Toy Store Business Plan Template

Toy Store Business Plan Template
Table of Contents
Table of Contents

If you’re looking to create a toy store business plan, you’ve come to the right place!

Over the past 25 years, the PlanPros team has helped over 1 million entrepreneurs and business owners write business plans….and many of them have started and grown successful toy store businesses.

Toy Store Business Plan Example

Below is our toy store business plan template and sample plan:
 

I. Executive Summary

Company Overview

WhimsyNest Toy Boutique, nestled in the heart of Cedar Falls, IA, emerges as a beacon of joy and creativity in the local toy industry. Since our inception, we have committed ourselves to bridging the gap in the market by offering a unique and magical shopping experience that caters to both children and adults. Our diverse product range includes everything from action figures and board games to educational toys, all aimed at fostering creativity, problem-solving skills, and a love for learning. Our boutique is more than just a store; it is a destination where families from Cedar Falls and beyond can find quality toys that promise not only fun but also educational value, making every visit an adventure.

Success Factors

Our confidence in the success of WhimsyNest Toy Boutique is deeply rooted in our founder’s extensive experience and our strategic approach to distinguishing ourselves in the market. By offering a broader variety of higher quality toys, we have positioned ourselves as the premier destination for unique and engaging toys in Cedar Falls. Since our establishment as a Sole Proprietorship on January 4, 2024, we have achieved significant milestones, including the development of a distinctive brand identity and securing a prime location that enhances our accessibility and appeal. These early accomplishments underline our commitment to growth and to bringing joy to the families in our community.

Industry Analysis

The Toy Store industry in the United States, valued at over $21 billion and growing steadily at 2% annually, presents a fertile ground for WhimsyNest Toy Boutique. A notable trend within this thriving market is the increasing consumer demand for educational and eco-friendly toys—trends that align perfectly with our boutique’s offerings. Additionally, the industry’s shift towards experiential retail offers us an opportunity to differentiate ourselves by hosting interactive events that can create a loyal customer base in Cedar Falls. By aligning our product selection and in-store experiences with these industry trends, we are well-positioned to capture a significant share of the market.

Customer Analysis

Our target market primarily consists of local Cedar Falls residents seeking high-quality, unique toys for children of all ages. By curating our selection to align with the community’s values and interests, we aim to cultivate a loyal customer base that appreciates the value of supporting local businesses. Our boutique also appeals to grandparents and extended family members in search of meaningful gifts that leave lasting impressions. Furthermore, educators and child care professionals find our selection of educational toys and games invaluable for supporting learning objectives and developmental milestones, positioning us as a key resource in the educational ecosystem.

Competitive Analysis

WhimsyNest Toy Boutique faces competition from Peek-A-Boo Children’s Gifts Toys & Furniture, Core, and BLAIN’S FARM & FLEET. Peek-A-Boo is known for its curated selection of educational toys and quality children’s furniture, appealing to a similar market segment as ours but limited by its geographical reach and online competition. Core offers a broad selection across various price points, benefiting from multiple locations, yet struggles with inventory diversity and operational costs. BLAIN’S FARM & FLEET provides a wide range of products, including toys, but lacks specialization in the toy segment. Our competitive advantage lies in our focus on unique, high-quality toys and our dedication to creating an enchanting shopping experience, setting us apart from these competitors.

Marketing Plan

At WhimsyNest Toy Boutique, our marketing strategy is centered around showcasing our wide array of imaginative and educational toys through targeted promotions that speak directly to our diverse customer base. By emphasizing the quality, educational value, and uniqueness of our products, we aim to establish our boutique as the top choice for discerning shoppers in Cedar Falls. Our promotional efforts will include a mix of online and offline channels, leveraging social media, local advertising, and community events to engage our target audience. Special promotions and in-store events will also play a crucial role in attracting and retaining customers, ensuring that WhimsyNest remains at the forefront of our community’s mind when it comes to quality toy shopping.

Operations Plan

Our operations plan is designed to ensure a seamless and enchanting shopping experience for every customer who walks through the doors of WhimsyNest Toy Boutique. Key operational processes include meticulous product selection, inventory management, and customer service excellence. We aim to achieve significant milestones such as expanding our product range, implementing an efficient point-of-sale system, and developing a robust online presence that complements our in-store experience. Our focus on operational efficiency and customer satisfaction will enable us to meet our growth objectives and solidify our position as a beloved destination for toy shoppers in Cedar Falls.

Management Team

Under the leadership of Madelyn Ortiz, our President, WhimsyNest Toy Boutique boasts a management team with the expertise and vision necessary for success in the competitive toy industry. Ortiz’s experience and track record in managing a successful toy store have endowed her with invaluable insights into market dynamics, product selection, and customer engagement strategies. Her leadership ensures that WhimsyNest not only meets but exceeds the expectations of our clientele, driving the boutique towards a future filled with growth and opportunities to bring joy to children and families in our community.

Financial Plan

To achieve our growth ambitions, WhimsyNest Toy Boutique requires $184,000 in funding. This investment will be allocated towards capital investments such as location buildout, furnishings, and equipment, as well as towards non-capital investments including working capital, initial marketing, and staff salaries. These financial resources will enable us to create an inviting and well-equipped retail environment, establish a strong brand presence, and ensure smooth operations from the outset. Our strategic use of these funds will lay the foundation for our boutique’s success and longevity in the Cedar Falls community.

Summary

Below is an overview of our expected financial performance over the next five years:

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Expenses $855,881 $899,484 $945,309 $993,468 $1,044,081
Gross Profit $1,617,429 $1,778,691 $1,954,700 $2,146,749 $2,356,241
Gross Profit (%) 65.4% 66.4% 67.4% 68.4% 69.3%
Other Expenses $103,153 $106,282 $109,507 $112,829 $116,252
EBITDA $1,514,276 $1,672,408 $1,845,193 $2,033,920 $2,239,989
Depreciation $17,000 $17,000 $17,000 $17,000 $17,000
Amortization $0 $0 $0 $0 $0
Interest Expense $18,400 $18,400 $18,400 $18,400 $18,400
Income Tax Expense $517,606 $572,952 $633,427 $699,482 $771,606
Net Income $961,269 $1,064,055 $1,176,365 $1,299,038 $1,432,982

 

II. Company Overview

WhimsyNest Toy Boutique is a new gem in the heart of Cedar Falls, IA, dedicated to reigniting the joy and wonder of childhood through our curated selection of toys. As a local toy store, we pride ourselves on filling a much-needed gap in our community. Before our establishment, Cedar Falls lacked a high-quality local toy store, but we’ve set out to change that narrative by providing a unique and enchanting shopping experience for children and adults alike.

At WhimsyNest Toy Boutique, our shelves are bursting with imagination and fun, featuring an extensive array of products designed to captivate and educate. Our product lineup includes action figures that bring favorite characters to life, board games that challenge and entertain families, dolls and plush toys that become fast friends, building blocks and construction sets that inspire future engineers, and educational toys that make learning a delight. We are committed to offering toys that are not only fun but also foster creativity, problem-solving, and a love of learning in children of all ages.

Located in the vibrant community of Cedar Falls, IA, WhimsyNest Toy Boutique is more than just a store; it’s a destination for families seeking quality playtime. Our doors are open to everyone in Cedar Falls, inviting customers to step into a world of wonder and leave with not just toys, but cherished memories and the promise of endless adventures.

Our confidence in WhimsyNest Toy Boutique’s success is rooted in solid foundations. Our founder brings invaluable experience from running a successful toy store, ensuring that we understand our market and know how to cater to our customers’ needs. Moreover, we distinguish ourselves from the competition by offering better quality toys and a wider variety, making us the go-to destination for unique and engaging toys in Cedar Falls.

Since our founding on January 4, 2024, as a Sole Proprietorship, we have achieved several milestones that set us apart. Our accomplishments include the creation of a distinctive logo that captures the essence of our brand, the development of our company name that reflects our commitment to whimsy and imagination, and securing a prime location that is both accessible and welcoming. These achievements are just the beginning of our journey as we continue to grow and bring joy to the families of Cedar Falls.

 

III. Industry Analysis

The Toy Store industry in the United States is a thriving market with a current size of over $21 billion. This industry includes a wide range of products, from traditional toys like dolls and action figures to modern electronic gadgets and STEM-related toys. With a steady growth rate of approximately 2% annually, the Toy Store industry is expected to continue expanding in the coming years.

One of the key trends in the Toy Store industry is the increasing demand for educational and eco-friendly toys. Parents are becoming more conscious about the toys they purchase for their children, seeking products that promote learning and are environmentally sustainable. This trend bodes well for WhimsyNest Toy Boutique, as the store offers a curated selection of educational and eco-friendly toys that cater to these consumer preferences.

Another trend in the Toy Store industry is the rise of experiential retail, where stores create immersive and interactive shopping experiences for customers. WhimsyNest Toy Boutique can capitalize on this trend by hosting events such as toy demos, workshops, and themed play days to engage with customers and create a loyal following in Cedar Falls, IA. By staying ahead of industry trends and offering a unique shopping experience, WhimsyNest Toy Boutique is well-positioned for success in the growing Toy Store market.

 

IV. Customer Analysis

Below is a description of our target customers and their core needs.

Target Customers

We will target local residents seeking unique and high-quality toys for children of all ages. Our selection is curated to cater to the preferences and needs of families within Cedar Falls, ensuring that our products resonate with the community’s values and interests. This strategy will foster a loyal customer base that values supporting local businesses.

We will also extend our reach to grandparents and extended family members looking for meaningful gifts. This customer segment values quality and uniqueness over mass-market alternatives and is willing to invest in items that create lasting memories. Our boutique will tailor its offerings to include educational toys and heirloom-quality items that can be passed down through generations.

In addition to families and gift-seekers, we will target educators and child care professionals looking for resources that enhance learning and development. Our product range will include educational toys and games that support a wide range of learning objectives and developmental milestones. This focus will position us as a valuable partner in the educational community, driving repeat business and referrals.

Customer Needs

WhimsyNest Toy Boutique caters to discerning customers in search of high-quality toys that stand the test of time. These patrons expect more than just playthings; they seek products that foster imagination, durability, and safety for their loved ones. The boutique’s carefully curated selection ensures that each toy on the shelves meets these rigorous standards, satisfying the needs of parents and gift-givers who prioritize excellence in their purchases.

In addition to quality, WhimsyNest Toy Boutique understands the importance of offering unique and educational toys that stimulate growth and learning. Customers can find items that not only entertain but also contribute to the developmental milestones of children. This focus on educational value meets the growing demand among consumers for toys that support intellectual and emotional development, making WhimsyNest a go-to destination for thoughtful and impactful gifts.

Moreover, WhimsyNest Toy Boutique acknowledges the community’s desire for a personalized shopping experience. The store’s knowledgeable staff provides expert advice, helping customers select the perfect toy for every occasion. This level of service fulfills the need for a shopping experience that feels both individualized and engaging, setting WhimsyNest apart in a market flooded with generic options.

 

V. Competitive Analysis

Direct Competitors

WhimsyNest Toy Boutique’s competitors include the following companies:

Peek-A-Boo Children’s Gifts Toys & Furniture offers a wide array of products for children, including educational toys, plush animals, children’s furniture, and unique gifts. Their price points cater to a mid to high-end market, aiming to attract consumers looking for quality and educational value in toys and children’s items. The store operates in a single location, serving the local community and anyone willing to travel for unique toy and furniture finds. Peek-A-Boo’s customer segment primarily includes parents, grandparents, and gift-buyers looking for special items that are not found in big box stores. The store serves the local geography but also attracts customers from neighboring areas due to its unique product offerings. A key strength is its curated selection of high-quality toys and children’s furniture that focus on educational and developmental benefits. A weakness is its limited geographical reach and the challenge of competing with online retailers who can offer a wider range of products.

Core is a retailer specializing in a broad selection of toys, games, and hobby items. They offer products across various price points, aiming to cater to both budget-conscious shoppers and those seeking premium items. Core’s revenue streams are diversified, thanks to its wide range of products that appeal to different age groups and interests. The company operates several locations, expanding its reach across multiple geographies and customer segments. Core’s customer base is wide, including children of all ages, hobbyists, and collectors. The retailer serves customers in multiple regions, benefiting from a broad geographical presence that allows it to capture a significant market share. Core’s key strengths include its vast selection of products and its ability to serve a wide range of customer needs and interests. However, its weaknesses may include the challenges of maintaining inventory diversity and the potential for higher overhead costs due to operating multiple locations.

BLAIN’S FARM & FLEET operates as a retail chain offering a wide range of products, including toys. While toys are only part of their inventory, they offer a selection that includes outdoor play equipment, educational toys, and branded toys at competitive price points. This diversity allows them to cater to various consumer needs, from practical farm supplies to leisure items like toys. BLAIN’S FARM & FLEET has multiple locations, enabling it to serve a broad geographic area and a diverse customer base. The company’s customer segments extend beyond just toy buyers, encompassing individuals and families looking for a one-stop-shop for home, farm, and outdoor needs. A significant strength of BLAIN’S FARM & FLEET is its ability to offer a wide range of products under one roof, making it a convenient option for shoppers. However, a potential weakness is that toys are not the primary focus, which might limit the depth of their toy inventory compared to specialized toy stores.

Competitive Advantages

At WhimsyNest Toy Boutique, we pride ourselves on offering an unparalleled selection of high-quality toys that stand out from the competition. Our commitment to excellence means we only stock toys that meet our rigorous standards for creativity, educational value, and durability. This dedication ensures that when customers choose us, they are not just purchasing a toy; they are investing in an item that will provide lasting entertainment and learning opportunities for their children. Our diverse range of products caters to a wide array of interests and age groups, making us the go-to destination for thoughtful gifts and rewarding play experiences.

Beyond our superior product range, we also excel in creating a unique shopping experience that sets us apart. Our knowledgeable and friendly staff are passionate about helping each customer find the perfect toy, offering personalized recommendations and insights that online retailers simply cannot match. Furthermore, we host regular in-store events that foster a sense of community and provide children with the opportunity to engage in imaginative play outside the home. These events not only enhance our customers’ shopping experiences but also position us as a vital part of the local community. By combining our exceptional variety of toys with a warm, welcoming atmosphere, we ensure that WhimsyNest Toy Boutique is not just a store, but a destination that families look forward to visiting.

 

VI. Marketing Plan

Our marketing plan, included below, details our products/services, pricing and promotions plan.

Products, Services & Pricing

At WhimsyNest Toy Boutique, customers can immerse themselves in a diverse range of imaginative playthings, each thoughtfully curated to encourage play, learning, and creativity. From action-packed figures to intellectually stimulating board games, this boutique offers something special for every child and child-at-heart. With a keen focus on quality and value, WhimsyNest ensures that each visit is both enchanting and rewarding.

Action Figures come alive at WhimsyNest, where collectors and adventurers alike can find their favorite heroes, villains, and fantastical creatures. The store boasts an impressive collection that spans from classic characters to the latest sensations in the world of entertainment. Customers can expect to find these captivating figures with an average selling price of $15, allowing for affordable yet significant additions to any collection.

Board Games hold a place of honor on WhimsyNest’s shelves, offering a wide variety of games that cater to families, groups of friends, and solo strategists. From timeless classics to modern challenges, these games are selected to foster bonding, strategy, and sheer fun. The average price for board games at WhimsyNest is $30, making it easy for customers to pick up a new favorite for game night.

Dolls and Plush Toys fill the boutique with a soft, comforting presence, appealing to the nurturing instincts of children and the nostalgic hearts of adults. Whether it’s a plush companion for bedtime stories or a doll that sparks imaginative role-play, WhimsyNest provides a range of options. These cuddly friends are typically priced around $20, offering a variety of choices for gifts and special occasions.

Building Blocks and Construction Sets are foundational toys at WhimsyNest, encouraging both young architects and engineers to build their dreams. With sets ranging from simple blocks for toddlers to complex kits for older children and adults, these toys support creativity and cognitive development. Customers can look forward to finding these sets at an average price of $35, providing endless hours of constructive play.

Educational Toys are a cornerstone of WhimsyNest’s mission, with a selection designed to stimulate young minds and make learning a joyous adventure. From science kits to language learning tools, these toys are chosen to enrich the educational journey. With an average selling price of $25, parents and educators can find valuable resources to support children’s growth and curiosity.

WhimsyNest Toy Boutique prides itself on offering a magical shopping experience, where the joy of discovery meets the pleasure of play. Each product and price point is thoughtfully considered to ensure that every visit leaves customers delighted and inspired.

Promotions Plan

At WhimsyNest Toy Boutique, we understand the importance of strategic promotion to attract and retain customers. Our approach encompasses a variety of dynamic promotional methods designed to make us a household name in Cedar Falls, IA, and beyond. We believe that a multi-faceted promotional strategy will not only introduce our unique toy selection to a wide audience but also create lasting relationships with our customers.

Online marketing stands at the forefront of our promotional efforts. We leverage social media platforms like Instagram, Facebook, and Pinterest to showcase our latest toys, seasonal offers, and engaging content that resonates with both parents and their children. Regular updates and interactive posts will encourage followers to engage with our brand, share our content, and visit our store. Additionally, email marketing campaigns will keep our subscribers informed about new arrivals, exclusive deals, and upcoming events, driving both online and in-store traffic.

Our website will serve as a central hub for all things WhimsyNest, offering an online shopping experience that mirrors the whimsical and customer-friendly atmosphere of our physical boutique. SEO strategies will ensure that when potential customers search for toys in Cedar Falls, IA, WhimsyNest Toy Boutique appears at the top of their search results. Furthermore, we will implement targeted online ads that reach our specific audience based on their interests, search behavior, and location, maximizing our visibility and attracting new customers.

Beyond digital efforts, we will engage with the Cedar Falls community through local events, sponsorships, and partnerships with schools and children’s organizations. Hosting in-store events, such as toy demonstrations, story hours, and themed parties, will provide families with memorable experiences that build loyalty and word-of-mouth referrals. Collaborations with local businesses and community groups will also expand our reach and establish WhimsyNest Toy Boutique as a committed member of the Cedar Falls community.

Loyalty programs will reward our customers for their repeat business, offering discounts, early access to new products, and special members-only events. These programs will not only incentivize purchases but also foster a sense of belonging among our customer base.

In conclusion, WhimsyNest Toy Boutique will utilize a comprehensive blend of online marketing, community engagement, and customer loyalty strategies to attract and retain customers. Our dedication to creating a fun, welcoming shopping environment, both online and in-store, will set us apart and ensure our success in the competitive toy retail market.

 

VII. Operations Plan

Our Operations Plan details:

  1. The key day-to-day processes that our business performs to serve our customers
  2. The key business milestones that our company expects to accomplish as we grow

 

Key Operational Processes

To ensure the success of WhimsyNest Toy Boutique, there are several key day-to-day operational processes that we will perform.

  • Inventory Management: We constantly monitor inventory levels to ensure we have the right mix of toys and games in stock. This involves ordering new inventory before stock runs low and conducting regular inventory audits to prevent discrepancies.
  • Customer Service: We provide exceptional customer service, offering personalized shopping assistance, responding promptly to customer inquiries, and handling returns or exchanges with ease and efficiency.
  • Store Presentation and Merchandising: We maintain a clean, inviting, and well-organized store environment. Regularly updating displays to highlight new arrivals, seasonal items, and promotions encourages customers to explore and make purchases.
  • Marketing and Promotions: We actively engage in marketing efforts to attract new customers and retain existing ones. This includes managing social media accounts, sending out newsletters, and running promotions or events that draw attention to our boutique.
  • Financial Management: We conduct daily sales reconciliations, manage bills and vendor payments, and monitor cash flow to ensure the business remains profitable and financially healthy.
  • Staff Training and Management: We invest in regular training for our staff to ensure they are knowledgeable about our products and can provide the best customer service. We also manage staff schedules to ensure the store is adequately staffed during peak hours and special events.
  • Health and Safety: We adhere to all local health and safety regulations to ensure a safe shopping environment for our customers and a safe working environment for our employees. This includes regular cleaning and sanitation, as well as ensuring that all toys and products meet safety standards.
  • Online Sales and Customer Support: We manage an online storefront that complements our physical location, allowing customers to shop from the comfort of their homes. This includes managing online inventory, processing online orders, and providing virtual customer support.
  • Community Engagement: We actively participate in community events and partner with local schools, libraries, and organizations to foster a positive relationship with the Cedar Falls community and promote our boutique.

Milestones

WhimsyNest Toy Boutique expects to complete the following milestones in the coming months in order to ensure its success:

  • Secure a Prime Location: Identify and lease a retail space in a high-traffic area in Cedar Falls, IA, that is accessible and appealing to our target customer base. Completion of this milestone will significantly reduce the risk associated with low foot traffic and poor visibility.
  • Acquire Necessary Permits and Licenses: Obtain all required business operations permits and retail licenses from local, state, and federal government bodies. This milestone ensures legal compliance and allows for a smooth operation without the risk of shutdowns or fines.
  • Build Out and Design Store: Complete the interior design and shelving setup tailored to creating an engaging and welcoming environment for families and children. Achieving this milestone will help in attracting and retaining customers by enhancing their shopping experience.
  • Curate Inventory: Develop relationships with toy manufacturers and distributors to curate a diverse and appealing inventory that caters to a wide range of interests and age groups. Successfully achieving this milestone is crucial for meeting customer expectations and encouraging repeat business.
  • Implement a Comprehensive Marketing Strategy: Launch a marketing campaign that includes online advertising, social media engagement, and community events to build brand awareness and attract customers to the store. This milestone is critical for generating initial foot traffic and sustaining customer interest over time.
  • Launch Our Toy Store: Officially open WhimsyNest Toy Boutique to the public with a grand opening event designed to generate buzz in the community. This milestone marks the transition from planning to operation and sets the stage for future success.
  • Establish an Online Sales Channel: Develop an e-commerce platform to complement the physical store, allowing customers to browse and purchase products online. This milestone addresses the growing trend of online shopping and diversifies the store’s revenue streams.
  • Reach $15,000/Month in Revenue: Achieve a consistent revenue target of $15,000 per month, which would indicate a strong market presence and customer base. This milestone is essential for demonstrating financial viability and supporting future growth initiatives.
  • Develop a Loyal Customer Base: Implement a loyalty program and customer engagement strategies to encourage repeat business and word-of-mouth referrals. This milestone is vital for building a sustainable customer base and reducing reliance on constant marketing efforts for new customers.
  • Review and Adjust Operations: After six months of operation, conduct a comprehensive review of business performance, customer feedback, and operational efficiency. Adjusting strategies and operations based on this review will help mitigate risks related to market changes, competition, and customer preferences, ensuring long-term success.

 

VIII. Management Team

Our management team has the experience and expertise to successfully execute on our business plan.

Management Team Members

WhimsyNest Toy Boutique management team, which includes the following members, has the experience and expertise to successfully execute on our business plan:

Madelyn Ortiz, President

Madelyn Ortiz, President, brings a wealth of experience to WhimsyNest Toy Boutique, grounded in her proven track record of success in the toy industry. Her leadership skills were honed through the successful management and operation of a previous toy store, showcasing her ability to navigate the competitive landscape of retail and her keen understanding of the toy market. Ortiz’s entrepreneurial spirit, combined with her strategic business acumen, positions her as the driving force behind WhimsyNest’s mission to offer unique and engaging toys. Her expertise in product selection, marketing strategies, and customer service excellence makes her an invaluable asset to the boutique, ensuring that WhimsyNest captures the hearts and imaginations of both children and their parents. Her leadership is instrumental in steering the boutique towards achieving lasting success, by not only meeting but exceeding the expectations of its clientele.

 

IX. Financial Plan

Summary

Below is an overview of our expected financial performance over the next five years:

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Expenses $855,881 $899,484 $945,309 $993,468 $1,044,081
Gross Profit $1,617,429 $1,778,691 $1,954,700 $2,146,749 $2,356,241
Gross Profit (%) 65.4% 66.4% 67.4% 68.4% 69.3%
Other Expenses $103,153 $106,282 $109,507 $112,829 $116,252
EBITDA $1,514,276 $1,672,408 $1,845,193 $2,033,920 $2,239,989
Depreciation $17,000 $17,000 $17,000 $17,000 $17,000
Amortization $0 $0 $0 $0 $0
Interest Expense $18,400 $18,400 $18,400 $18,400 $18,400
Income Tax Expense $517,606 $572,952 $633,427 $699,482 $771,606
Net Income $961,269 $1,064,055 $1,176,365 $1,299,038 $1,432,982

Funding Requirements/Use of Funds

To accomplish our growth goals, WhimsyNest Toy Boutique needs $184,000 in funding. Key uses of this funding will be as follows:

Capital Investments
Location Buildout $50,000
Furniture $10,000
Equipment and Machines $20,000
Computers $5,000
Non Capital Investments
Working Capital $50,000
Initial Rent/Lease $5,000
Staff Salaries (First 3 Months) $30,000
Initial Marketing and Advertising $10,000
Supplies $2,000
Insurance $2,000

Financial Projections

financial projection toy store business plan

5 Year Annual Income Statement

FY 1 FY 2 FY 3 FY 4 FY 5
Revenues
Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Total Revenues $2,473,311 $2,678,176 $2,900,009 $3,140,218 $3,400,323
Direct Costs
Direct Costs $855,881 $899,484 $945,309 $993,468 $1,044,081
Total Direct Costs $855,881 $899,484 $945,309 $993,468 $1,044,081
GROSS PROFIT $1,617,429 $1,778,691 $1,954,700 $2,146,749 $2,356,241
GROSS PROFIT % 65.4% 66.4% 67.4% 68.4% 69.3%
Other Expenses
Salaries $72,814 $75,023 $77,299 $79,644 $82,060
Marketing Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Rent/Utility Expenses $6,067 $6,251 $6,441 $6,637 $6,838
Other Expenses $18,203 $18,755 $19,324 $19,911 $20,515
Total Other Expenses $103,153 $106,282 $109,507 $112,829 $116,252
EBITDA $1,514,276 $1,672,408 $1,845,193 $2,033,920 $2,239,989
Depreciation $17,000 $17,000 $17,000 $17,000 $17,000
Amortization $0 $0 $0 $0 $0
EBIT $1,497,276 $1,655,408 $1,828,193 $2,016,920 $2,222,989
Interest Expense $18,400 $18,400 $18,400 $18,400 $18,400
PRETAX INCOME $1,478,876 $1,637,008 $1,809,793 $1,998,520 $2,204,589
Net Operating Loss $0 $0 $0 $0 $0
Use of Net Operating Loss $0 $0 $0 $0 $0
Taxable Income $1,478,876 $1,637,008 $1,809,793 $1,998,520 $2,204,589
Income Tax Expense $517,606 $572,952 $633,427 $699,482 $771,606
NET INCOME $961,269 $1,064,055 $1,176,365 $1,299,038 $1,432,982
Net Profit Margin (%) 38.9% 39.7% 40.6% 41.4% 42.1%

5 Year Annual Balance Sheet

FY 1 FY 2 FY 3 FY 4 FY 5
ASSETS
Cash $946,320 $2,013,756 $3,192,242 $4,498,235 $5,747,046
Other Current Assets $212,300 $229,884 $248,926 $261,684 $283,360
Total Current Assets $1,158,620 $2,243,641 $3,441,168 $4,759,920 $6,030,406
Intangible Assets $0 $0 $0 $0 $0
Acc Amortization $0 $0 $0 $0 $0
Net Intangibles $0 $0 $0 $0 $0
Fixed Assets $85,000 $85,000 $85,000 $85,000 $85,000
Accum Depreciation $17,000 $34,000 $51,000 $68,000 $85,000
Net fixed assets $68,000 $51,000 $34,000 $17,000 $0
Preliminary Exp $0 $0 $0 $0 $0
TOTAL ASSETS $1,226,620 $2,294,641 $3,475,168 $4,776,920 $6,030,406
LIABILITIES & EQUITY
Current Liabilities $81,350 $85,315 $89,477 $92,191 $96,694
Debt outstanding $184,000 $184,000 $184,000 $184,000 $0
Total Liabilities $265,350 $269,315 $273,477 $276,191 $96,694
Share Capital $0 $0 $0 $0 $0
Retained earnings $961,269 $2,025,325 $3,201,690 $4,500,728 $5,933,711
Total Equity $961,269 $2,025,325 $3,201,690 $4,500,728 $5,933,711
TOTAL LIABILITIES & EQUITY $1,226,620 $2,294,641 $3,475,168 $4,776,920 $6,030,406

5 Year Annual Cash Flow Statement

FY 1 FY 2 FY 3 FY 4 FY 5
CASH FLOW FROM OPERATIONS
Net Income (Loss) $961,269 $1,064,055 $1,176,365 $1,299,038 $1,432,982
Change in Working Capital ($130,949) ($13,619) ($14,879) ($10,044) ($17,172)
Plus Depreciation $17,000 $17,000 $17,000 $17,000 $17,000
Plus Amortization $0 $0 $0 $0 $0
Net Cash Flow from Operations $847,320 $1,067,435 $1,178,486 $1,305,993 $1,432,810
CASH FLOW FROM INVESTMENTS
Fixed Assets ($85,000) $0 $0 $0 $0
Intangible Assets $0 $0 $0 $0 $0
Net Cash Flow from Investments ($85,000) $0 $0 $0 $0
CASH FLOW FROM FINANCING
Cash from Equity $0 $0 $0 $0 $0
Cash from Debt financing $184,000 $0 $0 $0 ($184,000)
Net Cash Flow from Financing $184,000 $0 $0 $0 ($184,000)
Net Cash Flow $946,320 $1,067,435 $1,178,486 $1,305,993 $1,248,810
Cash at Beginning of Period $0 $946,320 $2,013,756 $3,192,242 $4,498,235
$946,320 $2,013,756 $3,192,242 $4,498,235 $5,747,046

 

What Is a Toy Store Business Plan?

A toy store business plan is a document that outlines the strategies you have developed to start and/or grow your toy store business. Among other things, it details information about your industry, customers and competitors to help ensure your company is positioned properly to succeed. Your toy store business plan also assesses how much funding you will need to grow your business and proves, via your financial forecasts, why the business is viable.
 

Why You Need a Business Plan for your Toy Store Business

A business plan is required if you are seeking funding for your toy store business. Investors and lenders will review your plan to ensure it meets their criteria before providing you with capital. In addition, a toy store business plan helps you and your team stay focused. It documents the strategies you must follow and gives you financial projections you should strive to achieve and against which you can judge your performance.
 

Toy Store Business Plan Template PDF

Download our Toy Store Business Plan PDF to help guide you as you create your business plan for your own toy store business.
 

Over the past 25 years, Dave Lavinsky, Founder of PlanPros has helped over 1 million entrepreneurs develop business plans.
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