of a hassle free business expansion, this list of the most widely utilized outsourcing options will help you make up your mind.

Let Nerds Handle Your IT

The word ‘nerd’ is hardly an insult these days, as coders and IT professionals have all but taken over the world! Managed IT is making its mark on the small-to-medium sized business environment, and for good reason. Research has shown that over half of small to medium-sized businesses are outsourcing at least some of their IT requirements, while a further third would like to in the near future. The benefits are huge. Aside from the peace of mind that you get from handing over responsibility for your systems and sensitive data to experts, you also stand to save as much as 40% compared to hiring your own full-time IT team. IT services are also a great option for growing companies who need to be able to scale their operations at short notice in response to increased demand.

Hit the Snooze Button on Payroll

Let’s be honest: doing payroll is not fun. There is a lot of technical detail and compliance to get your head around, and if you make a mistake, it’s your team who suffers, and that’s the last thing you want. Many small businesses find HR and tax compliance a complete headache until the happy day that they opt to outsource their payroll needs. Handing over this highly complex work to skilled professionals—or at least investing in specialized software—is well known to drastically improve your compliance stats and reduce your operating costs. It’s worth pointing out that the savings are not small change, either: businesses that outsource their payroll needs typically save 20% more than companies that handle payroll in-house. No brainer, right? Add to the savings the increased trust you stand to build within your team, as payroll mistakes and accounting errors are ruled out for good, and you’d be crazy not to take advantage of this outsourcing option as soon as you have the means.

Content Marketing

Otherwise known as blogging, content marketing is taking the SME word by storm. If your business does not have a blog yet, you are missing out. Why? Because not only will your blog supercharge your Search Engine Optimization (SEO) efforts, but it can help you to build a solid relationship with your customer. It can also position your business as a credible source of key info on the issues your audience cares about, thus fostering brand trust and enhancing the reputation of your company in the wider arena. A blog is also extremely handy for HR and recruitment purposes, as it provides an excellent way for potential new employees to get a flavour of what working for you will be like.

When business is getting busier by the day, handling everything yourself is not likely to be the answer. Depending on your needs, outsourcing could be the ideal solution. These ideas will help you find the right service for your business.