5 Tips for How to Start a Hobby Shop Successfully

Starting a hobby shop can be a great way to combine your passion for a particular hobby and a knack for business. Expert knowledge of your niche and a solid business plan are two of the most important factors in setting up a successful hobby shop.

Your business plan should take into account your target market, any competition, a marketing strategy, and how you will reach out to customers. Partnering with an end-to-end payment processor is also important for maximising sales and expanding your reach to national and international customers if you so choose.

How to Set Up a Hobby Store

European revenue in the Toys & Hobby market amounts to €61.64bn in 2023. There is potential for business owners who wish to tap into this growing market. Setting up your own hobby shop requires more than just your passion and knowledge; however, just like any business idea, a retail store—whether high street or online—needs a solid plan to attract loyal customers. The following tips can help you do just that:

1. Select Your Niche

Some stores that sell hobby products offer a bit of everything. However, you may wish to open a specialist hobby supplies store that aligns with your specific hobby. This could be anything from board games to knitting.

Choosing to set up a more general shop or a very specialised one will depend on several factors. However, setting up a business based on your interests, knowledge, and passion is often a good place to start as it may be easier to attract fellow local hobbyists who share and appreciate your enthusiasm. A niche hobby shop has the potential to become the point of reference in your area for everyone who shares your interest.

Before deciding on a niche, it’s essential to do market research to see how viable the business idea is. You may want to consider:

• If there are enough people in your local community who share your hobby and if they would spend money in your shop
• If you can run an e-commerce store alongside a brick-and-mortar shop to gain more customers
• If you have any competition in the area
• The potential for your business to become a profitable venture

Make Sound Financial Decisions When Choosing Your Niche

Starting a business can involve a significant financial investment, so make sure you do your research to ensure your idea is viable before stepping out. Take the opportunity to set up a merchant services account that allows you to accept payments via different payment methods and in different currencies. Payment processing for toy and hobby shops is particularly important for businesses that wish to open an e-commerce store and attract customers from around the country or around the world.

2. Find the Perfect Location

If you’re setting up a high-street shop, location is everything. Consider the footfall of an area, access to parking and proximity to other popular areas. These are some other important considerations:

• The area’s demographics: Do people in your area have an interest and disposable income to purchase items in your shop?
• The competition: It may be difficult to entice customers from established hobby shops in your area. Check local businesses to see if you have direct competition not only in your town but in the surrounding towns too.
• The costs: Are you going to rent a property to use as a brick-and-mortar store? What are the costs involved in setting up an e-commerce shop? Make sure you break down all the costs involved before you start and ensure you can afford the monthly payments. Many hobby stores take a while to break even, so you may need some savings to get you through the first months.

Choose the perfect location for your store. Don’t rush in and choose an imperfect location because you’re anxious to start. Location is critical to the growth and success of your business so take your time and pick the best possible spot.

3. Make a Business Plan

A business plan outlines your goals and the strategies you’ll put in place to achieve them. A good business plan will cover the following:

• Your target audience. Who will buy your products? What will they need and want from you? Where do existing customers shop and what are their spending habits?
• Your approach to retail. Are you interested in omnichannel commerce or do you want to start small?
• Your products and services. What are you going to offer customers? Think not only about the product but also the community you could create around your shop. Can you make any income from anything outside of the shop (events, excursions, conferences, workshops)?
• Your marketing strategy. How are you going to reach out to new customers? Do you have a digital marketing strategy in place for selling online? How can you reach out to people in other locations?
• Your finances. How much capital do you need to start your business? What sources of revenue do you have? What overheads will you have?

When creating a business plan, consider the need for a global payment gateway that allows you to accept electronic payment methods and track all of your transactions from anywhere and on any device. A payment gateway also makes it easier to keep track of customer data, allowing you to create email marketing campaigns and set up recurring billing if you decide to offer a hobby subscription box.

4. Licences and Permits

Shop owners should check with their local authorities to find out if they need a licence or permit to sell products in their local hobby shop. This is particularly important if your shop sells any regulated items such as flora and fauna, cultural artefacts, or weapons.

5. Create a Dynamic Online Presence

Having a strong online presence and being present on social media are key to success in today’s world. This is the case even if you only sell in person as new customers are likely to look up your business online before they visit.

An engaging online presence should include:

• A website with information about what your shop offers. Make sure the website is designed for mobile as well as desktop.
• Create a Google Business account so potential customers can see your opening times and other practical information about your shop.
• Create a blog about your hobby and business and update it regularly.
• Open social media accounts on platforms that appeal to your target audience. Use these accounts to build community, inform customers about your products and let them know about upcoming sales, discounts, and events.

Businesses that set up an e-commerce website will need to think about which payment methods to accept. In addition to debit and credit card payments, think about QR code payments, mobile payments, and other payment methods your target audience uses.

Research, Plan and Put Your Best Foot Forward

A passion for your hobby is a great place to start when setting up a hobby shop. Expert knowledge and market research will put you in good stead to understand the industry and the type of products or services other enthusiasts look for.

Once you open your doors for business, partnering with a market-leading payment processor will give you fintech solutions and data to help your store grow and thrive—both with local customers and enthusiasts from around the world.