Are you about starting a sneaker store? If YES, here is a complete sample sneaker store business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a sneaker store. We also took it further by analyzing and drafting a sample sneaker store business marketing plan template backed up by actionable guerrilla marketing ideas for sneaker stores. So let’s proceed to the business planning section.
A sneaker store business is one of the many businesses that can be started in any part of the world and the owner of the business can make good profit from the business if the store is stocked with varieties of sneakers and other footwear from different designers. The truth is that the demand for sneakers is not going to abate soon, but rather it will be on the increase.
If you are tinkering with opening your sneaker store, then you must take out time to learn the art of buying and selling alongside other soft skills like customer service skills, accounting skills, bargaining skills amongst others.
Before launching this type of business, it will pay you carry out your due diligence as it relates to market research, economic and cost analysis and of course feasibility studies. If you get things right before launching your sneaker store business, it will not take you long before you breakeven and start smiling to the bank.
So, if you have decided to open a sneaker store, then you should ensure that you carry out feasibility studies and also market survey. This will enable you properly locate the business and then hit the ground running. Business plan is yet another very important business document that you should not take for granted when launching your business.
Below is a sample sneaker store business plan template that can help you to successfully write your own with little or no hassles.
A Sample Sneaker Store Business Plan Template
1. Industry Overview
Businesses in the Athletic Shoe Stores industry retail footwear for men, women and children. They are involved in the sale of shoes and footwear in different forms such as rubber and plastic footwear, sneakers, protective footwear (Safety boots), house slippers and slipper socks.
Companies in this line of business also retail men’s or women’s footwear specifically designed for casual, formal and work environments. These products also include men’s or women’s shoes with rubber or plastic soles and leather or vinyl uppers.
Research conducted by IBISWORLD shows that the Athletic Shoe Stores industry has grown strongly over the five years to 2017 due to economic growth and rising sports participation. The public is becoming increasingly aware of the obesity epidemic in the united states, stirring up a wave of health consciousness that has encouraged Americans to exercise, and therefore buy athletic shoes.
Furthermore, increased athletic activity puts more wear and tear on athletic shoes, necessitating more frequent purchases to replace worn-out footwear.
As a result, IBISWorld estimates that revenue will grow at an annualized rate of 3.0 percent to total $14.2 billion over the five years to 2017. Revenue is estimated to rise at 2.2 percent in 2017 alone, as rising disposable incomes enable consumers to afford premium-priced shoes.
Statistics has it that in the United States of America alone, the Athletic Shoe Stores industry generates over $14 billion annually from more than 8,390 registered and licensed sneaker stores in the country. The industry is responsible for the employment of over 93,665 people.
Experts project the athletic shoes industry to grow at a 3.0 percent annual rate. The companies holding the largest market share in the Athletic Shoe Stores industry in the United States of America and perhaps the world are Foot Locker Retail Inc. and Nike Inc.
Despite the fact that the industry seems over- saturated, but there is still room big enough to accommodate aspiring entrepreneurs who intend opening their own sneaker stores. Some of the factors that encourage entrepreneurs to start their own sneaker businesses are that the business is easy to set up and manage with minimal startup capital.
You can choose to start this business on a small scale in a street corner like the average mom and pop business or you can choose to start on a large scale with several outlets in key cities across the United States of America.
2. Executive Summary
Michael Adamson® Sneaker Store, Inc. is a registered sneaker store that will be located in one of the busiest streets in Westchester County – New York. We have been able to lease a facility that is big enough to fit into the kind of sneaker store that we intend launching.
Michael Adamson® Sneaker Store, Inc. will retail a wide range of men’s, women’s, children’s sneakers, and other types of athletic shoes from different brands in the United States and other countries of the world. We are set to service a wide range of clientele in and around Westchester County – New York.
We are aware that there are several sneaker outlets around Westchester County – New York, which is why we spent time and resources to conduct a thorough feasibility studies and market survey so as to favorably compete with all our competitors. We have an online service option for our customers, and our outlet has various payment options.
Michael Adamson® Sneaker Store, Inc. will ensure that all our customers are given first class treatment whenever they visit our store. We have a CRM software that will enable us manage a one on one relationship with our customers no matter how large they may grow to.
Michael Adamson® Sneaker 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.
Michael Adamson® Sneaker Store, Inc. is owned by Michael Adamson. Michael Adamson has a B.Sc. in Business Administration, with over 5 years’ experience in the athletic shoe stores industry, working for some of the leading brands in the United States. Although the business is launching out with just one outlet in Westchester County – New York, but there is a plan to open other outlets in major cities in the United States.
3. Our Products and Services
Michael Adamson® Sneaker Store, Inc. is in the sneaker business 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 sneakers and other athletic shoes from top manufacturing brands in the United States and other countries of the world.
Our product offerings are listed below;
- Retailing children’s sneakers
- Retailing men’s sneakers
- Retailing women’s sneakers
- Retailing athletic shoes (including sport-specific shoes like cleats and bowling shoes)
4. Our Mission and Vision Statement
- Our vision is to become one of the leading brands in the sneaker business in New York and to establish a one stop sneaker store in Westchester County – New York and in other key cities in the United States of America.
- Our mission is to establish a world – class sneaker store business that will make available a wide range of sneakers from top shoe manufacturing brands at affordable prices to the residents of Westchester County – New York and other key cities in the United States of America where we intend offering franchise.
Our Business Structure
The Business model and structure we intend putting in place is such that can support the growth of the business especially as it relates to opening chains of outlets. The fact that we will also give our customers the opportunity to make purchase online means that we just have the put the right business structure and foundation in place.
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. 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
- 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
- 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
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
Admin and HR Manager
- Maintains office supplies by checking stocks; placing and expediting orders; evaluating new products.
- Defines job positions for recruitment and managing interviewing process
- Carries out 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 sneakers and other athletic shoes are kept and warehouse does not run out of products
- Ensures that the store facility is in tip top shape and goods are properly arranged and easy to locate
- Controls distribution and supply inventory
- Manages vendor relations, market visits, and the ongoing education and development of the organizations’ buying teams
- Helps to ensure that quality sneakers and other athletic 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
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
- Identifies, prioritizes, and reaches out to new partners, and business opportunities et al
- Identifies development opportunities; follows up on development leads and contacts
- 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 and online store
- 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
- Manages the organization’s CCTV
- Handles any other technological and IT related duties.
- Responsible for preparing financial reports, budgets, and financial statements for the organization
- Provides managements with financial analyses, development budgets, and accounting reports
- 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
- Makes suggestions and encourage purchase of products
- Bags or package purchases and gift wrap merchandise
- Responsible for cleaning all the sneakers and the store facility at all times
- Ensure that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the store manager.
6. SWOT Analysis
We intend starting with just one sneaker store to enable us 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.
We are quite aware that there are several sneaker stores, shoe stores and sport shops that retail sneakers all over Westchester County 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 equipped to confront our threats.
Michael Adamson® Sneaker 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 Michael Adamson® Sneaker 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 sneakers and other athletic shoes from different brands and our excellent customer service culture will definitely count as a strong strength for Michael Adamson® Sneaker Store, Inc.
A major weakness that may count against us is the fact that we are a new sneaker store outlet in Westchester County – New York and we don’t have the financial capacity to compete with multi – million dollars’ sneaker outlets like Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company, Payless Shoes and co when it comes to retailing at a rock bottom prices.
The fact that we are going to be operating our sneaker store in one of the most visited shopping malls in Westchester County – New York provides us with unlimited opportunities to sell our sneakers to a large number of customers. 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 sneaker store; 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 sneaker retail outlet in same location where ours is located. So also, unfavorable government policies may also pose a threat for our business.
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 industry.
So also, the rising demand for trendy sneakers, 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 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 multichannel 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, sneaker 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.
The sneaker 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 sneaker store is located.
8. Our Target Market
Possibly it will be safe to submit that the sneaker 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.
In view of that, we have positioned our sneaker store to service the residents of Westchester County – New York and every other location where our franchise stores will be located. 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 sneakers to the following groups of people;
- Men and women
- Bachelors and Spinsters
- Corporate Executives
- Sports men and women
Our competitive advantage
A close study of the athletic shoe 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 stiff competition and we are prepared to compete favorably with other leading sneaker stores in Westchester County – New York.
One thing is certain; we will ensure that we have a wide range of sneakers and other athletic shoes from leading manufacturers available in our store at all times. It will be difficult for customers to visit our sneaker store and not see the type of sneaker they are looking for.
One of our business goals is to make Michael Adamson® Sneaker Store, Inc. a one stop sneaker shop in the city. 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 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
We are in the sneaker 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 sneakers at affordable prices.
Michael Adamson® Sneaker Store, Inc. will generate income by selling the following products;
- Retailing children’s sneakers
- Retailing men’s sneakers
- Retailing women’s sneakers
- Retailing athletic shoes (including sport-specific shoes like cleats and bowling shoes)
10. Sales Forecast
One thing is certain when it comes to sneaker stores, if your store is stocked with various types of sneaker and is centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue for the business.
We have been able to examine the sneaker stores industry, we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. Below is the sales projection for Michael Adamson® Sneaker Store, Inc. it is based on the location of our business and other factors as it relates to sneaker 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 was 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 sneaker 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 to launch Michael Adamson® Sneaker Store, Inc., we conducted a thorough market survey and feasibility studies in order for us to be able to penetrate the available market and become the preferred choice in Westchester County – New York.
We hired experts who have good understanding of the sneaker 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 Westchester County – New York.
In summary, Michael Adamson® Sneaker Store, Inc. will adopt the following sales and marketing approach to win customers over;
- Open our sneaker store in a grand style with a party for all
- Introduce our sneaker store by sending introductory letters alongside our brochure to households and key stake holders in Westchester County – New York
- Ensure that we have a wide range of sneakers from different brands at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our sneakers store
- Position our signage/flexi banners at strategic places around Westchester County – New York
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on roadshows within our neighborhood to create awareness for our sneakers 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 sneaker store is well located, we will still go ahead to intensify publicity for the business. Michael Adamson® Sneaker Store, Inc. has a long term plan of opening outlets in various locations in the United States which is why we will deliberately build our brand to be well accepted in Westchester County before venturing out.
Here are the platforms we intend leveraging on to promote and advertise Michael Adamson® Sneaker Store, Inc.;
- Place adverts on community based newspapers, radio 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, Google+ and other platforms to promote our business.
- Ensure that our we position our banners and billboards in strategic positions all around Westchester County – New York
- Distribute our fliers and handbills in target areas in and around our neighborhood
- Advertise our sneaker 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 wear 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 a sneaker store, it is normal for consumers to go to shoe retail outlets where they can get sneakers at cheaper price which is why big player in the industry like Design Shoe Warehouse (DSW), Foot Locker Inc., Brown Shoe Company, Payless Shoes and co will attract loads of clients.
We know we don’t have the capacity to compete with the big names, but we will ensure that the prices and quality of all the sneakers that are available in our store are competitive with what is obtainable amongst sneakers stores within our level.
- Payment Options
The payment policy adopted by Michael Adamson® Sneaker 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 Michael Adamson® Sneaker Store, Inc. will make available to her clients;
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
In view of the above, we have chosen banking platforms that will enable our clients make payment for sneakers purchase without any stress on their part. Our bank account numbers will be made available on our website and promotional materials.
13. Startup Expenditure (Budget)
Having done our due diligence, we were able to pinpoint the areas where we will spend our startup capital and here are they are;
- The total fee for registering the Business in the Unites States of America – $750.
- Legal expenses for obtaining licenses and permits as well as accounting services (software, P.O.S machines and other software) – $3,300.
- Promotional expenses for the grand opening of Michael Adamson® Sneaker 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.
- The cost for hiring Business Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of $65,600.
- The 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 sneakers from different brands) – $70,000
- The cost for store equipment (cash register, security, ventilation, signage) – $13,750
- The 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 $250,000 to successfully set up our sneaker store in Westchester County – New York.
Generating Startup Capital for Michael Adamson® Sneaker Store, Inc.
Michael Adamson® Sneaker Store, Inc. is a private registered business that is solely owned and financed by Michael Adamson. He has decided to restrict the sourcing of the startup capital to 3 major sources.
- Generate part of the startup 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 $50,000 (Personal savings $30,000 and soft loan from family members $20,000) and we are at the final stages of obtaining a loan facility of $200,000 from our bank. All the papers and documents 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 number of loyal customers that they have, the capacity and competence of their employees, their investment strategy and business structure. If all of these factors are missing from a business, then it won’t be too long before the business closes shop.
One of our major goals of starting Michael Adamson® Sneaker Store, Inc. is to build a business that will survive off its own cash flow without 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 sneakers a little bit cheaper than what is obtainable in the market and we are prepared to survive on lower profit margin for a while.
Michael Adamson® Sneaker 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.
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.
- 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
- 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 sneakers: In Progress