Are you about starting an online shoe store? If YES, here is a complete sample retail shoe store business plan template & feasibility report you can use for FREE. The major things you need to have in place to make success from this type of business is a good location, easy access to wholesale supply of quality shoes and good customer service skill.
The truth is that if you shop is located in an area with good human and vehicular traffic, and you have quality shoes (for male and female, adult and children) from different brands, you may not have to struggle to get people to visit your shop and make purchase. So if you have decided to open a shoe retail store, then you should ensure that you carry out feasibility studies and also market survey.
A Sample Online Shoe Store Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
As the name of the business implies, shoes retailing stores basically retail footwear. Shoes stores primarily purchase footwear from wholesalers and retail them directly to end users – customers. The Shoe Stores industry, just like most businesses in the retailing industry, depends on strong consumer spending to spur the demand for industry products.
Over the last half a decade, the economy has begun recovering from recessionary declines with both the Consumer Confidence Index and disposable income increasing. Going forward, as the economy of the united states continues to recover and consumers are expected to loosen their discretionary budgets, the industry is anticipated to thrive.
The Shoe Retail Stores industry is indeed a major sector of the economy of the United States of America and they generates a whooping sum of well over $35 billion annually from more than 11,157 shoes retail outlets scattered all around the United States of America.
The industry is responsible for the employment of well over 213,931 people. Experts project that the industry will grow at a 2.4 percent annual rate. The establishment in this industry that has dominant market shares in the United States of America are; Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company and Payless Shoes. In combination, they account for roughly 31.7 percent of the revenue generated in the industry.
It is a fact that an estimated two-thirds of the United States’ gross domestic product (GDP) comes from the general retail industry of which the shoes retail stores industry contributes greatly. This is why the United States of America’s economy is measured with the yardstick of how well the retailing business is fairing in the U.S
In essence, when there is an unstable economy, purchasing power drops and it impacts the retailing / shoes retailing stores industry negatively which may result in the closure of some furniture retail stores.
Over and above, the shoes retail store industry is a profitable industry and it is open for any aspiring entrepreneur to come in and establish his or her business; you can chose to start on a small scale in a street corner or you can choose to start on a large scale with several outlets in key cities through the United States of America and Canada.
2. Executive Summary
Louis & Louisa Shoe Store®, Inc. is a standard and registered shoe retail store business that will be located in one of the busiest streets in Charleston – West Virginia.
We have been able to lease a facility that is big enough (a 5 thousand square foot facility) to fit into the design of the kind of standard shoe retail store that we intend launching and the facility is located in a corner piece directly opposite the largest residential estate in Charleston – West Virginia.
Louis & Louisa Shoe Store®, Inc. will retail men’s shoes, women’s shoes, men’s athletic shoes, women’s athletic shoes, children’s shoes, slippers and other types of shoes such as Hosiery and sports footwear, golf shoes, bowling shoes and cleats et al from different manufacturers (brands) from the United States and abroad. We are set to services a wide range of clientele in and around Charleston – West Virginia.
We are aware that there are several large and small chains of shoe retail store outlets all around Charleston – West Virginia, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to be well positioned to favorably compete with all our competitors.
We have an online – service option for our customers, and our outlet is well secured with various payments of options. Louis & Louisa Shoe Store®, Inc. will ensure that all our customers are given first class treatment whenever they visit our shoe retail store.
We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large the numbers of our customers’ base may grow to. We will ensure that we get our customers involved in the selection of brands that will be on our shoe racks and also when making some business decisions.
Louis & Louisa Shoe Store®, Inc. will at all times demonstrate her commitment to sustainability, both individually and as a firm, by actively participating in our communities and integrating sustainable business practices wherever possible.
We will ensure that we hold ourselves accountable to the highest standards by meeting our customers’ needs precisely and completely whenever they patronize our products. We will cultivate a working environment that provides a human, sustainable approach to earning a living, and living in our world, for our partners, employees and for our customers.
Louis & Louisa Shoe Store®, Inc. is a family business that is owned by Louis Anderson and his twin sister and business partner Louisa Anderson. Louis Anderson has a B.Sc. in Business Administration, with well over 5 years of experience in the shoe retailing stores industry, working for some of the leading brand in the United States.
Although the business is launching out with just one outlet in Charleston – West Virginia, but there is a plan to open other outlets all around major cities in the United States and Canada.
3. Our Products and Services
Louis & Louisa Shoe Store®, Inc. is in the shoe retail stores industry to service a wide range of clients and of course to make profits, which is why we will ensure we go all the way to make available a wide range of shoes from top manufacturing brands in the United States and other countries of the world.
We will ensure that we do all that is permitted by the law of the United States to achieve our aim and ambition of starting the business. Our product offerings are listed below;
- Retailing children’s shoes
- Retailing athletic shoes (including sport-specific shoes like cleats and bowling shoes)
- Retailing men’s casual and formal shoes
- Retailing women’s casual and formal shoes
- Retailing slippers and other shoes
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the shoe retail stores industry in West Virginia and to establish a one stop shoe retail store in Charleston – West Virginia and in other key cities in the United States of America and Canada.
- Our mission is to establish a world – class shoe retail store business that will make available a wide range of shoes from top shoe manufacturing brands at affordable prices to the residence of Charleston – West Virginia and other key cities in the United States of America and Canada where we intend opening of chains of shoe retail stores and franchise.
Our Business Structure
Louis & Louisa Shoe Store®, Inc. do not intend to start a shoe retail store business like the usual mom and pop business around the street corner; our intention of starting a shoe retail store business is to build a standard and one stop shoe retail store outlet in Charleston – West Virginia.
Although our shoe retail store business might not be as big as Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company and Payless Shoes et al, but will ensure that we put the right structure in place that will support the kind of growth that we have in mind while setting up the business.
We will ensure that we hire people that are qualified, honest, customer centric and are ready to work to help us build a prosperous business that will benefit all the stake holders (the owners, workforce, and customers).
As a matter of fact, profit-sharing arrangement will be made available to all our senior management staff and it will be based on their performance for a period of ten years or more. In view of that, we have decided to hire qualified and competent hands to occupy the following positions;
- Chief Executive Officer (Owner)
- Store Manager
- Human Resources and Admin Manager
- Merchandize Manager
- Sales and Marketing Manager
- Information Technologist
- Accountants / Cashiers
- Sales Agents / Customer Services Executive
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions; providing educational opportunities.
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Reports to the board
Admin and HR Manager
- Responsible for overseeing the smooth running of HR and administrative tasks for the organization
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Ensures operation of equipment by completing preventive maintenance requirements; calling for repairs.
- Updates job knowledge by participating in educational opportunities; reading professional publications; maintaining personal networks; participating in professional organizations.
- Enhances department and organization reputation by accepting ownership for accomplishing new and different requests; exploring opportunities to add value to job accomplishments.
- Defines job positions for recruitment and managing interviewing process
- Carries out staff induction for new team members
- Responsible for training, evaluation and assessment of employees
- Responsible for arranging travel, meetings and appointments
- Oversees the smooth running of the daily office activities.
- Responsible for managing the daily activities in the store
- Ensures that proper records of shoes are kept and warehouse does not run out of products
- Ensure that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Interfaces with third – party suppliers (vendors)
- Controls shoes distribution and supply inventory
- Supervises the workforce in the shoe sales floor.
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure consistent quality of shoes from different manufacturers are purchased and retailed in good price that will ensure we make good profit
- Responsible for planning sales, monitoring inventory, selecting the merchandise, and writing and pricing orders to vendors
- Ensures that the organization operates within stipulated budget.
Sales and Marketing Manager
- Manages external research and coordinate all the internal sources of information to retain the organizations’ best customers and attract new ones
- Models demographic information and analyze the volumes of transactional data generated by customer purchases
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts; participates in the structuring and financing of projects; assures the completion of development projects.
- Responsible for supervising implementation, advocate for the customer’s needs, and communicate with clients
- Develops, executes and evaluates new plans for expanding increase sales
- Documents all customer contact and information
- Represents the company in strategic meetings
- Helps to increase sales and growth for the company
- Manages the organization website
- Handles ecommerce aspect of the business
- Responsible for installing and maintenance of computer software and hardware for the organization
- Manages logistics and supply chain software, Web servers, e-commerce software and POS (point of sale) systems
- Manage the organization’s CCTV
- Handles any other technological and IT related duties.
Accountant / Cashier:
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
- Responsible for financial forecasting and risks analysis.
- Performs cash management, general ledger accounting, and financial reporting
- Responsible for developing and managing financial systems and policies
- Responsible for administering payrolls
- Ensures compliance with taxation legislation
- Handles all financial transactions for the organization
- Serves as internal auditor for the organization
Client Service Executive
- Ensures that all contacts with clients (e-mail, walk-In center, SMS or phone) provides the client with a personalized customer service experience of the highest level
- Through interaction with customers on the phone, uses every opportunity to build client’s interest in the company’s products and services
- Manages administrative duties assigned by the human resources and admin manager in an effective and timely manner
- Consistently stays abreast of any new information on the organizations’ products, promotional campaigns etc. to ensure accurate and helpful information is supplied to customers when they make enquiries (answer customer queries regarding the store and the merchandise)
- Finds out the customer’s needs, recommend, select and help locate the right merchandise, describe a product’s features and benefits.
- make suggestions and encourage purchase of products
- Provides information about warranties, manufacturing specifications, care and maintenance of merchandise and delivery options
- Bags or packages purchases and gift wrap merchandise
- Responsible for cleaning all the shoes and the store facility at all times
- Ensures that toiletries and supplies don’t run out of stock
- Cleans both the interior and exterior of the store facility
- Handles any other duty as assigned by the store manager.
6. SWOT Analysis
Our intention of starting just one outlet of our shoe retail store in Charleston – West Virginia is to test run the business for a period of 2 to 5 years to know if we will invest more money, expand the business and then open other outlets all over major towns in West Virginia and key cities in the United States and Canada.
We are quite aware that there are several shoe retail stores all over Charleston and even in the same location where we intend locating ours, which is why we are following the due process of establishing a business.
We know that if a proper SWOT analysis is conducted for our business, we will be able to position our business to maximize our strength, leverage on the opportunities that will be available to us, mitigate our risks and be welled equipped to confront our threats.
Louis & Louisa Shoe Store®, Inc. employed the services of an expert HR and Business Analyst with bias in retailing to help us conduct a thorough SWOT analysis and to help us create a Business model that will help us achieve our business goals and objectives. This is the summary of the SWOT analysis that was conducted for Louis & Louisa Shoe Store®, Inc.;
Our location, the business model we will be operating on both (physical store and online store), varieties of payment options, wide range of footwear and our excellent customer service culture will definitely count as a strong strength for Louis & Louisa Shoe Store®, Inc. So also our team of highly qualify staff members is also a plus for us.
A major weakness that may count against us is the fact that we are a new shoe retail store outlet in Charleston – West Virginia and we don’t have the financial capacity to compete with multi – million dollars shoe retail store outlets like Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company, Payless Shoes and co when it comes to retailing at a rock bottom prices for all their shoes.
The fact that we are going to be operating our shoe retail store in one of the busiest streets in Charleston – West Virginia provides us with unlimited opportunities to sell our shoes to a large number of individuals and corporate organizations.
We have been able to conduct thorough feasibility studies and market survey and we know what our potential clients will be looking for when they visit our shoe store outlets; we are well positioned to take on the opportunities that will come our way.
Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing / spending power. Another threat that may likely confront us is the arrival of a new shoe retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for businesses such as ours.
7. MARKET ANALYSIS
- Market Trends
If you are conversant with the Shoe Stores Industry, you will quite agree that the changes in disposable income, consumer sentiment, and ever changing trends are major growth drivers for sales in this industry. No doubt, a massive rise in consumer confidence has also contributed in helping the industry experience remarkable growth, but uneven performance in these drivers has led to slightly constrained revenue growth for the Shoe Stores industry.
So also, the rising demand for trendy footwear, as a result of increasing disposable income and consumer sentiment, will result in revenue growth, but profit margins will stagnate as shoe stores keep prices low to attract more sales amid growing competition.
A close watch on the industry activities reveals that, concentration has increased slightly over the past five years, as merger and acquisition activity has become more prominent. Additionally, companies that have enough funds to invest in multi-channel operations have benefitted more than smaller operators with minimal resources.
This trend has been illustrated by statements made by Design Shoe Warehouse – DSW’s CEO Mike MacDonald on several occasions. As part of marketing strategies, shoe retail stores engage in massive clearance sales and discount sales to attract customers. It is a strategy that helps them welcome new customers and also reinforce the loyalty of old customers.
Lastly, in recent time, the shoe retail stores landscape has seen tremendous changes in the last 20 years; it has grown from the smaller outlets to a more organized and far reaching venture. The introduction of franchise and online store makes it easier for a retailer to reach out to a larger market far beyond the areas where his physical shoe retail store is located.
8. Our Target Market
Possibly it will be safe to submit that the shoe retail stores industry has the widest range of customers; almost everybody on planet earth need one form of footwear or the other especially if they can afford it. For instance, it will be difficult to find any sane man or woman on the street of Charleston – West Virginia without shoe.
In view of that, we have positioned our shoe retail store to service the residence of Charleston – West Virginia and every other location where franchise cum outlets of our shoe retail stores will be located all over key cities in the United States of America and Canada.
We have conducted our market research and feasibility studies and we have ideas of what our target market would be expecting from us. We are in business to retail a wide range of shoes to the following groups of people and corporate organizations;
- Men and women
- Bachelors and Spinsters
- Corporate Executives
- Business People
- About to wed couples
- Sports men and women
A close study of the shoes retail stores industry reveals that the market has become much more intensely competitive over the last decade. As a matter of fact, you have to be highly creative, customer centric and proactive if you must survive in this industry. We are aware of the stiffer competition and we are well prepared to compete favorably with other leading shoe retail stores in Charleston – West Virginia and throughout the United States and Canada.
Louis & Louisa Shoe Store®, Inc. is launching a standard one stop shoes retail store that will indeed become the preferred choice of residence of Charleston – West Virginia and every other location where our outlets will be opened.
Our shoes retail store is located in a corner piece property on a busy road directly opposite one of the largest residential estates in Charleston – West Virginia. We have enough parking spaces that can accommodate well over 30 cars per time.
One thing is certain; we will ensure that we have a wide range of footwear from leading manufacturers available in our store at all times. It will be difficult for customers to visit our shoe store and not see the type of footwear they are looking for.
One of our business goals is to make Louis & Louisa Shoe Store®, Inc. a one stop shoe shop for both household and corporate organizations. Our excellent customer service culture, online store, various payment options and highly secured facility will serve as a competitive advantage for us.
Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category (startups shoes retail stores) in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and achieve all our aims and objectives. We will also give good working conditions and commissions to freelance sales agents that we will recruit from time to time.
9. SALES AND MARKETING STRATEGY
- Sources of Income
Louis & Louisa Shoe Store®, Inc. is in business to retail a wide range of footwear to the residence of Charleston – West Virginia. We are in the shoe retail stores industry to maximize profits and we are going to go all the way out to ensure that we achieve or business goals and objectives.
In essence, our source of income will be the retailing of a wide range of footwear at affordable prices. Louis & Louisa Shoe Store®, Inc. will generate income by selling the following products;
- Retailing children’s shoes
- Retailing athletic shoes (including sport-specific shoes like cleats and bowling shoes)
- Retailing men’s casual and formal shoes
- Retailing women’s casual and formal shoes
- Retailing slippers and other shoes
10. Sales Forecast
One thing is certain when it comes to shoe retail stores, if your store is well stocked with various types of footwear and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.
We are well positioned to take on the available market in Charleston – West Virginia and we are quite optimistic that we will meet our set target of generating enough income / profits from the first six month of operations and grow the business and our clientele base.
We have been able to critically examine the shoe retail stores industry and we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Charleston – West Virginia.
Below is the sales projection for Louis & Louisa Shoe Store®, Inc. it is based on the location of our business and other factors as it relates to shoe retail stores start – ups in the United States;
- First Fiscal Year-: $250,000
- Second Fiscal Year-: $450,000
- Third Fiscal Year-: $750,000
N.B: This projection is done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor retailing same shoe brands and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.
- Marketing Strategy and Sales Strategy
Before choosing a location for Lord Louis & Louisa Shoe Store®, Inc., we conduct a thorough market survey and feasibility studies in order for us to be able to be able to penetrate the available market and become the preferred choice for residence of Charleston – West Virginia. We have detailed information and data that we were able to utilize to structure our business to attract the numbers of customers we want to attract per time.
We hired experts who have good understanding of the shoe retail stores industry to help us develop marketing strategies that will help us achieve our business goal of winning a larger percentage of the available market in Charleston – West Virginia.
In other to continue to be in business and grow, we must continue to sell the footwear that are available in our store which is why we will go all out to empower or sales and marketing team to deliver. In summary, Louis & Louisa Shoe Store®, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our shoe store in a grand style with a party for all
- Introduce our shoe store by sending introductory letters alongside our brochure to organizations, households and key stake holders in Charleston – West Virginia
- Ensure that we have a wide range of footwear from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our shoe store
- Position our signage / flexi banners at strategic places around Charleston – West Virginia
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our shoe store.
- List our business and products on yellow pages ads (local directories)
- Leverage on the internet to promote our business
- Engage in direct marketing and sales
- Encourage the use of Word of mouth marketing (referrals)
11. Publicity and Advertising Strategy
Despite the fact that our shoe store is well located, we will still go ahead to intensify publicity for the business. We are going to explore all available means to promote our shoe store.
Louis & Louisa Shoe Store®, Inc. has a long term plan of opening outlets in various locations all around West Virginia and key cities in the United States and Canada which is why we will deliberately build our brand to be well accepted in Charleston before venturing out.
As a matter of fact, our publicity and advertising strategy is not solely for winning customers over but to effectively communicate our brand. Here are the platforms we intend leveraging on to promote and advertise Louis & Louisa Shoe Store®, Inc.;
- Place adverts on community based newspapers, radio stations and TV stations.
- Encourage the use of word of mouth publicity from our loyal customers
- Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook ,Twitter, LinkedIn, Snapchat, Badoo, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Charleston – West Virginia
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Contact corporate organizations, households, landlord associations and schools by calling them up and informing them of Louis & Louisa Shoe Store®, Inc. and the products we sell
- Advertise our shoe store business in our official website and employ strategies that will help us pull traffic to the site
- Brand all our official cars and trucks and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.
12. Our Pricing Strategy
Aside from quality, pricing is one of the key factors that gives leverage to shoe stores, it is normal for consumers to go to places (shoe retail outlets) where they can get footwear at cheaper price which is why big player in the shoe stores industry like Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company, Payless Shoes and co will attract loads of corporate and individual clients.
We know we don’t have the capacity to compete with Caleres, Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company, Payless Shoes and co but we will ensure that the prices and quality of all the footwear products that are available in our store are competitive with what is obtainable amongst shoe stores within our level.
- Payment Options
The payment policy adopted by Louis & Louisa Shoe Store®, Inc. is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.
Here are the payment options that Louis & Louisa Shoe Store®, Inc. will make available to her clients;
- Payment via bank transfer
- Payment with cash
- Payment via credit cards / Point of Sale Machines (POS Machines)
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
In view of the above, we have chosen banking platforms that will enable our client make payment for farm produces purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials to clients who may want to deposit cash or make online transfer for our footwear.
13. Startup Expenditure (Budget)
In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting / leasing a big facility, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.
This means that the start-up can either be low or high depending on your goals, vision and aspirations for your business. The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked.
As for the detailed cost analysis for starting a shoe retail store business; it might differ in other countries due to the value of their money. This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of Louis & Louisa Shoe Store®, Inc. in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for Shop remodeling (construction of racks and shelves) – $20,000.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory (stocking with a wide range of footwear from different brands) – $250,000
- The cost for counter area equipment – $9,500
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Cost of purchase and installation of CCTVs: $10,000
- The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of launching a Website: $600
- The cost for our opening party: $7,000
- Miscellaneous: $10,000
We would need an estimate of $750,000 to successfully set up our shoe retail store in Charleston – West Virginia. Please note that this amount includes the salaries of all the staff for the first month of operation.
Generating Funds / Startup Capital for Louis & Louisa Shoe Store®, Inc.
Louis & Louisa Shoe Store®, Inc. is a private registered business that is solely owned and financed by Louis Anderson and his twin sister and business partner Louisa Anderson. They do not intend to welcome any external business partner which is why he has decided to restrict the sourcing of the start – up capital to 3 major sources.
These are the areas we intend generating our start – up capital;
- Generate part of the start – up capital from personal savings
- Source for soft loans from family members and friends
- Apply for loan from my Bank
N.B: We have been able to generate about $250,000 (Personal savings $200,000 and soft loan from family members $50,000) and we are at the final stages of obtaining a loan facility of $500,000 from our bank. All the papers and document have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.
14. Sustainability and Expansion Strategy
The future of a business lies in the numbers of loyal customers that they have the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business (company), then it won’t be too long before the business close shop.
One of our major goals of starting Louis & Louisa Shoe Store®, Inc. is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.
We know that one of the ways of gaining approval and winning customers over is to retail our wide range of quality footwear a little bit cheaper than what is obtainable in the market and we are well prepared to survive on lower profit margin for a while.
Louis & Louisa Shoe Store®, Inc. will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and re – training of our workforce is at the top burner.
As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of six years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Leasing of facility and remodeling the shop: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, racks, shelves, computers, electronic appliances, office appliances and CCTV: In progress
- Creating Official Website for the Company: In Progress
- Creating Awareness for the business both online and around the community: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Compilation of our list of products that will be available in our store: Completed
- Establishing business relationship with vendors – manufacturers and suppliers of footwear: In Progress
Frequently Asked Questions
How Do You Start A Shoe Store?
Here are a basic steps to help start a shoe store business.
- Choose a Business Niche
- Put Together a Business Plan
- Acquire Permits and Licenses
- Open Wholesale Accounts
- Lease a Storefront
- Organize Your Store
- Market Your Business
How Much Does It Cost To Start A Shoe Store?
Note that the cost to start a shoe store will more or less depend on some factors, including your business niche, the store’s size, and the volume of inventory you look to start with. However, you should expect to spend around $60,000 and up to start a small scale store. Note that bigger stores with more enormous inventory can cost around $150,000 and above to start.
Is A Shoe Store A Good Business?
Yes, a shoe store is a wonderful and lucrative enterprise to start especially for individuals who love fashion. Note that having extensive retail experience helps, and also the love and appreciation for shoes and apparel. People who love and adore accessories, like purses and jewelry will also enjoy starting and running a shoe store.
Where Can You Buy Shoes For Retail?
- Nike store
- Finish Line
- JD Sports
- Foot Locker
- Stadium Goods
How Do You Become A Nike Vendor?
To become a Nike vendor, here are steps to take;
- Email Nike’s retail services
- Download the PDF file
- Read the Terms and Conditions
- Fill out your ‘Retailer Business Profile’
- Fill the Nike Application and Agreement section
- Fill in information about your reseller license
- Secure a guarantor
How Do You Get A Deal With Nike?
Nike is renowned for changing the concept of athlete endorsements by signing lifetime agreements with Michael Jordan, Lebron James, and Cristiano Ronaldo. However, to get a deal with Nike, you only have to contact your sports agent or someone with legal expertise to discuss its terms. Take your time to make sure the terms are favorable to both parties. If it is not, you can renegotiate your contract.
Where Can You Search For Decor And Equipment For Shoe Stores?
- Shop Online
- Big Box Stores
- Department Stores
What Are Some Skills And Experiences That Will Help You Build A Successful Shoe Store?
To start and run a successful shoe store, you will need to have a good eye for marketing. You will also need to be conversant with acquiring wholesale shoes at good prices. Note that the business values of paying bills on time, conforming with shoe brand’s rules and all other industry regulations will boost your business.
How Can You Start A Shoe Store With No Money?
You can start a shoe store without much money. You can sell shoes online from your own store created with a platform like Shopify, on third-party marketplaces like Amazon and eBay, and on social media sites like Instagram and Facebook. In addition, there are niche marketplaces for shoes, like StockX and GOAT.
Do You Need A License To Resell Shoes?
Yes, you will need, at minimum, a seller’s permit to resell shoes. You will also need a general business license and also a business tax ID called a federal tax ID number or Employer Identification Number (EIN) to identify your business for tax purposes.
How Do You Go About Product Selection When Creating An Online Store For Shoes?
You go about product selection by first researching and studying the market carefully to know your target audience. Defining your target audience can solve this issue and also help your business strategies in many ways. Note that the audience in the online industry functions differently from that of a physical store. Physical store owners may not always interact with customers, but as an online shoe store, you need to have a clear understanding of your eCommerce target market.
How Much Money Does A Shoe Store Owner Make?
According to industry reports, an average shoe store in the United States generates around $851,076 in sales, with a profit of around $127,363 for the owner. These stores are known to offer a big return on investment, a little around 46 percent.
Can You Sell Nike On Shopify?
Yes, you can sell virtually anything on Shopify as long as they are legal products.
What Is The Average Markup On Shoes?
Around 100-500%, depending on sizes and styles.
How Much Does It Cost To Become A Nike Retailer?
According to the company, there is no cost to become a Nike retailer. However, since you are expected to own a physical or digital retail shop before putting in the proposal, you will have to invest in a sportswear store. Have it in mind that the exact amount of start up funding you require will depend on whether you want to own an online or brick-and-mortar sportswear shop.
Is Shoe Making Business Profitable?
Yes, shoe making is a very profitable venture, and according to industry statistics, the global market was valued at $365.5 billion in 2020 and is estimated to grow to $530.3 billion by 2027.
How Do You Go About Finding Wholesale Vendors?
- Do an online search
- Leverage the US customs database
- Attend trade shows
- Professional networks
- Subscribe to Industry’s Trade Publication
- Join Industry groups and forums
Where Is The Best Place To Start Selling?
Where Can You Find The Best Suppliers?
- Trade directories
- Trade shows and exhibitions
- Social networks
- Trade association
Can You Sell Nike On Amazon?
Yes, you can sell Nike on Amazon, but you have to seek and get approval.
How Do Top Retailers Acquire New Customers and Grow Online Sales?
- By choosing the right acquisition channels
- Making use of videos.
- Hosting giveaways.
- Leveraging referral program.
- Improving website and email engagement.
- The use of influencers.
- affiliate discounts
How Much Does A Sneaker Reseller Make?
As of Aug 17, 2022, the average annual pay for a Reseller in the United States is $95,190 a year, which is approximately $45.76 an hour, $1,831/week, or $7,932/month.