How to Start a Shoe Company? 2021 Guide
Many entrepreneurs who relate to the shoe selling business argue that this business is the best. These items are often bought by people, perhaps more so than clothing. If actual fashionistas become daily clients, then a steady income is assured for the entrepreneur. Women never believe they've got plenty of these things in the closet. We're going to talk today about how to open a successful shoe shop.
A pair of shoes
Description automatically generated A step-by-step plan:
Selecting a reputable supplier is the key to running any trade-related business. The terms of cooperation should ensure: The quality of the supplied goods. Stability and consistency. Small wholesale supplies. When dealing with Chinese vendors, this stage of the business organization needs careful attention. Cheap shoes from China for kids, men, and women are in great demand among buyers today. It is focused mainly on middle-income buyers and is available to most of the population. Choosing a place:
You can open stores with products from China with better traffic almost anywhere, where shopping areas are provided: Pavilion at the city clothing market. Boutique in a shopping center. Self-service store in a separate non-residential premise. Any of these options requires a certain number of funds to be spent in favor of the rent. Experts do not advise investing in the first choice, even though the sale claims to be big. Clothing markets are increasingly becoming outdated as trading platforms. We select an assortment:
You need to select the right collection to open a shop. It is recommended that experienced entrepreneurs stick to these rules: Choose styles that you would never wear when you buy them. The price and reliability do not always justify one another. It is easier to select the men's range of genuine leather items from China and the women's leatherette range. Initially, the average customer who comes to the shop may set a target of purchasing one good leather product, but, for the same money, he sometimes buys two or three pairs of leatherette shoes from China. Amount to start-up to open a shoe store:
One of the main questions of interest to all, without exception, novice entrepreneurs - how much money you need to have to open a shoe store, without loans and the help of investors. Of course, there is no universal answer in this case. An important role is played by your location, the size of the outlet, the assortment, and other factors, but you can make calculations based on the average statistical indicators in this area of ??business.
The initial investment required to open a shoe store: Registration and paperwork - $ 200. Advertising campaign - $ 1,000. Buy equipment & furniture - $ 2,000. Indoor repairs - $ 1,500. Purchase of the first batch of goods - $ 5,000-1,000. Additional costs - $ 300 The total amount needed to open a store is 10-15 thousand dollars.
Unfortunately, the items listed above are not all the costs associated with opening a store. The first month or two, until you reach the "break-even point", you need to pay staff salaries, rent, utilities, taxes, and also replenish your assortment with the most popular items. The total cost (taking into account that in a month the store will reach the level of self-sufficiency) will be about 2-4 thousand dollars.
Based on the above data, we can conclude that the minimum amount for opening a shoe store is 12 thousand dollars. If you plan to sell products that are an order of magnitude higher, you will need capital from $ 19 thousand. Purchase of furniture and equipment:
For a retail outlet to sell shoes, you need to buy: Racks that are installed in the warehouse (premises outside the sales area) for storing shoes. Showcases and podiums for placing shoes, as well as hanging shelves for accessories. Mirrors that are installed in the sales area so that the buyer can see the product he likes from all possible angles. Ottomans, rugs, and spoons. Staff table and chairs. Additional accessories for room decoration. In addition to the listed things, do not forget about the cash register, without it it is forbidden to accept cash from customers. Registration of the necessary documents:
For the operation of a shoe outlet, it is necessary, first of all, to draw up documents for an individual entrepreneur or LLC. The choice of the organizational and legal form for your activity is an individual issue that you must decide on your own. In addition to the standard set of documents confirming that you are registered with the tax office as an individual entrepreneur or LLC, and are a taxpayer, you must have:
An agreement on the lease of premises or a document confirming that it is your property. Papers on registration and maintenance of the cash register. Garbage collection agreement. Quality certificates for all products sold. Conclusion of representatives of the fire service. Employee recruitment papers.
Also, in a shoe store, it is necessary to arrange a buyer's corner, in which there should be a “Book of complaints and suggestions”. In addition to the listed documents and papers, to carry out commercial activities for the sale of shoes, you do not need to obtain additional permits and licenses.