The name says it all. In terms of a specialty retail business, this is one of the best. The book side of the business will be of interest to traditional parents. Try to stock hard-to-find titles covering a wide range of topics revolving around children's interaction or involvement. On the software side, try to include software applications for children and for parents to use with children. Good topics include games, education, how-to, music, sports and family relationships. If you have the room and inclination, you can also stock toys that are licensed from book characters or children's music and videos. You won't need a lot of floor space for the store; however, as a traditional retail business, there are three words to live by: "Location, location, location." Be sure the store is located in a visible, high-traffic area. You may also want to consider being a "retail store within a retail store." Excellent matches for this type of retail arrangement include grocery stores, large children's clothing retailers, and family entertainment centers.
Your customers will be families with young children.