How to Open a Retail Shop for Kids

Catering to kids might be a good business opportunity.

If you want to own your own business and you'd like to do something in retail, you might consider opening up a shop that caters to kids and the people who buy for them. Unique clothing, whimsical toys and games and a wide selection of picture books and easy readers are some of the items you might carry. Catering to kids can fill a niche market in your locale. It can be a fun and profitable business.

Instructions

Market Research

1. Study the demographics of your area. If your town has several child care centers, preschools and elementary schools, you probably have a good customer base for your retail store.

2. Check out the competition. Is there already a retail store that caters to kids' needs? Remember to look at the offerings of department stores and discount chain stores.

3. Be sure that you'll be able to attract customers with disposable income. If your town has other successful businesses based on kids -- dance studios, music studios, sports programs, arts and crafts centers, language schools, tutors -- you know that families are willing to spend money on goods and services for their children.

Location, Location, Location

1. 

   A charming storefront in a good location will attract customers.

   Find a location for your business. Will your store be a destination, or will you rely on walk-by traffic? Will you be able to attract customers who are patronizing nearby businesses? How easy will it be for customers to find the store? Will there be adequate parking? These are some questions you'll want to consider when selecting a location for your business.

2. Consider the time and expense required to renovate a space for your needs. Unless you buy an existing retail shop for kids, any space you rent or purchase will have to be adapted for use. You'll have to plan the look of your shop and make sure that your vision fits within your budget.

3. Plan for the future. As your business grows, will you have room for expansion in the location you choose?

Getting Started

1. Develop a detailed business plan. You will need a business plan if you go to a lender seeking financing for your business venture. Small business consultants, some of whom work for non-profit agencies, can help you formulate your business plan. You can also check with the Small Business Administration for guidance.

2. Identify vendors. Visit trade shows and other retail shops. Look at catalogs and company websites. Decide what products you want to offer to your customers.

3. Apply for an Employer Identification Number (EIN) through the Internal Revenue Service. You'll need this tax ID number for paperwork that must be completed for your business, including opening a business bank account, and to get wholesale pricing.

References

• Small Business Administration--Start Your Business

Resources

• IRS: Apply for an Employer Identification Number
• Small Business Administration--Start Your Business