Small-Batch toy brand with a workshop unit

Independent toy and gift shops, online retailers, museum and attraction shops, and families buying direct through your website.

You sell at retail price direct and at a lower wholesale price to shops, usually in repeat batches. Margin depends on how well you control production costs.

• Product design and prototyping
• Managing small-scale production and suppliers
• Pricing for wholesale and retail
• Selling to shops and handling orders

• Toy safety rules: you are responsible for making sure toys comply with UK requirements, which usually means testing and keeping technical records. Check with Trading Standards or GOV.UK
• Cash tied up in stock and unit rent before sales arrive, so start with small batches
• Public and product liability insurance, plus employer's liability if you hire help
• Check planning and lease terms for using a unit for manufacturing, and any fire safety requirements
• Seasonal sales: much of the demand can fall before Christmas, so plan your cash flow

Startup costs are typically around £5,000 to £25,000, depending on your unit, how much stock you produce and the testing you need. Start with small batches, as cash is tied up in stock and rent before sales arrive.

Monthly revenue is typically around £1,500 to £7,500, depending on your range, your wholesale and direct sales, and the season. Much of the demand can fall before Christmas, so plan your cash flow. The estimate assumes at least around 30 hours a week.

You are responsible for making sure toys comply with UK requirements, which usually means testing and keeping technical records. Check with Trading Standards or GOV.UK. Also check insurance, and planning and lease terms for using a unit for manufacturing.