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How to Start a Baby Store

Written by:

Carolyn Young is a business writer who focuses on entrepreneurial concepts and the business formation. She has over 25 years of experience in business roles, and has authored several entrepreneurship textbooks.

Edited by:

David has been writing and learning about business, finance and globalization for a quarter-century, starting with a small New York consulting firm in the 1990s.

How to Start a Baby Store

Fast Facts

Investment range

$6,550 - $79,100

Revenue potential

$182,500 - $1,825,000 p.a.

Time to build

3-6 months

Profit potential

$73,000 - $182,500 p.a.

Industry trend




Is anything more exciting than having a baby? But caring for babies requires endless stuff, from diapers to formula to a crib and clothes, which is why the US baby goods industry is worth $9 billion. 

Whether you want to open a baby boutique, a baby clothes business, or a baby store that sells all kinds of gear, you can make a nice living and help people care for their newborns and toddlers. You’ll be providing necessary items for little cuties and their parents while providing for your own family. 

You’ll need more than just love for babies, though, to start a successful baby store. Business know-how is a must, and fortunately, this step-by-step guide details all you need to do to become a big-time baby entrepreneur.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a baby store has pros and cons to consider before deciding if it’s right for you.


  • High Demand – People will never stop having babies!
  • Enjoyable Work – Pick out all that cute baby stuff to sell
  • Good Money – People spend thousands on their babies


  • High Startup Costs – Expensive inventory to buy
  • Stiff Competition – It’s a saturated market, particularly online

Baby store industry trends

Industry size and growth

baby products industry size and growth

Trends and challenges

Trends in the baby stores industry include:

  • Sustainable products, such as sustainably-made rubber pacifiers, organic skincare products, and organic cloth diapers, are gaining market share. 
  • Gender-neutral clothing is trending because people want to avoid gender stereotyping and be able to hand items down when they have more children.
  • Emotional development toys, which demonstrate different emotions, are trending.
  • Knitted baby items, such as hats, toys, mittens and cardigans, are also doing well. 

Challenges in the baby stores industry include:

  • Safety is always a priority for parents, so baby stores must choose safe products for their inventory.
  • Supply chain issues are making it difficult to keep shelves stocked.
baby store Trends and Challenges

Demand hotspots

baby products industry demand hotspots

What kind of people work in baby stores?

  • Gender – 48.2% of store owners are female, while 47.1% are male.((https://www.zippia.com/store-owner-jobs/demographics/))
  • Average level of education – The average owner of a store has a bachelor’s degree.
  • Average age – The average owner of a store in the US is 44.2 years old.
baby industry demographics

How much does it cost to start a baby store business?

Startup costs for a baby store range from $6,500 for an online baby store to as much as $80,000 for a physical store. 

Starting as an online store is probably your best bet, particularly if you make your own baby items such as knitted baby goods, or you find a manufacturer who will drop-ship items. 

If you’re opening a physical store, you’ll need a handful of items to launch, including: 

  • Shelves and racks
  • Checkout counters
  • POS system
Start-up CostsBallpark RangeAverage
Setting up a business name and corporation$150 - $200$175
Business licenses and permits$100 - $300$200
Business cards and brochures$200 - $300$250
Website setup$1,000 - $3,000$2,000
Store rental deposit$0 - 5,000$2,500
Space preparation$0 - $20,000$10,000
Initial inventory$5,000 - $50,000$2,7500
Total$6,550 - $79,100$42,825

How much can you earn from a baby store business?

Your average markup on items from wholesale prices will be about 100%. After rent, overhead, and labor, your profit margin should be about 10%. If you’re selling items online, your profit margin will be about 40%. These calculations will assume that the average total sale per customer will be $100 and that you start by selling online.

In your first year or two, if you have 5 sales a day, you’ll be bringing in $182,500 in annual revenue. This would mean $73,000 in profit, assuming that 40% margin. As your brand gains recognition and you get repeat customers, you might open a store, reducing your profit margin to about 10%. Sales could climb to 50 sales a day, so with annual revenue of $1,825,000, you’d make a tidy profit of $182,500.

baby store earnings forecast

What barriers to entry are there?

There are a few barriers to entry for a baby store. Your biggest challenges will be:

  • Funding the cost of your initial inventory
  • Choosing the items that will sell best
  • Attracting customers in a saturated market

Related Business Ideas

If you’re still not sure whether this business idea is the right choice for you, here are some related business opportunities to help you on your path to entrepreneurial success.
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How to Start a Baby Store

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Step 2: Hone Your Idea

develop a business idea

Now that you know what’s involved in starting a baby store, it’s a good idea to hone your concept in preparation to enter a competitive market.

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research baby stores in your area and online to examine their products, price points, customer reviews, and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing a homemade baby clothing boutique.

You might consider targeting a niche market by specializing in a certain aspect of your industry, such as baby cribs.

This could jumpstart your word-of-mouth marketing and attract clients right away.

What? Setting up a baby store with essential and adorable products

You can decide to specialize in something like baby clothing, or you could decide to have a variety of baby goods. Potential products include:

  • Baby clothes
  • Baby furniture
  • Diapers and newborn diapers
  • Baby gear including strollers and car seats
  • Baby food
  • Baby formula
  • Décor for a baby nursery
  • Bottles, rattles, bibs
  • Baby toys and kid’s toys
  • Knitted and home-crafted goods 

It’s also a good idea to start a baby registry to increase your sales.

How much should you charge for baby products?

You should be able to mark up your goods 80%-100% from wholesale prices, but check prices at other stores to make sure you’re competitive. Your ongoing costs will be rent, overhead, labor, and purchasing. You should aim for a profit margin of at least 10%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points. Remember, the prices you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be mainly parents and expectant parents. Your best bet is to market on Instagram and Facebook. Marketing your baby registry as well as your products can help to increase your traffic and revenue.

Where? Choose your baby store location

Choosing the right location for your baby store is a key factor in its success. Look for a location near residential areas or in shopping districts with high foot traffic. You can find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices.

Aim to be easily accessible, whether by car or public transportation, to attract busy parents and caregivers. Additionally, consider the presence of complementary businesses, such as maternity clinics or toy stores, as they can drive additional traffic to your store.

By selecting a strategic location, you can position your baby store to capture the desired target audience and establish a strong presence in the market.

baby store idea rating

Step 3: Brainstorm a Baby Store Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

  • Short, unique, and catchy names tend to stand out
  • Names that are easy to say and spell tend to do better 
  • Name should be relevant to your product or service offerings
  • Ask around — family, friends, colleagues, social media — for suggestions
  • Including keywords, such as “baby store” or “baby gear”, boosts SEO
  • Name should allow for expansion, for ex: “Newborn Necessities” over “Baby Shoes & Socks”
  • Avoid location-based names that might hinder future expansion

Discover over 280 unique baby store name ideas here. If you want your business name to include specific keywords, you can also use our baby store business name generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these.

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Baby Store Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A business plan also enables potential partners and investors to better understand your company and its vision:

  • Executive Summary: A brief summary of the baby store business plan, highlighting its key points.
  • Business Overview: An introduction to the baby store business, including its mission, vision, and basic details.
  • Product and Services: Description of the baby products and services offered in the store.
  • Market Analysis: An examination of the target market, including demographics, trends, and potential customer base.
  • Competitive Analysis: An assessment of competitors in the baby store industry and their strengths and weaknesses.
  • Sales and Marketing: Strategies for promoting and selling baby products, including advertising and marketing plans.
  • Management Team: Information about the individuals responsible for running the business and their qualifications.
  • Operations Plan: Details on how the baby store will be operated, including location, suppliers, and logistics.
  • Financial Plan: Projections of the financial aspects of the business, including startup costs, revenue forecasts, and profit margins.
  • Appendix: Additional documents and information that support the business plan, such as resumes, legal documents, or market research data.
what to include in a business plan

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Registering your business is an absolutely crucial step — it’s the prerequisite to paying taxes, raising capital, opening a bank account, and other guideposts on the road to getting a business up and running.

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you’re planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to baby stores. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your baby store will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

  • Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
  • General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
  • Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
  • C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
  • S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.
types of business structures

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Form Your LLC

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Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN.

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

The IRS website also offers a tax-payers checklist, and taxes can be filed online.

It is important to consult an accountant or other professional to help you with your taxes to ensure you’re completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

  • Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
  • SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
  • Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
  • Angel investors: Reach out to your entire network in search of people interested in investing in early-stage startups in exchange for a stake. Established angel investors are always looking for good opportunities. 
  • Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
  • Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
  • Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a baby store business. You might also try crowdfunding if you have an innovative concept. Eventually, if you want to grow into a large chain of stores, you may be able to attract angel investors.

jewelry store financing

Step 8: Apply for Baby Store Business Licenses and Permits

Business Licenses and Permits

Starting a baby store business requires obtaining a number of licenses and permits from local, state, and federal governments.

Federal regulations, licenses, and permits associated with starting your business include doing business as (DBA), health licenses and permits from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits.

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more.

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

This is not a step to be taken lightly, as failing to comply with legal requirements can result in hefty penalties.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your baby store business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account.

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

  • General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
  • Business Property: Provides coverage for your equipment and supplies.
  • Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
  • Worker’s compensation: Provides compensation to employees injured on the job.
  • Property: Covers your physical space, whether it is a cart, storefront, or office.
  • Commercial auto: Protection for your company-owned vehicle.
  • Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
  • Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.
types of business insurance

Step 11: Prepare to Launch

Launching a Business

As opening day nears, prepare for launch by reviewing and improving some key elements of your business.

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.

You may want to use industry-specific software, such as LS Retail, Vend, or Retail Pro, to manage purchasing, inventory, and invoicing.


  • Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero
  • If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 


Marketing a baby store requires a blend of warmth, trustworthiness, and community-focused engagement. It’s about creating an inviting atmosphere that appeals to parents, grandparents, and gift-seekers who are all interested in quality and safety for their little ones.

Digital Marketing Essentials

  • Targeted Social Media Campaigns: Craft social media campaigns on platforms like Facebook and Instagram that resonate with new and expecting parents.
  • Search Engine Optimization (SEO): Utilize SEO strategies on your website to ensure those searching for baby products find you first.
  • Local Online Listings: List your store on Google My Business and Yelp to improve local search visibility and attract nearby shoppers.

Content Creation and Community Building

  • Educational Blogging: Write blog posts about child care, safety, and product guides, establishing your store as a knowledgeable and trustworthy resource.
  • Video Product Reviews: Share video reviews and demonstrations of products to inform and engage with your customer base.
  • Parenting Webinars: Host webinars or live Q&A sessions on topics of interest to parents, such as baby nutrition or sleep training.

In-Store Experience and Promotions

  • Themed Store Events: Host in-store events like “New Parents’ Night” or “Baby Safety Workshops” to provide value and draw customers in.
  • Loyalty Programs: Develop a loyalty program that rewards repeat customers with discounts or special offers.

Brand Awareness and Partnerships

  • Community Sponsorships: Sponsor local parenting classes or family events to increase brand recognition and community involvement.
  • Influencer Collaborations: Partner with parenting influencers who can authentically showcase your products to their audience.

Creative and Interactive Marketing

  • Interactive Window Displays: Create eye-catching, interactive window displays that draw passersby into the store.
  • Social Media Contests: Run photo contests or “cutest baby” competitions with your products as prizes to encourage engagement.

Customer-Focused Initiatives

  • Product Customization: Offer personalization services for baby gifts, such as monogramming, which can differentiate your offerings.
  • Customer Testimonials: Share real customer stories and testimonials to build trust and provide social proof.

Innovative Advertising

  • Geo-Targeted Ads: Use geo-targeted advertising to reach parents and families in your vicinity.
  • Augmented Reality Shopping: Implement an AR feature on your website allowing customers to visualize products in their home.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your baby store meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your baby store business could be:

  • Sustainable baby goods to keep your baby green
  • The most comfortable baby clothes you’ll find 
  • Affordable and safe gear for your family’s new addition
unique selling proposition


You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a baby store, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in baby stores for years and can offer invaluable insight and industry connections.

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in baby stores. You’ll probably generate new customers or find companies with which you could establish a partnership. 

Step 12: Build Your Team

Building a Team for a New Business

Potential positions for a baby store business include:

  • Store Clerks – make sales, customer services
  • Buyers – select items to purchase for re-sale
  • General Manager – ordering, staff management, accounting
  • Marketing Lead – SEO strategies, social media

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need.

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent.

Step 13: Run a Baby Store – Start Making Money!

Running a Business

Babies are expensive little things, as wonderful as they are. That’s why baby stuff is a $9 billion industry. You now know how to grab yourself a toddler-sized share of that market, whether you specialize in clothes, toys, or other gear, and now it’s time to nail down your plan and start building your baby-focused empire. 

Baby Store Business FAQs

What baby products sell the most?

Here are baby products that tend to sell well: diapers and wipes, baby food and formula, baby clothes, nursing and feeding monitors, baby toys.

Can a small baby store be profitable?

Yes, a baby store can be very profitable. Your markups on items can be between 50% and 200%. After you pay your rent, overhead, and labor, your final profit margin should be about 10%, but baby items are always in demand so if you have a good location, you should be able to do a high volume of business.

How should I price items in my baby store?

Markups on baby items can be between 50% and 200% from the wholesale prices. You’ll also need to check prices at other stores, to make sure that you’re competitive in the market, but still, make sure that you’re making money. Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price points.

What are some popular brands or product lines that I should consider carrying in my baby store?

Some popular brands and product lines to consider carrying in your baby store include Graco, Fisher-Price, Pampers, Huggies, Medela, Philips Avent, Skip Hop, aden + anais, and Baby Einstein. These brands offer a wide range of baby products such as gear, toys, diapers, feeding accessories, and nursery essentials.

What are some essential items that every baby store should have in stock?

Essential items that every baby store should have in stock include diapers and wipes, baby clothing, bottles and pacifiers, baby skincare products, nursing supplies, infant formula and baby food, baby bedding, strollers, car seats, baby carriers, baby safety items, and baby toys and developmental items. 

How do I create a welcoming and comfortable environment for both parents and babies in my store?

Ensure a well-organized store layout with clear signage and wide aisles for easy navigation. Offer comfortable seating areas for parents to rest and attend to their babies’ needs. Use soft lighting and soothing music to create a calm ambiance. Designate a play area where children can engage with toys and books while parents shop. 


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How to Start a Baby Store