Small-batch toy brand for shops and online

Independent toy shops, gift stores, museum shops and online shoppers, plus parents buying direct.

Wholesale sales to retailers at around half the retail price, plus higher-margin direct sales through your own website and trade or gift shows.

• Product design and prototyping
• Working with suppliers and manufacturers
• Sales and pitching to retailers
• Managing stock and cash flow

• Safety testing and labelling for toys, which can cost money and must be done before selling (check Health Canada's guidance)
• Product liability insurance, which most retailers will expect
• Tied-up cash in stock, since minimum order quantities can be large
• Imported goods may involve customs duties, taxes and import paperwork, so check with the Canada Border Services Agency
• Protecting your designs, so consider checking trademark and design protection options before launching
• Heavy seasonality, with retailers placing orders months ahead of the holidays

Startup costs are typically around $5,000 to $25,000, depending on your designs, production runs and safety testing. Cash can be tied up in stock, since minimum order quantities can be large.

Monthly revenue is typically estimated at around $1,000 to $5,000, depending on how many shops and online buyers you reach. Sales are heavily seasonal, with retailers placing orders months ahead of the holidays.

Check Health Canada's guidance on safety testing and labelling for toys, which must be done before selling. Also check product liability insurance, customs duties and import paperwork with the Canada Border Services Agency, and trademark and design protection options.