As reported by The MBS Group, the baby products market is valued at around $158bn worldwide and “like babies themselves, the market looks set only to grow”.
Interestingly, many market analysts concur, with experts pointing to the fact that some couples are choosing to start families later in life and as a result, have extra disposable income to spend on such products.
If you’ve been doing some soul searching over lockdown and are considering pivoting to a life of being your own boss in the world of baby products, then, firstly; we commend your bravery! It’s a competitive industry, that’s for sure, but it’s also a lucrative one if you play your cards right. That said, it’s not a decision you should take lightly. For beginners in the industry, here are 5 tips for starting a booming baby business.
CHECK IF YOUR IDEA IS ORIGINAL
There are hundreds, no, thousands, no, millions of different baby products out there. As such, the first thing you need to do is research the market and validate your idea, both to check if it already exists elsewhere, and to see if it’s an idea which would appeal.
It’s sensible at the ideas stage of any product to first conduct a patent search, which you can do via the UK Government’s dedicated ‘search for a patent’ page. You can also search for any trademarks via the Intellectual Property Office, who enable you to search their directory using key words and phrases.
Once you’ve established that your baby product idea is your own and original, it’s wise to get a feel within your chosen market segment (ie. new parents) about whether the product has legs. You should do this before you build any prototypes – more of that in a minute, by the way.
This can either be done informally, by asking friends, family and anyone else who will listen whether they think your product has potential. Or, you can conduct your research in a more serious, professional way, via focus groups and online questionnaires.
Read: 6 tips for balancing your business and your baby
GET YOUR PROTOTYPE
Once you’ve validated your idea, it’s time to get a prototype together. Without one, you won’t be able to attract investors or get your product spec adjusted, calibrated and optimised ready for its launch.
This is relatively simple but pretty much compulsory as you’ll need a prototype to get your product manufactured. Immould injection mold design is often used for babycare products like dummies, bathtubs, potties, baby cutlery and bowls, and is ideal for producing plastic prototypes safely and affordably. As such, it represents the ideal material from which to have your prototype built.
If you’re going into the baby snack business, on the other hand, you’ll first need to consider your product in terms of ingredients, hygiene of production, nutritional value and consistency of result. But you’ll also need to get prototype packaging sorted; ideally, you’ll find a manufacturer who prioritises safe, sustainable packaging.
Read: 6 IDEAL tips for successfully starting a business from home
WRITE A BUSINESS PLAN
As Forbes writes “No matter what phase your business is in, drafting a strong business plan and understanding what’s essential to it will ensure your success.”
Never a truer word said, we think. Indeed, an effective business plan, done with due diligence and detail, will define the total expected costs, the technology required, the level of marketing, staffing and manufacturing needs …basically, everything.
That’s not all. A business plan won’t only help you during those initial stages of your business. It will also act as something of a roadmap to success, guiding you through making the right decisions and taking the right direction later down the line. It’s also essential if you’re seeking to raise money for your business as you’ll need to present it to investors, speaking of which….
FIND FUNDING
As your business grows, you’ll of course be on the lookout for big-time investors in order to increase your capital investment. Here are some ways you can fund your new business
- Bootstrapping – This is is actually more of a mentality than a funding avenue, with the term primarily defined by extreme financial frugalness in the early days of a business. A major element of this frugalness is the emphasis on self-funding rather than seeking external capital.
- Crowdfunding – A well orchestrated crowdfunding campaign can serve as fantastic marketing when carried out astutely. It can help gauge interest in your business and understand what needs to be done to cater to your customers’ needs and wants
- Business Loans – Loans are one of the more traditional methods of external business funding, and remain a widespread form of raising capital for new and small firms.
- Investors – We’ve all seen Dragon’s Den, right? Yeah, those guys. However, bear in mind that they usually concentrate on investing in mature companies. They will also tend to insist on having hands-on involvement in your business to ensure that the cash flow and ROI they require are achieved.
Read: 4 financial tips for start-up businesses
GET ONLINE AND ON AMAZON
Investment is vital, sure, and being on physical shelves in physical stores is almost always the goal of an emerging baby product, make no mistake. That said, if you want to start raking in good quality exposure to your target market and begin to make sales 24 hours a day, an online presence is absolutely essential, too.
You’ll of course need a professional looking website, complete with a shopping cart system and secure payment gateway so you can sell your products directly to customers. What’s more, a strong social media presence will help you direct customers to your website and generate visits into sales.
But equally as essential as a website and a social media presence is getting and selling your product on Amazon. As reported by Business Insider “Amazon currently makes up 43% of all market share for online baby supplies.” Enough said.
THE BOTTOM LINE
The baby product market is a tough industry to crack, particularly if your idea is in its infancy and hasn’t quite matured yet. That said, it’s also a lucrative market, and we wish you the best of luck in making the most of it!