Become millionaire from owning toy shop

The growth potential of operating a children’s toy shop is growing in Uganda. A number of parents today admit to spending sums of their hard-earned money on children’s toys.

This alone shows that anything that has to do with children/toddlers nowadays has become an avenue for making money.
Now that some parents can spend an arm and leg on children’s toys, starting a children’s gift shop could make you the next millionaire.

You have heard some parents say they would do anything to give their children the best in life. Mr Charles Ocici, the executive director Enterprise Uganda, says: “If there is anything parents can do to make their children happy or offer them a good start, they [parents] are more than willing to put investment into that area. So this is a lucrative business to start.”

This is the kind of business that requires you to be a “people person.” Here, you will have to understand what children want, what their parents want and figure out how to accommodate both demographics.

Ideally, a children’s gift store/shop sells things which might be given as gifts. This kind of store can accommodate children’s toys, children’s birthday gifts; it can expand into baby-shower items.

Starting this business
Therefore, this means that if you are starting a children’s gift shop, you should recognise parents’ concerns, especially when their children are beginning to grow.

Mr Ocici says: “It would be wise to look out for toys which make the children express themselves. Say stretching out to look at something, raising their hands, gifts that bring a smile and joy to a child.”

This means the gifts/toys you are stocking should accelerate the learning of a child and their creativity.
So toys that enable children to move out of their sitting position and start to crawl, walk or carry something to someone, are some joyous moments for parents because each stage is treasurable.

So, if you are investing in a gift shop, it should pattern with the different stages, a parent to love the joy of seeing a developing child.

When establishing this kind of business, you must be very creative, be in close contact with parents and be ready to listen to what excites parents about their children.
Mr Ocici says: “In this business, it is no longer about buying a ball alone for a child.”

Money
But how exactly does a children’s gift shop make money? Ideally, starting capital is about Shs5 million. But this will work for you if you start with gifts/toys’ category for children in specific age-brackets, then expand later into other older age brackets.

Mr Ocici says this will help you keep a list of clients, in that when a child reaches a certain stage, you remind them of the types of toys they can buy for that category.

Look at toys that encourage children to be active, creative, walk and talk. Depending on which category you select-if started with Shs5 million as your starting capital.

“This capital will make your business visible. As you take off with the first phase of children, prepare to add on another category of gifts that encourage speech.

When you follow this system, it will enable you diversify into a big business. You will also need to keep updating yourself about the latest trends in this market from children’s television channels, adverts, magazines and trade publications among other platforms.

A single toy car ranges from about Shs20,000 to over Shs500, 000 (with the bigger toys).

Trader
Mr Solomon Musoke, who manages a second-hand toy business in Kireka Trading Centre, says on average they receive customers who want the bigger toy cars and motorcycles.

“Our prices range between Shs100,000 and Shs300,000, depending on the size and durability of the toy. Much as the toys are pricy business is good,” Musoke shares.

He says on average, he closes off his books with about Shs700,000 from a week sales.

This means monthly with this kind of trend in sales, their average turnover is Shs2.8m. This translates into an annual turnover of Shs33.6m.

Musoke sources the toys mainly from US and UK. The market constitutes parents who want to buy toy gifts for their children’s birthdays. Others are regular buyers.

Advice
Musoke says, it is always important to be mindful of the security of the children when picking your gifts stock.

Similarly make sure you educate the parents on which gifts they can buy for their children that do not have loose components.

“With creative and active children, they can disassemble gifts and put particles in their mouth or nose which could choke them,” He adds.
With this kind of business, you may not need to start with a rented place. Instead, go door-to-door marketing your times.

SUCCESS SECRETS
This is the kind of business that requires you to be a “people person.” Here, you will have to understand what children want, what their parents want and figure out how to accommodate both demographics.