Start a custom doll business by following these 10 steps:
- Plan your Custom Doll Business
- Form your Custom Doll Business into a Legal Entity
- Register your Custom Doll Business for Taxes
- Open a Business Bank Account & Credit Card
- Set up Accounting for your Custom Doll Business
- Get the Necessary Permits & Licenses for your Custom Doll Business
- Get Custom Doll Business Insurance
- Define your Custom Doll Business Brand
- Create your Custom Doll Business Website
- Set up your Business Phone System
There is more to starting a business than just registering it with the state. We have put together this simple guide to starting your custom doll business. These steps will ensure that your new business is well planned out, registered properly and legally compliant.
Exploring your options? Check out other small business ideas.
STEP 1: Plan your business
A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:
- What are the startup and ongoing costs?
- Who is your target market?
- How much can you charge customers?
- What will you name your business?
Luckily we have done a lot of this research for you.
What are the costs involved in opening a custom doll business?
Most people can get started without a lot of money. Ragdolls may cost only a few dollars to make, which can be a good way to get started for those who don’t want to take out a loan. Doll makers will also need to invest in advertising, as a professional website can go a long way to drumming up demand for a doll maker’s creations. Techniques like blogging and social media are excellent ways to work your way into the public eye without having to spend any a dime.
What are the ongoing expenses for a custom doll business?
Doll makers can keep their expenses low if they’re working on their own and using free advertising strategies such as social media and blogging. They may only need to keep up with the rent or mortgage (usually in the form of a home studio), as well as the raw materials for the dolls. They should also have some type of commercial insurance to cover against potential mistakes.
Who is the target market?
Target markets tend to include either collectors or children who are looking for something different than what's currently available. Most people will be either middle- or upper-class, though there are ways to create less expensive custom dolls for practically any budget.
How does a custom doll business make money?
Doll makers will usually double the cost of the materials they used to make the doll. So, if it costs a doll maker to $100 for the raw materials, then they would price it at $200. However, if the doll is particularly intricate or if the doll maker is able to use techniques that no one else is using, then they can charge much more based on their demand.
How much can you charge customers?
It’s not unusual for people to pay thousands of dollars for a single doll, depending on the brand and style. However, most people are willing to pay up to $100 – $150 for a quality custom doll.
How much profit can a custom doll business make?
If doll makers are working strictly on an order-per-order basis, then they can make around double of whatever they charge per doll. So if a person is making 100 dolls a year and selling them at $80 a piece, then they would make about $4,000 in profit a year.
How can you make your business more profitable?
A doll maker may eventually want to develop their own line of pre-made dolls to sell in toy stores or online. They can throw (and charge for) tea parties for children to come and host their dolls. Or they can hold workshops for other doll makers on how to make their creations better.
What will you name your business?
Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Custom Doll Business Name Generator
When registering a business name, we recommend researching your business name by checking:
- Your state's business records
- Federal and state trademark records
- Social media platforms
- Web domain availability.
It's very important to secure your domain name before someone else does.
STEP 2: Form a legal entity
Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your custom doll business is sued.
Form Your LLC
Read our Guide to Form Your Own LLC
Recommended: You will need to elect a registered agent for your LLC. LLC formation packages usually include a free year of registered agent services. You can choose to hire a registered agent or act as your own.
STEP 3: Register for taxes
You will need to register for a variety of state and federal taxes before you can open for business.
In order to register for taxes you will need to apply for an EIN. It's really easy and free!
You can acquire your EIN for free through the IRS website, via fax, or by mail. If you would like to learn more about EINs and how they can benefit your LLC, read our article, What is an EIN?.
Small Business Taxes
Depending on which business structure you choose, you might have different options for how your business will be taxed. For example, some LLCs could benefit from being taxed as an S corporation (S corp).
You can learn more about small business taxes in these guides:
- LLC Taxes
- Sole Proprietorship vs LLC
- LLC vs Corporation
- LLC vs S Corp
- How to Start an S Corp
- S Corp vs C Corp
There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.
STEP 4: Open a business bank account & credit card
Using dedicated business banking and credit accounts is essential for personal asset protection.
When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.
Additionally, learning how to build business credit can help you get credit cards and other financing in your business's name (instead of yours), better interest rates, higher lines of credit, and more.
Open a business bank account
Besides being a requirement when applying for business loans, opening a business bank account:
- Separates your personal assets from your company's assets, which is necessary for personal asset protection.
- Makes accounting and tax filing easier.
Recommended: Read our Best Banks for Small Business review to find the best national bank or credit union.
Open net 30 accounts
Net 30 accounts are used to establish and build business credit as well as increase business cash flow. With a net 30 account, businesses buy goods and repay the full balance within a 30-day term.
NetMany net 30 credit vendors report to the major business credit bureaus (Dun & Bradstreet, Experian Business, and Equifax Business Credit). This is how businesses build business credit so they can qualify for credit cards and other lines of credit.
Recommended: Read our best net 30 vendors, guide and start building business credit.
Get a business credit card
Getting a business credit card helps you:
- Separate personal and business expenses by putting your business' expenses all in one place.
- Build your company's credit history, which can be useful to raise money later on.
Recommended: Apply for an easy approval business credit card from Divvy and build your business credit quickly.
STEP 5: Set up business accounting
Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.
Make LLC accounting easy with our LLC Expenses Cheat Sheet.
STEP 6: Obtain necessary permits and licenses
Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.
State & Local Business Licensing Requirements
Certain state permits and licenses may be needed to operate a doll making business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.
Most businesses are required to collect sales tax on the goods or services they provide. To learn more about how sales tax will affect your business, read our article, Sales Tax for Small Businesses.
For information about local licenses and permits:
- Check with your town, city or county clerk’s office
- Get assistance from one of the local associations listed in US Small Business Associations directory of local business resources.
Certificate of Occupancy
A doll making business is generally run out of a workshop or factory depending on the size of the business. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.
- If you plan to lease a location:
- It is generally the landlord’s responsibility to obtain a CO.
- Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a doll making business.
- After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.
- If you plan to purchase or build a location:
- You will be responsible for obtaining a valid CO from a local government authority.
- Review all building codes and zoning requirements for your business’ location to ensure your doll making business will be in compliance and able to obtain a CO.
STEP 7: Get business insurance
Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.
There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.
Learn more about General Liability Insurance.
Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.
STEP 8: Define your brand
Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.
If you aren't feeling confident about designing your small business logo, then check out our Design Guides for Beginners, we'll give you helpful tips and advice for creating the best unique logo for your business.
If you already have a logo, you can also add it to a QR code with our Free QR Code Generator. Choose from 13 QR code types to create a code for your business cards and publications, or to help spread awareness for your new website.
How to promote & market a custom doll business
Online advertising is a great way to show off your dolls because most people rely on photos in spark desire. The best way to promote your business will always be word of mouth, but that might not be realistic at the very beginning. Blogging, social media, and a tasteful website can all help get the word out.
How to keep customers coming back
Creating quality dolls that last against wear and tear is a good way to earn repeat customers. While customer service is less necessary (considering there may only be so much face-time with clients), owners should also be polite and respectful of people’s requests.
Still unsure about what kind of business you want to start? Check out the latest Small Business Trends to help inspire you.
STEP 9: Create your business website
After defining your brand and creating your logo the next step is to create a website for your business.
While creating a website is an essential step, some may fear that it’s out of their reach because they don’t have any website-building experience. While this may have been a reasonable fear back in 2015, web technology has seen huge advancements in the past few years that makes the lives of small business owners much simpler.
Here are the main reasons why you shouldn’t delay building your website:
- All legitimate businesses have websites - full stop. The size or industry of your business does not matter when it comes to getting your business online.
- Social media accounts like Facebook pages or LinkedIn business profiles are not a replacement for a business website that you own.
- Website builder tools like the GoDaddy Website Builder have made creating a basic website extremely simple. You don’t need to hire a web developer or designer to create a website that you can be proud of.
Using our website building guides, the process will be simple and painless and shouldn’t take you any longer than 2-3 hours to complete.
STEP 10: Set up your business phone system
Getting a phone set up for your business is one of the best ways to help keep your personal life and business life separate and private. That’s not the only benefit; it also helps you make your business more automated, gives your business legitimacy, and makes it easier for potential customers to find and contact you.
There are many services available to entrepreneurs who want to set up a business phone system. We’ve reviewed the top companies and rated them based on price, features, and ease of use. Check out our review of the Best Business Phone Systems 2022 to find the best phone service for your small business.
Recommended Business Phone Service: Phone.com
Phone.com is our top choice for small business phone numbers because of all the features it offers for small businesses and it's fair pricing.
Start a Custom Doll Business in your State
- District of Columbia
- New Hampshire
- New Jersey
- New Mexico
- New York
- North Carolina
- North Dakota
- Rhode Island
- South Carolina
- South Dakota
- West Virginia
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Is this Business Right For You?
Doll makers typically start off as hobbyists who make dolls for their friends, families, or even just for themselves. But a doll maker should also be creative enough to put clever spins on the general dolls they sell or custom requests.
Want to know if you are cut out to be an entrepreneur?
Take our Entrepreneurship Quiz to find out!
What happens during a typical day at a custom doll business?
The majority of time will likely be spent in a workshop, but doll makers should also devote some time to advertising and interfacing with clients. Brainstorming and communication should be standard practice because it's the only way to give the customer exactly what they're looking for. A dollmaker may also have to negotiate with supply vendors to ensure they’re getting the lowest possible price for their materials.
What are some skills and experiences that will help you build a successful custom doll business?
People who have experience with high-level crafts will do well in this business. They may have also gone to some type of trade or art school to learn how to use different materials to create durable, quality toys.
What is the growth potential for a custom doll business?
There are people who will pay for custom dolls, though it is definitely a niche. Some doll makers will use their custom business as a way to springboard themselves into more commercialized dolls. For example, if a doll maker is getting requests for small dolls based on public figures, they may create their own line of prefabricated dolls to put into stores. In addition, there is always the chance that a doll makers creations will become the next fad in the same vein as Cabbage Patch dolls or Barbies.
Take the Next Step
Find a business mentor
One of the greatest resources an entrepreneur can have is quality mentorship. As you start planning your business, connect with a free business resource near you to get the help you need.
Having a support network in place to turn to during tough times is a major factor of success for new business owners.
Learn from other business owners
Want to learn more about starting a business from entrepreneurs themselves? Visit Startup Savant’s startup founder series to gain entrepreneurial insights, lessons, and advice from founders themselves.
Resources to Help Women in Business
There are many resources out there specifically for women entrepreneurs. We’ve gathered necessary and useful information to help you succeed both professionally and personally:
If you’re a woman looking for some guidance in entrepreneurship, check out this great new series Women in Business created by the women of our partner Startup Savant.
What are some insider tips for jump starting a custom doll business?
Doll makers have to be willing to change with the public in order to stay relevant to their audience. Classic dolls like Madame Alexander’s are still in high demand by the most hard-core of collectors, but for the most part, the traditional dolls aren't as valuable anymore. Iconic dolls like Barbie are no longer on the lips of every young girl because they’re no longer the only fad in the nation.
Owners may instead want to focus on finding a way to distinguish their dolls. Companies like American Girl have built an empire because they concentrated on a select few girls growing up in different time periods. Their costumes, stories, and desires were all fueled by the time and location in which they grew up. Taking a very different approach, dolls like Bratz celebrate girls who want to be funky and fun-loving.
For a doll maker to find their own niche, they have to be willing to experiment with different types of styles while at the same time sticking to a general business plan. The business plan will have to include milestones for how much money you want to make and how you intend to expand.
How and when to build a team
Most doll makers will begin their business as a hobby on their own before branching out to greener pastures. You should not be building a team until you’re certain you can meet your own financial goals and that you’re unable to handle the total workload. When you do hire, look for people who can either manage the logistics of your many orders, or who can actively help you assemble and create the dolls. Team members should give you more time to focus on new concepts or methodologies for your line of dolls.