Do you shop in hobby stores?  

oh i think i may be able to help. we own a gift and hobby shop. we are closing down at present, but my parents are retiring. great sellers are... beads and scrapbooking. you should think of doing something else together with it. its very expensive to set up. wedding and kids party favors is also a winner. baking supplies as well.

its really fun. maybe do some market research. go to your local nursery and primary schools and ask what they use mostly for their crafting. find out where they get it and how much they pay. then offer to find it for them at a better price. just to establish a few big customers. then word of mouth will take over and the parents will come to you.

I am into model trains but that would be very expensive to get into. The kids love to do beading, latch hook and making necklaces and bracelets out of hemp and colored embroidery thread. My mother in law is really into scrape booking and it really seems to be a popular thing. So beading and scrape booking would probably be a good start. I see stores that are doing very well just specializing in one of those. It might be easier to start online so you can start with a smaller inventory and work up to a bigger supply and then open a retail store. Good luck and I hope this can work out for you.