How to Start a Fidget Toy Business

Part 1 - How to start a Fidget Toy business - Background

The fidget spinner was the first “fidget toy” to be introduced into the marketplace. Designed to help alleviate and channel nervous energy in children, this popular toy is Googled over 100,000 times per month and has already generated over $500 million in sales since its introduction in early 2017. Due to its overwhelming popularity, inventors and entrepreneurs across the world are now focused on dreaming up the next fidget fad to take over the Internet marketplace.

Our guide is in 3 parts:

• Part 1 - How to start a Fidget Toys business - Background
• Part 2 - Our planner tool to see if this idea is the right fit for you
• Part 3 - Action plan to get started

What are the costs involved in opening a fidget toy business?

Some of the most successful business owners in this industry started out with less than $1,000 in capital. This business venture can be run from the comfort of your home office, with very little overhead costs. If your plan is to simply sell an already produced item, you could create an e-commerce store through platforms like Shopify. This online platform offers a two-week free trial. Once the trial period is over, your cost is approximately $29 per month.

For product inventory, you could handle this in one of two ways. You could find the most affordable, quality product, and purchase in bulk. Once an order is placed, you would handle the shipment of each order. Or, you could link up with a website like AliExpress. This company lets you search through their inventory and identify the products you wish to sell. You then set the price, based on parameters defined by you. When an order is placed, AliExpress fulfills the order and ships it directly to the customer. Your profit margins are slightly lower, as they absorb all the up-front costs.

If you have a little more capital to invest, you could take this a step further, investing directly in the products you stand behind and wish to sell. While this will create a little more work on the front-end, your profit margins increase significantly.

If you feel you have invented what is sure to be the latest craze in fidget toys, start-up costs will be quite a bit higher. Your first task should be to obtain a patent. While this requires both time and money, the benefits could follow you for years to come. You will then need to identify the manufacturer you wish to produce your product. Again, this will require more work and financial commitment than your first options, but the profits generated from just one successful product could yield you millions over time. Many successful business ventures sprouted from crowd funding and/or GoFundMe campaigns, so do not get discouraged if start-up capital is a roadblock.

What are the ongoing expenses for a fidget toy business?

Until you get into manufacturing a great deal of fidget toys, your ongoing expenses for this business are fairly low. You will need storage space to organize and store the fidget toys offered. Many business owners have found success running such an enterprise out of their home office. You will incur costs associated with product shipment, which, when priced properly, can be absorbed into the cost of the products you sell. To realize significant success, your primary investment should be in targeted marketing campaigns.

Who is the target market?

While these toys are primarily geared towards children, your marketing efforts should target both children and parents. The parents are, ultimately, who have the buying power, so it is important that you appeal to them as much as the kids you are catering to.

How does a fidget toy business make money?

A fidget toy business generates revenue from the sale of each toy. Initially, filling orders will be on a smaller scale, with individuals visiting your website to place their order. However, as your site gains popularity, you will start filling larger orders, distributing directly to retailers.

How much can you charge customers?

There are a number of fidget toys on the market today. Some retail for as low as $10, while others sell for as high as $350.

How much profit can a fidget toy business make?

Your profits are directly tied to your cost per item, the price you set for consumers and the amount you are able to sell, minus overhead costs. The lower your ongoing expenses, the higher your profits will soar. There are a number of entrepreneurs who have seized this fidget trend, yielding over $500,000 in just a years time.

How can you make your business more profitable?

Whether you are most skilled at identifying the latest and greatest in fidget toys, or inventing them yourself, your sales skills can help you launch this business into a six-figure income. The most important thing you can do to maximize profits is identify the best quality merchandise and supply these products to larger enterprises, as well as smaller, local shops. While acting as a middleman, the right sales strategy can launch you to success status in a matter of months.

We could all benefit from the actions of the masterminds behind Fidget360. These high school students came up with their own invention, invested in a 3-D printer, and became an overnight sensation. Within six months, these teenagers sold over $350,000 in merchandise and could be found in major retail stores such as Walmart and Target.

Day-to-Day and Growth

What happens during a typical day at a fidget toy business?

There are many moving parts (pun intended) in managing a business of this genre. The fidget spinner became an overnight sensation, proving to the business community that there is one overriding component contributing to its success – marketing. Therefore, the bulk of your time should be spent mastering your marketing strategy, ensuring each new product successfully reaches its target audience. In your marketing efforts, you will need to conduct thorough research, getting into the minds of your customers. This will not only shed light on how you market to them, it will also assist you in identifying changing trends and what products best fit their needs, both now and moving forward.

Once you have gained this valuable information, your team will need to work on new inventions and coming up with the best strategy for moving these ideas from paper to production and, ultimately, to the marketplace. While you will likely want to distribute these items directly to customers yourself, it would be beneficial if you are able to tap into other sales platforms, both on a national and international level. Fulfilling order requests, addressing questions and concerns, and seeking out new opportunities will be a part of your everyday routine.

What are some skills and experiences that will help you build a successful fidget toy business?

There is no certification required to take on this business venture. However, it does require a specific skill set. To realize long-term success, business owners must possess an entrepreneurial mind and strong marketing skills. To reach your target audience on a larger scale, it would also prove beneficial to understand the art of salesmanship, connecting with individuals of every age. With that in mind, previous sales experience, particularly one that targets this genre of product, would prove to be a plus.

What is the growth potential for a fidget toy business?

As demonstrated by the phenomenon that is the fidget spinner, there is the potential to realize significant profits and experience remarkable growth. For long-term success, however, you will need to either invent a product that is recognized on an educational, therapeutic, and/or occupational level, or continue to produce items that follow the latest in industry trends.

What are some insider tips for jump starting a fidget toy business?

Since this is a highly competitive market, it’s important that you gain an edge over the opposition. The primary factor driving people to your product is quality and price. Industry leaders recommend “upselling,” which means offering your customers a product that complements or is related to their existing order. Nine times out of ten, offering the right “upsell” will yield you additional revenue.

How and when to build a team

The size of your team depends fully on the magnitude of work you are faced with. If you set yourself up with an online sales site, you should be able to handle order fulfillment and marketing on your own. However, if your plan is to distribute on a larger scale or manufacture and sell your own invention, you will want to enlist the help of others. It is recommended that you seek the professional advise of an attorney or financial advisor, who can guide you through the process and assist you in coming up with a timeline and financial plan.

Part 2 - Is a Fidget Toy business the right fit for you?

Part 3 - Action plan to launch your Fidget Toy business in 90 days