Business At A Glance
Startup Costs: Under $2,000
Home Based: Can be operated from home.
Part Time: Can be operated part-time.
Online Operation? No
What a great business and concept’-homebased, unique, low overhead, minimal startup costs, virtually nocompetition and no limitations on business growth and expansion.Thousands of children’s parties take place every day, and tapping intothis very lucrative market is easy. Simply develop samples of yourproducts and start knocking on doors. I will guarantee that you willfind little resistance to your product, and chances are the biggestbusiness challenge you will face is trying to keep up with the demandfor the piñatas. I suggest that you strictly focus on the wholesalemarket and establish accounts with retail children’s stores, partyplanners, and e-tailers. Try to get your product into as manymail-order catalogs as possible. Requirements: There are very fewrequirements in terms of qualifications to start and run this business.
The largest would be your creative ability in both manufacturing thepiñatas and how you will market the product. Of course, there arealways the safety concerns, so be sure to place prizes inside thatcannot harm, spoil or create potential liability for you. Start-upcosts: It should cost you less than $100 to develop your samples andpossibly another $200 to begin marketing your products. This is theultimate quick return on investment business. Profit potential: Afteran exhaustive search I finally found a piñata for sale in a children’sretail store (in excess of 30 telephone calls and an hour’s drive). Thepiñata retailed for $80 and was based on a birthday sports theme. Uponreturning home and careful examination, I determined that it wouldrequire about an hour to make the piñata, and $5 worth of materials.Inside this particular piñata was hard candy and a toy prize, maybeanother $2 to $3 worth. Even at $25 per hour, the total cost tomanufacture this product would be in the $30 range. This still allowsfor a 30 percent markup on your material costs and labor, while theretailer can maintain a 100 percent markup. Now you see why there willbe no problem in establishing wholesale accounts with retailers.