Some Necessary Steps That Need To Be Well Prepared Before Starting A Toy Business

Note: Tulisan ini adalah terjemahan Basa Enggres bebas dari artikel ini

Do you remember the article about the toy business that I wrote a few days ago? That article is titled: REVIEW OF TOYS BUSINESS, PROSPECTS, AND VARIOUS THE BENEFITS

Well, this article that I am writing is still related and is a continuation of the above article.

In this paper, I will discuss some steps that need to be considered and well prepared before starting a toy business. The goal is so that the results are achieved can be more leverage.

The very first step is:

#1. Find a strategic toy store location.

If you want to start pioneering set up a toy business, then look for a store location located in the area around the residential complex (a crowded).

And try to prioritize to select a middle-class housing complex. What is the reason? Because this concerns the level of socio-economic citizens around the area of ​​the store. The higher the socio-economic scale, the higher the purchasing power of your toy store.

Indeed (in general), the level of social economy in an area will tend to affect the level of purchasing power.

Ex:

In the middle of urban Jakarta, there is an elite area called 'Pondok Indah' ​​area (if in the analogy, is like Beverly Hills in America). This area belongs to the upper class (the settlement of the rich).

Well if there is a beginner toy businessman who has a toy shop in ​​'Pondok Indah' ​​is. Certainly, the level of purchasing power will be much higher when compared with other toy beginner merchants who get a shop in 'Jonggol' (which is a suburb area).

Perhaps my analogy above is too extreme. Because, it is true the area 'Pondok Indah' ​​has a high purchasing power, but on the other hand, the cost of rental shops there is also prohibitive. And not all merchants can rent shops there. On the contrary, the price of rent in the area 'Jonggol' is very cheap, it's just, unfortunately, the purchasing power there is very low because of the majority from lower class citizens.

Therefore, if you are not a beginner toys businessman with significant capital, then look for store locations that are between the two categories above, i.e., the store located in the middle-class resident's population.

#2. Never open a toy store which is adjacent to the traditional market.

Why?

Because the price of toys products in the traditional market (in general) has been damaged, has fallen. I can know exactly about this because I have often conducted surveys and observations directly.

For comparison: My mother also owns a toy store, located in Condet area of ​​East Jakarta. This area is inhabited by citizens whose average comes from middle socioeconomic level. So it has a reasonably high purchasing power.

My mother's toy shop.

Now let's try to compare her condition with one of my younger sister toy stores.

Note: My family does have a family business, so the founder of this business was my mother. And then I with all My brothers and sisters continue in my mother's toy business. The story of this family business journey, I have written in this article: MY MOTHER, A SUPERWOMAN AND A VERY PERSISTENT MERCHANT

Now I will re-focus on the topic.

So my mother's store is crowded with buyers because it is in the middle-class area whose citizens are quite capable financially. But conditions very much different ever experienced by one of my sisters. My younger sister once made a mistake when choosing a business location. At that time she once opened a branch of our a family toy store in the area near the East Jakarta Ciracas market.

My younger sister toy store in Ciracas area of ​​East Jakarta.

My younger sister does it mistake when it was: i.e., of lack of patience and too hasty in deciding to have the store location (without doing an in-depth survey first).

It turns out in that Ciracas area, is little purchasing power of the population, and that worsens the situation, it turns out there are many stand toy stores surrounding (naturally, his name is also the market).

Well, because the purchasing power around the area of ​​Ciracas is meager, while the level of competition among toy traders is very high, so eventually make most of the traders there are competing to the price war.

Finally what happened?

Many of the traders in that area is around suffered losses. That is, there is a significant discrepancy between profit and expenses (operating costs).

Because the margins they get are 'skinny', so often the net profit is only enough to cover operational costs. Even sometimes even minus (loss). I once wrote a true story about a toy merchant there who experienced such conditions. Here's the story: THE REAL STORY ABOUT TOY BUSINESS (A Wrong Marketing Strategy Can Be Fatal To Your Business)

Finally, my younger sister decided to close the toy store. And then my brother moved the location of the store to the Condet area (his shop is about 800 meters from my mother's toy store). Since moving, thankfully, it turned out that my sister's toy store is more crowded with buyers, and continues to grow until now.

My sister's shop is being visited by the buyer (after moving).

So the location factor (strategic) and the level of purchasing power (in the area around the store) are important points and steps that must be considered before building up the toy business. Take a look my younger sister above. Let it the rental price of her shop a bit expensive (because it is located in a strategic location) as long as the results she will get are also appropriate.

#3. Prepare and train basic skills on the ins and outs of your toy business.

Business skills will usually be formed naturally (due to experience). But when the beginning of this business pioneer, most likely still a lot of related information about toy business that you don't know.

Example:

- Do you already know what kind of toys is a trend?

- Where are the links (information) of cheap product suppliers?

- Which wholesale store sells this type of toy?

- Where to buy storefronts and shelves for your toy display products?

And others.

As a beginner toy businessman, of course, you do not know all the information. Well, so how to get all that information?

The trick is: try to find your friends who have been successful in the field of the toy business. And look for the experienced! To get the information from them.

Maybe you will experience a little difficulty when digging information about toys from them. And that is a fair thing! Because the information you're looking for includes 'corporate secrets', and it's usually pretty hard to get it.

So, try to be smarter in digging information from them. Take a gentle and gradual approach. Build good relationships with them. Well, when the connection is successful you get, then all the valuable information will you can get more easily.

Also, you must are the diligent search for complete information and weighted on the internet. Nowadays internet technology is getting more advanced, and so much valuable information is available in it about toy entrepreneurship (maybe one of them comes from this blog hehehe).

#4. Preparation of authorized capital.

Toys business world at present, the condition is very much different from the time ten years ago. What's the difference? That is, (over time) the business competition that takes place among toy traders is getting tougher!

In the past, when my mother first set up her toy shop in Condet area of ​​East Jakarta (2007), there were only three toy stores.

What about now?

From the observations that I have done, at least this time has stood ten pieces of the toy store in Condet area. And what are the consequences? Of course business competition will become increasingly tight!

Other exciting readings: A 'PRICE WAR' STRATEGY IS THE LEAST CREATIVE STRATEGY, (What is the cause?)

If you have prepared enough initial capital at your best, then you will be better able to compete with competitors' toy stores. And if all the above points you have prepared well, then you will have more chance of success from other toy traders!

That's all above some essential steps that need to be considered and well prepared before starting a toy business.

If you feel this article is useful, then share it. Hopefully, it can be helpful for your other colleagues.

Good luck always for you all.

Best regards!