How to Start Soft toys Business?

. 7 min read
How to Start Soft toys Business?

Soft Toys Business in India

Starting a business is not an easy job. There is a lot of research and compliance work that goes into the setup of the company. In India, it is not mandatory to register your business. However, it is preferred if you get it registered. The world toy industry accounted for nearly $28 billion in the market's annual revenue in the year 2018. Soft toys are a very trending product of the toys market. If you are looking forward to starting a smooth toy business, this is just the right article for you! Here we shall guide you with respect to- How to create a soft toy business? If you are exploring the business ideas of creating a soft toys business then do read it thoroughly.


The soft toys business is a low investment business to start. The best part is soft toys never go out of demand. The smooth texture and the cuteness of these toys are so attractive that most people prefer them for their babies and children. It is a straightforward business to start and is primarily dominated by women. A mere business idea is not sufficient; you need to follow a guided process to turn the idea into reality

Tips to start a soft toy business

1. Business Loan

Though the soft toys business is a low investment business yet, you will need some cash reserves to maintain a steady supply chain and workflow in your enterprise. It is complicated to maintain a steady cash flow initially. It may be a case that you may not have a profitable business initially. In this case scenario, you can rely on your loan to maintain a cash flow. You will need machinery, labourers, a property, and you will not be able to do any of this if you do not have enough money to hire the right talent or purchase the needful machinery. This is the most crucial step of your business, and it is essential to have enough cash in hand to take care of a lot of expenditure. You will spend money on setup, compliances, and several overheads that you can't even begin to imagine. This is why you should ensure that you have enough cash in hand.

2. Registration

It is important to register your business because it will help you in managing your compliances well. Several business entities can be registered, such as a one-person company, a limited liability partnership, a proprietorship, etc. You are going to need a GSTIN if you are operating in India. Registration under different kinds of entities has many benefits: reverse GST, income tax exemption, interest-free loans, etc. Registration is also necessary to operate a bank account in the name of your business.

3. Market Research

It is essential to understand the working of the market that you wish to operate in. For this, you need to invest time in reading and studying your market. You need to assess customer behaviour. It is essential to determine what your customers want. It will help you to differentiate your products from your competitors. In the business realm, knowledge of the market is the best weapon you will have against your competitors. If you enter the soft toys' business without gathering all the information and knowledge, all your efforts will go in vain. It is crucial to understand your target audience, the industry trends, and the market forces. Entering the soft toys business without proper research is the biggest mistake that one person can make.

Mother and pretty little baby in toy store

4. Invest in Technology and Innovation

Change is the only constant in the world. It is essential for you to develop newer means of production and to innovate your products. The world is changing at a fast pace, and the products you will offer to your clients need to meet this pace. The most common trend in soft toys is popular cartoon characters. You will need the means and talent to produce newer toys promptly. The trending cartoon characters are the most critical aspect of the soft toys industry. You should invest in the innovation of the products. This will help you to keep a steady stream of client engagement.

5. Find your USP

Every business has a unique selling proposition. It would help if you found yours. The USP will help you build a profitable business because a USP differentiates you from your competitors. Invest in your USP and make it your niche. This niche will help you to focus on maintaining a steady chain of customers. It will help you to stand out among your competitors. You can find your customer segment and cater to their needs and preferences only.

6. Customer Engagement & Satisfaction

Customers are the most critical aspect of a business. If your customer is not satisfied with you, it is quite probable that you will not be able to run your business. The reports on customer relationship management suggest that it is more profitable to retain and maintain an existing customer than to find and convert a new one. Business is based on the attraction and retention of customers. If you cannot attract customers, there is no point in starting your business. Once you have acquired customers, it is then essential to retain them. You need to ensure that your services are good enough that if an existing customer wants another soft toy, they will come to your store only and no place else.

7. Start a website

Digital media is the best means to promote and start your business. You can create an online store for your soft toy business. You can post various products, and with the right SEO techniques, you can get a good ranking of your business in very little time. You can also partner up with an eCommerce website to advertise and sell your products. You can start marketing the products in online stores. The most useful advantage of a website is that you will be able to reach out to more customers in a short span of time. You can start your online store and generate a lot of traffic via digital marketing.

image of teddy bear store


To start a soft toys business is a straightforward thing to do. If you feel you have the right talent and the knowledge of the business, you should go for it. Select a place you will operate from and secure a loan. These are the primary things you will have to ensure to start a soft toy business. It is a shallow investment business to start, but it is advisable if you secure the loan.

Also read:

1) Top-5 markets in India every businessperson should visit
2) How Can You Start An Import Business In India?
3) What are the top-10 most profitable businesses in India?
4) Top-10 Cities to Do Business in India

5) Toy Manufacturers in India


Q. Why should you consider starting a soft toy business?

Ans. Soft toys are very trending, and irrespective of the market economy, it is one item that will never go out of trend. The attractiveness of soft toys never goes out of fashion. Playing with soft toys is harmless, and most parents prefer buying soft toys for their kids as they have no harmful impacts.

Q. What are the things you need to start a soft toy business?

Ans. You will need the raw material like fur, cotton, paper cutting, sewing kits, etc.; you will also need the machinery to sew the toys and the labourers who can operate the machinery to make the toys.

Q. How much investment do you need to start a soft toy business?

Ans. Soft toys are a low investment business. It depends on your enterprise's scale and the kind of production you want to ensure for your business. If you're going to install a big factory, you will need a considerable investment, and if you wish to start a small home-based start-up, the investment will be less.

Q. Is it mandatory to register a soft toys business?

Ans. It is not mandatory to register a soft toys business, but it is advisable to do so. When you write a company under a specific category, you will manage the regulatory compliances very smoothly.