Handmade toy maker at home

Parents, grandparents and gift buyers, mostly through online marketplaces, your own web shop and local craft fairs or holiday markets.

You sell each toy at a retail price that covers materials, safety testing, fees and your time. Sets and personalized items can raise the average order.

• Woodworking, sewing or another making craft
• Simple product design
• Photography and online selling
• Patience with detail and finishing

• Children's products usually must meet federal safety rules (CPSIA), which can include third-party testing and a Children's Product Certificate. Check the CPSC website for what applies to your toys
• Small parts, paint, finishes and fabrics need careful checking. Use only materials that are safe for kids' products
• Product liability insurance, as general liability alone may not be enough
• Home occupation permit, zoning, and HOA or lease rules for running a workshop at home
• Sales tax registration with your state for direct sales, and a local business license

Startup costs are typically around $1,200 to $6,000, depending on your craft, tools and materials. Wood and fabric toys need different equipment, so costs vary. Check what testing, insurance and permits apply to you, as these can add to your budget.

Children's products usually must meet federal safety rules (CPSIA), which can include third-party testing and a Children's Product Certificate. Check the CPSC website for what applies to your toys. Also check materials, small parts, paints and finishes, and consider product liability insurance.

Monthly revenue is typically around $500 to $2,500, depending on how many toys you make and where you sell, such as online shops and craft fairs. These are revenue estimates, not profit. Many people start with about 8 hours a week.